Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the fourth quarter and the rest of 2025 based on current beliefs and assumptions. We achieved another excellent quarter for CoStar Group, with third quarter 2025 revenue reaching $834 million, a 20% year-over-year increase. This is our 58th consecutive quarter of double-digit revenue growth, and we're one quarter closer to potentially 100 sequential quarters of double-digit revenue growth. Adjusted EBITDA in the third quarter rose to $115 million, up 51% over Q3 2024.
Profit margin in our commercial information and marketplace businesses increased to 47% for Q3 2025. Assuming we own Domain for the full third quarter, the revenue for the residential portals would now be $411 million in the quarter, or $1.644 billion annualized. We expect synergies across these residential portals will continue to drive improvement in our margin profile and believe that long-term margins can operate at more than 40% adjusted EBITDA margins. Apartments.com delivered another strong quarter, surpassing $1.2 billion in annual run-rate revenue and generating $303 million in Q3 revenue, an 11% increase year-over-year.
In Q3, the team conducted 200,000 client and prospect interactions, with nearly half of them occurring in person, a 66% year-over-year increase in Q3. Our total multifamily property count now exceeds 87,000, an increase of 12,000 in 2025. In the single-family rental segment, we had 1.4 million availabilities and 260,000 paid rentals, up 51% year-over-year. Homes.com rental traffic grew 55%, underscoring the synergy between Apartments.com and Homes.com.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | FY2025 | $3.23 billion to $3.24 billion (raised, now including Domain and broadly in line with prior ex-Domain guidance plus the acquisition) |
| Adjusted EBITDA | FY2025 | $415 million to $425 million (raised, a $25 million increase excluding Domain reflecting strong Q3 performance, with Domain adding about $15 million) |
| Revenue | Q4 2025 | $885 million to $895 million (reiterated as new quarterly guide) |
| Adjusted EBITDA | Q4 2025 | $150 million to $160 million (reiterated as new quarterly guide) |
| CoStar product revenue growth | FY2025 | firmly in the 7% range (raised on steadily increasing net new bookings, the highest since 2022, with 8% to 9% growth expected in Q4) |
| LoopNet revenue growth | FY2025 | 10% to 11% (raised, aided by the Domain contribution, with organic Q4 growth of about 11%, its highest since 2023) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | up 20% to $834 million | Broad-based growth plus a $25 million stub-period contribution from the Domain acquisition; revenue excluding Domain of $808 million beat the high end of guidance |
| Adjusted EBITDA | up 51% to $115 million | Continued expense discipline, better than expected revenue, lower professional services costs and greater headcount savings |
| CoStar product revenue | up 8% | Renewed growth as net new bookings reached the highest level since 2022 despite CRE sector volatility |
| Apartments.com revenue | up 11% to $303 million | Surpassed $1.2 billion run rate with net new bookings up 37% and 4,200 communities added in the quarter |
| LoopNet revenue | up 12% | Organic performance in line with guidance plus a two-point lift from the Domain acquisition |
| Residential revenue (product line) | $55 million with $23 million from Domain | The $32 million organic portion was consistent with prior guidance; Homes.com revenue grew 20% |
| Other revenue | $78 million with $44 million from Matterport | Matterport contribution, with Q4 expected slightly lower on Ten-X revenue recognition timing and the Pro2 camera sunset |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Homes.com business model advantage | Building audience and member base post-launch | Framed as able to sell to more than 50% of agents versus roughly 5% for lead-diversion portals, with 130,000 active listings marketed or boosted representing 6% of the for-sale market, well ahead of a cited Zillow showcase estimate | — |
| AI product acceleration | AI used internally across the organization | Launched AI Smart Search on Homes.com in partnership with Microsoft, enabling conversational multi-geography queries and producing improved user engagement | — |
| Homes.com monetization streams | Primarily agent memberships | Boost sales rose 136% quarter-over-quarter to $617,000 with 25% of buyers converting to memberships, and new-home-builder enhanced exposure generated $743,000 in annualized bookings since August 25 | — |
| Domain acquisition | Held a 16.9% stake, deal pending | Closed August 27 for $1.9 billion total consideration, contributing $25 million of stub-period revenue with about 90% residential mix | — |
| Sales force scaling | Aggressive hiring across brands | Over 2,000 reps company-wide, with Apartments.com past 500 reps and Homes.com at 500 in production plus 150 in pre-production, tempering the growth pace to let training catch up | — |