CoStar Group posted a strong third quarter of 2025 with revenue up 20% to $834 million, its 58th consecutive quarter of double-digit growth, and adjusted EBITDA up 51% to $115 million, well above the high end of guidance. Record net new bookings of $84 million rose 92% year-over-year, led by Homes.com bookings up 53% sequentially and a re-accelerating CoStar product whose full-year growth guidance was lifted into the 7% range. The company closed the $1.9 billion Domain acquisition on August 27 and raised full-year revenue guidance to $3.23 billion to $3.24 billion and adjusted EBITDA to $415 million to $425 million. Analyst questioning centered on softer sequential bookings and Homes.com rep productivity amid heavy hiring, which management framed as seasonality and expected ramp effects. Strategic highlights included the Microsoft-partnered AI Smart Search launch, strong Boost and new-home-builder monetization, and management's argument that its non-lead-diversion model can serve far more agents than competing portals.
Thank you very much, Operator, and hello and thank you all for joining us to discuss the third quarter 2025 results of CoStar Group. Before I turn the call over to Andy Florance, CoStar's CEO and founder, and Chris Lown, our Chief Financial Officer, 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 fourth quarter and the rest of 2025 based on current beliefs and assumptions. Forward-looking statements involve many risks, uncertainties, assumptions, estimates, and other factors that can 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, included under the heading Risk Factors in these 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 measure or of any non-GAAP financial measure discussed on this call is 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 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, so make it a good one. With that, I'd like to turn the call over to our Founder and CEO, Andy Florance. Andy?
Thank you for joining CoStar Group's third quarter 2025 earnings call. We achieved another excellent quarter for CoStar Group, with third quarter 2025 revenue reaching $834 million, a 20% year-over-year increase. This is our 58th consecutive quarter of double-digit revenue growth, and we're one quarter closer to potentially 100 sequential quarters of double-digit revenue growth. Stay tuned. Adjusted EBITDA in the third quarter rose to $115 million, up 51% over Q3 2024. Profit margin in our commercial information and marketplace businesses increased to 47% for Q3 2025. Net new bookings totaled $84 million, up 92% year-over-year. CoStar Group's residential real estate portals include Apartments.com, Homes.com, OnTheMarket, and Domain. These are all sites that help people find or market a residence. Assuming we own Domain for the full third quarter, the revenue for the residential portals would now be $411 million in the quarter, or $1.644 billion annualized.
Our residential portals' revenues grew 22.7% quarter-over-quarter and 31.3% year-over-year. We expect synergies across these residential portals will continue to drive improvement in our margin profile and believe that long-term margins can operate at more than 40% adjusted EBITDA margins. Apartments.com delivered another strong quarter, surpassing $1.2 billion in annual run-rate revenue and generating $303 million in Q3 revenue, an 11% increase year-over-year. Apartments.com remains the preferred source for property managers and owners, as reflected by a 99% monthly renewal rate and a 93 NPS score. Our high-quality proprietary content remains central to attracting consumers. Net new bookings rose 37% year-over-year in Q3. We added 4,200 new apartment communities in Q3. Our sales force has now grown to over 500 representatives, achieving our 2025 sales hiring target ahead of schedule.
In Q3, the team conducted 200,000 client and prospect interactions, with nearly half of them occurring in person, a 66% year-over-year increase in Q3. Our total multifamily property count now exceeds 87,000, an increase of 12,000 in 2025. Apartments.com network site visits totaled 223 million for the quarter, leads for specific models and units increased 64%, and our highest converting apply now leads rose 70% year-over-year in Q3. In the single-family rental segment, we had 1.4 million availabilities and 260,000 paid rentals, up 51% year-over-year. Homes.com rental traffic grew 55%, underscoring the synergy between Apartments.com and Homes.com. Advertisers benefit from increased exposure across both platforms at no additional cost. Turning to Homes.com, Homes.com is showing steadily accelerating revenue growth from an increasing number of revenue streams.
Annualized net new bookings of Homes.com subscriptions rose to $16 million in the third quarter, up 53% quarter-over-quarter from $10 million in the second quarter of year-over-year. That's actually quarter-over-quarter, up 53% quarter-over-quarter from $10 million in the second quarter of 2025, not year-over-year. Much more impressive when it's QoQ. The net new annualized bookings in the third quarter represented a 1,225% year-over-year increase. Revenue in Q3 increased 20% year-over-year. The number of net new subscribers added in the third quarter was 7,035, up 12% over the 6,280 net new subscribers added in the second quarter. In Q3, net new subscriber growth was 1,000% year-over-year. We now have over 26,000 subscribing agents.
Just one of the many ways in which our business model is superior to competing portals is our ability to provide service to a much larger number of agents than they can. Competing portals in the U.S. business models of lead diversion limit them to selling to about roughly 5% of agents because they need to take leads from the other 95% of agents who are not clients so that they have something to sell to the 5% that are clients. In contrast, we can sell to well more than 50% of agents because we're not taking away leads from any agent. With LoopNet, CoStar, and Apartments, we have shown that in many markets we're selling to well more than half of the players in that market. This has the advantage of creating a bigger TAM, but also creating more goodwill among agents.
