Costar Group, Inc 10-Q for FY2026 Q3

Costar Group, Inc. (CSGP)

10-Q 2026-10-28 For: 2026-09-30

Added on October 28, 2026

About this 10-Q

Costar Group, Inc filed this 10-Q on October 28, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

CoStar Group reported revenue of $952 million, up 14%, for the three months ended September 30, 2026. Annualized net new subscription bookings fell to $37 million from $84 million. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $952M; up 14.1% from $834M a year earlier
Net income: $74M; compared with a net loss of $31M a year earlier
Diluted EPS: $0.18; compared with -$0.07 a year earlier

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Delaware						52-2091509
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


1201 Wilson Blvd
Arlington	VA	22209


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock ($0.01 par value)	CSGP	Nasdaq Global Select Market


Large accelerated filer	x	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


	Glossary of Terms	3

PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements	6

	Condensed Consolidated Statements of Operations	6

	Condensed Consolidated Statements of Comprehensive Income	7

	Condensed Consolidated Balance Sheets	8

	Condensed Consolidated Statements of Changes in Stockholders’ Equity	9

	Condensed Consolidated Statements of Cash Flows	11

	Notes to Condensed Consolidated Financial Statements	12

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64

Item 4.	Controls and Procedures	65

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	66

Item 1A.	Risk Factors	66

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	67

Item 3.	Defaults Upon Senior Securities	67

Item 4.	Mine Safety Disclosures	67

Item 5.	Other Information	67

Item 6.	Exhibits	68

Signatures		69


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Abbreviation or Acronym						Definition
2024 Credit Agreement						The credit agreement the Company entered into on May 24, 2024
2025 Form 10-K						CoStar Group's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 26, 2026
2025 Plan						The CoStar Group, Inc. 2025 Stock Incentive Plan, adopted by the Board of Directors on April 28, 2025 and approved by stockholders on June 26, 2025
2026 ASR Agreement						Accelerated Share Repurchase Program established in 2026
A$						Australian dollars
AI						Artificial intelligence
AI Technologies						AI and machine learning technologies
AOMs						Structured equity vehicles operating under Domain's agent ownership model, which function as strategic partnership tools providing residential and commercial real estate agencies an economic stake in Domain-affiliated entities and creating a mechanism to reward long-term engagement and performance through profit-sharing rather than traditional commissions or rebates
ASC						Accounting Standards Codification
ASU						Accounting Standards Update
BEAT						Base erosion and anti-abuse minimum tax
Board of Directors						The CoStar Group Board of Directors
Brown Defendants						Matterport, Gores Holdings VI, Inc. (now known as Matterport, LLC), Maker Merger Sub Inc., Maker Merger Sub II, LLC, and then-Matterport directors R.J. Pittman, David Gausebeck, Matt Bell, Peter Hebert, Jason Krikorian, Carlos Kokron, and Michael Gustafson
Brown Judgment						The Chancery Court awarded plaintiff William J. Brown, a former employee and a stockholder of Matterport, $79 million plus pre- and post-judgment interest as damages for losses caused by Matterport’s initial refusal to issue freely transferable shares
Chancery Court						Court of Chancery of the State of Delaware
CODM						Chief Operating Decision Maker
CoStar Group (also the “Company,” “we,” “us,” or “our”)						The legal entity, CoStar Group, Inc., a Delaware corporation, one or more of its consolidated subsidiaries or operating segments, or the entirety of CoStar Group, Inc. and its consolidated subsidiaries
CoStar Group Share						A share of the common stock of the Company, par value $0.01 per share
CRI						The legal entity CoStar Realty Information, Inc., a Delaware corporation, a wholly-owned subsidiary of CoStar Group, and the Company's primary operating entity in the United States
Domain						Domain Holdings Australia Pty Limited (formerly Domain Holdings Australia Limited) and the products it sells
Domain Acquisition						CoStar Group's acquisition of Domain completed on August 27, 2025, pursuant to the Scheme Implementation Deed
Domain Proposal						The Company’s non-binding indicative proposal to acquire 100% of the issued capital of Domain by way of scheme of arrangement for a cash consideration of A$4.43 per ordinary share of Domain
DSUs						Deferred Stock Units
EBITDA						Net income (loss) before interest income or expense, net; other income or expense, net; income taxes; depreciation; and amortization
EPS						Earnings per share
ESPP						Employee Stock Purchase Plan
EURIBOR						Euro Interbank Offered Rate
Exchange Act						The Securities Exchange Act of 1934, as amended


