CoStar Group delivered a strong second quarter of 2025 with revenue up 15% to $781 million, its 57th consecutive quarter of double-digit growth, and adjusted EBITDA more than doubling to $85 million, both above the high end of guidance. Net new bookings set a company record at $93 million, up 65% sequentially, led by a record $45 million from Apartments.com and improving LoopNet and CoStar productivity. Homes.com showed clear momentum with NPS jumping from 9 to 38 and 6,300 net new members, though it remained early with revenue up only 8%. Management raised full-year revenue guidance to $3.135 billion to $3.155 billion and adjusted EBITDA to $370 million to $390 million, excluding the pending Domain acquisition agreed at AUD 4.43 per share. Analyst focus centered on Apartments.com competitive dynamics versus a discounting Zillow, Homes.com pricing and penetration strategy, and the tripling of the Homes.com sales force toward about 750 reps by year-end.
Thank you very much. Hello, everyone. Thank you for joining us to discuss CoStar Group's second quarter 2025 results. Before I turn the call over to Andy Florance, CoStar's CEO and founder, and Chris Lown, our CFO, I'd like to review our safe harbor statement. Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the third and fourth quarters and full year and beyond. Forward-looking statements may involve many risks, uncertainties, assumptions, and estimates, and other factors that can actually cause actual results to differ materially from such statements.
Important factors that can cause actual results to differ include, but are not limited to, those stated in CoStar Group's press release issued earlier today and in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q, including under the heading risk factors in those filings, as well as other filings with the SEC available on the SEC's website. All forward-looking statements are based on the information available to CoStar on the date of this call. CoStar assumes no obligation to update these statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Reconciliation to the most directly comparable GAAP measures of any non-GAAP financial measure discussed on this call are shown in detail in our press release issued today, along with the definitions for these terms.
Press release is available on our website, located at costargroup.com, under our press room. Please refer to today's press release on how to access the replay of this call. Remember, one question during the Q&A session to make it a good one. Now, with that, I'd like to turn the call over to our founder and CEO, Andy Florance. Andy.
I'd have to say, between the operator and Rich, you guys have set a very high bar for radio personality voices, so I'm going to try to live up to that. Thank you for joining CoStar Group's earnings call for the second quarter of 2025. I am very pleased to report another exceptional quarter. CoStar Group achieved revenue of $781 million, a strong 15% increase compared to last year. This marks our 57th consecutive quarter of double-digit revenue growth. Adjusted EBITDA rose significantly to $85 million, representing an impressive 108% increase compared to Q2 of 2024. Both revenue and adjusted EBITDA exceeded consensus estimates and were above the high end of our guidance range. Our commercial real estate information and marketplace businesses also delivered an outstanding profit margin of 43% this quarter. Net new bookings totaled $93 million, a remarkable 65% increase over the previous quarter.
This sets a new record as the highest quarterly net new bookings in CoStar Group's history. We're seeing strong performance across all our business segments, driven by strategic investments in expanding our sales force and innovative product development. Throughout 2025, we're growing our core sales team by 20% and tripling our Homes.com sales force from 230 representatives at the end of 2024 to about 750 by the end of 2025, all this to capture additional growth opportunities. Apartments.com had another excellent quarter, with revenue up 11% from Q2 2024, reaching $292 million. Our sales team achieved $45 million in net new bookings, the fourth-highest quarter ever, representing a 20% increase year-over-year. Apartments.com is approaching an annual revenue run rate of $1.2 billion and maintains a very strong EBITDA margin. I did have a percentage in there, but Chris had me take it out.
During the second quarter, our sales team had over 171,000 quality interactions with clients and prospects, maintaining an outstanding net promoter score of 94%. These interactions resulted in a 99% monthly renewal rate, the addition of 3,263 new rooftops for nearly 83,000 multifamily communities advertising on our platform. In the first half of 2025, we've already added 7,600 new apartment communities, more than we added throughout all of 2024, and we did it without steep discounting or paying hundreds of millions of dollars for inorganic revenue, as our main competitor did. To address the multi-billion dollar addressable market apartments, we're growing our Apartments.com sales team to 500 representatives in 2025. So far this year, we've added 65 new sales reps, with large training classes scheduled for July and August. In Q2, Apartments.com launched a marketing campaign generating over 4.8 billion media impressions.
