Financial Analysis

"ACQUISITIONS Domain In February 2025, in connection with the Domain Proposal, the Company acquired approximately 17% of the ordinary shares of Domain, one of Australia's leading property marketplaces, at A$4.20 per share for a total purchase price of A$452 million ( $285 million ). In May 2025, the Company entered into an agreement to acquire the remaining issued capital of Domain not previously held by CoStar Group by way of Scheme of Arr angement. In August 2025, the Company completed the Domain Acquisition pursuant to which (i) the Company spent A$2.5 billion ( $1.6 billion ) to acquire the remaining 83% of Domain's ordinary shares; and (ii) Domain shareholders received total cash consideration of A$4.43 per Domain ordinary share, less a one-time special dividend of A$0.088 per share declared and paid by Domain prior to closing. The Domain Acquisition positions the Company to leverage Domain's portfolio of property brands in Australia and CoStar's technology, scale, and innovation to improve customer experience, value, and access to CoStar's brands and product offerings. As of the closing of the Domain Acquisition, the fair value of the Company's 17% investment was approximately A$465 million ($300 million), measured based on the fair value implied by the consideration transferred. The acquisition was completed as a step-acquisition, and the Company recognized a gain of $14 million, inclusive of dividend income, as a result of remeasuring its previously held equity intere …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"COMMITMENTS AND CONTINGENCIES The following summarizes the Company's significant contractual obligations, including related payments due by period, as of December 31, 2025 (in millions): Year Ending December 31, Operating lease obligations Finance lease obligations Long-term debt principal payments Long-term debt interest payments 2026 $ 29 $ 6 $ $ 28 2027 33 5 28 2028 33 1 28 2029 24 28 2030 19 1,000 28 Thereafter 23 Total $ 161 $ 12 $ 1,000 $ 140 The Company leases office facilities under various non-cancelable operating leases, as well as data centers and vehicles under finance lease arrangements. The leases contain various renewal options. See Note 6 for further discussion of the Company's lease commitments. Litigation Currently, and from time to time, the Company is involved in litigation incidental to the conduct of its business. The Company records a provision for a liability when it is both probable that a liability has been incurred and the amount can be reasonably estimated. While it is reasonably possible that an unfavorable outcome may occur as a result of one or more of the Companys current litigation matters, at this time, management has concluded that the resolutions of these matters are not expected to have a material effect on the Company's consolidated financial position, future results of operations, or liquidity. Legal defense costs are expensed as incurred, except as set forth below. Matterport-Related Matters On July 23, 2021, plaintiff William J. Brown …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue by operating segment and type of service consist of the following (in millions): Year Ended December 31, 2025 2024 2023 Commercial Real Estate CoStar $ 1,259 $ 1,156 $ 1,096 LoopNet 312 282 265 Other Commercial Real Estate 216 77 82 Total Commercial Real Estate 1,787 1,515 1,443 Residential Real Estate 1,460 1,221 1,012 Total revenue $ 3,247 $ 2,736 $ 2,455

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EMPLOYEE BENEFIT PLANS Stock Incentive Plans In April 2016, the Companys Board of Directors adopted the CoStar Group 2016 Stock Incentive Plan (as amended, the 2016 Plan), subject to stockholder approval, which was obtained on June 9, 2016. On April 28, 2025, the Board of Directors approved the CoStar Group, Inc. 2025 Stock Incentive Plan (the 2025 Plan), subject to stockholder approval, which was obtained on June 26, 2025. All shares of common stock that were authorized for issuance under the 2016 Plan that, as of April 28, 2025, remained available for issuance under the 2016 Plan (excluding shares subject to outstanding awards) were rolled into the 2025 Plan and, following stockholder approval of the 2025 Plan, no further grants will be made under the 2016 Plan. The 2025 Plan provides for the grant of stock options, restricted stock, restricted stock units, and stock appreciation rights to officers, employees, and directors of the Company and its subsidiaries. Stock options granted under the 2025 Plan may be non-qualified or may qualify as incentive stock options. Except in limited circumstances related to a merger or other acquisition, the exercise price for an option may not be less than the fair market value of the Companys common stock on the date of grant. The vesting period for each grant of options, restricted stock, restricted stock units, and stock appreciation rights under the 2025 Plan is determined by the Board of Directors or a committee thereof and is generall …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

