CoStar Group Reports Record Third Quarter Revenue of $952 Million;
ARLINGTON, VA – October 27, 2026 - CoStar Group, Inc. (NASDAQ: CSGP), a leading global provider of online real estate marketplaces, information, analytics, and 3D digital twin technology in the property markets, announced today that revenue for the quarter ended September 30, 2026 was $952 million, up 14% over revenue of $834 million for the quarter ended September 30, 2025. Net new bookings were $37 million for the quarter.
Net income for the third quarter of 2026 was $74 million, up $105 million year- over-year. Earnings per diluted share was $0.18 for the third quarter of 2026. Adjusted Net Income rose to $153 million in the third quarter, up 59% year-over- year. Adjusted EPS was $0.38 in the third quarter, up 65% year-over-year. EBITDA was $179 million, up $166 million year-over-year. Adjusted EBITDA was $229 million in the third quarter of 2026, doubling from the prior year period.
“CoStar Group generated outstanding profitability growth in the third quarter, delivering on our commitment to expand margins as we exit a period of investment,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group. “Adjusted EBITDA doubled year-over-year and was considerably above the high end of our $190 million to $210 million guidance range. We achieved significant additional efficiencies in the quarter, bringing total anticipated cost savings this year to approximately $150 million versus our original guidance. Our ongoing deep expense review has identified potential additional savings of at least $200 million that we believe will improve efficiency without sacrificing revenue growth. We expect to realize these over the next 12 to 18 months, keeping us on track to achieve our 2028 Adjusted EBITDA target of $1.25 billion.”
Florance continued, “We are demonstrating our ability to meaningfully grow profitability and are confident in our strategy to fuel future growth. We are leveraging AI and our proprietary ground truth data, giving us a unique competitive advantage in providing value to our information clients. Furthermore, our global scale enables us to deliver best-in-class consumer- facing AI functionality on our marketplaces at significantly lower costs than our competitors. Our acquisition of Zonda and agreement to acquire Vexcel demonstrate our ability to further enhance our proprietary datasets and global scale, which are real differentiators in the world of AI.”
The Company is increasing its Adjusted EBITDA guidance for the full year of 2026 to a range of $820 million to $840 million, which represents an increase of $30 million at the midpoint of the range from its guidance in July 2026, and a cumulative $60 million increase at the midpoint from its guidance in February 2026. For the fourth quarter of 2026, the Company expects Adjusted EBITDA in the range of $275 million to $295 million, representing a margin of 29% at the midpoint of the range.
The Company is increasing its revenue guidance for 2026 to a range of $3.75 billion to $3.77 billion, representing revenue growth of approximately 16% year- over-year at the midpoint of the range. The Company expects revenue for the fourth quarter of 2026 in the range of $976 million to $996 million, representing revenue growth of approximately 10% year-over-year at the midpoint of the range.
The Company is increasing its full year 2026 Adjusted EPS guidance in a range of $1.38 to $1.41 based on 405 million shares. For the fourth quarter of 2026, the Company expects Adjusted EPS in a range of $0.46 to $0.50 based on 400 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the fourth quarter of 2026.
The preceding forward-looking statements reflect CoStar Group’s expectations as of October 27, 2026 , including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.
Reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS to the most directly comparable GAAP measures are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non- GAAP guidance (except for 2028 Adjusted EBITDA guidance) to the most directly comparable GAAP measure, net income (loss), can be found within the tables included in this release. A reconciliation of the 2028 Adjusted EBITDA guidance to the most directly comparable GAAP measure is not available on a forward- looking basis without unreasonable effort due to the unknown effect, timing, and potential significance of certain income statement items.
For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.
EBITDA is our net income (loss) before interest income or expense, net; other income or expense, net; income taxes; depreciation; and amortization. We typically disclose EBITDA on a consolidated and on an operating segment basis in our earnings releases, investor conference calls, and filings with the SEC.
Adjusted EBITDA is different from EBITDA because we further adjust EBITDA for stock-based compensation expense; acquisition- and integration-related costs; restructuring and related costs, including certain advisory fees; and settlements and impairments incurred outside our ordinary course of business, including judgments and related recoveries thereon. Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue for the period.
Adjusted Net Income represents our net income (loss) adjusted for stock-based compensation expense; acquisition- and integration-related costs, including gains or losses on equity investments acquired in prospective targets and related to deal-contingent financial instruments; restructuring costs; settlement and impairment costs incurred outside our ordinary course of business, including judgments and related, non-recurring interest and recoveries thereon; and amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2026, we are assuming a 26% tax rate to approximate our statutory corporate tax rate, excluding the impact of discrete items, to determine Adjusted Net Income for each quarterly period, year-to-date period and annual period.
Adjusted EPS represents Adjusted Net Income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP earnings per diluted share. For periods with GAAP net losses and Adjusted Net Income, the weighted average outstanding shares used to calculate Adjusted EPS includes potentially dilutive securities that were excluded from the calculation of GAAP earnings per share as the effect was anti-dilutive.
Net new bookings is calculated based on the annualized amount of change in the Company's sales bookings resulting from new subscription-based contracts, changes to existing subscription-based contracts, and cancellations of subscription-based contracts for the period reported. Information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of the Company's revenue over time.
Management will conduct a conference ca ll to discuss the third quart er 2026 results and the Company’s outlook at 5:00 PM ET on October 27, 2026 . A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: https://investors.costargroup.com. A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call.