Abbreviation or Acronym						Definition
FASB						Financial Accounting Standards Board
FDII						Foreign Derived Intangible Income
GAAP						Generally accepted accounting principles in the U.S.
GILTI						Global intangible low-taxed income inclusion
Gores Transaction						The Gores merger transaction and the Agreement and Plan of Merger thereunder
Homes.com						One of the flagship brands of our residential products and a homes for-sale listings site, which provides marketing for residential real estate agents and brokers and allows homebuyers to view residential property listings, research communities, and connect with real estate agents and brokers
H.R.1						A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14, commonly referred to as the One Big Beautiful Bill Act, and signed into law on July 4, 2025
Matching RSUs						Awards of matching restricted stock units awarded under the Company's Management Stock Purchase Plan
Matterport						The legal entity Matterport, LLC, formerly known as Matterport Inc., a Delaware corporation and provider of a technology platform that uses spatial data to transform physical buildings and spaces into dimensionally accurate, digital images
Matterport Acquisition						CoStar Group's acquisition of Matterport completed on February 28, 2025, pursuant to the Matterport Merger Agreement
Matterport Common Stock						Matterport Class A common stock, par value $0.0001 per share
Matterport Merger Agreement						The Agreement and Plan of Merger and Reorganization between CoStar Group and Matterport, Matrix Merger Sub I LLC, and Matrix Merger Sub II LLC entered into on April 21, 2024
Matterport Merger Exchange Ratio						A ratio of 0.03552 which was determined by the Matterport Merger Agreement and was set on the collar floor as the volume-weighted average price at which the CoStar Group Shares traded on the Nasdaq Global Select Market for the 20 consecutive Trading Days was below the Floor Price of a symmetrical collar of $77.42
MLSs						Multiple listing services
MSPP						Management Stock Purchase Plan
NCI						Noncontrolling interest
OnTheMarket						The legal entity OnTheMarket Limited, the operator of onthemarket.com, a U.K. residential property portal
Prior Stock Repurchase Program						The stock repurchase program the Board of Directors approved in February 2025 that authorizes the repurchase of up to $500 million of CoStar Group Shares
PRSAs						Performance-based Restricted Stock Awards with market conditions
PRSUs						Performance-based Restricted Stock Units with market conditions
ROU						Right-of-use
RSAs						Restricted Stock Awards
RSUs						Restricted Stock Units
SaaS						Software as a Service
SEC						The U.S. Securities and Exchange Commission
Securities Act						The Securities Act of 1933, as amended
Senior Notes						2.800% notes issued by CoStar Group due July 15, 2030
SOFR						Secured Overnight Financing Rate
SONIA						Sterling Overnight Index Average
Stock Repurchase Program						The stock repurchase program the Board of Directors approved in December 2025 that authorizes the repurchase of up to $1.5 billion CoStar Group Shares
STR						The Company's brand for benchmarking hotel performance and providing market insights to the hospitality industry


