COSTAR GROUP (CSGP) Company Report

CoStar Group has already refreshed its board with three new independent directors (including two recommended by D.E. Shaw and Third Point) and appointed a new independent board chair in response to activist demands.
The company formed a Capital Allocation Committee and will reduce Homes.com net investment by $300 million in 2026 (and $100 million annually thereafter) to achieve break-even by 2029 while increasing commercial product investments.
CoStar has accelerated its $500 million share repurchase program initiated in 2025 and authorized an additional $1.5 billion repurchase in January 2026.
After engaging the top 50 stockholders (representing 77% of shares), CoStar implemented a redesigned 2026 executive compensation program with more rigorous, quantitative goals, enhanced transparency, and a simplified structure.
Despite 14 meetings over nine months (including two with independent directors only), CoStar asserts D.E. Shaw’s narrative mischaracterizes the board’s engagement and understates the value creation plan for Homes.com.

1 day ago

Press Release

CoStar Group faces shareholder push for capital allocation and board overhaul

CSGP

New Projects/Investments

Board Change

Executive Compensation

D. E. Shaw criticizes CoStar’s board for value-destructive spending on Homes.com and chronic underperformance, and intends to support shareholder-driven change at the 2026 Annual Meeting.
CoStar has invested over $3 billion in Homes.com over the past four years, diverting core earnings, yet the platform generated only $80 million in revenue and $2 billion in cumulative losses versus $700 million–$1 billion projected by 2027.
The stock has recorded five consecutive years of declines, with a cumulative 32% loss versus a 101% gain for the S&P 500, underscoring investor dissatisfaction.
CEO Andy Florance earned approximately $130 million in compensation over the last five years (payouts at 200% of target on average), while nearly 50% of shareholders opposed CoStar’s 2025 say-on-pay proposal.
D. E. Shaw urges exiting or sharply reducing Homes.com to breakeven by 2027 and adding independent directors, estimating these moves could create over $10 billion in shareholder value.

2 days ago

Press Release

CoStar Group reiterates strategic plan to drive profitable growth

CSGP

Board Change

Share Buyback

Guidance Update

Board changes: added three new independent directors (including two designated by Third Point and D.E. Shaw), appointed a new independent Board Chair, and formed a Capital Allocation Committee to review capital structure and allocation priorities.
Homes.com investment: reducing net investment by $300 million in 2026 and $100+ million annually thereafter, aiming for breakeven profitability exiting 2029.
Share repurchase: accelerating completion of the $500 million program initiated in 2025 and authorizing a new $1.5 billion repurchase plan in January 2026.
2026 guidance: expects $3.8 billion in revenue (up 18% over 2025) and $770 million in Adjusted EBITDA (20% margin, up 83%).

Jan 28, 2026, 2:14 PM

Press Release

CoStar Group report: 2025 housing prices rise and affordability improves

CSGP

Nationwide median home price increased by 1.1%, from $376,025 in December 2024 to $380,000 in December 2025.
Homebuying affordability improved for the first time since 2020: median P&I payments fell from 2.0 weeks of earnings to 1.8 weeks, driven by a drop in mortgage rates to 6.15% and 3.75% wage growth.
Housing inventory grew by 17% during 2025, while the earnings required to buy the median home declined by over 9%.
Regional performance diverged: Midwest markets led gains (St. Louis up 7.7%), whereas Texas metros like Dallas–Fort Worth and Austin saw prices decline by 4.9% and 3.8%, respectively.

Jan 21, 2026, 9:30 PM

Press Release

CoStar Group reports December 2025 multifamily rent growth

CSGP

U.S. apartment average rent rose to $1,708 in December, up 0.1% month-over-month, snapping a five-month decline; annual growth eased to 0.66%.
Regional December rent changes: Midwest +0.12%, South +0.07%, Northeast +0.06%, West -0.01%.
Year-over-year regional rent growth: Midwest +2.2%, Northeast +1.5%, South -0.1%, West -1.4%.
Among top 50 metros, 25 posted rent increases; leaders were San Francisco +0.64%, Norfolk +0.53%, Richmond +0.42%, while Portland saw the largest decline at -0.29%.

Jan 8, 2026, 11:12 PM

Press Release

CoStar Group provides 2026 financial outlook and share repurchase program

CSGP

Guidance Update

Share Buyback

Executive Compensation

CoStar Group expects 2026 revenue of $3.78 billion–$3.82 billion (∼18% YoY growth), net income of $175 million–$215 million ($0.42–$0.52 EPS), and Adjusted EBITDA of $740 million–$800 million (20% margin).
Sets medium-term targets of ∼15% revenue CAGR through 2028 and $1.25 billion Adjusted EBITDA by 2028.
Authorizes a new $1.5 billion share repurchase program and unveils a revamped 2026 executive compensation plan aligned with shareholder feedback.
Plans to reduce Homes.com net investment by >$300 million in 2026 (down from $850 million in 2025) and forecasts positive Adjusted EBITDA by 2030.