CoStar Group, Inc. Condensed Consolidated Balance Sheets - Unaudited (in millions) ASSETS Current assets: September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 500 $ 1,633 equivalents Restricted cash — 100 Accounts 316 263 receivable Less: Allowance -36 -29 for credit losses Accounts 280 234 receivable, net Income taxes 26 18 receivable Prepaid expenses and other current 140 134 assets Total current 946 2,119 assets Deferred income 8 47 taxes, net Property and 1,456 1,323 equipment, net Lease right-of-use 126 123 assets Goodwill 5,428 4,944 Intangible 2,062 1,771 assets, net Deferred commission costs, 188 184 net Deposits and 51 27 other assets Total assets $ 10,265 $ 10,538 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 56 $ 42 Accrued wages and 148 145 commissions Accrued expenses 199 203 Litigation — 99 accrual Lease liabilities 32 28 Deferred revenue 250 205 Other current 31 24 liabilities Total current 716 746 liabilities Long-term debt, 994 993 net Deferred income 335 238 taxes, net Income taxes 30 27 payable Lease and other long-term 198 163 liabilities Total liabilities 2,273 2,167 Stockholders' equity 7,975 8,334 attributable to CoStar Group Equity attributable to 17 37 noncontrolling interest Total equity 7,992 8,371 Total liabilities and stockholders' $ 10,265 $ 10,538 equity
CoStar Group, Inc. Condensed Consolidated Statements of Cash Flows - Unaudited Nine Months Ended (in millions) September 30, Operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income (loss) $ 132 $ -40 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 265 182 Amortization of deferred commissions 93 110 costs Non-cash lease expense 23 22 Stock-based compensation 112 153 expense Deferred income taxes, net 40 6 Credit loss expense 25 26 Other operating activities, net 12 -6 Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable -53 -32 Prepaid expenses, other current assets -12 -19 and other assets Deferred commissions -97 -117 Accounts payable and other -6 11 liabilities Litigation accrual -99 — Lease liabilities -4 -24 Income taxes payable, net -6 -21 Deferred revenue 30 17 Net cash provided by operating 455 268 activities Investing activities: Cash paid for acquisitions, net of cash -789 -2,347 acquired Purchases of property, equipment, and -134 -246 other assets for new campuses Purchase of equity securities — -285 Purchases of property, equipment, and -60 -77 other assets Proceeds from sale and settlement of 2 205 investments and other assets Net cash used in investing -981 -2,750 activities Financing activities: Repurchases of stock -668 -115 Repurchase of restricted stock to -24 -64 satisfy tax withholding obligations Proceeds from exercise of stock options 18 20 and employee stock purchase plan Purchase of noncontrolling -26 — interest Other financing activities, net -6 -3 Net cash used in financing -706 -162 activities Effect of foreign currency exchange rates on cash, cash -1 -2 equivalents, and restricted cash Net decrease in cash, cash equivalents, -1,233 -2,646 and restricted cash Cash, cash equivalents, and restricted 1,733 4,681 cash at the beginning of period Cash, cash equivalents, and restricted $ 500 $ 2,035 cash at the end of period
Reconc… of Forwar… Guidan… Guidance Net Range Guidan… Income For the Range to Three For the Adjust… Months December Year December EBITDA Ending 31, 2026 Ending 31, 2026 ────────────────────────────────────────────────────────────────────────────── Low High Low High Net $ 95 $ 109 $ 226 $ 241 income Amorti… of acquir… intang… 29 29 112 112 assets in cost of revenue Amorti… of acquir… intang… 48 48 166 166 assets in operat… expens… Deprec… and 24 24 78 78 other amorti… Intere… expense 4 4 -2 -2 (incom… net Other income, — — -1 -1 net Income tax 33 39 72 77 expens… net EBITDA 233 253 651 671 Stock-… compen… 40 40 152 152 expense Acquis… and integr… 2 2 28 28 related costs Restru… and — — 4 4 related costs Settle… and — — -15 -15 impair… Adjust… $ 275 $ 295 $ 820 $ 840 EBITDA… ______… (1)Tot… may not foot due to roundi…
CoStar Group, Inc. Reconcili… of Non-GAAP Financial Measures - Unaudited (in millions) Reconcili… of Net Income (Loss) to EBITDA and Adjusted EBITDA Three Nine Months Months Ended Ended September September 30, 30, 2026 2025 2026 2025 Net income $ 74 $ -31 $ 132 $ -40 (loss) Amortizat… of acquired intangible 29 19 83 47 assets in cost of revenue Amortizat… of acquired intangible 44 32 117 76 assets in operating expenses Depreciat… and other 22 13 54 39 amortizat… Interest (income) 1 -26 -7 -97 expense, net Other (income) -1 21 — 7 expense, net(1) Income tax expense, 10 -15 38 9 net EBITDA 179 13 417 41 Stock-bas… compensat… 32 71 112 153 expense Acquisiti… and integrati… 15 30 27 56 related costs Restructu… and — — 4 6 related costs Settlemen… and 3 — -15 9 impairmen… Adjusted $ 229 $ 114 $ 545 $ 265 EBITDA _________… (1)Includ… $3 million and $4 million of depreciat… and amortizat… expense, including above-mar… lease amortizat… associated with lessor activities for the three months ended September 30, 2026 and 2025, respectiv… and $11 million and $17 million for the nine months ended September 30, 2026 and 2025, respectiv…
CoStar Group, Inc. Results of Segments Three Nine - Months Months Unaudite… Ended Ended (in September September millions) 30, 30, EBITDA 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Commerci… Real $ 163 $ 114 $ 452 $ 335 Estate Resident… Real 16 -101 -35 -294 Estate Total $ 179 $ 13 $ 417 $ 41 EBITDA Adjusted EBITDA Commerci… Real $ 180 $ 183 $ 513 $ 495 Estate Resident… Real 49 -69 32 -230 Estate Total Adjusted $ 229 $ 114 $ 545 $ 265 EBITDA ________… (1)During the fourth quarter of 2025, we changed the composit… of our segments from geograph… to product portfoli… We have recast certain prior period disclosu… to align with new segments.
