Overview
- CoStar reported 2025 revenue of $3.247 billion, with net income falling to $7 million from $139 million in 2024, which executives tied to costs from the Matterport and Domain acquisitions.
- The company will reduce its 2026 net investment in Homes.com by $300 million and indicated additional spending cuts are planned in subsequent years.
- Homes AI launched on Homes.com and drove markedly higher engagement, with AI users averaging 16 minutes and 50 seconds per session versus 4 minutes and 24 seconds for non-users, alongside more searches, favorites and email leads.
- Homes.com recorded 2.1 billion views and 100 million average monthly unique visitors in 2025 and surpassed 31,000 agent subscribers, producing a $100 million annualized revenue run rate.
- Residential operations remained unprofitable with a 2025 adjusted EBITDA loss of $230 million, while the commercial segment generated $480 million in EBITDA, as activist criticism and reported layoffs at Homes.com added pressure on the strategy.