CoStar Group (CSGP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $732 million, up 12% year-over-year, marking the 56th consecutive quarter of double-digit growth and driven by all major segments and acquisitions.

• Net loss was $14.8 million ($0.04 per share), compared to net income of $6.7 million in Q1 2024, reflecting higher operating and acquisition-related costs, including a $31 million charge from the Matterport acquisition.

• Adjusted EBITDA rose 429% year-over-year to $66 million, with a 9% margin.

• Homes.com unaided brand awareness increased nine-fold to 36% in 14 months, now the second most visited U.S. residential portal; salesforce grew to 370 reps.

• Matterport acquisition closed in February 2025 for $1.9 billion, contributing $15.9 million in Q1 revenue and expected to drive future integration and growth.

Financial highlights

• Q1 2025 revenue: $732.2 million (+12% YoY); Adjusted EBITDA: $66 million (+429% YoY); Net loss: $14.8 million due to one-time Matterport acquisition costs.

• Gross profit: $578.9 million (79% margin, up from 78% YoY).

• Commercial information and marketplace profit margin: 43%.

• Cash, cash equivalents, and restricted cash: $3.8 billion at quarter-end, down from $4.7 billion at year-end 2024.

• Share repurchases: 240,000 shares for $18.5 million in Q1; $500 million program launched.

Outlook and guidance

• Full-year 2025 revenue expected at $3.115–$3.155 billion (14–15% growth), including 4–5 points from Matterport.

• Q2 2025 revenue guidance: $770–$775 million (14% YoY growth midpoint).

• 2025 adjusted EBITDA forecast: $355–$385 million (12% margin), with Matterport reducing EBITDA by ~$30 million.

• Q2 2025 adjusted EBITDA: $50–$60 million (7% margin).

• Continued investment in sales force, product development, international expansion, AI, and digital twin technologies.