Total Revenue

15% " "

**The 15% increase (from $677.8M to $781.3M) reflects the strength of CoStar’s multi-segment strategy, building on prior periods’ gains. Continued robust performance across key segments and effective integration of strategic initiatives have boosted overall revenue compared to the previous year’s figures. " " **

North America Revenue

15.6% " " "

**Representing about 95% of total revenue, North America revenue rose from $643.8M to $744.0M, primarily due to pricing adjustments, increased subscriber numbers, and enhanced sales efforts observed in earlier performance. The consistent domestic demand and operational improvements from previous quarters laid the foundation for this sharper growth. " " " **

International Revenue

9.7% " " "

**The international segment’s revenue increased from $34.0M to $37.3M, a modest jump compared to domestic markets. Factors such as inflation-based price increases and gradual subscriber growth, which were mechanisms introduced in earlier periods, contributed to this slower, yet positive, increase. " " " **

Information Services

18% " "

**Information Services revenue grew from $33.4M to $39.3M, driven largely by strategic acquisitions and product integrations. The strong 18% growth builds on efforts seen in prior periods—particularly the improved performance after earlier challenges—and reflects the accelerated impact of initiatives like the Visual Lease Acquisition. " " **

Other key segments

8–10% " "

**Multifamily, LoopNet, and Residential segments collectively contributed modest gains (8–10% YoY) by improving operational efficiencies and integrating new product offerings. This growth reinforces trends initiated in previous periods where strategic shifts in pricing and sales approaches proved effective. " " **

Revenue (Quarterly)

Q3 2025

$770M–$775M "

$800M–$805M "

raised

Adjusted EBITDA (Quarterly)

Q3 2025

$50M–$60M "

$75M–$85M "

raised

CoStar Revenue Growth (Quarterly)

Q3 2025

6% "

7% "

raised

Apartments.com Revenue Growth (Quarterly)

Q3 2025

10% "

11%–12% "

raised

LoopNet Revenue Growth (Quarterly)

Q3 2025

7% "

10%–11% "

raised

Information Services Revenue Growth (Quarterly)

Q3 2025

18%–20% "

approximately 20% "

no change

Residential Revenue (Quarterly)

Q3 2025

low single digits "

sequential increase of $3,000,000–$4,000,000 "

no prior guidance

Other Revenue (Quarterly)

Q3 2025

approximately $70M (with $40M from Matterport) "

approximately $75M (including $40M from Matterport) "

raised

Revenue (Annual)

FY 2025

$3.115B–$3.155B, 14%–15% "

$3,135,000,000–$3,155,000,000, 15% "

raised

Adjusted EBITDA (Annual)

FY 2025

$355M–$385M "

$370M–$390M "

raised

CoStar Revenue Growth (Annual)

FY 2025

no prior guidance

7% "

no prior guidance

Apartments.com Revenue Growth (Annual)

FY 2025

11%–12% "

11%–12% "

no change

LoopNet Revenue Growth (Annual)

FY 2025

7%–8% "

8%–9% "

raised

Information Services Revenue Growth (Annual)

FY 2025

18%–20% "

16%–18% "

lowered

Residential Revenue Growth (Annual)

FY 2025

mid-teens to low 20s% "

over 20% "

raised

Other Revenue (Annual)

FY 2025

$270M–$280M "

$270M–$275M "

lowered

Apartments.com Performance, Market Share, and TAM

Previously, calls in Q1 2025, Q4 2024, and Q3 2024 highlighted strong revenue growth (e.g. 11–17% increases), leading market share advantages, record visitor and leasing metrics, and aggressive sales force expansion to capitalize on a massive TAM. " " "

In Q2 2025, Apartments.com reported an 11% year‐over‐year revenue increase, record net new bookings, robust user engagement (42 million monthly unique visitors), and maintained high market share and renewal metrics supported by additional sales force growth. " " "

Consistent strength: Performance and market share remain robust with continued revenue growth and effective scaling of the sales team to capture the large TAM.

Underpenetrated Agent Market Expansion

Earlier discussions in Q1 2025 (and noted in Q3 2024) detailed a significant expansion of the Homes.com sales force (e.g. 600% growth) and strategic focus on penetrating an underpenetrated agent market with improved booking and cancellation metrics. " "

Q2 2025 emphasized further expansion with a 20% growth in the core sales team and tripling of the Homes.com sales force, along with highlights of improved conversion and revenue generation per rep. " "

Ongoing priority: The expansion continues to scale aggressively, driving enhanced revenue outcomes and market penetration with a clearer value proposition.