Rich Simonelli Head of Investor Relations CoStar Group Investor Relations (973) 896-8184
CoStar Group (NASDAQ: CSGP) is a leading global provider of online real estate marketplaces, information, analytics, and 3D digital twin technology in the property markets. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Zonda, a leading provider of data, analytics, software, and marketplace solutions for the residential construction industry; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted 121 million average monthly unique visitors in the third quarter of 2026, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
This news release and the Company’s earnings conference call contain “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group's plans, objectives, expectations, beliefs and intentions and other statements including words such as “hope,” “anticipate,” “may,” “likely,” “might,” “believe,” “expect,” “observe,” “consider,” “think,” “intend,” “envision,” “will,” “should,” “could,” “would,” “plan,” “target,” “goal,” “estimate,” “predict,” “continue,” “commit,” and “potential” or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: our inability to attract and retain new clients; our inability to successfully develop and introduce new or updated real estate information, analytics, and online marketplaces; the risks related to AI technologies, such as Homes Ai and Apartments Ai; the planned CoStar Ai launch may be delayed or changed; our inability to compete successfully against existing or future competitors in attracting advertisers and in general; the effects of fluctuations and market cyclicality; the effects of global economic uncertainties and downturns or a downturn or consolidation in the real estate industry; our inability to hire qualified persons for, or retain and continue to develop, our sales force, or unproductivity of our sales force; our inability to retain and attract highly capable management and operating personnel; the downward pressure that our internal and external investments may place on our operating margins; our inability to increase brand awareness; our inability to maintain or increase internet traffic to our marketplaces, and the risk that the methods, including Google Analytics, that we use to measure average monthly unique visitors to our portals may misstate the actual number of unique persons who visit our network of mobile applications and websites for a given month or may differ from the methods used by competitors; our inability to attract new advertisers; our inability to successfully identify, finance, integrate, and/or manage costs related to acquisitions; our inability to complete certain strategic transactions if a proposed transaction is subject to review or approval by regulatory authorities pursuant to applicable laws or regulations; our inability to realize the benefits of the acquisitions of Matterport, LLC ("Matterport"), Domain Holdings Australia Pty Limited, or Bora Inc. and its subsidiaries ("Zonda"), or to complete the acquisition of Vexcel Group, Inc. and its subsidiaries ("Vexcel") in a timely manner, or at all, or realize the expected benefits of the Vexcel acquisition; the inability of third-party suppliers upon which Matterport relies to fulfill its needs; the effects of cyberattacks and security vulnerabilities, and technical problems or disruptions; the significant costs associated with undertaking a large infrastructure project; our inability to generate increased revenue from our current or future geographic expansion plans; the risks related to acceptance of credit cards and debit cards and facilitation of other customer payments; the effects of climate-related events and other events beyond our control; the effects related to attention to climate-related risks and opportunities; our inability to obtain and maintain accurate, comprehensive, or reliable data; our inability to obtain and maintain stable data feeds, or disruption of our data feeds; our inability to enforce or defend our ownership and use of intellectual property; the effects of use of new and evolving technologies, including artificial intelligence, on our ability to protect our data and intellectual property from misappropriation by third parties; our inability to defend against potential legal liability for collecting, displaying, or distributing information; our inability to obtain or retain listings from real estate brokers, agents, property owners, and apartment property managers; our inability to maintain or establish relationships with third-party listing providers;
our inability to comply with the rules and compliance requirements of Multiple Listing Services; the risks related to open source software; the risks related to international operations; the effects of foreign currency exchange rate fluctuations; our indebtedness; the effects of a lowering or withdrawal of the ratings assigned to our debt securities by rating agencies; the effects of any actual or perceived failure to comply with privacy or data protection laws, regulations, or standards; the effects of changes in tax laws, regulations, or fiscal and tax policies; the effects of third-party claims, litigation, regulatory proceedings, or government investigations; the risks related to return on investment; and the risks related to the specific timing, price, and size of repurchases under the Stock Repurchase Program, including that the Stock Repurchase Program may be suspended or discontinued at any time at the Company’s discretion. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar Group’s filings from time to time with the Securities and Exchange Commission (the "SEC"), including in CoStar Group’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar Group’s other filings with the SEC (including Current Reports on Form 8-K) available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar Group on the date hereof, and CoStar Group assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Full text with the tables
Exhibit 99.1
CoStar Group Reports Record Third Quarter Revenue of $952 Million;
Profitability Surges with Net Income of $74 Million;
Highest Ever Adjusted EBITDA of $229 Million, Doubling Year-over-Year;
Raises Full-Year 2026 Adjusted EBITDA Guidance
ARLINGTON, VA – October 27, 2026 - CoStar Group, Inc. (NASDAQ: CSGP), a leading
global provider of online real estate marketplaces, information, analytics, and
3D digital twin technology in the property markets, announced today that revenue
for the quarter ended September 30, 2026 was $952 million, up 14% over revenue
of $834 million for the quarter ended September 30, 2025. Net new bookings were
$37 million for the quarter.
Net income for the third quarter of 2026 was $74 million, up $105 million year-
over-year. Earnings per diluted share was $0.18 for the third quarter of 2026.
Adjusted Net Income rose to $153 million in the third quarter, up 59% year-over-
year. Adjusted EPS was $0.38 in the third quarter, up 65% year-over-year. EBITDA
was $179 million, up $166 million year-over-year. Adjusted EBITDA was $229
million in the third quarter of 2026, doubling from the prior year period.
“CoStar Group generated outstanding profitability growth in the third quarter,
delivering on our commitment to expand margins as we exit a period of
investment,” said Andy Florance, Founder and Chief Executive Officer of CoStar
Group. “Adjusted EBITDA doubled year-over-year and was considerably above the
high end of our $190 million to $210 million guidance range. We achieved
significant additional efficiencies in the quarter, bringing total anticipated
cost savings this year to approximately $150 million versus our original
guidance. Our ongoing deep expense review has identified potential additional
savings of at least $200 million that we believe will improve efficiency without
sacrificing revenue growth. We expect to realize these over the next 12 to 18
months, keeping us on track to achieve our 2028 Adjusted EBITDA target of $1.25
billion.”
Florance continued, “We are demonstrating our ability to meaningfully grow
profitability and are confident in our strategy to fuel future growth. We are
leveraging AI and our proprietary ground truth data, giving us a unique
competitive advantage in providing value to our information clients.
