Home / CoStar Group: Latest Earnings, Expansion & Legal Wins

CoStar Group: Latest Earnings, Expansion & Legal Wins

By: Jasmin Espinas
April 30, 2025

CoStar Group is a key player in commercial real estate information, analytics, and marketplaces. Recently, it made headlines with its strong earnings, strategic moves, and courtroom victories.

In the first quarter of 2025, CoStar demonstrated solid financial results. Additionally, the company has restructured its board of directors and won a significant legal battle against a major competitor.

Here’s a breakdown of the latest developments:

CoStar Group Q1 2025 Earnings

CoStar Group, Inc. (NASDAQ: CSGP), reported impressive financial results for the first quarter of 2025. The company earned $732 million in revenue during the three months ending March 31, representing a 12% year-over-year increase from $656 million in Q1 2024.

However, CoStar also reported a net loss of $15 million, or $0.04 per diluted share. This figure includes a $31 million loss tied to the purchase of Matterport, reflecting costs related to CoStar’s push into imaging and spatial data technologies.

Despite this loss, CoStar achieved an adjusted EBITDA of $66 million, up by a significant 429% from the previous year. As a result, investors reacted positively, with CoStar’s stock price rising by 9.32% during the quarter. This is consistent with the overall market’s annual growth trend of 9.9%.

Latest Movement of CoStar Group In the Stock Market

On April 30, CoStar saw its stock price drop significantly by 10.31%, closing at $74.17. This drop came despite a generally favorable trading session across the market, with the S&P 500 Index climbing by 0.15%.

Such changes in stock prices can be concerning for investors. However, it’s common to see this after a company reveals major financial information, especially when it involves buying other companies or changing its strategies.

You May Also Like: OpenAI CEO “Being Polite to ChatGPT Costs Money”

CoStar Group’s Strategic Expansion: Plans and Acquisitions

CoStar Group is gearing up for its future growth by making significant leadership and technology changes. Because of this, it has hired three new independent directors and appointed a new chair for its board.

Additionally, the company set up a Capital Allocation Committee to focus on plans for international growth and brand investments. CoStar’s CEO, Andy Florance, leads this committee.

These leadership updates are linked to a deal with investment firms D. E. Shaw and Third Point, known for enhancing corporate governance and efficiency.

As such, the new board members bring impressive credentials. Rachel Glaser (former Etsy CFO) and Christine McCarthy (former Disney Executive Vice President and CFO) add financial expertise. Meanwhile, John Berisford, a former executive at S&P Global, strengthens the company’s strategic data capabilities.

Louise Sams, on the other hand, is a seasoned legal expert who worked for two decades at Turner Broadcasting (now owned by Warner Bros. Discovery) and will now serve as board chair.

These changes are aligned with CoStar Group’s recent acquisition of Matterport for $1.6 billion, which specializes in technology and spatial data imaging. This acquisition highlights CoStar’s objective to enter real estate technology. They are also focused on advancing Homes.com to make it a top home search platform.

CoStar Group’s Legal and Corporate Affairs

CoStar Group has achieved a significant legal victory against Move, Inc., the parent company of Realtor.com and part of Rupert Murdoch’s News Corp.

The lawsuit, originally filed in July 2024, accused CoStar and ex-employee James Kaminsky of using secret information to boost the company’s new real estate news division.

In response, CoStar firmly rejected these accusations and fought back strongly in court. The legal battle continued for many months, but Move, Inc. struggled to present substantial evidence.

CoStar then warned Move of its plan to seek court penalties. In return, Move quickly moved to delay and drop the lawsuit entirely.

“It’s a PR stunt from the start – ridiculous, and totally devoid of merit,” says Florance.

What’s Next for CoStar Group?

CoStar Group’s recent activity reflects a company in transition—one that’s investing heavily in its future while navigating short-term challenges.

Moving forward, CoStar Group is expected to continue scaling its platforms, exploring global markets, and pushing innovation across its ecosystem. Investors and industry watchers should anticipate strategic moves that align with their vision for the real estate industry.

For more updates, financial reports, and news about CoStar Group and other top real estate companies, subscribe to Financial Daily Update today.