CoStar Group, Inc.

CoStar Group, Inc. is an American real estate information and marketplace company that owns the largest commercial real estate database in the industry and an expanding group of residential listings businesses — CoStar, LoopNet and Matterport on the commercial side, and Apartments.com, Homes.com, Land.com, Domain and OnTheMarket on the residential side — and generated $3,247 million of revenue in fiscal 2025.

This is a story about a cash-rich near-monopoly that decided to spend its fortune on a second act. Over roughly three years CoStar bought OnTheMarket, Visual Lease, Matterport and Domain, and built Homes.com into a nationally advertised consumer brand, all funded from a balance sheet that once carried $4.7 billion of cash. Revenue compounded through the spending — up 19% in fiscal 2025 — but reported profit collapsed: net income fell 95% to $7 million as acquisition amortisation and the Homes.com marketing budget overwhelmed the operating margin. The market noticed. The shares closed at $29.83 on 29 July 2026, down roughly 69% from their 52-week intraday high of $97.43 a year earlier.

The file turns on one question: whether the residential build and the acquisition spree were the right use of a franchise's cash, and whether the inflection now visible in the numbers — Residential Real Estate Adjusted EBITDA of positive $12 million in the second quarter of 2026, against negative $76 million a year earlier — is the beginning of the payoff or a one-quarter artefact of buying revenue.