Q2 2025 CoStar Group Inc Earnings Call Transcript
Key Points
- CoStar Group Inc (CSGP) reported a strong 15% increase in revenue, reaching $781 million for Q2 2025, marking the 57th consecutive quarter of double-digit revenue growth.
- Adjusted EBITDA rose significantly by 108% compared to Q2 2024, reaching $85 million, exceeding consensus estimates and the high end of guidance.
- Apartments.com achieved an 11% revenue increase from Q2 2024, reaching $292 million, with a strong net new bookings performance.
- Homes.com delivered solid sales growth with residential annualized net new bookings totaling $12 million for the quarter, and a significant increase in membership.
- LoopNet's net new bookings surged by 345% in the first half of 2025 compared to the same period last year, with expectations for revenue growth to exceed 10% in the second half of 2025.
- Matterport, despite being a leading provider of digital twin solutions, has not yet achieved profitability and its growth rate has slowed.
- The commercial real estate market continues to face challenges, particularly in the office segment with high vacancy rates and negative net absorption rates.
- Zillow's aggressive tactics in the market raise antitrust concerns, potentially impacting CoStar Group Inc (CSGP)'s competitive positioning.
- The integration and streamlining efforts at Matterport involve discontinuing certain non-core revenue streams, impacting revenue expectations.
- The Homes.com product is still in its early stages, requiring ongoing efforts to communicate its value proposition effectively to clients.
Thank you for standing by and welcome to the CoStar Group second-quarter Q2 '25 earnings conference call. (Operator Instructions) As a reminder, today's program is being recorded.
And now, I'd like to introduce your host for today's program, Richard Simonelli, Head of Investor Relations. Please go ahead, sir.
Thank you very much. Hello, everyone. Thank you for joining us to discuss CoStar Group's second-quarter 2025 results. Before I turn the call over to Andy Florance, CoStar's CEO and Founder; and Chris Lown, our CFO, I'd like to review our Safe Harbor statement.
Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the third and fourth quarters and full year and beyond. Forward-looking statements may involve many risks, uncertainties, assumptions, and estimates, and other factors that can actually cause actual results to different materially from such statements. Important factors that can cause
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