CoStar Group announces Q3 adjusted EPS of 23 cents, surpassing consensus estimate of 19 cents.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Should l Buy CSGP?
Q3 Revenue Performance: CoStar Group reported Q3 revenue of $834 million, exceeding the consensus estimate of $825.2 million, marking the 58th consecutive quarter of double-digit revenue growth with a 20% year-over-year increase.
Net New Bookings and Membership Growth: The company achieved net new bookings of $84 million in Q3, a 92% increase year-over-year, and grew its Homes.com membership to over 26,000, a nearly 150% increase since Q3 2024.
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Analyst Views on CSGP
Wall Street analysts forecast CSGP stock price to rise
13 Analyst Rating
8 Buy
4 Hold
1 Sell
Moderate Buy
Current: 44.630
Low
48.00
Averages
74.92
High
101.00
Current: 44.630
Low
48.00
Averages
74.92
High
101.00
About CSGP
CoStar Group, Inc. is a provider of online real estate marketplaces, information, and analytics in the property markets. It manages its business in two segments: North America, which includes the United States and Canada, and International, which primarily includes Europe, Asia-Pacific and Latin America. Its major brands include CoStar, a global provider of commercial real estate data, analytics, and news; LoopNet, a commercial real estate marketplace; Apartments.com, a platform for apartment rentals; and Homes.com, a residential real estate marketplace. Its other brands include STR, which is engaged in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a residential property portal in the United Kingdom. The Company, through Matterport, Inc., is advancing property insights and driving the growth of AI-driven digital twin technology across the global commercial and residential real estate sector.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CoStar Group Stock Rating Adjustments
- Price Target Cut: BMO Capital analyst Jeffrey Silber reduced CoStar Group Inc.'s price target from $72 to $53 while maintaining a Market Perform rating, indicating concerns over the company's net new bookings missing expectations, which may impact investor confidence.
- Strong Performance Comparison: Needham lowered its price target from $80 to $60, yet noted that CoStar's fourth-quarter results exceeded expectations in both revenue and earnings, demonstrating effective execution in broad-based growth and expense discipline, thereby enhancing its market position.
- New Order Growth: CoStar generated $75 million in net new bookings in the fourth quarter, a 42% year-over-year increase, and recorded total bookings of $308 million for fiscal year 2025, representing a 23.2% year-over-year growth, indicating the company's competitive strength and growth potential in the market.
- Profitability Maintained: CoStar maintains a 79% gross profit margin, showcasing its success in executing its digitization strategy; despite the pressure from price target reductions, it continues to exhibit strong profitability and market appeal.
See More
Top and Bottom Performing S&P 500 Stocks in February
- Stock Market Performance: The S&P 500 remained just below the 7000 mark throughout February, indicating a period of stagnation in the stock market.
- Economic Concerns: Ongoing tariff issues and worries about the impact of artificial intelligence on the economy are contributing to the uncertainty in the stock market as March approaches.
See More
London Office Yields Hit Lowest Level Since 2023
- Yield Decline: According to CoStar data, London office yields fell to 5.9% in Q4 2025, down 130 basis points from last year, indicating rising investor demand that may intensify market competition.
- Regional Yield Increase: In contrast, average yields in other UK regions rose by 70 basis points to 10.5%, the highest since 2013, widening the yield gap between London and the regions to 460 basis points, the widest in 12 years.
- Industrial Yield Surge: Industrial yields reached an eight-year high of 7.1%, up 60 basis points since the end of 2024, surpassing London office yields by over 100 basis points, reflecting the impact of the online shopping trend on industrial real estate.
- Market Rebound: London’s office market saw a strong rebound in net absorption in the second half of 2025, becoming the primary driver of national office market recovery, highlighting the region's sustained investment appeal.
See More
London Office Yields Hit Lowest Level Since 2023
- Yield Compression: According to CoStar data, London office transaction yields decreased by 130 basis points to 5.9% in 2025, indicating a strong rebound in investor demand that could drive future investment activities.