The campaign reached renters across their favorite media channels and targeted landlords with new commercials featuring Brad Bellflower. We significantly increased our investment across key media channels, streaming video grew by 25%. Paid social by 13%, and digital by 130% compared to Q2 2024. Apartments.com was prominently featured during live sports events, including the NFL Draft, College World Series, PGA Tour, NBA, and MLB regular seasons, and across popular programming on Bravo, E!, CBS, Netflix, Paramount+, and Hulu. We also made our Canadian broadcast debut during Game 6 of the NHL Playoffs. With the launch of our New York City-specific search experience on Apartments.com, we ran targeted out-of-home advertising across all five boroughs in New York City and partnered with local influencers. The Apartments.com network averaged 42 million monthly unique visitors and 234 million network visits during this quarter, according to Google Analytics.
The latest Comscore data shows that all of the rental portals' traffic declined Q2 2025 over Q2 2024, but with Apartments.com network doing the best, with visits only down 11%, while Zillow Rental Network was down 13%. ApartmentGuide was down 21%. Rent.com was down dramatically, down 39%. Market research indicates that our unaided awareness among apartment seekers remained best in class at 68%, significantly higher than all primary competitors combined. Our closest competitor trails by 30 percentage points and the next closest by 58 points. Realtor.com's unaided awareness for apartments stood at only 4% in June. Apartments.com continues to deliver more leads and nearly twice as many leases as our two closest competitors combined, according to Entrata data. We believe the Apartments.com network holds the industry's most comprehensive inventory, with a record 2.2 million rental availabilities in June of 2025.
To further enhance exposure, we also feature Apartments.com listings in the Homes.com rental area, where traffic increased 26% year-over-year due to Homes.com's robust marketing efforts. CanadianApartments.com also continues to perform well, with visits up 31% and leads up 62% year-over-year. Since Q2 last year, we've grown our Canadian business by 300%, ending June with over 1,500 paying properties. Our presence at this year's National Apartment Association Apartmentalize convention in Las Vegas was highly successful. We hosted 1,500 clients at our kickoff party featuring Kenny Chesney, attracted 3,100 booth visitors, and generated over 500,000 in monthly net new bookings, translating to six million in annualized net new bookings. We showcased our latest AI-powered technology, including Matterport 3D tours and AI Voice Search, in an incredible interactive life-sized apartment exhibit called The Brad. We rolled out our new Matterport Max packages with great success.
Clients and prospects who experienced the power of Matterport at our booth were impressed and convinced of its value in accelerating the leasing process. These packages come with a Matterport Pro3 camera and allow clients to create a virtual twin of their units, all their units, common areas, and the entire building. Having a Matterport digital twin is becoming essential. 40% of apartment seekers look for communities in different cities, and 41% are willing to rent sight unseen if provided high-quality imagery. Significantly, 53% say they will stop considering a rental unit without detailed imagery. Consumers love the Matterport experience on Apartments.com. In Q2, they viewed Matterport's 67 million times, up 193% over the same period last year, spending 71% more time on listing detail pages with a Matterport 3D tour. Listings with a Matterport 3D tour received 23 times more leads than those without.
Later this year, Apartments.com and Homes will introduce an AI-powered voice search, allowing consumers to find properties by speaking naturally or typing free-form phrases. No more filtering required. We have also been working with the largest property management firms in the country to provide greater fee transparency for the market. Last week, in one of the top property managers in the country, we launched disclosure of their one-time and monthly fees associated with renting an apartment, creating complete fee transparencies for consumers on Apartments.com. Homes.com delivered a strong second quarter, achieving solidly positive sales growth after overcoming Q1 churn from the initial sales last year. Residential annualized net new bookings totaled $12 million for the quarter. Our expanding sales force drove consistent monthly growth, with May sales increasing 5% over April and June sales increasing 15% over May. Revenue for Q2 grew by 8% compared to Q2 of 2024.
