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CoStar Group, a leading U.S.-based real estate data and analytics firm, raised its 2025 revenue forecast to USD 3.23-3.24 billion, up from an earlier USD 3.14-3.16 billion, after exceeding third-quarter expectations. The company reported USD 834 million in revenue, above estimates of USD 813.1 million, and adjusted earnings of 23 cents per share, surpassing projections. Net new bookings rose 92% year-on-year to USD 84 million, driven by growth in its Homes.com and other subscription platforms. Despite strong results, shares dipped nearly 3% in after-hours trading. Ongoing legal matters with Zillow and other cases continue, but CoStar's diversified platforms and strong client base underpin its long-term growth momentum.
CoStar, a leading U.S.-based commercial real estate data and analytics company, revised its annual revenue forecast upward earlier this week after surpassing third-quarter projections. The performance was largely attributed to stronger bookings and continued expansion across its subscription platforms such as Homes.com. Advertisement
The firm stated that it now expected full-year 2025 revenue to range between USD 3.23 billion and USD 3.24 billion, compared to its earlier projection of USD 3.14 billion to USD 3.16 billion. Data compiled by LSEG indicated that analysts had anticipated approximately USD 3.18 billion.
Market sentiment among U.S. homebuilders has been improving as optimism grows that falling mortgage rates could stimulate housing demand, though ongoing economic uncertainty and a subdued labour market are expected to moderate the pace of recovery.
CoStar reported net new bookings of USD 84 million for the third quarter, marking a 92% increase compared with the same period last year. Revenue for the three months ending September stood at USD 834 million, exceeding analysts' expectations of USD 813.1 million. The company also recorded adjusted earnings of 23 cents per share, higher than the forecast of 18 cents.
Despite these results, shares of the Arlington, Virginia-based company fell by nearly 3% in extended trading. CoStar forecast its fourth-quarter adjusted earnings to fall between 26 and 28 cents per share, with the midpoint slightly below analysts' expectations of 28 cents.
In addition to its financial performance, CoStar remains engaged in ongoing legal matters, including a lawsuit filed against Zillow for alleged copyright violations. The firm was also recently cleared of a consumer lawsuit that had accused it of aiding luxury hotels in fixing room prices.
CoStar's improved revenue guidance and stronger quarterly performance highlight the company's ability to maintain growth momentum amid broader market uncertainties. While its share price saw a marginal decline following the announcement, the company's expanding digital platforms and robust client base continue to underpin its revenue strength. Ongoing legal proceedings may present near-term challenges, yet CoStar's position in the commercial real estate data sector remains well established.
Source - Reuters
5th Jun, 2025
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