- Regional Yield Disparity: The yield gap between London and regional averages widened to 460 basis points, the highest in 12 years, reflecting London's attractiveness compared to relatively weaker regional markets, which may influence investor decisions.
- Industrial Yield Increase: Industrial yields rose to 7.1%, up 60 basis points since the end of 2024, surpassing London office yields for the first time, indicating that the online shopping trend has boosted investment appeal in industrial real estate.
- Market Recovery Signals: Mark Stansfield, Senior Director of Market Analytics at CoStar Europe, noted that London's office market rebound was the primary driver of national net absorption, suggesting a recovering demand for office space that could stimulate future development projects.
See More
US Stocks Close Higher, Driven by Strong AI Sector Performance
- Strong Market Performance: The S&P 500 index rose by 0.81%, reaching a 1.5-week high, while the Nasdaq 100 increased by 1.41%, marking a 2-week high, reflecting strong investor confidence in AI infrastructure and software stocks.
- AI Companies Drive Market: The statement from AI startup Anthropic PBC alleviated concerns about AI disruption, and Nvidia's Q4 revenue is projected to hit $65.91 billion, further fueling optimism about demand for AI processors among investors.
- Economic Data Impact: US MBA mortgage applications rose by 0.4%, with the average 30-year fixed mortgage rate falling to 6.09%, a nearly 3.5-year low, indicating a potential recovery in buyer confidence that could stimulate the housing market.
- International Market Rally: Overseas stock markets generally rose, with the Euro Stoxx 50 reaching a new high, indicating global investor optimism about economic recovery, which further supports the upward trend in US stocks.
See More
BAMCO Reduces Stake in Vail Resorts
- Share Reduction Details: According to a SEC filing dated February 17, 2026, BAMCO Inc sold 892,764 shares of Vail Resorts during Q4, reducing its holdings to 4,809,928 shares, with a quarter-end valuation decline of $214.19 million reflecting both trading activities and price movements.
- Asset Management Ratio Shift: Following this sale, Vail Resorts now represents only 1.73% of BAMCO's 13F reportable AUM, indicating investor concerns regarding the resilience of high-end vacation spending in an uncertain travel environment.
- Company Financial Overview: As of February 17, 2026, Vail Resorts' stock price stood at $137.75, down 8.9% over the past year, underperforming the S&P 500 by 23.36 percentage points, which reflects market caution regarding its future growth prospects.
- Profitability Model Analysis: Vail Resorts generates revenue primarily from lift ticket sales, lodging, and ancillary resort services; while the Epic Pass offers predictable cash flow, the company's high fixed costs mean that even slight declines in visitor numbers can significantly pressure earnings.
See More
CoStar Group Stock Rating Adjustments
- Price Target Cut: BMO Capital analyst Jeffrey Silber reduced CoStar Group Inc.'s price target from $72 to $53 while maintaining a Market Perform rating, indicating concerns over the company's net new bookings missing expectations, which may impact investor confidence.
- Strong Performance Comparison: Needham lowered its price target from $80 to $60, yet noted that CoStar's fourth-quarter results exceeded expectations in both revenue and earnings, demonstrating effective execution in broad-based growth and expense discipline, thereby enhancing its market position.
- New Order Growth: CoStar generated $75 million in net new bookings in the fourth quarter, a 42% year-over-year increase, and recorded total bookings of $308 million for fiscal year 2025, representing a 23.2% year-over-year growth, indicating the company's competitive strength and growth potential in the market.
- Profitability Maintained: CoStar maintains a 79% gross profit margin, showcasing its success in executing its digitization strategy; despite the pressure from price target reductions, it continues to exhibit strong profitability and market appeal.
See More
Top and Bottom Performing S&P 500 Stocks in February
- Stock Market Performance: The S&P 500 remained just below the 7000 mark throughout February, indicating a period of stagnation in the stock market.