Abbreviation or Acronym						Definition
Term SOFR						The forward-looking SOFR term rates administered by CME Group Benchmark Administration Limited
Transfer Restrictions						Certain transfer restrictions in connection with the Gores Transaction
TSR						Total shareholder return
U.K.						The United Kingdom of Great Britain and Northern Ireland
U.S.						The United States of America
Vexcel						Vexcel Group, Inc. and its subsidiaries, a leading provider of aerial imagery, geospatial data, and AI-powered digital property intelligence
Vexcel Acquisition						CoStar Group's proposed acquisition of Vexcel, pursuant to the Vexcel Merger Agreement
Vexcel Merger Agreement						The Agreement and Plan of Merger, dated as of October 26, 2026, among CRI, Velocity Merger Sub, Inc., and Vexcel Group, Inc., and Fortis Advisors LLC, a Delaware limited liability company, solely in its capacity as the Stockholder Representative
VIE						Variable Interest Entity
Visual Lease						The legal entity Visual Lease, LLC, a Delaware limited liability company and operator of Visual Lease, a SaaS platform for integrated lease management and lease accounting
Visual Lease Acquisition						CoStar Group's acquisition of all of the outstanding equity interest in Visual Lease completed on November 1, 2024, pursuant to the Visual Lease Merger Agreement
Visual Lease Merger Agreement						The Agreement and Plan of Merger dated as of October 18, 2024, between CRI; Neptune Merger Sub; Visual Lease, LLC; and Shareholder Representative Services LLC as the Holder Representative, pursuant to which, among other things, and subject to its terms, Neptune Merger Sub merged with and into Visual Lease with Visual Lease surviving the merger as a wholly owned subsidiary of CRI
Zonda						Bora Inc. and its subsidiaries, a leading provider of data, analytics, software, and marketplace solutions for the residential construction industry
Zonda Acquisition						CoStar Group's acquisition of Zonda completed on August 21, 2026, pursuant to the Zonda Agreement in which CRI acquired all of the outstanding equity in Zonda
Zonda Agreement						The Stock Purchase Agreement entered into on May 28, 2026, between CRI and Bora, Inc. and Bora Holdings Group, L.P.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue	$	952	$	834	$	2,774	$	2,347
Cost of revenue	211		172		604		493
Gross profit	741		662		2,170		1,854

Operating expenses:
Selling and marketing (excluding customer base amortization)	366		418		1,182		1,182
Software development	109		106		330		297
General and administrative	138		157		378		420
Customer base amortization	44		32		117		76
	657		713		2,007		1,975
Income (loss) from operations	84		(51)		163		(121)
Interest income (expense), net	(1)		26		7		97
Other income (expense), net	1		(21)		—		(7)
Income (loss) before income taxes	84		(46)		170		(31)
Income tax expense (benefit)	10		(15)		38		9
Net income (loss)	$	74	$	(31)	$	132	$	(40)

Earnings per share - basic	$	0.18	$	(0.07)	$	0.32	$	(0.09)
Earnings per share - diluted	$	0.18	$	(0.07)	$	0.32	$	(0.09)

Weighted-average outstanding shares - basic	401.6		419.9		406.2		416.7
Weighted-average outstanding shares - diluted	401.9		419.9		406.7		416.7


	September 30, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	500	$	1,633
Restricted cash	—		100
Accounts receivable	316		263
Less: Allowance for credit losses	(36)		(29)
Accounts receivable, net	280		234
Income taxes receivable	26		18
Prepaid expenses and other current assets	140		134
Total current assets	946		2,119

Deferred income taxes, net	8		47
Property and equipment, net	1,456		1,323
Lease right-of-use assets	126		123
Goodwill	5,428		4,944
Intangible assets, net	2,062		1,771
Deferred commission costs, net	188		184
Deposits and other assets	51		27
Total assets	$	10,265	$	10,538
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	56	$	42
Accrued wages and commissions	148		145
Accrued expenses	199		203
Litigation accrual	—		99
Lease liabilities	32		28
Deferred revenue	250		205
Other current liabilities	31		24
Total current liabilities	716		746

Long-term debt, net	994		993
Deferred income taxes, net	335		238
Income taxes payable	30		27
Lease and other long-term liabilities	198		163
Total liabilities	2,273		2,167
Stockholders' equity attributable to CoStar Group	7,975		8,334
Equity attributable to noncontrolling interest	17		37
Total equity	7,992		8,371
Total liabilities and stockholders' equity	$	10,265	$	10,538
See accompanying notes.


	Common Stock			Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Income		Retained Earnings		Stockholders’ Equity Attributable to CoStar Group		Equity Attributable to NCI		Total Equity
	Shares	Amount
Balance at December 31, 2025	417.9	$	4	$	6,410	$	(510)	$	80	$	2,350	$	8,334	$	37	$	8,371
Net income	—	—		—		—		—		3		3		—		3
Other comprehensive income	—	—		—		—		51		—		51		—		51
Change in NCI	—	—		—		—		—		—		—		1		1
Exercise of stock options	0.9	—		8		—		—		—		8		—		8
Restricted stock grants vested	0.1	—		—		—		—		—		—		—		—
Restricted stock grants surrendered	(0.6)	—		(20)		—		—		—		(20)		—		(20)
ESPP and MSPP	0.2	—		5		—		—		—		5		—		5
Stock-based compensation expense	—	—		41		—		—		—		41		—		41
Stock repurchases under stock repurchase programs	(11.4)	—		(3)		(506)		—		—		(509)		—		(509)
Balance at March 31, 2026	407.1	$	4	$	6,441	$	(1,016)	$	131	$	2,353	$	7,913	$	38	$	7,951
Net income	—	—		—		—		—		55		55		—		55
Other comprehensive income	—	—		—		—		7		—		7		—		7