INVESTMENTS AND FAIR VALUE MEASUREMENTS The Company categorizes assets and liabilities recorded or disclosed at fair value on the consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3 - Unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company's financial assets comprised Level 1 cash equivalents with original maturities of three months or less in the amount of $1.4 billion and $4.5 billion as of December 31, 2025 and 2024, respectively. The Company had no Level 2 or Level 3 financial assets measured at fair value as of December 31, 2025 and 2024. Available-for-sale Debt Securities In connection with the Matterport Acquisition, the Company acquired $204 million of available-for-sale debt securities, inclusive of $2 million of accrued interest. These securities were sold for net proceeds of $203 million resulting in a negligible realized loss in the first quarter of 2025. Other Financial Instruments The Company holds other financial instruments, including cash deposits, accounts receivable, accounts payable, accrued expenses, and Senior Notes. The carrying value for such financial instr …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The components of the provision for income taxes attributable to operations consist of the following (in millions): Year Ended December 31, 2025 2024 2023 Current: Federal $ (14) $ 91 $ 126 State 1 28 37 Foreign 1 2 1 Total current (12) 121 164 Deferred: Federal 44 (42) (32) State 5 (8) (3) Foreign (14) (2) Total deferred 35 (50) (37) Total provision for income taxes $ 23 $ 71 $ 127 The components of deferred tax assets and liabilities consist of the following (in millions): December 31, 2025 2024 Deferred tax assets: Allowance for credit losses $ 7 $ 5 Accrued compensation 15 13 Stock compensation 28 15 Net operating losses 169 50 Accrued reserve and other 43 20 Lease liabilities 38 26 Capitalized research and development costs 109 140 Research and development credits 36 5 Total deferred tax assets, prior to valuation allowance 445 274 Valuation allowance (49) (33) Total deferred tax assets, net of valuation allowance 396 241 Deferred tax liabilities: Deferred commission costs, net (46) (43) Lease right-of-use assets (19) (16) Prepaid expenses (5) (5) Property and equipment, net (3) (10) Intangible assets, net (514) (144) Total deferred tax liabilities (587) (218) Net deferred tax assets (liabilities) $ (191) $ 23 For both the years ended December 31, 2025 and 2024, the Company has not recognized deferred tax liabilities for temporary differences related to investments in foreign subsidiaries that were deemed permanently reinvested. Determination of the amount o …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company has operating and finance leases for its office facilities, data centers, and certain vehicles. The Company's leases have remaining terms up to nine years. The leases contain various renewal and termination options. The period that is subject to an option to extend the lease is included in the lease term if it is reasonably certain that the option will be exercised. The period that is subject to an option to terminate the lease is included if it is reasonably certain that the option will not be exercised. Lease costs related to the Company's operating and finance leases included in the consolidated statements of operations were as follows (in millions): Year Ended December 31, 2025 2024 2023 Operating lease costs: Cost of revenue $ 10 $ 10 $ 10 Selling and marketing (excluding customer base amortization) 16 15 16 Software development 7 9 6 General and administrative 6 7 4 Total operating lease costs 39 41 36 Finance lease costs: Amortization of ROU assets 3 5 1 Interest on lease liabilities 1 1 Total finance lease costs 4 6 1 Total lease costs $ 43 $ 47 $ 37 Finance lease costs primarily relate to vehicles used by the Company's research teams, and the amortization of the ROU assets are recorded to cost of revenue in the consolidated statements of operations. The impact of lease costs related to short-term leases was not material for the years ended December 31, 2025, 2024, and 2023. Supplemental balance sheet information related to operating leases was as f …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

LONG-TERM DEBT The table below presents the components of outstanding debt (in millions): December 31, 2025 2024 2.800% Senior Notes due July 15, 2030 $ 1,000 $ 1,000 2024 Credit Agreement, due May 24, 2029 Total face amount of long-term debt 1,000 1,000 Senior Notes unamortized discount and issuance costs (7) (8) Long-term debt, net $ 993 $ 992 Senior Notes On July 1, 2020, the Company issued $1.0 billion aggregate principal amount of 2.800% Senior Notes due July 15, 2030. The Senior Notes were sold to a group of financial institutions as initial purchasers who subsequently resold the Senior Notes to non-U.S. persons pursuant to Regulation S under the Securities Act, and to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act at a purchase price equal to 99.921% of their principal amount. Interest on the Senior Notes is payable semi-annually in arrears on January 15 and July 15. The Senior Notes may be redeemed in whole or in part by the Company (a) at any time prior to April 15, 2030 at a redemption price equal to 100% of the principal amount of the Senior Notes, plus the Applicable Premium (as calculated in accordance with the indenture governing the Senior Notes), and any accrued and unpaid interest, if any, on the principal amount of Senior Notes being redeemed to, but excluding, the redemption date, and (b) on or after April 15, 2030 at a redemption price equal to 100% of the principal amount of the Senior Notes …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements The Company adopted ASU No. 2023-07 (Topic 280), Improvements to Reportable Segment Disclosures effective January 1, 2024. This guidance requires enhanced disclosures about significant segment expenses. Additionally, it requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segments profit or loss in assessing segment performance and deciding how to allocate resources. The adoption resulted in expanded segment reporting disclosures, with no impacts to the Company's financial condition and results of operations. In December 2023, the FASB issued ASU No. 2023-09 (Topic 740), Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as an expansion of other income tax disclosures. The ASU is effective on a prospective basis for annual reporting periods beginning after December 15, 2024. The adoption of this standard impacted our disclosures only and did not affect the Company's financial position or the results of its operations. Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The ASU requires incremental disclosures about specific expense categorie …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenue Revenue by operating segment and type of service consist of the following (in millions): Year Ended December 31, 2025 2024 2023 Commercial Real Estate CoStar $ 1,259 $ 1,156 $ 1,096 LoopNet 312 282 265 Other Commercial Real Estate 216 77 82 Total Commercial Real Estate 1,787 1,515 1,443 Residential Real Estate 1,460 1,221 1,012 Total revenue $ 3,247 $ 2,736 $ 2,455 We have recast certain prior period disclosures to align with the way we internally manage our business. See Note 2 for additional information. The Company is domiciled in the U.S. and revenue earned outside the U.S. were $350 million, $162 million, and $106 million for years ended December 31, 2025, 2024, and 2023, respectively. Deferred Revenue Deferred revenue as of December 31, 2025 and 2024 was as follows (in millions): December 31, Balance Balance Sheet Caption 2025 2024 Current portion Deferred revenue $ 205 $ 137 Non-current portion Lease and other long-term liabilities 1 Total deferred revenue $ 206 $ 137 Changes in deferred revenue for the period were as follows (in millions): Balance at December 31, 2024 $ 137 Revenue recognized in the current period from the amounts in the beginning balance (127) New deferrals, net of amounts recognized in the current period (1) 194 Effects of foreign currency 2 Balance at December 31, 2025 $ 206 __________________________ (1) This balance includes $46 million of net new deferrals from the acquisitions complete …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING Segment Information The Company manages its business by product portfolios in two operating segments and two reportable segments, with the primary areas of measurement and decision-making being Commercial Real Estate and Residential Real Estate. Segment reporting is aligned with the internal reporting used by the CODM, which is the Companys Chief Executive Officer. The CODM relies on a management reporting process that provides operating segment revenue, EBITDA, and Adjusted EBITDA for making decisions and assessing performance as the source of the Companys reportable segments. EBITDA and Adjusted EBITDA are used by management internally to measure operating and management performance and to evaluate the business. The CODM does not review any information regarding total assets by operating segment. Operating results by segment include items that are directly attributable to each segment and shared expenses such as IT expenses, corporate infrastructure costs including facilities, finance, and legal. Shared expenses are allocated based on revenue and headcount. There are no intersegment transactions. The impact of certain items that are not normal, recurring, cash operating expenses necessary to run the operating segment are removed to determine Adjusted EBITDA and include stock based compensation, acquisition and integration costs, restructuring and related costs, and settlements and impairments. We have recast certain prior period disclosures to align with o …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS' EQUITY Share Repurchase Program Prior Stock Repurchase Program and Accelerated Share Repurchase Agreement In February 2025, the Board of Directors approved the Prior Stock Repurchase Program which authorized the repurchase of up to $500 million of CoStar Group Shares. Prior to November 6, 2025, the Company purchased $138 million of CoStar Group Shares pursuant to a 10b5-1 Plan. On November 6, 2025, the Company entered into an ASR agreement with a financial institution counterparty to repurchase $300 million of its outstanding common stock. The Company repurchased 4.5 million CoStar Group Shares during the term of the ASR Agreement based on the volume-weighted average price, net of discount, of $66.98 per share over the duration of the program, which was completed in November 2025. The share repurchases were recorded as a reduction to stockholders equity. During the year ended December 31, 2025 , the Company repurchased a total of 7.1 million CoStar Group Shares for an aggregate cost of $500 million under the Prior Stock Repurchase Program and ASR Agreement . As a result, no balance remained available for repurchases under that program. The aggregate purchase price of CoStar Group Shares is recorded as Treasury Stock and presented as a reduction to stockholders' equity. New Stock Repurchase Program In December 2025, the Board of Directors approved a Stock Repurchase Program which authorizes, but does not obligate, the repurchase of up to $1.5 billion of CoStar Gr …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS The Company has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the consolidated financial statements were issued. Based upon this review, the Company did not identify any material subsequent events that required adjustment or disclosure in the consolidated financial statements.