Furthermore, our global scale enables us to deliver best-in-class consumer-
facing AI functionality on our marketplaces at significantly lower costs than
our competitors. Our acquisition of Zonda and agreement to acquire Vexcel
demonstrate our ability to further enhance our proprietary datasets and global
scale, which are real differentiators in the world of AI.”
Year
2025-2026
Quarterly
Results -
Unaudited
(in
millions,
except
per share
data)
2025 2026
Q1 Q2 Q3 Q4 Q1 Q2 Q3
Revenue $732 $781 $834 $900 $897 $925 $952
Net
income $(15) $6 $(31) $47 $3 $55 $74
(loss)
Earnings
per share $(0.04) $0.01 $(0.07) $0.11 $0.01 $0.14 $0.18
- diluted
Weighted…
outstand… 411 424 420 420 414 404 402
shares -
diluted
EBITDA $(1) $29 $13 $129 $81 $157 $179
Adjusted $66 $85 $114 $177 $132 $184 $229
EBITDA
Adjusted
Net $63 $74 $96 $131 $94 $128 $153
Income
Adjusted $0.15 $0.17 $0.23 $0.31 $0.23 $0.32 $0.38
EPS
2026 Outlook
The Company is increasing its Adjusted EBITDA guidance for the full year of 2026
to a range of $820 million to $840 million, which represents an increase of $30
million at the midpoint of the range from its guidance in July 2026, and a
cumulative $60 million increase at the midpoint from its guidance in February
2026. For the fourth quarter of 2026, the Company expects Adjusted EBITDA in the
range of $275 million to $295 million, representing a margin of 29% at the
midpoint of the range.
The Company is increasing its revenue guidance for 2026 to a range of $3.75
billion to $3.77 billion, representing revenue growth of approximately 16% year-
over-year at the midpoint of the range. The Company expects revenue for the
fourth quarter of 2026 in the range of $976 million to $996 million,
representing revenue growth of approximately 10% year-over-year at the midpoint
of the range.
The Company is increasing its full year 2026 Adjusted EPS guidance in a range of
$1.38 to $1.41 based on 405 million shares. For the fourth quarter of 2026, the
Company expects Adjusted EPS in a range of $0.46 to $0.50 based on 400 million
shares. These ranges include an estimated non-GAAP tax rate of 26% for the full
year and the fourth quarter of 2026.
The preceding forward-looking statements reflect CoStar Group’s expectations as
of October 27, 2026 , including forward-looking non-GAAP financial measures on a
consolidated basis, based on current estimates, expectations, observations, and
trends. Given the risk factors, rapidly evolving economic environment, and
uncertainties and assumptions discussed in this release and in our quarterly
reports on Form 10-Q and annual reports on Form 10-K, actual results may differ
materially. Other than in publicly available statements, the Company does not
intend to update its forward-looking statements until its next quarterly results
announcement.
Reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted
EPS to the most directly comparable GAAP measures are shown in detail below,
along with definitions for those terms. A reconciliation of forward-looking non-
GAAP guidance (except for 2028 Adjusted EBITDA guidance) to the most directly
comparable GAAP measure, net income (loss), can be found within the tables
included in this release. A reconciliation of the 2028 Adjusted EBITDA guidance
to the most directly comparable GAAP measure is not available on a forward-
looking basis without unreasonable effort due to the unknown effect, timing, and
potential significance of certain income statement items.
Non-GAAP Financial Measures
For information regarding the purpose for which management uses the non-GAAP
financial measures disclosed in this release and why management believes they
provide useful information to investors regarding the Company’s financial
condition and results of operations, please refer to the Company’s latest
periodic report.
EBITDA is our net income (loss) before interest income or expense, net; other
income or expense, net; income taxes; depreciation; and amortization. We
typically disclose EBITDA on a consolidated and on an operating segment basis in
our earnings releases, investor conference calls, and filings with the SEC.
Adjusted EBITDA is different from EBITDA because we further adjust EBITDA for
stock-based compensation expense; acquisition- and integration-related costs;
restructuring and related costs, including certain advisory fees; and
settlements and impairments incurred outside our ordinary course of business,
including judgments and related recoveries thereon. Adjusted EBITDA margin
represents Adjusted EBITDA divided by revenue for the period.
Adjusted Net Income represents our net income (loss) adjusted for stock-based
compensation expense; acquisition- and integration-related costs, including
gains or losses on equity investments acquired in prospective targets and
related to deal-contingent financial instruments; restructuring costs;
settlement and impairment costs incurred outside our ordinary course of
business, including judgments and related, non-recurring interest and recoveries
thereon; and amortization of acquired intangible assets and other related costs,
and then subtracting an assumed provision for income taxes. In 2026, we are
assuming a 26% tax rate to approximate our statutory corporate tax rate,
excluding the impact of discrete items, to determine Adjusted Net Income for
each quarterly period, year-to-date period and annual period.
Adjusted EPS represents Adjusted Net Income divided by the number of diluted
shares outstanding for the period used in the calculation of GAAP earnings per
diluted share. For periods with GAAP net losses and Adjusted Net Income, the
weighted average outstanding shares used to calculate Adjusted EPS includes
potentially dilutive securities that were excluded from the calculation of GAAP
earnings per share as the effect was anti-dilutive.
Operating Metrics
Net new bookings is calculated based on the annualized amount of change in the
Company's sales bookings resulting from new subscription-based contracts,
changes to existing subscription-based contracts, and cancellations of
subscription-based contracts for the period reported. Information regarding net
new bookings is not comparable to, nor should it be substituted for, an analysis
of the Company's revenue over time.
Earnings Conference Call
Management will conduct a conference ca ll to discuss the third quart er 2026
results and the Company’s outlook at 5:00 PM ET on October 27, 2026 . A live
audio webcast of the conference will be available in listen-only mode through
the Investors section of the CoStar Group website:
https://investors.costargroup.com. A replay of the webcast audio will also be
available in the Investors section of our website for a period of time following
the call.
