CoStar Group
CoStar Group, founded in 1987 by Andy Florance, has grown from a commercial real estate data provider into a global leader in digital real estate marketplaces, analytics, and 3D digital twin technology.
Profile
Provides online real estate marketplaces, property data, and 3D digital twin technology for commercial and residential markets.
CoStar Group, founded in 1987 by Andy Florance, has grown from a commercial real estate data provider into a global leader in digital real estate marketplaces, analytics, and 3D digital twin technology. Headquartered in Arlington, Virginia, the company now operates in 15 countries with 8,400 employees. CoStar went public in 1998 (NASDAQ: CSGP) and joined the S&P 500, with 2025 revenue reaching $3.2 billion, up 19% year-over-year.
The company has delivered 60 consecutive quarters of double-digit revenue growth as of Q1 2026, though net income remains volatile due to heavy investments in acquisitions like Matterport (3D scanning) and Domain (Australian listings). Its Homes.com residential portal, launched in 2023, now claims 111 million monthly unique visitors, making it the second-largest U.S. residential network behind Zillow. CoStar's commercial brands (LoopNet, Ten-X) maintain dominance in CRE data, while Apartments.com leads multifamily rentals.
Recent moves include a $700M share repurchase program and AI integrations like Homes.com's natural language search. The company faces scrutiny from activists like Third Point, which exited its position in 2026 after questioning growth strategy.
Who buys this
- Commercial real estate brokers and investors
- Multifamily property managers and landlords
- Residential real estate agents
- Hospitality industry analysts
- Small business buyers/sellers
Strengths and what to watch
Strengths
- Market-leading position in commercial real estate data with CoStar and LoopNet
- Rapid growth of Homes.com to 111M monthly visitors in under 3 years
- Recurring revenue model with 76% of Homes.com agents on annual contracts
Watch for
- Heavy losses in residential segment (-$31M net income Q3 2025) despite revenue growth
- Activist investor Third Point exited position in 2026 citing strategic concerns
- Dependence on U.S. market (86% of revenue) despite global brand portfolio
Recent moves
Key Information
- Founded
- 1987
- Employees
- 8441
- Headquarters
- Arlington, Virginia
- Country
- United States
Frequently Asked Questions
What does CoStar Group do?
CoStar provides online real estate marketplaces, property data analytics, and 3D digital twin technology for commercial and residential markets. Its platforms include Homes.com, LoopNet, and Apartments.com, serving brokers, investors, and agents with market intelligence and listing services across 15 countries.
How fast is CoStar Group growing?
CoStar reported 19% revenue growth in 2025 ($3.2B) and 23% Q1 2026 growth ($897M). Homes.com reached 111M monthly visitors, becoming the second-largest U.S. residential network. The company has achieved 60 straight quarters of double-digit revenue growth through strategic acquisitions and marketplace expansion.
Is CoStar profitable?
While revenue grows consistently, profitability fluctuates due to heavy investments. Q3 2025 saw a $31M residential segment loss despite overall growth. The company maintains strong commercial data margins but faces pressure from activist investors questioning its spending on acquisitions like Matterport and Domain.
How does Homes.com compare to Zillow?
Homes.com became the second-largest U.S. residential network with 111M monthly visitors, still trailing Zillow. It differentiates through integrated 3D digital twin tech from Matterport and focuses on agent services, with 76% of agents on annual contracts as of 2026.
Why did Third Point sell CoStar shares?
Activist investor Third Point exited its position in 2026, citing concerns about CoStar's growth strategy and residential segment losses. This followed a 19% revenue increase but came amid heavy spending on acquisitions and technology like AI-powered search for Homes.com.
What commercial real estate data does CoStar provide?
CoStar offers market-leading CRE analytics through LoopNet and Ten-X, serving brokers and investors with pricing, occupancy, and transaction data. Its commercial brands maintain dominance despite residential expansion, with tools for multifamily, office, retail, and hospitality property analysis across global markets.
Sources
- www.sec.gov — Q2 2025 financial results and Homes.com growth metrics
- www.costargroup.com — 2025 annual revenue and share repurchase program
- www.reuters.com — Third Point activist investor exit
- www.costargroup.com — Global employee count and brand portfolio