CoStar Group (CSGP)
NASDAQ:CSGP
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CoStar Group
(NASDAQ:CSGP)
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Rating:54Neutral
Price Target:
$42.00
▲(1.99% Upside)
Action:ReiteratedDate:03/31/26
The score is held back primarily by weakened 2025 profitability and cash flow conversion and a clearly bearish technical trend, compounded by an extremely high P/E and no dividend support. These are partially offset by constructive 2026 guidance and product/sales momentum highlighted on the earnings call, alongside a strong balance sheet and planned capital returns.
Positive Factors
Sustained Revenue Growth
CoStar has delivered persistent double-digit top-line growth across many years, driven by recurring subscriptions and marketplace scale. That durable revenue momentum supports predictable cash inflows, expands market penetration, and underpins long-term investment in products and geographic expansion.
Negative Factors
Profitability Weakness
A sharp drop to negative operating profit and near-zero net income materially reduces the company's ability to compound returns and demonstrates operating leverage pressures. If elevated costs and integration expenses persist, long-term return on invested capital and shareholder value creation may remain impaired.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
CoStar has delivered persistent double-digit top-line growth across many years, driven by recurring subscriptions and marketplace scale. That durable revenue momentum supports predictable cash inflows, expands market penetration, and underpins long-term investment in products and geographic expansion.
Read all positive factors
CoStar Group (CSGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.28B
Dividend YieldN/A
Average Volume (3M)6.44M
Price to Earnings (P/E)4003.7
Beta (1Y)0.86
Revenue Growth14.61%
EPS Growth-87.93%
CountryUS
Employees8,441
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.31
Shares Outstanding419,793,300
10 Day Avg. Volume6,740,653
30 Day Avg. Volume6,439,411
Financial Highlights & Ratios
PEG Ratio-42.12
Price to Book (P/B)3.36
Price to Sales (P/S)8.63
P/FCF Ratio683.55
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue4.97
Enterprise Value/Gross Profit6.41
Enterprise Value/Ebitda79.64
Forecast
1Y Price Target
$61.63Price Target Upside49.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)1.3
Revenue Forecast (FY)$3.81B
CoStar Group Business Overview & Revenue Model
Company Description
CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin Ame...
How the Company Makes Money
CoStar Group primarily makes money through (1) subscription revenue from real estate data, analytics, and workflow platforms and (2) marketplace/online advertising revenue from its real estate listing sites.
1) Subscriptions (information & analyt...
CoStar Group Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyCoStar Group Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call demonstrated broad top-line strength, product momentum (notably Homes AI and CoStar product expansions), record net new bookings and a large adjusted EBITDA beat for 2025, alongside aggressive global expansion and tangible capital return plans. Near-term profitability is being deliberately traded for targeted investments: the Residential segment faces low 2026 margins and Q1 seasonal EBITDA weakness, and Commercial margins will be muted in 2026 due to simultaneous investments and the first full-year impact of recent acquisitions. Overall, the business shows strong operating momentum and strategic optionality with expected margin expansion through 2026–2027, while bearing near-term execution and macro risks.Positive Updates
Revenue Growth and Scale
Q4 2025 revenue grew 27% year-over-year to $900 million; full-year 2025 revenue was $3.20 billion, up 19% YoY. This marks the company's 59th consecutive quarter of double-digit revenue growth.
Negative Updates
Near-Term Residential Profitability Drag / Quarter Seasonality
Management indicated Residential segment EBITDA is negative in Q1 2026 (analyst cited roughly -$45M) with full-year 2026 Residential adjusted EBITDA margin guidance only 5%–7%. Marketing seasonality and heavy early-year spend were cited as drivers of the Q1 drag.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Scale
Q4 2025 revenue grew 27% year-over-year to $900 million; full-year 2025 revenue was $3.20 billion, up 19% YoY. This marks the company's 59th consecutive quarter of double-digit revenue growth.
