CoStar Group has reported an 83% surge in full-year Adjusted EBITDA as the US property giant posted its 59th consecutive quarter of double-digit revenue growth, and revealed plans to fold Australia’s Domain into Homes.com within 18 months.
The results land against the backdrop of an increasingly public spat with activist investors over capital allocation and Homes.com, as well as a newly expanded $1.5 billion share repurchase programme. CoStar completed $500 million of buybacks in 2025 and plans to repurchase a further $700 million of shares in 2026.
“With our 59th consecutive quarter of double-digit revenue growth and Adjusted EBITDA surging 83% year-over-year, CoStar Group is entering a period of significant earnings acceleration,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group.
“The heavy lifting of the Homes.com national brand launch is behind us, and the launch of Homes AI — the most sophisticated vertical AI application in real estate — marks the beginning of a new era for our business. We intend to deploy this transformative capability across every platform in our portfolio, and I believe it will create lasting competitive distance between us and everyone else in the industry.”
Residential revenue reached $1.46 billion for the full year, up 20%, with Q4 up 35% to $429 million. Apartments.com generated $308 million in Q4 revenue, up 11%, taking full-year revenue to $1.25 billion.
Florance told investors: “Our residential business is projected to be profitable in 2026, we believe that it will eventually reach 50% margins.”
Domain, acquired in a $1.9 billion deal, delivered Q4 revenue of $73 million and a 28% margin for 2025. Florance said the Australian marketplace will be folded into Homes.com within 12 to 18 months, with Homes AI and software infrastructure extended across the platform. The British portal OnTheMarket, which the company said logged its 20th consecutive month of positive net new bookings, will also be migrated onto the Homes.com software environment in 2027, once Domain’s transition is complete.
CoStar Group also reiterated that it has materially reduced net investment into Homes.com, with spending set to fall sharply from 2026 onwards. Florance remains bullish on the long-term prize:
“The Homes.com business model is the global best practice for real estate portals, and it's utilized by REA Group, Idealista of Rightmove, Scout24, Hemnet, Domain, and many, many others. If you normalize these portals financials from their home countries to the U.S. on a GDP basis, they would be generating $4 billion-$21 billion in revenue in the U.S. and $1.5 billion-$11 billion of EBITDA in the U.S., which is orders of magnitude more than anyone has ever generated in the United States. We believe we can generate $4.75 billion of revenue and $2.85 billion of EBITDA with Homes.com inside the next 13 years.”
The Homes.com Network, which includes the Apartments and Land networks, recorded 108 million average monthly unique visitors in 2025, a figure which the company claims is second only to Zillow’s reported 235 million.
CoStar Group's rentals portal Apartments.com, delivered 841 million renter visits in 2025, facilitated 152 million Matterport 3D tours and over one million rental applications. Florance took direct aim at his company's main rival, Zillow’s rental tactics on the earnings call:
“With traffic falling, our closest competitor is now doing something called shotgunning leads. That's encouraging potential renters to contact not just the person you intend to contact, but all the competitors' properties. While this increases and distorts the number of pure leads, it significantly lowers the quality of the leads and therefore hurts ROI and lead to lease conversion rate.”
According to Comscore data cited by CoStar, Zillow’s rental traffic was down 48% year-on-year in January, while the broader Zillow, Realtor, Redfin rental network fell 29%.
Commercial revenue reached $1.79 billion for the year, with the segment delivering $672 million in Adjusted EBITDA and margins north of 35%. In Q4, Commercial generated $471 million in revenue, up from $391 million a year earlier.
Notably, CoStar has shifted its reporting from geography-based segments to product portfolio-based segments, splitting Commercial and Residential. The change makes it harder for external observers to triangulate the standalone performance of Homes.com, Domain, OnTheMarket or Matterport individually.
For 2026, CoStar reaffirmed guidance of $3.78 billion to $3.82 billion in revenue and Adjusted EBITDA of $740 million to $800 million, implying a 20% margin at the midpoint.
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