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ACQUISITIONS Zonda In May, 2026, the Company entered into the Zonda Agreement, pursuant to which the Company agreed to acquire all of the outstanding equity interests in Zonda for $800 million in cash, subject to customary working capital and other post-closing adjustments. Zonda owns a proprietary, lot-level database covering new home communities, land development activity, construction status, home sales, and builder operations. This data and the software built around it are embedded in builder workflows and are used to support underwriting, land strategy, capital allocation, development planning, forecasting, and sales operations across the industry. Zonda also operates NewHomeSource and Livabl, leading online new home marketplaces in the U.S. and Canada respectively. The Zonda Agreement is subject to customary closing conditions and regulatory review. The Company currently expects to close the acquisition in the second half of 2026. Domain In February 2025, in connection with the Domain Proposal, the Company acquired approximately 17% of the ordinary shares of Domain, one of Australia's leading property marketplaces, at A$4.20 per share for a total purchase price of A$452 million ($285 million). In May 2025, the Company entered into an agreement to acquire the remaining issued capital of Domain not previously held by CoStar Group by way of scheme of arr angement. In August 2025, the Company completed the Domain Acquisition pursuant to which (i) the Company spent A$2.5 bil …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES The following summarizes the Company's significant contractual obligations, including related payments due by period, as of June 30, 2026 (in millions): Year Ending December 31, Operating lease obligations Finance lease obligations Long-term debt principal payments Long-term debt interest payments Remainder of 2026 $ 2 $ 3 $ $ 14 2027 42 5 28 2028 41 1 28 2029 33 28 2030 28 1,000 28 Thereafter 29 Total $ 175 $ 9 $ 1,000 $ 126 The Company leases office facilities under various non-cancelable operating leases, as well as data centers and vehicles under finance lease arrangements. The leases contain various renewal options. See Note 6 for further discussion of the Company's lease commitments. Litigation Currently, and from time to time, the Company is involved in litigation incidental to the conduct of its business. The Company monitors developments in these legal matters and records a provision for probable losses at management's best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount within a probable range is recorded. While it is reasonably possible that an unfavorable outcome may occur as a result of one or more of the Companys current legal matters, at this time, management has concluded that the resolutions of these matters are not expected to have a material effect on the Company's condensed consolidated financial position, future results of operations, or liquidity. Legal defense costs are expensed …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue by operating segment and type of service consists of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Commercial Real Estate CoStar $ 337 $ 310 $ 668 $ 615 LoopNet 87 76 172 149 Other Commercial Real Estate 57 60 113 91 Total Commercial Real Estate 481 446 953 855 Residential Real Estate 444 335 869 658 Total revenue $ 925 $ 781 $ 1,822 $ 1,513

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EMPLOYEE BENEFIT PLANS Stock Incentive Plans All of the outstanding stock options, RSAs, and RSUs are covered under the 2025 Plan or legacy plans. Awards under the 2025 Plan may include one or more of the following types: (i) stock options, (ii) stock appreciation rights, (iii) RSAs, (iv) RSUs, and (v) performance RSAs and RSUs . For additional information regarding the share-based awards of the Company, see Note 16 in the Notes to the Consolidated Financial Statements in the 2025 Form 10-K. Approximately 7.8 million shares were available for future grant under the 2025 Plan as of June 30, 2026. At June 30, 2026, there was approximately $264 million of unrecognized compensation cost related to stock incentive plans, net of estimated forfeitures, which the Company expects to recognize over a weighted-average-period of three years. See Note 2 for further discussion of stock-based compensation expense. Stock Options Option activity was as follows: 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 (907,426) $ 9.28 $ 50 Canceled or expired (2,540) $ 9.86 Outstanding at June 30, 2026 2,293,759 $ 49.84 4 $ 6 Exercisable at June 30, 2026 2,100,991 $ 47.13 3 $ 6 The table below summarizes the resulting weighted average inputs used to calculate the estimated fair value of options awarded: Six Months Ended June 30, 2025 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