Read all positive updates
Company Guidance
CoStar affirmed 2026 guidance of $3.78–3.82B revenue (16–18% growth) and $740–800M adjusted EBITDA (20–21% margin), with Q1 revenue $890–900M and Q1 adjusted EBITDA $95–115M; management expects adjusted EBITDA margins to expand roughly 5 percentage points each quarter in 2026. By segment they forecast Commercial revenue of $1.955–1.975B (≈10% at midpoint) with Q1 Commercial $470–475M, and Residential revenue of $1.825–1.845B (≈26% at midpoint) with Q1 Residential $420–425M; segment margins are guided to ~33–34% for Commercial and 5–7% for Residential. They plan $175–225M of CapEx, will repurchase $700M of stock in 2026 (accelerated $500M ASR this quarter + $200M open market), and noted Domain seasonality typically reduces revenue by about $14M Q4→Q1.CoStar Group Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
78
Positive
Cash Flow
49
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.25B | 2.74B | 2.46B | 2.18B | 1.94B |
| Gross Profit | 2.44B | 2.18B | 1.96B | 1.77B | 1.59B |
| EBITDA | 272.00M | 151.60M | 389.80M | 588.90M | 571.86M |
| Net Income | 7.00M | 138.70M | 374.70M | 369.50M | 292.60M |
Balance Sheet | |||||
| Total Assets | 10.54B | 9.26B | 8.92B | 8.40B | 7.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 4.68B | 5.22B | 4.97B | 3.83B |
| Total Debt | 1.14B | 1.04B | 1.11B | 1.11B | 1.11B |
| Total Liabilities | 2.17B | 1.70B | 1.58B | 1.53B | 1.55B |
| Stockholders Equity | 8.33B | 7.55B | 7.34B | 6.87B | 5.71B |
Cash Flow | |||||
| Free Cash Flow | 41.00M | -245.30M | 464.20M | 420.05M | 404.51M |
| Operating Cash Flow | 430.00M | 392.60M | 489.50M | 478.62M | 469.73M |
| Investing Cash Flow | -2.82B | -912.90M | -238.60M | -69.10M | -381.34M |
| Financing Cash Flow | -559.00M | -13.70M | -3.70M | 733.98M | -15.68M |
CoStar Group Technical Analysis
Negative
41.18
Price Trends
48.14
Negative
57.15
Negative
70.65
Negative
Market Momentum
-2.29
Negative
38.02
Neutral
35.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGP, the sentiment is Negative. The current price of 41.18 is below the 20-day moving average (MA) of 42.63, below the 50-day MA of 48.14, and below the 200-day MA of 70.65, indicating a bearish trend. The MACD of -2.29 indicates Negative momentum. The RSI at 38.02 is Neutral, neither overbought nor oversold. The STOCH value of 35.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSGP.
CoStar Group Risk Analysis
CoStar Group disclosed 40 risk factors in its most recent earnings report. CoStar Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CoStar Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $14.37B | 9.87 | 11.09% | ― | 12.51% | 32.34% | |
66 Neutral | $40.20B | 41.44 | 13.63% | ― | 14.61% | 30.19% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $16.83B | 41.95 | 4.29% | 2.26% | 25.33% | -15.12% | |
60 Neutral | $2.93B | -41.85 | 4.65% | ― | 6.77% | 150.72% | |
56 Neutral | $2.71B | 24.52 | 8.82% | 0.68% | 22.22% | 94.52% | |
54 Neutral | $17.28B | 4,003.66 | 0.09% | ― | 14.61% | -87.93% |
* Real Estate Sector Average
CSGP
CoStar Group
41.18
-32.06
-43.77%
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CoStar Group Corporate Events
Executive/Board Changes
CoStar Group Appoints Nana Banerjee to Board of Directors
Positive
Mar 16, 2026
On March 15, 2026, CoStar Group, Inc. appointed Nana Banerjee to its Board of Directors, with the new director immediately joining the company’s existing governance structure and becoming eligible to participate in its standard director comp...
Business Operations and StrategyRegulatory Filings and Compliance
CoStar Expands Use of Website for Investor Disclosures
Positive
Feb 24, 2026
CoStar Group announced that it plans to use its corporate website as a primary channel for distributing material company information, including investor presentations. The company noted that while these materials will be available online for stake...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
CoStar Amends Executive Severance Plan Amid Activist Pressure
Neutral
Feb 13, 2026
On February 13, 2026, CoStar Group amended its Executive Severance Plan to delete a board-composition-based clause from the definition of “change in control,” while leaving all other provisions intact. The removed director clause, prev...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
CoStar Group Updates Executive Pay, Launches Share Buyback
Positive
Jan 7, 2026
On January 7, 2026, CoStar Realty Information, Inc., a subsidiary of CoStar Group, amended the employment agreement of founder and CEO Andrew C. Florance, effective January 1, 2026, to remove a long-standing tax gross-up provision related to Secti...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.