$CSGP

COSTAR GROUP INC

CIK:0001057352|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 925	$ 781	$ 1,822	$ 1,513
Cost of revenue	197	168	393	321
Gross profit	728	613	1,429	1,192
Operating expenses:
Selling and marketing (excluding customer base amortization)	395	395	816	764
Software development	107	96	221	191
General and administrative	114	122	240	263
Customer base amortization	36	27	73	44
Total operating expenses	652	640	1,350	1,262
Income (loss) from operations	76	(27)	79	(70)
Interest income (expense), net	(2)	33	8	71
Other income (expense), net	0	16	(1)	14
Income before income taxes	74	22	86	15
Income tax expense	19	16	28	24
Net income (loss)	$ 55	$ 6	$ 58	$ (9)
Earnings per share - basic - (in dollars per share)	$ 0.14	$ 0.01	$ 0.14	$ (0.02)
Earnings per share - diluted (in dollars per share)	$ 0.14	$ 0.01	$ 0.14	$ (0.02)
Weighted-average outstanding shares - basic (in shares)	404.1	419.6	408.5	415.1
Weighted-average outstanding shares - diluted (in shares)	404.4	424.3	409.1	415.1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income (loss)	$ 58	$ (9)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	167	113
Amortization of deferred commissions costs	60	67
Non-cash lease expense	15	16
Stock-based compensation expense	80	82
Deferred income taxes, net	24	(5)
Credit loss expense	17	17
Unrealized gains on investments and deal-contingent foreign currency forward contracts	0	(24)
Other operating activities, net	3	(2)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(34)	(19)
Prepaid expenses, other current assets and other assets	1	13
Deferred commissions	(67)	(80)
Accounts payable and other liabilities	30	54
Litigation accrual	(109)	0
Lease liabilities	(8)	(19)
Income taxes payable, net	2	(21)
Deferred revenue	28	17
Net cash provided by operating activities	267	200
Investing activities:
Proceeds from sale and settlement of investments and other assets	2	205
Purchases of property, equipment, and other assets for new campuses	(83)	(173)
Purchase of equity securities	0	(285)
Cash paid for acquisitions, net of cash acquired	0	(750)
Purchases of property, equipment, and other assets	(29)	(58)
Net cash used in investing activities	(110)	(1,061)
Financing activities:
Repurchase of restricted stock to satisfy tax withholding obligations	(24)	(47)
Repurchases of stock	(587)	(64)
Proceeds from exercise of stock options and employee stock purchase plan	18	14
Purchase of noncontrolling interest	(26)	0
Other financing activities, net	(3)	(2)
Net cash used in financing activities	(622)	(99)
Effect of foreign currency exchange rates on cash, cash equivalents, and restricted cash	(2)	6
Net decrease in cash, cash equivalents, and restricted cash	(467)	(954)
Cash, cash equivalents, and restricted cash at the beginning of period	1,733	4,681
Cash, cash equivalents, and restricted cash at the end of period	1,266	3,727
Supplemental cash flow disclosures:
Interest paid	24	15
Income taxes (refund) paid, net	(10)	56
Supplemental non-cash investing and financing activities:
Accrued capital expenditures and non-cash landlord incentives	$ 119	$ 84

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 1,266	$ 1,633
Restricted cash	0	100
Accounts receivable	289	263
Less: Allowance for credit losses	(36)	(29)
Accounts receivable, net	253	234
Income taxes receivable	18	18
Prepaid expenses and other current assets	117	134
Total current assets	1,654	2,119
Deferred income taxes, net	23	47
Property and equipment, net	1,443	1,323
Lease right-of-use assets	128	123
Goodwill	4,981	4,944
Intangible assets, net	1,669	1,771
Deferred commission costs, net	190	184
Deposits and other assets	51	27
Total assets	10,139	10,538
Current liabilities:
Accounts payable	44	42
Accrued wages and commissions	156	145
Accrued expenses	254	203
Litigation accrual	0	99
Lease liabilities	30	28
Deferred revenue	233	205
Other current liabilities	30	24
Total current liabilities	747	746
Long-term debt, net	994	993
Deferred income taxes, net	245	238
Income taxes payable	30	27
Lease and other long-term liabilities	178	163
Total liabilities	2,194	2,167
Stockholders' equity attributable to CoStar Group	7,932	8,334
Equity attributable to noncontrolling interest	13	37
Total equity	7,945	8,371
Total liabilities and stockholders' equity	$ 10,139	$ 10,538