CoStar Group ((CSGP)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for CoStar Group reflected a robust performance across various segments, with the company achieving record-breaking revenue and significant growth in net new bookings. Despite challenges such as Matterport’s profitability issues and competitive pressures from Zillow, the overall sentiment was positive, with the company’s strategic achievements and revenue growth standing out prominently.
Record-Breaking Revenue and Growth
CoStar Group reported an impressive $781 million in revenue, marking a 15% increase compared to the previous year. This achievement represents the 57th consecutive quarter of double-digit revenue growth. Additionally, the company’s adjusted EBITDA saw a substantial rise to $85 million, a 108% increase compared to Q2 2024.
Outstanding Net New Bookings
The company set a new record with net new bookings totaling $93 million, a 65% increase over the previous quarter. This achievement marks the highest quarterly net new bookings in CoStar Group’s history, showcasing the company’s strong market position and growth trajectory.
Apartments.com Success
Apartments.com continued to perform well, with revenue increasing by 11% from Q2 2024, reaching $292 million. The platform averaged 42 million monthly unique visitors and 234 million network visits during the quarter, highlighting its strong market presence.
Strong Growth in International Markets
CoStar Group’s international businesses achieved remarkable growth, with a 90% year-over-year increase in net new bookings in Q2 2025 compared to Q2 2024. This underscores the company’s successful expansion efforts beyond domestic markets.
Homes.com Growth
Homes.com delivered a robust second quarter, with residential annualized net new bookings totaling $12 million. The network attracted an average of 111 million unique monthly visitors in Q2, indicating strong consumer engagement.
LoopNet Performance
LoopNet experienced significant growth, generating more net new business in the first half of 2025 than the entirety of 2024. Net new bookings surged by 345% compared to the same period last year, demonstrating its increasing market influence.
Matterport Challenges
Despite the overall positive performance, Matterport has not yet achieved profitability, and its growth rate has slowed. The business faces challenges with a small sales force of fewer than 30 quota-carrying salespeople globally.
VHT Photography Business Winding Down
Matterport’s photography business, VHT, is being wound down due to its status as a loss-making service, with losses exceeding $10 million. This decision reflects the company’s focus on optimizing its business portfolio.
Zillow’s Aggressive Tactics
Zillow’s aggressive market tactics have raised antitrust concerns, as the company forces agents to market listings within 24 hours or risk being permanently banned. This has led to a lawsuit filed by Compass, highlighting competitive pressures in the market.
Overall CRE Market Challenges
The commercial real estate (CRE) market continues to face difficulties, particularly in the office segment, with high vacancy rates and worsening negative net absorption rates. These challenges persist despite the company’s strong performance in other areas.
Forward-Looking Guidance
Looking ahead, CoStar Group has outlined strategic investments to expand its sales force, with plans to grow the core sales team by 20% and triple the Homes.com sales force to 750 representatives by the end of 2025. The company also reported a 99% monthly renewal rate and strong customer engagement, with over 171,000 client interactions and a Net Promoter Score of 94%.
In summary, CoStar Group’s earnings call highlighted a strong performance with record-breaking revenue and growth across various segments. Despite challenges in certain areas, the company’s strategic achievements and forward-looking guidance indicate a positive outlook for continued growth and market expansion.