CoStar
Group,
Inc.
Conden…
Consol…
Statem…
of
Operat…
-
Unaudi…
(in
millio…
except
per
share
data)
Three Nine
Months Months
Ended Ended
September Septemb…
30, 30,
2026 2025 2026 2025
Revenue $ 952 $ 834 $ 2,774 $ 2,347
Cost of 211 172 604 493
revenue
Gross 741 662 2,170 1,854
profit
Operat…
expens…
Selling
and
market…
(exclu… 366 418 1,182 1,182
custom…
base
amorti…
Softwa… 109 106 330 297
develo…
General
and 138 157 378 420
admini…
Custom…
base 44 32 117 76
amorti…
657 713 2,007 1,975
Income
(loss) 84 -51 163 -121
from
operat…
Intere…
income -1 26 7 97
(expen…
net
Other
income 1 -21 — -7
(expen…
net
Income
(loss)
before 84 -46 170 -31
income
taxes
Income
tax 10 -15 38 9
expense
(benef…
Net
income $ 74 $ -31 $ 132 $ -40
(loss)
Earnin…
per $ 0.18 $ -0.07 $ 0.32 $ -0.09
share -
basic
Earnin…
per $ 0.18 $ -0.07 $ 0.32 $ -0.09
share -
diluted
Weight…
outsta…
shares 401.6 419.9 406.2 416.7
-
basic
Weight…
outsta…
shares 401.9 419.9 406.7 416.7
-
diluted
CoStar Group,
Inc.
Condensed
Consolidated
Balance Sheets -
Unaudited
(in millions)
ASSETS
Current assets: September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 500 $ 1,633
equivalents
Restricted cash — 100
Accounts 316 263
receivable
Less: Allowance -36 -29
for credit losses
Accounts 280 234
receivable, net
Income taxes 26 18
receivable
Prepaid expenses
and other current 140 134
assets
Total current 946 2,119
assets
Deferred income 8 47
taxes, net
Property and 1,456 1,323
equipment, net
Lease
right-of-use 126 123
assets
Goodwill 5,428 4,944
Intangible 2,062 1,771
assets, net
Deferred
commission costs, 188 184
net
Deposits and 51 27
other assets
Total assets $ 10,265 $ 10,538
LIABILITIES AND
STOCKHOLDERS’
EQUITY
Current
liabilities:
Accounts payable $ 56 $ 42
Accrued wages and 148 145
commissions
Accrued expenses 199 203
Litigation — 99
accrual
Lease liabilities 32 28
Deferred revenue 250 205
Other current 31 24
liabilities
Total current 716 746
liabilities
Long-term debt, 994 993
net
Deferred income 335 238
taxes, net
Income taxes 30 27
payable
Lease and other
long-term 198 163
liabilities
Total liabilities 2,273 2,167
Stockholders'
equity 7,975 8,334
attributable to
CoStar Group
Equity
attributable to 17 37
noncontrolling
interest
Total equity 7,992 8,371
Total liabilities
and stockholders' $ 10,265 $ 10,538
equity
CoStar Group, Inc.
Condensed Consolidated
Statements of Cash Flows -
Unaudited Nine Months Ended
(in millions) September 30,
Operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income (loss) $ 132 $ -40
Adjustments to reconcile net
income
(loss) to net cash provided by
operating
activities:
Depreciation and amortization 265 182
Amortization of deferred
commissions 93 110
costs
Non-cash lease expense 23 22
Stock-based compensation 112 153
expense
Deferred income taxes, net 40 6
Credit loss expense 25 26
Other operating activities, net 12 -6
Changes in operating assets and
liabilities, net of
acquisitions:
Accounts receivable -53 -32
Prepaid expenses, other current
assets -12 -19
and other assets
Deferred commissions -97 -117
Accounts payable and other -6 11
liabilities
Litigation accrual -99 —
Lease liabilities -4 -24
Income taxes payable, net -6 -21
Deferred revenue 30 17
Net cash provided by operating 455 268
activities
Investing activities:
Cash paid for acquisitions, net
of cash -789 -2,347
acquired
Purchases of property,
equipment, and -134 -246
other assets for new campuses
Purchase of equity securities — -285
Purchases of property,
equipment, and -60 -77
other assets
Proceeds from sale and
settlement of 2 205
investments and other assets
Net cash used in investing -981 -2,750
activities
Financing activities:
Repurchases of stock -668 -115
Repurchase of restricted stock
to -24 -64
satisfy tax withholding
obligations
Proceeds from exercise of stock
options 18 20
and employee stock purchase
plan
Purchase of noncontrolling -26 —
interest
Other financing activities, net -6 -3
Net cash used in financing -706 -162
activities
Effect of foreign currency
exchange
rates on cash, cash -1 -2
equivalents, and
restricted cash
Net decrease in cash, cash
equivalents, -1,233 -2,646
and restricted cash
Cash, cash equivalents, and
restricted 1,733 4,681
cash at the beginning of period
Cash, cash equivalents, and
restricted $ 500 $ 2,035
cash at the end of period
CoStar
Group,
Inc.
Disaggre…
Revenue -
Unaudited Three Nine
(in Months Months
millions) Ended Ended
Commerci… September September
Real 30, 30,
Estate 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
CoStar $ 344 $ 318 $ 1,012 $ 933
LoopNet 89 79 261 228
Other
Commerci… 59 64 172 155
Real
Estate
Total
Commerci… 492 461 1,445 1,316
Real
Estate
Resident…
Real 460 373 1,329 1,031
Estate
Total $ 952 $ 834 $ 2,774 $ 2,347
revenue
C…
G…
I…
D…
R…
-
U…
(…
m…
C…
R… 2… 20…
E… Q1 Q2 Q3 Q4 Q1 Q2 Q3
──────────────────────────────────────────────────────────────────────────────
C… $ 305 $ 3… $ 318 $ 3… $ 3… $ 337 $ 3…
L… 73 76 79 84 85 87 89
O…
C… 31 60 64 62 56 57 59
R…
E…
T…
C… 409 4… 461 4… 4… 481 4…
R…
E…
R…
R… 323 3… 373 4… 4… 444 4…
E…
T… $ 732 $ 7… $ 834 $ 9… $ 8… $ 925 $ 9…
r…
CoS…
Gro…
Inc.
