What CoStar Group (CSGP)’s Q2 Results and New Multifamily Analytics Lead Mean for Shareholders

• On July 22 and 23, 2025, CoStar Group reported its second-quarter financial results, issued updated earnings guidance, announced a US$1.12 billion shelf registration for an ESOP-related offering, and appointed Grant Montgomery as National Director of Multifamily Analytics.
• These developments highlight CoStar Group’s ongoing commitment to growth through investment in talent and capital structure, as well as an emphasis on expanding multifamily market analytics capabilities.
• We'll now explore how the recent earnings report and forecasts could shape CoStar Group's long-term investment narrative.

Outshine the giants: these 19 early-stage AI stocks could fund your retirement.

CoStar Group Investment Narrative Recap

To be a CoStar Group shareholder, you need to believe in the continued digitalization of real estate and the company’s ability to deliver high-quality analytics and marketplace services, especially as it invests in new business segments and talent. The latest earnings and guidance reinforce double-digit revenue growth as a key catalyst, but the muted bottom-line outlook highlights that operating efficiency remains the biggest near-term risk. These recent announcements do not significantly alter the primary catalysts or risks already in focus.

Among the latest updates, the second-quarter earnings report stands out: CoStar posted 16% year-over-year revenue growth, but net income declined and profit margins compressed. This underscores the immediate challenge for the company, sustaining growth momentum while managing expanding expenses tied to headcount, new products, and intensified marketing, especially with ambitious investment in the Homes.com platform.

However, investors should also pay close attention to the risk of rising operating expenses outpacing revenue growth, particularly if...

Read the full narrative on CoStar Group (it's free!)

CoStar Group's outlook anticipates $4.3 billion in revenue and $681.9 million in earnings by 2028. Achieving this would require annual revenue growth of 13.6% and a $577.7 million increase in earnings from the current $104.2 million.

Uncover how CoStar Group's forecasts yield a $96.13 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members provided three fair value estimates for CoStar Group, from US$58.07 to US$139.70, revealing significant divergence. With operating expenses and profit margins now under scrutiny following the recent results, you can explore multiple viewpoints to better understand the underlying drivers of these projections.

Explore 3 other fair value estimates on CoStar Group - why the stock might be worth 40% less than the current price!

Build Your Own CoStar Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CoStar Group research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free CoStar Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CoStar Group's overall financial health at a glance.

No Opportunity In CoStar Group?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• These 15 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com