We signed 6,300 net new members, representing a 56% increase in membership during the quarter. Our dedicated Homes.com sales team significantly increased product demos, rising more than sixfold from March last year to June. Our B2B marketing efforts generated the highest lead volume since launch, with over 3,600 leads to our sales team in June alone, resulting in more than 5,400 product demos, with a conversion rate exceeding 50%. The Homes.com network attracted an average of 111 million unique monthly visitors in Q2, according to Google Analytics, putting us well ahead of our third and fourth-ranked competitors. Our marketing campaign has successfully boosted unaided awareness intent among users. Unaided awareness has grown dramatically from 4% at the launch in 2024 to over 36% today or in Q2. Unaided intent has risen six points since April to reach 25%, signaling a major breakthrough in user engagement.
Member agents' listings on Homes.com achieved 22x greater reach compared to non-members, significantly enhancing consumer engagement. Listings for members received 7x more detailed views, 4x more favorites, and 6x more shares, resulting in faster sales and higher selling prices. Leveraging these marketing advantages, Homes.com members secure 62% more listings than non-members, with an outstanding return on investment, especially given the average new listing commission value of $15,000 against a monthly membership fee under $500. Our growing dedicated sales team is doing an increasingly effective job at educating agents about the value proposition of Homes.com. We have observed significant improvement in client satisfaction, reflected in rising net promoter scores. Our NPS grew from a modest three in Q4 of 2024 to nine in Q1 of 2025, and then it jumped substantially to 38 in Q2, marking a 340% quarter-over-quarter increase.
Additionally, our early cancellation or failed payment rate on 12-month contracts remained well below 1% throughout most of Q2. The newly launched Boost product has been successful. Boost provides sellers and their agents with a flexible marketing option, allowing single-property listings to be boosted on Homes.com to benefit from membership-level marketing. Since Q2 launch, we sold 1,270 Boosts. Boosted listings reach over 14,000 homebuyers with an average of 32 views per buyer, making Boosted listings 25% more likely to go under contract within 10 days. Can't pass that up. Nearly 25% of Boost users have converted to full Homes.com memberships, so the Boost program is a great lead pipeline for our sales force. This month, we launched a new advertising campaign for Homes.com, celebrating our success building an audience of over 100 million monthly unique visitors to the Homes.com network.
In this spot, Dan Levy and Heidi Gardner draw attention to Homes.com's massive audience to reinforce to real estate agents the value of marketing their properties and listings to this valuable audience cost-effectively on Homes.com. The spots also tell home shoppers that 100 million-plus people have chosen to use Homes.com, so perhaps they should check it out too. We believe that the majority of homebuyers, once they try Homes.com, prefer Homes.com. We strategically placed ads across popular networks, including CBS, Fox, ESPN, contextually relevant shows such as Girl Meets Farm and American Pickers, and major sporting events like the Stanley Cup Playoffs, NBA Finals, PGA Championship, MLB, and WNBA regular seasons. Additionally, we expanded digital and streaming sponsorships with Draft Kings and Roku, and audio and podcasting partnerships with Spotify and Amazon Music, collectively generating over 4 billion targeted paid media impressions.
Thank you, Andy. Good evening. I'm happy to report that CoStar has now reached its 57th consecutive quarter of double-digit revenue growth, coming in at 15%. We also achieved a commercial information and marketplace brands margin of 43% in the second quarter. As a reminder, this margin excludes Homes.com, OnTheMarket, and the recently acquired Matterport. Net new bookings for the second quarter were a record $93 million, representing a 65% sequential increase from the first quarter and a 38% increase year-over-year. Apartments.com, CoStar, and LoopNet all contributed strong bookings growth as our growing dedicated sales forces are delivering. Revenue for the second quarter was $781 million, exceeding the high end of guidance. Matterport revenue was $44 million in the second quarter, beating our guidance estimate and contributing to our outperformance in the second quarter. Second quarter adjusted EBITDA came in at $85 million, an 11% margin, also exceeding the high end of our guidance range.
The outperformance in adjusted EBITDA was a result of timing of investment spend, and our revenue beat this quarter. CoStar revenue grew 7% in the second quarter ahead of guidance. Sales rep productivity has steadily improved over the past six quarters, and second quarter productivity was the highest since Q3 2023. The strong second quarter performance, combined with internal leading indicators, compels us to increase our full-year revenue growth guidance to 7%. We expect growth in the third quarter to also be 7%. Residential revenue was $28 million in the second quarter. We expect third quarter residential revenue to increase $3-$4 million sequentially, and we now expect residential revenue growth of over 20% in 2025. Apartments.com's second quarter revenue growth came in at 11% year-over-year, ahead of the 10% guidance we provided last quarter.