Purchase of noncontrolling interest in AOMs	—	—		(1)		—		—		—		(1)		(25)		(26)

Restricted stock grants vested	0.1	—		—		—		—		—		—		—		—
Restricted stock grants surrendered	(0.1)	—		(1)		—		—		—		(1)		—		(1)
ESPP and MSPP	0.1	—		4		—		—		—		4		—		4
Stock-based compensation expense	—	—		38		—		—		—		38		—		38
Stock repurchases under stock repurchase programs	(2.4)	—		—		(83)		—		—		(83)		—		(83)
Balance at June 30, 2026	404.8	$	4	$	6,481	$	(1,099)	$	138	$	2,408	$	7,932	$	13	$	7,945
Net income	—	—		—		—		—		74		74		—		74
Other comprehensive income	—	—		—		—		21		—		21		—		21
Change in NCI	—	—		—		—		—		—		—		4		4


Restricted stock grants surrendered	(0.2)	—		(3)		—		—		—		(3)		—		(3)

Stock-based compensation expense	—	—		32		—		—		—		32		—		32
Stock repurchases under stock repurchase programs	(2.7)	—		—		(81)		—		—		(81)		—		(81)
Balance at September 30, 2026	401.9	$	4	$	6,510	$	(1,180)	$	159	$	2,482	$	7,975	$	17	$	7,992


Service or Product			Point in time of transfer
Matterport capture services			when the digital twin is available to be accessed
Matterport cameras			as defined in the customer's contract and generally upon shipment
Ten-X Auctions			at the successful closing for the sale of the auctioned property
Ad hoc products or services			when delivered to or available to be used by the customer


	September 30, 2026		December 31, 2025
Foreign currency translation income	$	159	$	80
Total accumulated other comprehensive income	$	159	$	80


	Nine Months Ended September 30,
	2026		2025
Beginning balance	$	29	$	23
Current-period provision for expected credit losses	25		26
Write-offs charged against the allowance	(18)		(19)
Ending balance	$	36	$	30


	Estimated Useful Life (in years)	Amount
Buildings	39	$	649
Building improvements	15	159
Furniture and office equipment	5-10	33
Total		$	841


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Commercial Real Estate
CoStar	$	344	$	318	$	1,012	$	933
LoopNet	89		79		261		228
Other Commercial Real Estate	59		64		172		155
Total Commercial Real Estate	492		461		1,445		1,316
Residential Real Estate	460		373		1,329		1,031
Total revenue	$	952	$	834	$	2,774	$	2,347


	Amount
Cash	$	558
Settlement of existing debt	172
Settlement of existing preferred equity	85
	$	815


	Three Months Ended September 30,				Nine Months Ended September 30,
Numerator:	2026		2025		2026		2025

Net income (loss)	$	74	$	(31)	$	132	$	(40)
Denominator:
Denominator for basic earnings per share — weighted-average outstanding shares	401.6		419.9		406.2		416.7
Effect of dilutive securities:
Stock options, RSAs, and RSUs	0.3		—		0.5		—
Denominator for diluted earnings per share — weighted-average outstanding shares	401.9		419.9		406.7		416.7

Earnings per share - basic	$	0.18	$	(0.07)	$	0.32	$	(0.09)
Earnings per share - diluted	$	0.18	$	(0.07)	$	0.32	$	(0.09)


	September 30, 2026		December 31, 2025
Finished goods	$	14	$	4
Purchased parts and raw materials	6		2
Total inventories	$	20	$	6


Balance	Balance Sheet Caption	September 30, 2026		December 31, 2025
Current portion	Other current liabilities	$	6	$	6
Non-current portion	Lease and other long-term liabilities	31		35
Total deferred lease income		$	37	$	41


Balance at December 31, 2025	$	206
Revenue recognized in the current period from the amounts in the beginning balance	(181)
New deferrals, net of amounts recognized in the current period(1)	226
Balance at September 30, 2026	$	251
__________________________
(1) This balance includes $15 million of new deferrals from the Zonda Acquisition completed in 2026. See Note 4 for further discussion of acquisitions.