Pricing Strategies and Margin Expansion

In Q1 2025 and Q4 2024, CoStar detailed adjustments across platforms—such as asset-based pricing on LoopNet, lower pricing sensitivity during tough markets, and efforts to expand margins in both commercial and residential segments. " " "

Q2 2025 focused on penetration pricing as a deliberate move to secure market share while maintaining high gross margins, with emphasis on leveraging new product initiatives and pricing adjustments. " "

Stable focus: The pricing and margin strategy remains a key lever, with a continued shift toward penetration pricing in the early stages and plans to adjust pricing as market share increases.

Sales Force Expansion and Execution/Productivity Challenges

Q1, Q3, and Q4 2024 discussed rapid sales force growth across Homes.com, Apartments.com, LoopNet, and CoStar; they also noted temporary productivity challenges due to resource reallocation and training for new products. " " " "

Q2 2025 reported a 20% expansion of the sales force, totalling 1,800 representatives, along with improved gross productivity and significantly higher NPS scores for both U.S. and Canadian teams. " " "

Recovery and growth: Prior execution challenges are being overcome with re-focused teams and improved productivity, reinforcing the company’s growth across segments.

Matterport Integration and Associated Execution Risks

Prior periods (Q1 2025 and Q4 2024) outlined Matterport’s integration plans—its dual role across CoStar platforms and regulatory progress with the FTC, while Q3 2024 mentioned early integration efforts with Homes.com. " " "

In Q2 2025, CoStar described a deeper strategic integration—with a shift from a B2C to a B2B model, significant investment in advanced camera technology, and plans to expand Matterport’s dedicated sales force—while actively managing profitability and execution risks. " "

Deepening integration: The Matterport integration has become more strategic and capital intensive, with added focus on overcoming execution risks and achieving profitability.

Homes.com Customer Metrics and Volatility

Q1 2025 and Q4 2024 demonstrated early challenges with Homes.com cancellations and confusion over the value proposition—with improvements noted by a dramatic drop in cancellation rates and a jump in NPS from negative levels to “good” scores. " " "

Q2 2025 showcased substantial improvements with NPS rising further (to 38), a 56% increase in net new memberships, significantly lower cancellation rates (well below 1%), and enhanced engagement and lead conversion metrics. "

Improving sentiment: Homes.com metrics have steadily improved, suggesting better customer understanding, reduced volatility, and a stronger long‐term value proposition.

LoopNet Strategy Shift (Asset-Based Pricing and Silver Ad Focus)

In Q1 2025 and Q4 2024, CoStar introduced a strategic shift incorporating asset-based pricing for LoopNet and emphasized the transition to selling broad subscription packages (including silver-tier ads) with high renewal rates. " " "

In Q2 2025, the focus on asset-based pricing is maintained; the strategy is now yielding faster revenue growth (8% increase year over year) and a projection of double-digit growth in the latter half of 2025, reinforcing asset-based pricing and silver ad focus as key drivers. " " "

Consistent evolution: LoopNet’s strategic shift continues to drive revenue growth, with clearer outcomes now evident from the asset-based pricing model and silver ad focus.

International Expansion (European Markets)

Q4 2024 emphasized streamlining European operations—migrating to a uniform LoopNet platform, launching in France and Spain, and rationalizing operations for cost savings. " " Q1 2025 did not mention international expansion.

In Q2 2025, international expansion is highlighted with strong performance in the UK market (20% YoY listing growth, improved user engagement) and ongoing launches in France and Spain, as part of a broader strategic push in Europe. " " "

Accelerating growth: European expansion has gained momentum, signaling a strategic commitment to capture new markets and scale internationally.

Competitive Pricing Pressure from Rivals

Q4 2024 focused on Apartments.com’s superior market metrics—such as high revenue, robust NPS, and overwhelming market share compared to competitors—minimizing concerns about pricing pressure. " Q1 2025 contained no specific discussion on this topic.

In Q2 2025, CoStar reiterated that there is no noticeable loss of wallet share or pricing power, emphasizing the high quality of their product (selling leases, not just leads) and maintaining superior average selling prices relative to rivals like Zillow. "

Bullish outlook: The sentiment remains strong as competitive pricing pressure is effectively mitigated by a differentiated product offering and strong customer loyalty.

Decline in Net New Bookings and Seasonality Concerns

Q3 2024 noted a decline in net new bookings (around $44 million) due to a temporary shift in sales focus towards launching Homes.com; Q1 2025 showed modest positive growth and seasonal patterns, and Q4 2024 reported a 21% sequential improvement. " " "

Q2 2025 marked a recovery with record net new bookings of $93 million—reflecting a 65% sequential increase and a 38% YoY rise—with seasonality trends aligning with historical patterns (strong Q2 for Apartments.com, etc.). " " "

Strong rebound: After previous headwinds and seasonal challenges, net new bookings have rebounded significantly in Q2 2025, indicating recovery and robust momentum going forward.