In competing portal models, 95% of the agents are losing business because of the portal and 5% are gaining business. In our model, almost every agent can gain business because of our portal, and that creates goodwill. Alignment with your clients builds stronger and more durable brands. Sales of our Homes.com Boost product rose 136% quarter-over-quarter to $617,000 in the third quarter. Homeowners are the primary buyers of Boost, paying on average $386 on a one-time basis to give their home for sale more exposure. At this price point, the U.S. TAM for Boost sold to homeowners alone is already approximately $2 billion. When agents do buy a Boost for one of their listings, we see 25% of those agents convert to full Homes.com membership subscriptions. We began selling enhanced exposure on Homes.com to new home builders on August 25th.
In the month of September alone, we sold net new annualized bookings for new homes of $498,000. In total, we've already sold $743,000 annualized bookings since August 25th. As Homes.com approaches our seventh quarter since launch, it is now the fastest-growing revenue product we've ever launched. Though Apartments.com and CoStar now have more than $1 billion in revenue, they grew revenue at a much slower pace than Homes.com has in their first seven quarters. Homes.com has now grown 50% more incremental revenue in its first seven quarters than did Apartments.com in the same time period. We're continuing to increase the size of our Homes.com sales team. We now have 500 sales reps in production, with another 150 in pre-production. We've now added field sales, new home sales specialists, and major accounts reps.
We believe the highest and best function of a portal is to market real estate and that that is the future of the industry. I do not believe that future revenue models for successful real estate portals will be based on either iBuying or lead diversion to buyer agents. Currently, as I mentioned, we have 26,000 subscribing agents and Boost clients promoting 130,000 active listings on Homes.com, representing 6% of the active 2.2 million properties for sale in the U.S. A recent analyst report from Citi stated that they believe that a core product for Zillow going forward will be its showcase listing product, and estimated in September 2025 that Zillow had only 24,500 listings, or approximately 1.1% of the active market. We have fivex the number of listings marketed or Boost on our site.
Citi further estimated that Zillow had $13 million in revenue in the third quarter for showcase listings. Homes.com is well ahead of Zillow in both revenue and listing count, which is what we believe is the primary sustainable revenue driver for successful residential real estate portals around the world. Our strategy is to grow the share of real estate agents and homeowners relying on us to bring more exposure to their homes for sale, and these numbers show that we're on the way to achieving that goal. Our marketing campaign continues to build out audience and brand awareness. In August, unaided awareness was 42% and unaided attention was 28%. That unaided awareness is up from about 4% when we started, and we are showing a continued long-term upward trend in both categories. In the third quarter, the Homes.com network achieved 115 million unique monthly visitors.
This led to 560 million total visits to the Homes.com network in Q3, up 7% compared to Q2. According to Comscore, unique visitor traffic to Homes.com rose 8.3% compared to a 6.5% decline at Zillow and a 0.7% decline at Realtor.com. I'll just call that last part flat. Comscore continues to rank the unique monthly visitors to the Homes.com network above either Realtor or Redfin. Our organic traffic in Q3 climbed 87% year-over-year. We continue to improve the quality and engagement of traffic to Homes.com, achieving a low 24% bounce rate in Q3, which is a 64% year-over-year reduction in bounce rate. Our average session duration increased to 4 minutes and 29 seconds in Q3, which is a 93% year-over-year increase. I believe that our efforts to put more than 70,000 Matterports on the sites are driving this deeper home shopper engagement on our site.
We are optimizing for quality of traffic from our SEM, generating 112 million listing detail page views from SEM in Q3 for a 374% year-over-year improvement. We achieve this improvement with essentially the same, but a more efficient SEM spend. I believe we are about to see our products hyper-accelerated by some of the most exciting facilitating AI technologies I could have ever imagined. While we're already using AI throughout our organization, I'm excited about the launch of AI Smart Search on Homes.com and the future innovations it foreshadows. Consumers can ask Homes.com precisely what they're looking for in their own words.
This allows for reasonably complex queries such as long conversational phrases with multiple geographies such as, "Show me waterfront properties with a pool with a balcony and a great view in Miami Beach and Fort Lauderdale starting at $1 million." This does away with having to deal with traditional filters and forms that are limiting. If you're a coder, this is like giving people with no coding skills access to the power of full deep Boolean nestled queries against 10x the number of fields with just simple plain English questions. As a result, Smart Search is highly customizable, intuitive, fun, and easy, and more powerful. This is our own artificial intelligence capability that we're engineering in, and we're doing it in partnership with Microsoft. In the third quarter, AI Smart Search has produced improved user engagement. This new AI Smart Search is producing significant improvement in user engagement.
