Jun Yong

Jun Yong sought to understand the timing and key drivers behind the residential segment's profitability improvement, given the guidance of negative $45 million EBITDA in Q1 and positive $105 million for the full year.

Answer

CoStar Group CFO Chris Lown attributed the profitability acceleration to marketing expenses being heavily front-loaded in Q1 and, to a lesser extent, Q2. He also cited the underlying revenue growth across both Apartments.com and Homes.com, which operate on relatively fixed cost bases, as a driver for the improvement over the 2026 period.