CoStar Group, Inc.

The filings show revenue growth that accelerated through 2025: about 11% in 2024, about 13% in 2023, and about 19% in 2025, measured from the annual revenue figures provided. The step-up coincides with two acquisitions the MD&A names directly, Matterport and Domain. The company also changed its reportable segments in the fourth quarter of 2025, moving from geography-based to product portfolio-based segments, so comparisons with earlier periods require care. Readers may want to check Notes 2, 3, and 12 of the Condensed Consolidated Financial Statements, which the MD&A cites for the segment change. No forensic scores are on file for this synthesis, so no Beneish M-Score, Piotroski F-Score, Altman Z-Score, or Fog Index reading is reported here, and readers should not infer one from the narrative. Balance sheet and debt context in the excerpts is limited to the 2.800% Senior Notes due July 15, 2030 and the 2024 Credit Agreement entered May 24, 2024. Capital allocation includes a Stock Repurchase Program of up to $1.5 billion approved in December 2025, following a prior program of up to $500 million approved in February 2025. The risk-factor excerpt provided is mostly a table of contents and glossary, so it does not supply specific litigation or regulatory detail; readers may want to read Item 1A and Item 3 directly in the full 10-K. Overall, the filings describe acquisition-linked growth alongside a rising share of non-subscription revenue. Cash flow and full balance sheet statements were not included in this data, so the cash conversion of that growth cannot be assessed here.

Catalyst.Revenue reached $3.25 billion in 2025, up from $2.74 billion in 2024, an increase of about 19%. The MD&A ties recent expansion to two deals: Matterport, completed February 28, 2025, and Domain, completed August 27, 2025. In the quarter ended March 31, 2026, annualized net new subscription bookings were $67 million, up from $56 million a year earlier. Management expects Commercial Real Estate revenue growth to moderate in 2026 because Matterport will no longer add a year-over-year benefit, while Residential Real Estate growth is expected to accelerate on a full year of Domain and more Homes.com members.

Hidden risk.The subscription share of revenue is falling. Subscription revenue was about 90% of total revenue in the first quarter of 2026, versus 96% a year earlier, and revenue from subscription contracts with a term of at least one year fell to 74% from 80%. The filing attributes this mainly to Domain's premium listings and Matterport's transactional products, so the revenue mix is shifting toward less recurring sales. The trailing 12-month renewal rate was about 89%, with cancellations of about 11%. The filing says the renewal rate may decline in a downturn, and the growth outlook for Residential depends on continued Homes.com membership gains.