Thank you, Andy. Good evening. I'm happy to report that CoStar has now posted its 58th consecutive quarter of double-digit revenue growth, coming in at 20%. We achieved an impressive commercial information and marketplaces brand margin of 47% in the third quarter versus 43% in Q3 2024. Net new bookings for the third quarter were $84 million, representing a 92% increase year-over-year. Every major product contributed to this record as our growing dedicated sales force of over 2,000 people is delivering for CoStar. Revenue for the third quarter was $834 million, which included a $25 million contribution from the Domain acquisition. Revenue excluding Domain of $808 million exceeded the high end of our guidance. Third quarter adjusted EBITDA came in at $115 million, also exceeding the high end of our guidance at a 14% margin.
The outperformance in adjusted EBITDA was a result of continued expense discipline and better than expected revenue. Our CoStar product saw revenue grow 8% in the third quarter ahead of our guidance. We are excited about this product's renewed growth, especially given continued volatility in the commercial real estate sector. Net new bookings have steadily increased throughout 2025 and are now at the highest level seen since 2022. With this increasing momentum, we expect to see the CoStar product grow between 8% and 9% in the fourth quarter, with full-year growth firmly in the 7% range from our original guidance of 6%-7%. Residential revenue was $55 million in the third quarter, with $23 million coming from the Domain acquisition. The $32 million in organic revenue was consistent with last quarter's guidance.
With the addition of revenue from Domain, we now expect fourth quarter revenue of $100 million to $105 million, with Domain contributing around $67 million. For full-year 2025, we expect residential revenue to more than double to $210 million-$215 million from $101 million in 2024. Apartments.com's third quarter revenue growth came in at 11% year-over-year. Our Apartments.com sales reps are consistently the most productive of our large brands, and we have increased the size of this team by 20% year-to-date. We now have more than 500 Apartments.com sales reps for the first time in its history. These reps will take time to ramp up their productivity, but this investment puts us in a great position for longer-term growth. For Q4 2025, we expect 11%-12% revenue growth, resulting in full-year 2025 revenue growth of 11%-12%.
LoopNet revenue grew 12% in the third quarter, with a two percentage point lift from the Domain acquisition. LoopNet's organic performance was in line with last quarter's guidance. Our sales team is consistently outperforming prior productivity levels, and in conjunction with the Domain contribution, we now expect Q4 revenue growth of between 15%-17% and full-year revenue growth of 10%-11%. On an organic basis, Q4 revenue growth is expected to be 11%, its highest growth rate since 2023. This acceleration throughout 2025 sets us up nicely for 2026. Revenue from information services was $41 million in the third quarter. We expect fourth quarter revenue to be consistent with the third quarter and full-year revenue growth of between 18%-20%. We are excited about launching our new rent analytics product in the first half of 2026 and our new lease platform in the fourth quarter of 2026.
Other revenue was $78 million in the third quarter, with Matterport contributing $44 million. For the fourth quarter, we expect other revenue to range between $70 million and $72 million. The fourth quarter is expected to be slightly impacted by revenue recognition timing for 10x and lower camera sales at Matterport as we sunset the Pro2 camera. As previously stated, adjusted EBITDA for the third quarter was $115 million, meaningfully above the high end of our $75 million-$85 million guidance. The favorable performance came from higher than projected revenue, higher than anticipated professional services, lower than anticipated professional services costs, and greater than expected headcount savings, as we remain laser-focused on expenses. Our contract renewal rate was 89% for the third quarter, with the renewal rate for customers who have been subscribers for five years or longer holding steady at 94%.
Subscription revenue on annual contracts was 75% for the third quarter. The acquisitions of Matterport and Domain are the driving factors for the change in our subscription revenue metric. Our September 30th balance sheet included $2 billion in cash, which earned net interest income of $26 million in the third quarter, a 4% rate of return. We repurchased 576,000 shares in the third quarter for $51 million, bringing our year-to-date total to 1.4 million shares repurchased for $115 million. We expect to purchase approximately $50 million of additional shares in the fourth quarter, bringing our 2025 total to approximately $165 million of the $500 million share repurchase authorization. We closed on the Domain Holdings acquisition on August 27th. The total consideration was $1.9 billion. Domain contributed $25 million of revenue for the stub period from August 28th to September 30th.
For context, around 90% of Domain's revenues is residential, while the remaining 10% is split between commercial marketplaces and information services. With nine months of 2025 in the books and with the closing of Domain, we now expect full-year revenue of between $3.23 billion-$3.24 billion, broadly in line with our guidance excluding Domain. Fourth quarter revenue is now expected to be between $885 million and $895 million. Full-year adjusted EBITDA is now expected to range between $415 million and $425 million, with Domain contributing approximately $15 million. This $25 million increase in our guidance, excluding the impact from Domain, is indicative of our strong third quarter performance. Fourth quarter adjusted EBITDA is expected to range between $150 million and $160 million. I will now turn the call back to our call operator to open the lines for questions.