Jun Zhang

Jun Zhang asked for a better understanding of the timing and key drivers behind the residential segment's profitability improvement throughout the year, given the guidance of negative $45 million EBITDA in Q1 and positive $105 million for the full year at the midpoint.

Answer

CoStar Group CFO Chris Lown attributed the profitability acceleration to the front-loaded marketing expenses in Q1 and, to a lesser extent, Q2. He explained that the underlying revenue growth across both Apartments.com and Homes.com, combined with relatively fixed costs, drives the expected margin expansion over the course of 2026.