INVESTMENTS AND FAIR VALUE MEASUREMENTS The Company categorizes assets and liabilities recorded or disclosed at fair value on the condensed consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3 - Unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company's financial assets comprised Level 1 cash equivalents with original maturities of three months or less in the amount of $1.1 billion and $1.4 billion as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026 and December 31, 2025, the Company had no Level 2 or Level 3 financial assets measured at fair value. Available-for-Sale Debt Securities In connection with the Matterport Acquisition, the Company acquired $204 million of available-for-sale debt securities, inclusive of $2 million of accrued interest. These securities were sold for net proceeds of $203 million, resulting in a negligible realized loss in the three months ended June 30, 2025. Other Financial Instruments The Company holds other financial instruments, including cash deposits, accounts receivable, accounts payable, accrued expenses, and Senior Notes. Th …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The income tax provision reflects an effective tax rate of approximately 26% and 73% for the three months ended June 30, 2026 and 2025, respectively, and 33% and 160% for the six months ended June 30, 2026 and 2025, respectively. The decreases in the effective tax rate for the three and six months ended June 30, 2026 were primarily due to losses in the U.K. in 2025 subject to a full valuation allowance.

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LEASES The Company has operating and finance leases for its office facilities, data centers, and certain vehicles. The Company's leases have remaining terms up to eight years. The leases contain various renewal and termination options. The period that is subject to an option to extend the lease is included in the lease term if it is reasonably certain that the option will be exercised. The period that is subject to an option to terminate the lease is included if it is reasonably certain that the option will not be exercised. Lease costs related to the Company's operating and finance leases included in the condensed consolidated statements of operations were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, Operating lease costs: 2026 2025 2026 2025 Cost of revenue $ 3 $ 2 $ 5 $ 5 Selling and marketing (excluding customer base amortization) 5 3 10 7 Software development 2 1 4 3 General and administrative 1 2 3 3 Total operating lease costs 11 8 22 18 Finance lease costs: Amortization of ROU assets 1 2 2 2 Interest on lease liabilities 1 Total finance lease costs 1 2 2 3 Total lease costs $ 12 $ 10 $ 24 $ 21 Finance lease costs primarily relate to vehicles used by the Company's research teams, and the amortization of the ROU assets is recorded to cost of revenue in the condensed consolidated statements of operations. For the three and six months ended June 30, 2026 and 2025, the impact of lease costs related to short-term leases was not material. S …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

LONG-TERM DEBT The table below presents the components of outstanding debt (in millions): June 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 Senior Notes On July 1, 2020, the Company issued $1.0 billion aggregate principal amount of 2.800% Senior Notes due July 15, 2030. The Senior Notes were sold to a group of financial institutions as initial purchasers who subsequently resold the Senior Notes to non-U.S. persons pursuant to Regulation S under the Securities Act, and to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act at a purchase price equal to 99.921% of their principal amount. Interest on the Senior Notes is payable semi-annually in arrears on January 15 and July 15. The Senior Notes may be redeemed in whole or in part by the Company (a) at any time prior to April 15, 2030 at a redemption price equal to 100% of the principal amount of the Senior Notes, plus the Applicable Premium (as calculated in accordance with the indenture governing the Senior Notes), and any accrued and unpaid interest, if any, on the principal amount of Senior Notes being redeemed to, but excluding, the redemption date, and (b) on or after April 15, 2030 at a redemption price equal to 100% of the principal amount of the Senior Notes, plus any accrued and unpaid interest, if any, on the principal amount of Seni …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements The Company adopted ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets effective January 1, 2026. This ASU provides a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. Under the expedient, entities may assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when developing reasonable and supportable forecasts as part of estimating expected credit losses. The Company adopted the ASU effective January 1, 2026 on a prospective basis and elected the practical expedient for the calculation of current expected credit losses. The adoption did not result in a material impact on the Company's condensed consolidated financial statements and related disclosures. Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . The ASU requires incremental disclosures about specific expense categories, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization, and selling expenses. The amendments are effective for fiscal years …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenue Revenue by operating segment and type of service consists of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Commercial Real Estate CoStar $ 337 $ 310 $ 668 $ 615 LoopNet 87 76 172 149 Other Commercial Real Estate 57 60 113 91 Total Commercial Real Estate 481 446 953 855 Residential Real Estate 444 335 869 658 Total revenue $ 925 $ 781 $ 1,822 $ 1,513 The Company has recast certain prior period disclosures to align with the way it internally manages the business. See Note 2 for additional information. The Company is domiciled in the U.S. Revenue earned outside the U.S. was $150 million and $61 million for the three months ended June 30, 2026 and 2025, respectively, and $287 million and $109 million for the six months ended June 30, 2026 and 2025, respectively. Deferred Revenue Deferred revenue as of June 30, 2026 and December 31, 2025 was as follows (in millions): Balance Balance Sheet Caption June 30, 2026 December 31, 2025 Current portion Deferred revenue $ 233 $ 205 Non-current portion Lease and other long-term liabilities 1 1 Total deferred revenue $ 234 $ 206 Changes in deferred revenue for the period were as follows (in millions): Balance at December 31, 2025 $ 206 Revenue recognized in the current period from the amounts in the beginning balance (150) New deferrals, net of amounts recognized in the current period 178 Balance at June 30, 2026 $ 234 Contract …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING Segment Information The Company manages its business by product portfolios in two operating segments and two reportable segments, with the primary areas of measurement and decision-making being Commercial Real Estate and Residential Real Estate. Segment reporting is aligned with the internal reporting used by the CODM, which is the Companys Chief Executive Officer. The CODM relies on a management reporting process that provides operating segment revenue, EBITDA, and Adjusted EBITDA for making decisions and assessing performance as the source of the Companys reportable segments. EBITDA and Adjusted EBITDA are used by management internally to measure operating and management performance and to evaluate the business. The CODM does not review any information regarding total assets by operating segment. Operating results by segment include items that are directly attributable to each segment and shared expenses such as IT; corporate infrastructure, including facilities; finance; and legal expenses. Shared expenses are allocated based on revenue and headcount. There are no intersegment transactions. The impact of certain items that are not normal, recurring, and cash operating expenses necessary to run the operating segment are removed to determine Adjusted EBITDA and include stock-based compensation, acquisition and integration costs, restructuring and related costs, and settlements and impairments. The Company has recast certain prior period disclosures to align …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS' EQUITY Prior Stock Repurchase Program In February 2025, the Board of Directors approved the Prior Stock Repurchase Program that authorized the repurchase of up to $500 million of CoStar Group Shares. During the six months ended June 30, 2025, the Company repurchased 0.8 million CoStar Group Shares for an aggregate cost of $64 million. Subsequently, the Company completed the Prior Stock Repurchase Program , including the use of an accelerated share repurchase agreement entered into in November 2025. In total, the Company repurchased 7.1 million shares for an aggregate cost of $500 million during 2025. The aggregate purchase price of CoStar Group Shares is recorded as treasury stock and presented as a reduction to stockholders' equity. New Stock Repurchase Program In December 2025, the Board of Directors approved a Stock Repurchase Program which authorizes, but does not obligate, the repurchase of up to $1.5 billion of CoStar Group Shares. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act or through a trading plan adopted in accordance with Rule 10b5-1 of the Exchange Act. Repurchases may be made from time to time at management's discretion, and the timing and amount of any such repurchases will be determined based on share price, market conditions, legal requirements, and other relevant factors. The program has no time limit and can be discontinued at any time at the Companys discretion. On Feb …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS The Company has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the condensed consolidated financial statements were issued. Based upon this review, the Company did not identify any material subsequent events that required adjustment or disclosure in the condensed consolidated financial statements.

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