- Economic Concerns: Ongoing tariff issues and worries about the impact of artificial intelligence on the economy are contributing to the uncertainty in the stock market as March approaches.
See More
London Office Yields Hit Lowest Level Since 2023
- Yield Decline: According to CoStar data, London office yields fell to 5.9% in Q4 2025, down 130 basis points from last year, indicating rising investor demand that may intensify market competition.
- Regional Yield Increase: In contrast, average yields in other UK regions rose by 70 basis points to 10.5%, the highest since 2013, widening the yield gap between London and the regions to 460 basis points, the widest in 12 years.
- Industrial Yield Surge: Industrial yields reached an eight-year high of 7.1%, up 60 basis points since the end of 2024, surpassing London office yields by over 100 basis points, reflecting the impact of the online shopping trend on industrial real estate.
- Market Rebound: London’s office market saw a strong rebound in net absorption in the second half of 2025, becoming the primary driver of national office market recovery, highlighting the region's sustained investment appeal.
See More
London Office Yields Hit Lowest Level Since 2023
- Yield Compression: According to CoStar data, London office transaction yields decreased by 130 basis points to 5.9% in 2025, indicating a strong rebound in investor demand that could drive future investment activities.
- Regional Yield Disparity: The yield gap between London and regional averages widened to 460 basis points, the highest in 12 years, reflecting London's attractiveness compared to relatively weaker regional markets, which may influence investor decisions.
- Industrial Yield Increase: Industrial yields rose to 7.1%, up 60 basis points since the end of 2024, surpassing London office yields for the first time, indicating that the online shopping trend has boosted investment appeal in industrial real estate.
- Market Recovery Signals: Mark Stansfield, Senior Director of Market Analytics at CoStar Europe, noted that London's office market rebound was the primary driver of national net absorption, suggesting a recovering demand for office space that could stimulate future development projects.
See More
US Stocks Close Higher, Driven by Strong AI Sector Performance
- Strong Market Performance: The S&P 500 index rose by 0.81%, reaching a 1.5-week high, while the Nasdaq 100 increased by 1.41%, marking a 2-week high, reflecting strong investor confidence in AI infrastructure and software stocks.
- AI Companies Drive Market: The statement from AI startup Anthropic PBC alleviated concerns about AI disruption, and Nvidia's Q4 revenue is projected to hit $65.91 billion, further fueling optimism about demand for AI processors among investors.
- Economic Data Impact: US MBA mortgage applications rose by 0.4%, with the average 30-year fixed mortgage rate falling to 6.09%, a nearly 3.5-year low, indicating a potential recovery in buyer confidence that could stimulate the housing market.
- International Market Rally: Overseas stock markets generally rose, with the Euro Stoxx 50 reaching a new high, indicating global investor optimism about economic recovery, which further supports the upward trend in US stocks.
See More
BAMCO Reduces Stake in Vail Resorts
- Share Reduction Details: According to a SEC filing dated February 17, 2026, BAMCO Inc sold 892,764 shares of Vail Resorts during Q4, reducing its holdings to 4,809,928 shares, with a quarter-end valuation decline of $214.19 million reflecting both trading activities and price movements.
- Asset Management Ratio Shift: Following this sale, Vail Resorts now represents only 1.73% of BAMCO's 13F reportable AUM, indicating investor concerns regarding the resilience of high-end vacation spending in an uncertain travel environment.
- Company Financial Overview: As of February 17, 2026, Vail Resorts' stock price stood at $137.75, down 8.9% over the past year, underperforming the S&P 500 by 23.36 percentage points, which reflects market caution regarding its future growth prospects.
- Profitability Model Analysis: Vail Resorts generates revenue primarily from lift ticket sales, lodging, and ancillary resort services; while the Epic Pass offers predictable cash flow, the company's high fixed costs mean that even slight declines in visitor numbers can significantly pressure earnings.
See More