Rec…
of
For…
Gui…
-
Una…
(in
mil…
exc…
per
sha…
dat…
Rec…
of
For… Guid…
Gui… Range Gui…
Net For Ran…
Inc… the For
to Three the
Adj… Mont… Year
Net Endi… End…
Inc… Dece… Dec…
and 31, 31,
Adj… 2026 2026
EPS Low High Low High
──────────────────────────────────────────────────────────────────────────────
Net $ 95 $ 109 $ 226 $ 241
inc…
Inc…
tax 33 39 72 77
exp…
Inc…
bef… 128 148 298 318
inc…
tax…
Amo…
of
acq… 77 77 278 278
int…
ass…
Sto…
com… 40 40 152 152
exp…
Acq…
and
int… 2 2 28 28
rel…
cos…
Int…
rel… — — 9 9
to
set…
Res…
and — — 4 4
rel…
cos…
Set…
and — — -15 -15
imp…
Adj…
inc…
bef… 247 267 754 774
inc…
tax…
Ass…
rate
for 26 % 26 % 26 % 26 %
inc…
tax
exp…
Ass…
pro…
for -64 -69 -196 -201
inc…
tax
exp…
Adj…
Net $ 183 $ 198 $ 558 $ 573
Inc…
Ear…
per
sha… $ 0.24 $ 0.27 $ 0.56 $ 0.60
-
dil…
Adj… $ 0.46 $ 0.50 $ 1.38 $ 1.41
EPS
Adj…
wei…
ave…
out… 400.0 400.0 405.0 405…
sha…
-
dil…
___…
(1)…
ass…
tax
rate
app…
our
sta…
fed…
and
sta…
cor…
tax
rate
for
the
app…
per…
Reconc…
of
Forwar…
Guidan… Guidance
Net Range Guidan…
Income For the Range
to Three For the
Adjust… Months December Year December
EBITDA Ending 31, 2026 Ending 31, 2026
──────────────────────────────────────────────────────────────────────────────
Low High Low High
Net $ 95 $ 109 $ 226 $ 241
income
Amorti…
of
acquir…
intang… 29 29 112 112
assets
in cost
of
revenue
Amorti…
of
acquir…
intang… 48 48 166 166
assets
in
operat…
expens…
Deprec…
and 24 24 78 78
other
amorti…
Intere…
expense 4 4 -2 -2
(incom…
net
Other
income, — — -1 -1
net
Income
tax 33 39 72 77
expens…
net
EBITDA 233 253 651 671
Stock-…
compen… 40 40 152 152
expense
Acquis…
and
integr… 2 2 28 28
related
costs
Restru…
and — — 4 4
related
costs
Settle…
and — — -15 -15
impair…
Adjust… $ 275 $ 295 $ 820 $ 840
EBITDA…
______…
(1)Tot…
may not
foot
due to
roundi…
Guidance
Range Guidan…
For the Range
Three For the
Months December Year December
Ending 31, 2026 Ending 31, 2026
──────────────────────────────────────────────────────────────────────────────
Low High Low High
EBITDA
Commer…
Real $ 151 $ 161 $ 604 $ 614
Estate
Reside…
Real 82 92 47 57
Estate
Total $ 233 $ 253 $ 651 $ 671
EBITDA
Adjust…
EBITDA
Commer…
Real $ 177 $ 187 $ 690 $ 700
Estate
Reside…
Real 98 108 130 140
Estate
Total
Adjust… $ 275 $ 295 $ 820 $ 840
EBITDA
CoS…
Gro…
Inc.
Rec…
of
Non…
Fin…
Mea…
-
Una…
(in
mil…
exc…
per
sha…
dat…
Rec…
of
Net
Inc…
(Lo…
to
Adj…
Net
Inc…
and
Adj…
EPS
Three Nine
Mont… Mon…
Ended End…
Sept… Sep…
30, 30,
2026 2025 2026 2025
Net
inc… $ 74 $ -31 $ 132 $ -40
(lo…
Inc…
tax 10 -15 38 9
exp…
(be…
Inc…
(lo…
bef… 84 -46 170 -31
inc…
tax…
Amo…
of
acq… 73 51 200 123
int…
ass…
Sto…
com… 32 71 112 153
exp…
Acq…
and
int…
rel…
cos…
inc… 15 30 27 56
in
inc…
(lo…
from
ope…
(Ga…
los…
on
inv…
and
dea…
for… — 23 — -2
cur…
for…
con…
rel…
to
an
acq…
Int…
rel… — — 9 —
to
set…
Res…
and — — 4 6
rel…
cos…
Set…
and 3 — -15 9
imp…
Adj…
inc…
bef… 207 129 507 314
inc…
tax…
Ass…
rate
for 26 % 26 % 26 % 26 %
inc…
tax
exp…
Ass…
pro…
for -54 -33 -132 -81
inc…
tax
exp…
Adj…
Net $ 153 $ 96 $ 375 $ 233
Inc…
Ear…
per
sha… $ 0.18 $ -0.07 $ 0.32 $ -0.…
-
dil…
Adj… $ 0.38 $ 0.23 $ 0.92 $ 0.55
EPS
Wei…
out…
sha… 401.6 419.9 406.2 416…
-
bas…
Wei…
out…
sha… 401.9 419.9 406.7 416…
-
dil…
Adj…
dil… — 3.4 — 4.3
sha…
Adj…
wei…
ave… 401.9 423.3 406.7 421…
sha…
dil…
___…
(1)…
in
oth…
exp…
net
in
the
con…
con…
sta…
of
ope…
(2)…
ass…
tax
rate
app…
our
sta…
fed…
and
sta…
cor…
tax
rate
for
the
app…
per…
(3)…
the
eff…
of
pot…
com…
sha…
such
as
the
Com…
sto…
opt…
res…
sto…
uni…
and
def…
sto…
uni…
to
the
ext…
the
eff…
is
dil…
In
per…
with
a
net
loss
ava…
to
com…
sto…
the
ant…
eff…
of
the…
pot…
com…
sha…
is
exc…
and
ear…
per
sha…
-
dil…
is
equ…
to
ear…
per
sha…
-
bas…
Adj…
wei…
ave…
sha…
have
been
adj…
for
the…
per…
to
inc…
the
dil…
imp…
CoStar
Group,
Inc.