Sales rep productivity improved to its highest level in two years, an impressive feat considering we are also at our highest number of sales reps. Our first half of 2025 results are broadly in line with expectations, and we remain on track to achieve the 11%-12% full-year revenue growth guidance we provided last quarter. Third quarter revenue growth is also expected to be 11%-12%. LoopNet revenue grew 8% in the second quarter, one percentage point higher than last quarter's guidance. LoopNet's dedicated sales force continues to perform. In fact, the sales team delivered LoopNet's highest first-half net new bookings ever. The shift in sales strategy to focus on selling broad subscription packages and utilize asset-based pricing has been working well, and we anticipate the benefits of the strategic shift to continue. This first-half performance and strong momentum gives us the confidence to increase our 2025 revenue growth expectations to 8%-9%.
Third quarter revenue growth is now expected to be between 10% and 11%. Revenue from Information Services was $39 million in the second quarter. We are updating our guidance for Information Services revenue growth to 16%-18% and expect third quarter revenue growth of approximately 20%. Other revenue was $75 million in the second quarter, with Matterport contributing $44 million. For the third quarter, we expect other revenue of approximately $75 million, including approximately $40 million from Matterport. Through our integration and streamlining efforts, we are discontinuing certain non-core Matterport revenue that did not positively contribute to earnings, which is why we're expecting Q3 revenue to be below the level realized in Q2. The impact from the discontinued revenue to our full-year outlook is around $10 million. As such, we are revising the top end of our revenue guidance and now expect other revenue between $270-$275 million.
Adjusted EBITDA for the second quarter was $85 million at an 11% margin, meaningfully above the high end of our $50-$60 million second quarter guidance. The favorable performance relates to higher than projected revenue, lower than anticipated professional services costs, and timing of certain growth initiatives. We have made great progress on bolstering our sales force, which has reached 1,800 reps at quarter end. This is an increase of more than 400 salespeople since the beginning of the year and a 43% increase in reps year-over-year. While sales headcount has reached the most at Homes.com, has increased the most at Homes.com, we are delivering sales rep growth in all our major brands. Our contract renewal rate was 89% for the second quarter, with the renewal rate for customers who have been subscribers for five years or longer at 95%. Subscription revenue on annual contracts was 78% for the second quarter.
Matterport's inclusion decreased this metric by two percentage points. On June 30th, our June 30th balance sheet includes $3.7 billion in cash, which earned net interest income of $33 million in the second quarter, a 3.5% rate of return. We repurchased 585,000 shares in the second quarter for $45 million, bringing our year-to-date totals to 825,000 shares repurchased for $64 million. In 2025, we anticipate repurchasing at least $150 million of the $500 million share repurchase authorized. On May 9th, we formally agreed to purchase Domain Group for AUD 4.43 per share. As mentioned last quarter, we already acquired a 16.9% ownership in Domain. We expect to pay an incremental AUD 2.3 billion to acquire the remaining shares when the transaction closes. In anticipation of the deal closing, we entered into a forward swap of USD to AUD to mitigate foreign currency risk while the deal is pending.
We expect the total remaining equity purchase price to be around $1.5 billion. Based on our outperformance in the second quarter, we are increasing the midpoint of our 2025 revenue guidance. We are now providing a range of $3.135 billion-$3.155 billion, implying an annual growth rate of 15%. Our guidance does not contemplate the expected closing of the Domain Group acquisition in the third quarter. The company expects third quarter revenue of $800 million-$805 million, representing 16% year-over-year growth at the midpoint of the range. We are also increasing our adjusted EBITDA guidance for the year with revised guidance of $370 million-$390 million. Our revised adjusted EBITDA guidance reflects our second quarter beat versus guidance and incorporates the timing of the growth initiative spend getting pushed to the back half of the year. For the third quarter of 2025, adjusted EBITDA is expected to be in a range of $75 million-$85 million. With that, I'll now turn the call back over to our call operator to open the line for questions.