Question · Q3 2025
Basal Wit from Deutsche Bank asked about the expected timeframe and necessary conditions for CoStar Group's residential business to achieve 40% profitability or EBITDA margins.
Answer
CEO Andy Florance explained that the residential business, encompassing Domain, OnTheMarket, Homes.com, and Apartments.com, follows a uniform model focused on marketing real estate. He referenced global precedents (Rightmove, REA Group) with 50-75% margins, indicating that achieving 40% is a goal through "continued blocking and tackling over the next number of years," noting positive EBITDA margin progression.