Jan 7, 2026, 12:30 PM

Press Release

CoStar Group’s Apartments.com reports November 2025 multifamily rent decline

CSGP

Demand Weakening

National rents fell to $1,706, down 0.18% from October’s $1,709, marking the fifth consecutive month of flat or negative change and the steepest November drop in over 15 years; annual growth slowed to 0.7%.
All regions saw monthly declines in November: West -0.4%, South -0.2%, Northeast -0.1%, Midwest -0.01%; on a year-over-year basis, the Midwest led with +2.2%, while the West trailed at -1.5%.
Only seven metros posted positive monthly growth; Louisville, Kansas City and Norfolk led at +0.1%, whereas Las Vegas experienced the largest drop at -0.8%.
Elevated supply pressures from new construction continue to weigh on rents, with markets having the most new inventory showing the weakest performance, while supply-constrained metros outperform.

Dec 8, 2025, 2:54 PM

Press Release

CoStar outlines growth strategies at Stephens conference

CSGP

Legal Proceedings

Product Launch

New Projects/Investments

CoStar plans to penetrate its $9 billion Apartments.com TAM by expanding sales coverage across all property sizes—currently under 1% in 1–49 units, 7% in 20–49, and 30% above 50 units—with 90%+ incremental margins.
The company has invested over $5 billion in proprietary data and aggressively defends its IP—suing a competitor over 50,000 copyrighted images—and views AI as an accelerator, not a threat, to its platforms.
CoStar has sold 500+ Matterport packages for residential listings, noting 9 out of 10 viewers click on 3D tours, and is integrating this capability into all CoStar businesses, shifting to a B2B sales model.
A unified technology platform now powers CoStar’s marketplaces (LoopNet, Apartments.com, Homes.com) and analytics (Lender.com), enabling bidirectional data flow and cross‐product enhancements.
LoopNet refocused on mid‐market “silver” listings—retention of high-80s to low-90s% vs. teens for platinum—and is back to double‐digit growth, with 100,000+ European listings and an Australia launch planned in H1 2026.

Nov 20, 2025, 3:00 PM

Transcript

CoStar Group outlines growth strategy at Stephens annual investment conference

CSGP

Legal Proceedings

Share Buyback

New Projects/Investments

CoStar estimates a $9 billion+ TAM in the U.S. multifamily market with 15–20% current penetration versus a 70–80% target, driving a 20% expansion in Apartments.com’s salesforce to capture this opportunity.
CoStar has filed a major copyright infringement lawsuit against a competitor over ~50,000 unauthorized uses of its images and prohibits API access to protect its IP, viewing scraping as illegal.
The Matterport Plus program has sold >500 packages, leading 9 out of 10 viewers to click listings, with plans to integrate the technology across Apartments.com, Homes.com, LoopNet, and CoStar platforms.
The company accelerated its $500 million share buyback program—initially neutralizing stock-based compensation—and expects to complete it by December, with buybacks to remain part of future capital recommendations.
LoopNet refocused on mid-market “silver” offers, achieving 88–90% retention versus teens for “platinum,” reinforcing its billion-dollar revenue profile; international listings exceed 100,000, and an Australian launch is slated for H1 2026.

Nov 20, 2025, 3:00 PM

Transcript

CoStar outlines growth strategies for Apartments.com, Homes.com and LoopNet

CSGP

Share Buyback

Revenue Acceleration/Inflection

New Projects/Investments

Apartments.com achieved double-digit growth for 13 consecutive quarters, growing from $50 M+ to $1.2 B in revenues with a TAM > $9 B and 2× the size of its nearest competitor, leveraging Matterport and AI to enhance consumer experience and lead generation.
Sales headcount increased ~20% to capture under-penetrated segments (1–49 units currently < 1% penetration), targeting high-margin (90%+ incremental) expansion across the existing TAM.
Capital allocation has shifted to include an accelerated $500 M share buyback, expected to complete by December, with buybacks remaining central to the deployment strategy.
Homes.com now has 26,000 subscribing agents, employing tiered advertising and pricing penetration models to drive digital marketing spend, with plans to increase pricing as penetration grows.
LoopNet reoriented toward silver-package penetration, boosting retention to high-80s/low-90s% (vs. teens for platinum) and returning to double-digit growth; international listings exceed 100 K in Europe with Australia launch in H1 2026.