CoStar Group reiterates initiatives to increase long-term shareholder value

CoStar Group (CSGP) issued a statement in response to the letter issued by Third Point, stating that the board and management team are taking decisive action to prioritize profitable growth and increase long-term value for all stockholders. The feedback from engagements with shareholders has informed meaningful steps the company has taken to extend its track record of stockholder value creation, including adding three new independent directors to the board and announcing a new independent board chair. CoStar is moderating investment in Homes.com as it scales revenue upon the completion of the investment phase and successful launch. The company is reducing net investment by $300M in 2026 and over $100M annually thereafter to achieve breakeven profitability for the platform exiting 2029. Additionally, CoStar is accelerating the completion of its $500M share repurchase program initiated in 2025 and authorizing a new $1.5B repurchase program in January.