	Preliminary: August 21, 2026
Cash and cash equivalents	$	26
Accounts receivable	17
Intangible assets	458
Accrued expenses	(14)
Deferred revenue	(15)
Deferred tax liability	(88)
Other assets and (liabilities), net	1
Fair value of identifiable net assets acquired	385

Fair value of NCI in Zonda’s partially-owned subsidiaries	(4)
Goodwill	434
	$	815


	Estimated Fair Value		Estimated Useful Life	Amortization Method
Customer relationships	$	405	10-20	Accelerated
Trade names	31		15	Straight-line
Database	16		4	Straight-line
Software	6		3-4	Straight-line
Total intangible assets	$	458


	Amount
Cash	$	1,472
Settlement of existing debt	139
Fair value of cash settled equity awards related to pre-combination services	1
Total purchase consideration	1,612
Fair value of previously held equity interests	300
	$	1,912


	Final: August 27, 2025
Cash and cash equivalents	$	15
Accounts receivable	35
Intangible assets	931
Accrued expenses	(27)
Deferred revenue	(14)
Deferred tax liability	(231)
Other assets and (liabilities), net	(2)
Fair value of identifiable net assets acquired	707

Fair value of NCI in Domain’s partially-owned subsidiaries	(39)
Goodwill	1,244
	$	1,912


	Amount
Cash	$	902
CoStar Group Shares (11.7 million shares)	881
Fair value of rollover awards	144
Total	$	1,927


	Final: February 28, 2025
Cash and cash equivalents	$	55
Restricted cash	97
Accounts receivable	13
Available for sale investments	204
Deferred tax assets, net of valuation allowance	69
Intangible assets	527
Deferred revenue	(32)
Litigation accrual	(99)
Other assets and (liabilities), net	(12)
Fair value of identifiable net assets acquired	$	822

Goodwill	1,105
	$	1,927


	Three Months Ended September 30,				Nine Months Ended September 30,
Operating lease costs:	2026		2025		2026		2025

Cost of revenue	$	3	$	3	$	8	$	8
Selling and marketing (excluding customer base amortization)	6		4		16		11
Software development	1		2		5		5
General and administrative	1		1		4		4
Total operating lease costs	11		10		33		28
Finance lease costs:
Amortization of ROU assets	—		1		2		3
Interest on lease liabilities	—		—		—		1
Total finance lease costs	—		1		2		4
Total lease costs	$	11	$	11	$	35	$	32


Balance	Balance Sheet Location	September 30, 2026			December 31, 2025
Operating lease liabilities		$	195		$	161
Less: imputed interest		25			21
Present value of lease liabilities		170			140
Less: current portion of lease liabilities	Lease liabilities	26			23
Long-term lease liabilities	Lease and other long-term liabilities	$	144		$	117

Weighted-average remaining lease term in years		5			5
Weighted-average discount rate		4.7		%	4.7		%
ROU assets	Lease right-of-use assets	$	126		$	123

Finance lease liabilities		$	8		$	12
Less: imputed interest		—			1
Present value of lease liabilities		8			11
Less: current portion of lease liabilities	Lease liabilities	6			5
Long-term lease liabilities	Lease and other long-term liabilities	$	2		$	6

Weighted-average remaining lease term in years		2			2
Weighted-average discount rate		6.0		%	6.3		%
ROU assets	Property and equipment, net	$	12		$	13


	September 30, 2026		December 31, 2025		Weighted- Average Amortization Period (in years)
Acquired technology and data	$	497	$	471	8
Accumulated amortization	(107)		(55)
Acquired technology and data, net	390		416

Acquired customer base	1,712		1,330		16
Accumulated amortization	(471)		(403)
Acquired customer base, net	1,241		927

Acquired trade names and other intangible assets	558		524		14
Accumulated amortization	(171)		(146)
Acquired trade names and other intangible assets, net	387		378

Acquired above-market leases	41		42		9
Accumulated amortization	(16)		(14)
Acquired above-market leases, net	25		28

