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Mar 31
CoStar Q1 2025 Earnings Report
CoStar reported a 12% year-over-year revenue increase in Q1 2025 but posted a net loss due to acquisition-related expenses.
Key Takeaways
CoStar delivered strong revenue growth and exceeded Adjusted EBITDA guidance, driven by exceptional performance in its commercial real estate platforms and record growth in Homes.com sales conversion. However, the company reported a net loss primarily due to costs from the Matterport acquisition.
Revenue reached $732,200,000, up from $656,400,000 in Q1 2024.
Net loss was $14,800,000, impacted by a $31,000,000 cost from the Matterport acquisition.
Adjusted EBITDA grew to $65,600,000, a 429% increase YoY.
Homes.com salesforce hit 370 reps with demo-to-close conversion over 50%.
CoStar
CoStar
CoStar Revenue by Segment
CoStar Revenue by Geographic Location
Revenue by Segment
CoStar Revenue
CapyFin.comInformation Services Revenue
CapyFin.comMultifamily Revenue
CapyFin.comLoopNet Revenue
CapyFin.comResidential Revenue
CapyFin.comOther Revenues Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
CoStar expects continued double-digit revenue growth and margin expansion despite acquisition impacts, projecting full-year revenue between $3.115B and $3.155B.
Positive Outlook
- Full-year 2025 revenue expected to grow ~15% YoY.
- Q2 2025 revenue guidance: $770M–$775M.
- Full-year Adjusted EBITDA guidance: $355M–$385M.
- Expected margin of 12% at midpoint.
- Homes.com demo-to-close rate now over 50%.
Challenges Ahead
- Net loss expected in Q2 2025: ($18M)–($27M).
- Significant acquisition-related costs impacting margins.
- Q1 operating loss of $42.8M due to higher expenses.
- Decline in interest income vs. prior year.
- Cash declined by over $900M QoQ due to acquisition and investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income