CSGP's Stock Analysis

CoStar Group Completes Acquisition of Domain Holdings Australia

CoStar Group, Inc. has successfully completed its acquisition of Domain Holdings Australia Limited, acquiring approximately 83% of Domain's ordinary shares at a price of $4.43 AUD per share, following a special dividend payment. This acquisition is expected to enhance competition and value in the Australian property market by leveraging CoStar's technology and Domain's local expertise.

The integration of Domain into CoStar Group aims to improve user experience for agents, vendors, and buyers by providing better tools and content while reducing costs. CoStar Group plans to invest in innovation and digital solutions, positioning Domain as a stronger player in the market. This strategic move is viewed as a significant step for CoStar Group in establishing a presence in Australia and transforming the local real estate landscape.

Aug 27, 2025 09:01:40

CoStar Group to Acquire Domain Holdings for A$3 Billion

CoStar Group, Inc. has signed a binding agreement to acquire Domain Holdings Australia Limited, a leading property marketplace in Australia, for a total of A$4.43 per share. This acquisition, which values Domain at an enterprise value of A$3.0 billion, follows CoStar's earlier purchase of approximately 17% of Domain shares for A$4.20 each. The company expects to spend about A$2.3 billion to acquire the remaining shares, pending approval from Domain shareholders and other regulatory conditions.

The Domain Board has unanimously recommended that shareholders vote in favor of the acquisition, which requires more than 75% approval from eligible shareholders. Nine Entertainment Co. Holdings Limited, holding 60.1% of Domain shares, has indicated its intention to support the proposal. The vote is expected to occur in mid-August 2025, with the transaction anticipated to be finalized by the third quarter of 2025, subject to the necessary approvals.

May 09, 2025 08:54:10

CoStar Group Reports 12% Revenue Growth in Q1 2025

CoStar Group, Inc. announced a revenue increase of 12% year-over-year for the first quarter of 2025, reaching $732 million compared to $656 million in the same period last year. The company experienced a net loss of $15 million, translating to a net loss per diluted share of $0.04. The adjusted EBITDA for the quarter was $66 million, reflecting a significant increase from the previous year's adjusted EBITDA of $12.4 million. Notably, the commercial real estate segments, CoStar and LoopNet, reported strong annualized net new bookings growth, with CoStar up 68% and LoopNet up 200% compared to the previous year. Apartments.com also added 4,300 properties, marking its most significant quarterly growth since 2016.

The company completed the acquisition of Matterport in February 2025 and plans to leverage its technology across CoStar Group's operations. The Homes.com salesforce has expanded to 370 representatives, with expectations to grow further. The Homes.com Network has become the second largest in the U.S., with an increase in consumer awareness and a notable rise in the demo-to-close rate. For the full year 2025, CoStar Group expects revenue between $3.115 billion and $3.155 billion, indicating a projected growth of approximately 15% year-over-year.

Apr 29, 2025 16:34:45

CoStar Group Announces Board Changes and Governance Enhancements

CoStar Group has appointed three new independent directors, John Berisford, Rachel Glaser, and Christine McCarthy, to its Board, while Louise Sams has been named the new Chair. The company is undertaking a Board refreshment process, which includes the retirement of three existing members. Additionally, a new Capital Allocation Committee has been established to evaluate the company’s investments and financial targets, particularly regarding its ongoing investment in Homes.com and international expansion efforts.

In conjunction with these changes, CoStar Group has entered into support agreements with the D. E. Shaw Group and Third Point LLC, signaling a commitment to enhance corporate governance and executive compensation alignment with stockholder value. The company aims to leverage the experience of the new Board members to optimize its investments and operations, reinforcing its focus on creating sustainable value for stockholders.

Apr 07, 2025 08:59:47

CoStar Group Acquires Matterport, Expanding Digital Twin Technology

CoStar Group has successfully completed its acquisition of Matterport, a leader in 3D digital twin technology, aiming to enhance AI-driven property insights and digital twin adoption in the real estate sector. This merger is expected to create a comprehensive solution for property buyers, sellers, and renters, leveraging Matterport's extensive spatial data library and CoStar's marketplace resources to redefine property marketing and transactions.