Reconcili…
of
Non-GAAP
Financial
Measures -
Unaudited
(in
millions)
Reconcili…
of Net
Income
(Loss) to
EBITDA and
Adjusted
EBITDA
Three Nine Months
Months Ended
Ended September
September 30,
30,
2026 2025 2026 2025
Net income $ 74 $ -31 $ 132 $ -40
(loss)
Amortizat…
of
acquired
intangible 29 19 83 47
assets in
cost of
revenue
Amortizat…
of
acquired
intangible 44 32 117 76
assets in
operating
expenses
Depreciat…
and other 22 13 54 39
amortizat…
Interest
(income) 1 -26 -7 -97
expense,
net
Other
(income) -1 21 — 7
expense,
net(1)
Income tax
expense, 10 -15 38 9
net
EBITDA 179 13 417 41
Stock-bas…
compensat… 32 71 112 153
expense
Acquisiti…
and
integrati… 15 30 27 56
related
costs
Restructu…
and — — 4 6
related
costs
Settlemen…
and 3 — -15 9
impairmen…
Adjusted $ 229 $ 114 $ 545 $ 265
EBITDA
_________…
(1)Includ…
$3 million
and $4
million of
depreciat…
and
amortizat…
expense,
including
above-mar…
lease
amortizat…
associated
with
lessor
activities
for the
three
months
ended
September
30, 2026
and 2025,
respectiv…
and $11
million
and $17
million
for the
nine
months
ended
September
30, 2026
and 2025,
respectiv…
CoStar
Group,
Inc.
Results
of
Segments Three Nine
- Months Months
Unaudite… Ended Ended
(in September September
millions) 30, 30,
EBITDA 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Commerci…
Real $ 163 $ 114 $ 452 $ 335
Estate
Resident…
Real 16 -101 -35 -294
Estate
Total $ 179 $ 13 $ 417 $ 41
EBITDA
Adjusted
EBITDA
Commerci…
Real $ 180 $ 183 $ 513 $ 495
Estate
Resident…
Real 49 -69 32 -230
Estate
Total
Adjusted $ 229 $ 114 $ 545 $ 265
EBITDA
________…
(1)During
the
fourth
quarter
of 2025,
we
changed
the
composit…
of our
segments
from
geograph…
to
product
portfoli…
We have
recast
certain
prior
period
disclosu…
to align
with
new
segments.
… … … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ 6 $ … $ … $ 3 $ … $ …
8 … … … 9 … …
… … … … … … …
… … … … … … …
… … … … … … …
… 4 … 7 7 5 …
… … … — — — —
— — — — — 9 —
7 … — — 2 2 —
8 1 — — — … 3
… … … … … … …
… % … % … % … % … % … % …
… … … … … … …
$ … $ … $ … $ … $ … $ … $
$ … $ … $ … $ … $ … $ … $
… … … … … … …
… — … — — — —
… … … … … … …
C…
G…
I…
R…
of
N…
F…
M…
w…
Q…
R…
-
U…
(…
m…
R…
of
N…
I…
(…
to
E…
a…
A…
E… Q1 20… Q2 Q3 Q4 Q1 2… Q2 Q3
──────────────────────────────────────────────────────────────────────────────
N…
i… $ -15 $ 6 $ -… $ 47 $ 3 $ 55 $ 74
(…
A…
of 28 44 51 69 64 63 73
a…
i…
D…
a… 14 12 13 11 14 18 22
o…
a…
I…
(… -38 -33 -… -13 -… 2 1
e…
n…
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(… 2 -16 21 1 1 — -1
e…
n…
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t… 8 16 -… 14 9 19 10
e…
n…
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S…
c… 30 52 71 41 42 38 32
e…
A…
a…
i… 22 4 30 7 7 5 15
r…
c…
R…
a… 7 -1 — — 2 2 —
r…
c…
S…
a… 8 1 — — — -18 3
i…
A… $ 66 $ 85 $ 1… $ 177 $ 1… $ 184 $ 2…
E…
_…
(…
$7
m…
$9
m…
$4
m…
$4
m…
$5
m…
$3
m…
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$3
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R…
of
S…
-
U…
(…
m… 2… 20…
E… Q1 Q2 Q3 Q4 Q1 Q2 Q3
──────────────────────────────────────────────────────────────────────────────
C…
R… $ 103 $ 1… $ 114 $ 1… $ 1… $ 162 $ 1…
E…
R…
R… -1… -… -1… -… -… -5 16
E…
T… $ -1 $ 29 $ 13 $ 1… $ 81 $ 157 $ 1…
E…
A…
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C…
R… $ 151 $ 1… $ 183 $ 1… $ 1… $ 172 $ 1…
E…
R…
R… -85 -… -69 — -… 12 49
E…
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A… $ 66 $ 85 $ 114 $ 1… $ 1… $ 184 $ 2…
E…
_…
(…
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Investor Relations:
Rich Simonelli
Head of Investor Relations
CoStar Group Investor Relations
(973) 896-8184
getrich@costar.com
News Media:
Matthew Blocher
Vice President
CoStar Group Corporate Marketing & Communications
(202) 346-6775
mblocher@costar.com
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading global provider of online real estate
marketplaces, information, analytics, and 3D digital twin technology in the
property markets. Founded in 1986, CoStar Group is dedicated to digitizing the
world’s real estate, empowering all people to discover properties, insights, and
connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a leading global provider of
commercial real estate data, analytics, and news; LoopNet, the most trafficked
commercial real estate marketplace; Apartments.com, the leading platform for
apartment rentals; Homes.com, the fastest-growing residential real estate
marketplace; and Domain, one of Australia’s leading property marketplaces.
