📊 CSGP Key Takeaways
Investment Thesis
CoStar demonstrates strong revenue growth of 18.7% YoY and excellent gross margins of 78.9%, indicating a quality business model with pricing power. However, the company is currently unprofitable at the operating level with negative operating income of -72M, diluted EPS collapsed 94.1% YoY, and net margins are razor-thin at 0.2%, raising concerns about operational execution and cost management despite scale.
CSGP Strengths
- Strong revenue growth of 18.7% YoY demonstrating market demand
- Exceptional gross margin of 78.9% indicating differentiated products and pricing power
- Solid balance sheet with 8.3B in equity, low debt/equity of 0.02x, and 1.6B cash providing financial flexibility
- Positive free cash flow of 123M and FCF margin of 3.8% despite operating losses, suggesting underlying business quality
- Strong liquidity with current ratio of 2.84x supporting operational needs
CSGP Risks
- Negative operating income of -72M and operating margin of -2.2% indicates business is not profitable at core operations level
- Net income nearly flat YoY growth (0%) while revenue grew 18.7% suggests margin compression from integration or restructuring costs
- Diluted EPS declined 94.1% YoY despite revenue growth, signaling significant per-share value destruction
- Operating cash flow of 430M heavily consumed by capex of 307M, leaving modest free cash flow relative to 3.2B revenue base
- 30 insider filings in 90 days warrants investigation into potential concerns or significant corporate activity
- Net margin of 0.2% leaves no margin for error; any revenue headwind would result in losses
Key Metrics to Watch
- Operating income and operating margin trajectory - critical to return to profitability
- Net income growth vs. revenue growth - monitor for margin expansion or continued compression
- Free cash flow sustainability - ensure capex efficiency and OCF stability as revenue scales
- Gross margin stability - any deterioration would be concerning given thin net margins
- Nature and impact of insider activity - clarify whether related to strategic initiatives or management concerns
CSGP Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.8% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.84x current ratio provides a solid financial cushion.
CSGP Profitability Ratios
CSGP vs Default Sector
How COSTAR GROUP, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CSGP Balance Sheet & Liquidity
CSGP 5-Year Financial Trend
5-Year Trend Summary: COSTAR GROUP, INC.'s revenue has grown significantly by 67% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.92 reflects profitable operations.
CSGP Growth Metrics (YoY)
CSGP Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $692.6M | -$30.9M | $-0.07 |
| Q2 2025 | $677.8M | $6.2M | $0.01 |
| Q1 2025 | $656.4M | $6.7M | $0.02 |
| Q3 2024 | $624.7M | $6.7M | $0.13 |
| Q2 2024 | $605.9M | $6.7M | $0.05 |
| Q1 2024 | $584.4M | $6.7M | $0.02 |
| Q3 2023 | $556.9M | $72.3M | $0.18 |
| Q2 2023 | $536.3M | $83.5M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CSGP Capital Allocation
CSGP SEC Filings
Access official SEC EDGAR filings for COSTAR GROUP, INC. (CIK: 0001057352)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778361.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778356.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778348.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778333.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778327.xml | View → |
❓ Frequently Asked Questions about CSGP
What is the AI rating for CSGP?
COSTAR GROUP, INC. (CSGP) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSGP's key strengths?
Strong revenue growth of 18.7% YoY demonstrating market demand. Exceptional gross margin of 78.9% indicating differentiated products and pricing power.
What are the risks of investing in CSGP?
Negative operating income of -72M and operating margin of -2.2% indicates business is not profitable at core operations level. Net income nearly flat YoY growth (0%) while revenue grew 18.7% suggests margin compression from integration or restructuring costs.
What is CSGP's revenue and growth?
COSTAR GROUP, INC. reported revenue of $3.2B.
Does CSGP pay dividends?
COSTAR GROUP, INC. does not currently pay dividends.
Where can I find CSGP SEC filings?
Official SEC filings for COSTAR GROUP, INC. (CIK: 0001057352) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSGP's EPS?
COSTAR GROUP, INC. has a diluted EPS of $0.02.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.