Hello, thank you for joining us to discuss the full year and fourth quarter 2025 results of CoStar Group. Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the first quarter, full year of 2026 and beyond. That's an increase of $191 million from $709 million of revenue in the fourth quarter of 2024. Revenue for 2025 was $3.2 billion, up 19% from $2.7 billion in 2024.
Adjusted EBITDA of 2025 was $442 million, up 83% from $241 million in 2024. This result positions us well to achieve our guidance range of $740 million-$800 million full-year adjusted EBITDA in 2026. With the heavy lifting of Homes.com national brand launch behind us, we are entering a phase of significant EBITDA expansion. These commercial businesses, as a group, grew 20% year-over-year and generated $471 million of revenue in the fourth quarter of 2025.
For the full year, the commercial business grew 18% to reach $1.79 billion for the full year of 2025. As the CRE economy improves and we continue to expand the product offering, CoStar Group has generated seven consecutive quarters of accelerating growth. CoStar revenues grew 10% year-over-year, generating $325 million in the fourth quarter of 2025. We have grown the CoStar sales team 20% year-over-year to 492 reps and believe that will support further revenue acceleration.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | FY2026 | $3.78 billion to $3.82 billion (reiterated, affirming the January 7 guidance implying 16% to 18% annual growth) |
| Adjusted EBITDA | FY2026 | $740 million to $800 million (reiterated, affirming a 20% to 21% adjusted EBITDA margin) |
| Revenue | Q1 2026 | $890 million to $900 million (reiterated as new quarterly guide, 22% to 23% year-over-year growth at midpoint) |
| Adjusted EBITDA | Q1 2026 | $95 million to $115 million (reiterated as new quarterly guide, with margins expected to rise roughly five percentage points each quarter through 2026) |
| Residential adjusted EBITDA | Q1 2026 | about negative $45 million (reiterated as new guide, improving to roughly positive $105 million for the full year on front-loaded marketing normalizing) |
| Metric | YoY | Note |
|---|---|---|
| Q4 total revenue | up 27% to $900 million | Higher than expected contributions from CoStar, Matterport and Domain plus broad organic strength |
| Full-year adjusted EBITDA | up 83% to $442 million | Revenue beat combined with lower than anticipated personnel costs as the Homes.com launch spend wound down |
| Commercial segment revenue (FY) | up 18% to $1.79 billion | Organic CRE recovery plus roughly 10 points of growth from the Matterport and Domain acquisitions |
| CoStar product revenue | up 10% in Q4 and 7% for the year | Emerging CRE recovery with rep productivity rising every quarter and its highest sales year since 2022 |
| LoopNet revenue | up 17% in Q4 and 11% for the year | Record net new sales that tripled year-over-year, with 93% from higher-renewal silver listings |
| Residential segment revenue (FY) | up 20% to $1.46 billion | 12% organic growth plus Domain; Homes.com grew 63% and Apartments.com grew 11% |
| Apartments.com revenue | up 11% in Q4 and for the year | Rooftop growth of 18% to 89,275 at year-end amid continued sales investment |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Segment reporting change | Reported CoStar, LoopNet, information services and other product lines | Consolidated into commercial and residential segments, folding information services into CoStar and grouping Matterport, Domain, Ten-X and BizBuySell accordingly | — |
| AI as moat builder | AI used internally for efficiency | AI cited as accelerating proprietary dataset creation, such as abstracting corporate leases in weeks for under $200,000 versus years of manual work, reinforcing the data-begets-data flywheel | — |
| Homes.com strategy amid MLS upheaval | Building brand awareness and member base | Launched Homes AI and framed industry instability around MLS and listing ownership as an opportunity that should break in CoStar's favor | — |
| Matterport integration | Newly acquired standalone public company | Eliminated about $120 million of duplicative public-company and executive costs while refocusing on revenue growth via added salespeople and a new camera | — |
| Capital allocation and buybacks | Completed the $500 million buyback program repurchasing 7.1 million shares | Authorized a new $1.5 billion program, planning $700 million of repurchases in 2026 including a $500 million accelerated share repurchase this quarter | — |