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CoStar Group to Post Q3 Earnings: What's in Store for the Stock?

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Key Takeaways

  • CoStar Group expects Q3 2025 revenues of $800-$805M, up 16% year over year at the mid-point.
  • Robust gains in Apartments.com, LoopNet and Homes.com likely supported top-line expansion.
  • Matterport's $40M revenue contribution is set to enhance CSGP's digital marketplace offerings.

CoStar Group (CSGP - Free Report) is slated to report third-quarter 2025 earnings on Oct. 28.

For the third quarter of 2025, the company expects revenues between $800 million and $805 million, indicating year-over-year growth of 16% at the mid-point.

The Zacks Consensus Estimate for revenues is currently pegged at $826.06 million, suggesting growth of 19.27% from the year-ago quarter’s levels. 

The consensus mark for earnings has remained unchanged at 18 cents per share in the past 30 days, suggesting an 18.18% decline from the figure reported in the year-ago quarter.

CoStar Group, Inc. Price and EPS Surprise

CoStar Group, Inc. Price and EPS Surprise

CoStar Group, Inc. price-eps-surprise | CoStar Group, Inc. Quote

CoStar Group’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 26.10%.

Let’s see how things have shaped up for CSGP prior to the announcement.

Factors to Note

CoStar Group’s third-quarter performance is likely to have benefited from a robust portfolio of marketplaces, including Apartments.com, LoopNet and Homes.com.

The growing momentum in Apartments.com, driven by increased traffic and higher advertising spending, is likely to have aided CoStar’s top-line growth in the to-be-reported quarter. CSGP has seen robust revenue growth across its major platform, Apartments.com, and expects to maintain strong performance, with projected revenue growth of 11% to 12% in the third quarter of 2025. In the to-be-reported quarter, Residential revenue is expected to increase in the range of $3 million to $4 million sequentially.

In the second quarter of 2025, CoStar Group sites reached 141 million average monthly unique visitors, while the Homes.com Network attracted 111 million. This momentum is expected to have continued in the to-be-reported quarter as well. 

The strengthening international segment and its highest net new bookings in nearly three years, driven by its revamped sales strategy focusing on broad subscription packages, are expected to have bolstered LoopNet’s performance in the to-be-reported quarter. LoopNet’s revenue growth rate is anticipated to be between 10% and 11% in the third quarter.

However, challenging macroeconomic uncertainties and ongoing headwinds in the commercial real estate market are expected to have affected revenue growth.

Acquisitions Boost CSGP’s Q3 Prospects

CoStar Group’s growth trajectory is likely to have been fueled by its consistent acquisition strategy. The company’s acquisition of Matterport represents a move toward integrating Matterport’s 3D capture technology into its real estate marketplaces, thereby enhancing CoStar Group’s offerings and capitalizing on the growing demand for virtual real estate experiences.

In the third quarter of 2025, Matterport is expected to contribute approximately $40 million in revenues, despite the discontinuation of certain non-core revenue streams.

CoStar Group plans to use its large sales team to market Matterport’s digital twin solutions more effectively. It will focus on business-to-business opportunities and increase the use of its high-quality Pro 3 camera. This integration is expected to improve the value of CoStar Group’s marketplaces and information platforms in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

CoStar Group has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

InterDigital (IDCC - Free Report) currently has an Earnings ESP of +17.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

InterDigital shares have surged 93.2% year to date. The company is scheduled to release third-quarter 2025 results on Oct. 30. 

Corning (GLW - Free Report) presently has an Earnings ESP of +1.90% and a Zacks Rank #2.

Corning shares have jumped 80.6% year to date. Corning is scheduled to release third-quarter 2025 results on Oct. 28.

Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #2 at present. 

Cognizant’s shares have lost 11.6% year to date. The company is set to report third-quarter 2025 results on Oct. 29.

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