CoStar Group’s industry-leading brands also include Matterport, a leading
spatial data company whose platform turns buildings into data to make every
space more valuable and accessible; STR, a global leader in hospitality data and
benchmarking; Zonda, a leading provider of data, analytics, software, and
marketplace solutions for the residential construction industry; Ten-X, an
online platform for commercial real estate auctions and negotiated bids; and
OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted 121 million average monthly unique visitors in
the third quarter of 2026, serving clients around the world. Headquartered in
Arlington, Virginia, CoStar Group is committed to transforming the real estate
industry through innovative technology and comprehensive market intelligence.
From time to time, we plan to utilize our corporate website as a channel of
distribution for material company information. For more information, visit
CoStarGroup.com.
This news release and the Company’s earnings conference call contain “forward-
looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include, but are not limited to, statements
about CoStar Group's plans, objectives, expectations, beliefs and intentions and
other statements including words such as “hope,” “anticipate,” “may,” “likely,”
“might,” “believe,” “expect,” “observe,” “consider,” “think,” “intend,”
“envision,” “will,” “should,” “could,” “would,” “plan,” “target,” “goal,”
“estimate,” “predict,” “continue,” “commit,” and “potential” or the negative of
these terms or other comparable terminology. Such statements are based upon the
current beliefs and expectations of management of CoStar Group and are subject
to many risks and uncertainties. Actual results may differ materially from the
results anticipated in the forward-looking statements and the assumptions and
estimates used as a basis for the forward-looking statements. The following
factors, among others, could cause or contribute to such differences: our
inability to attract and retain new clients; our inability to successfully
develop and introduce new or updated real estate information, analytics, and
online marketplaces; the risks related to AI technologies, such as Homes Ai and
Apartments Ai; the planned CoStar Ai launch may be delayed or changed; our
inability to compete successfully against existing or future competitors in
attracting advertisers and in general; the effects of fluctuations and market
cyclicality; the effects of global economic uncertainties and downturns or a
downturn or consolidation in the real estate industry; our inability to hire
qualified persons for, or retain and continue to develop, our sales force, or
unproductivity of our sales force; our inability to retain and attract highly
capable management and operating personnel; the downward pressure that our
internal and external investments may place on our operating margins; our
inability to increase brand awareness; our inability to maintain or increase
internet traffic to our marketplaces, and the risk that the methods, including
Google Analytics, that we use to measure average monthly unique visitors to our
portals may misstate the actual number of unique persons who visit our network
of mobile applications and websites for a given month or may differ from the
methods used by competitors; our inability to attract new advertisers; our
inability to successfully identify, finance, integrate, and/or manage costs
related to acquisitions; our inability to complete certain strategic
transactions if a proposed transaction is subject to review or approval by
regulatory authorities pursuant to applicable laws or regulations; our inability
to realize the benefits of the acquisitions of Matterport, LLC ("Matterport"),
Domain Holdings Australia Pty Limited, or Bora Inc. and its subsidiaries
("Zonda"), or to complete the acquisition of Vexcel Group, Inc. and its
subsidiaries ("Vexcel") in a timely manner, or at all, or realize the expected
benefits of the Vexcel acquisition; the inability of third-party suppliers upon
which Matterport relies to fulfill its needs; the effects of cyberattacks and
security vulnerabilities, and technical problems or disruptions; the significant
costs associated with undertaking a large infrastructure project; our inability
to generate increased revenue from our current or future geographic expansion
plans; the risks related to acceptance of credit cards and debit cards and
facilitation of other customer payments; the effects of climate-related events
and other events beyond our control; the effects related to attention to
climate-related risks and opportunities; our inability to obtain and maintain
accurate, comprehensive, or reliable data; our inability to obtain and maintain
stable data feeds, or disruption of our data feeds; our inability to enforce or
defend our ownership and use of intellectual property; the effects of use of new
and evolving technologies, including artificial intelligence, on our ability to
protect our data and intellectual property from misappropriation by third
parties; our inability to defend against potential legal liability for
collecting, displaying, or distributing information; our inability to obtain or
retain listings from real estate brokers, agents, property owners, and apartment
property managers; our inability to maintain or establish relationships with
third-party listing providers;
our inability to comply with the rules and compliance requirements of Multiple
Listing Services; the risks related to open source software; the risks related
to international operations; the effects of foreign currency exchange rate
fluctuations; our indebtedness; the effects of a lowering or withdrawal of the
ratings assigned to our debt securities by rating agencies; the effects of any
actual or perceived failure to comply with privacy or data protection laws,
regulations, or standards; the effects of changes in tax laws, regulations, or
fiscal and tax policies; the effects of third-party claims, litigation,
regulatory proceedings, or government investigations; the risks related to
return on investment; and the risks related to the specific timing, price, and
size of repurchases under the Stock Repurchase Program, including that the Stock
Repurchase Program may be suspended or discontinued at any time at the Company’s
discretion. More information about potential factors that could cause results to
differ materially from those anticipated in the forward-looking statements
include, but are not limited to, those stated in CoStar Group’s filings from
time to time with the Securities and Exchange Commission (the "SEC"), including
in CoStar Group’s Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q, each of which is filed with the SEC, including in the “Risk Factors”
section of those filings, as well as CoStar Group’s other filings with the SEC
(including Current Reports on Form 8-K) available at the SEC’s website
(www.sec.gov). All forward-looking statements are based on information available
to CoStar Group on the date hereof, and CoStar Group assumes no obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable law.