However, the press release highlights the challenges ahead, noting that despite the vast potential in digitizing the real estate market—encompassing over four billion buildings globally—most properties remain undigitized. The combined companies are positioned to address the growing demand for data-driven insights in a $327 trillion asset class, but they will face competition and market uncertainties as they pursue innovation in AI and digital twin technologies.

Feb 28, 2025 16:04:05

CoStar Group Reports 11% Revenue Growth and Stock Buyback Plan

CoStar Group, Inc. announced a revenue increase of 11% for the year 2024, totaling $2.74 billion, with a similar growth rate in the fourth quarter, reaching $709 million. The company also reported a significant rise in EBITDA and adjusted EBITDA, with the latter growing by 47% from Q3 2024. The Homes.com Network has now become the second largest residential real estate marketplace in the U.S., attracting 110 million unique monthly visitors, nearly doubling Realtor.com's audience. Additionally, the Board of Directors approved a stock repurchase program, allowing for the buyback of up to $500 million of common stock without a time limit.

Conversely, net income for 2024 decreased to $139 million, down from $375 million in 2023, with fourth-quarter net income also declining to $60 million. The company faced rising operating expenses, particularly in selling and marketing, which increased by over $374 million year-over-year. Despite the positive revenue growth, the decline in net income raises concerns about profitability amidst increased costs. Overall, while CoStar Group shows growth in revenue and marketplace position, the drop in net income and rising expenses present challenges.

Feb 18, 2025 16:08:23

CoStar Group Reports Strong Revenue and Income Growth

CoStar Group, Inc. has reported impressive financial results for the third quarter of 2024, with an 11% increase in revenue year-over-year, reaching $693 million. The company also achieved a remarkable 176% rise in net income from the previous quarter, totaling $53 million. Their continued success is attributed to strong performances from their major businesses, Apartments.com and CoStar, which have both seen double-digit growth. Additionally, the company reported significant increases in EBITDA and adjusted EBITDA, indicating strong operational efficiency and profitability. The rise in unique visitors to their platforms further highlights their growing market presence.

Despite the positive financial outcomes, there are some concerns regarding the net income drop compared to the same quarter last year, which was $90.6 million. The company’s operating expenses have also increased, raising questions about the sustainability of profit margins moving forward. While the marketing investments have shown positive results, the overall increase in expenses could impact future profitability. Nonetheless, CoStar Group's consistent revenue growth over 54 consecutive quarters is a strong indicator of its resilience and market strength.

Oct 22, 2024 16:12:03

CoStar Group Reports Strong Q2 Growth and Visitor Surge

CoStar Group's Q2 2024 revenue grew 12% year-over-year to $678 million, with net new bookings reaching $67 million. The company achieved a record 183 million average monthly unique visitors, showcasing strong performance in its core commercial business. CEO Andy Florance highlighted significant growth in Apartments.com and Homes.com. The outlook for 2024 remains positive, expecting continued revenue growth and increased adjusted EBITDA.

Jul 23, 2024 16:29:09

CoStar Group Appoints New Investor Relations Head and Chief Accounting Officer

CoStar Group appoints Rich Simonelli as Head of Investor Relations and Cyndi Eakin as Chief Accounting Officer. Simonelli, a 35-year industry veteran, will focus on enhancing shareholder confidence. Eakin, with deep accounting expertise, will oversee corporate accounting and financial reporting. CoStar Group's CEO expects Simonelli's experience to support the company's growth plans, while Eakin's promotion reflects her suitability for the accounting role. CoStar Group is a leading provider of online real estate marketplaces and analytics, maintaining a comprehensive real estate database and offering various services globally.

Jul 11, 2024 16:09:34

CoStar Group Appoints Christian Lown as CFO

CoStar Group appoints Christian Lown, an experienced financial leader, as Chief Financial Officer, effective July 1, 2024. Lown's background in M&A, capital markets, and real estate finance is expected to enhance CoStar's financial success. His role will involve supporting the company's growth plans and maintaining financial operations. CoStar's CEO expresses confidence in Lown's ability to lead the financial function and contribute to the company's continued success and expansion in the real estate market.

Jun 18, 2024 16:20:55