Acquired in-place leases	31		31		9
Accumulated amortization	(12)		(9)
Acquired in-place leases, net	19		22

Intangible assets, net	$	2,062	$	1,771


	September 30, 2026		December 31, 2025
2.800% Senior Notes due July 15, 2030	$	1,000	$	1,000
Senior Notes unamortized discount and issuance costs	(6)		(7)
Long-term debt, net	$	994	$	993


Year Ending December 31,	Operating lease obligations		Finance lease obligations		Long-term debt principal payments		Long-term debt interest payments
Remainder of 2026	$	5	$	2	$	—	$	—
2027	45		5		—		28
2028	45		1		—		28
2029	37		—		—		28
2030	32		—		1,000		28
Thereafter	31		—		—		—
Total	$	195	$	8	$	1,000	$	112


	Three Months Ended September 30,
	2026						2025
	Commercial Real Estate		Residential Real Estate		Total		Commercial Real Estate		Residential Real Estate		Total
Revenue(1)	$	492	$	460	$	952	$	461	$	373	$	834
Less:
Personnel	216		166		382		240		191		431
Marketing	18		171		189		19		200		219
General and administrative(2)	95		107		202		88		83		171
EBITDA	$	163	$	16	$	179	$	114	$	(101)	$	13
Stock-based compensation expense(3)	21		11		32		60		11		71
Acquisition and integration related costs	2		13		15		10		20		30
Restructuring and related costs	—		—		—		—		—		—
Settlements and impairments	(6)		9		3		(1)		1		—
Adjusted EBITDA	$	180	$	49	$	229	$	183	$	(69)	$	114
__________________________
(1) See Note 3 for details of revenue disaggregated by segment.
(2) Excludes personnel costs.
(3) Represents a significant non-cash item included in the personnel costs above.


	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contract Life (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2025	3,203,725	$	38.32	4	$	102
Granted	—	$	—
Exercised	(911,534)	$	9.27		$	50
Canceled or expired	(18,940)	$	69.15
Outstanding at September 30, 2026	2,273,251	$	49.71	3	$	6
Exercisable at September 30, 2026	2,096,883	$	47.21	3	$	6


	Nine Months Ended September 30, 2025
Pricing Model	Black-Scholes
Dividend yield	0		%
Expected volatility	35.0		%
Risk-free interest rate	4.3		%
Expected life (in years)	5
Weighted-average grant date fair value	$	30.05


	RSUs			PRSUs
	Number of Units	Weighted-Average Grant Date Fair Value per Share		Number of Units	Weighted-Average Grant Date Fair Value per Share
Unvested restricted stock units at December 31, 2025	714,920	$	76.09	—	$	—
Granted	2,435,055	$	43.13	694,759	$	40.10
Vested	(252,283)	$	75.48	—	$	—
Canceled	(263,933)	$	61.63	(86,365)	$	41.02
Unvested restricted stock units at September 30, 2026	2,633,759	$	47.13	608,394	$	39.97


	Three Months Ended September 30,
	2025		2024(1)		Increase (Decrease) ($)		Increase (Decrease) (%)
Revenue
CoStar	$	318	$	290	$	28	10	%
LoopNet	79		71		8		11
Other Commercial Real Estate	64		19		45		237
Total Commercial Real Estate	461		380		81		21
Residential Real Estate	373		313		60		19
Total revenue	834		693		141		20
Cost of revenue	172		141		31		22
Gross profit	662		552		110		20
Operating expenses:
Selling and marketing (excluding customer base amortization)	418		331		87		26
Software development	106		81		25		31
General and administrative	157		106		51		48
Customer base amortization	32		10		22		220
Total operating expenses	713		528		185		35
Income (loss) from operations	(51)		24		(75)		NM
Interest income, net	26		55		(29)		(53)
Other expense, net	(21)		(2)		(19)		NM
Income (loss) before income taxes	(46)		77		(123)		NM
Income tax expense (benefit)	(15)		24		(39)		NM
Net income (loss)	$	(31)	$	53	$	(84)	NM
__________________________
(1) We have recast certain prior period disclosures to align with the way we internally manage our business. See Note 2 of the Notes to the Condensed Consolidated Financial Statements included in Part I of this Report for additional information.
NM - Not meaningful