CSGPHIGH SIGNALFINANCIAL10-K

CoStar Group executed a major financial restructuring involving substantial debt reduction and cash deployment while net income declined dramatically despite solid revenue growth.

The company appears to have used its substantial cash position to pay down debt and fund operations or acquisitions, transforming its balance sheet structure significantly. While revenue growth of 15% demonstrates healthy business momentum, the collapse in profitability suggests major one-time charges, increased investments, or operational challenges that warrant close investor scrutiny.

Comparing 2026-02-26 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

CoStar delivered solid revenue growth of 15% to $965M with gross profit expanding to $2.6B, indicating strong underlying business performance. However, net income fell dramatically from $139M to $7M, while the company simultaneously executed a major balance sheet restructuring by reducing total debt substantially and deploying significant cash reserves. The combination of reduced capital expenditure alongside major cash deployment suggests strategic repositioning, though the profit decline raises questions about the sustainability of current operations or the impact of one-time restructuring costs.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-95%
$138.7M→$7.0M

Net income declined 95% — review whether driven by operations, interest costs, or non-recurring items.

Total Debt
Balance Sheet
-86%
$1.0B→$140.0M

Debt reduced 86% — deleveraging strengthens balance sheet and reduces financial risk.

Cash & Equivalents
Balance Sheet
-65.3%
$4.7B→$1.6B

Cash declined 65.3% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Current Assets
Balance Sheet
-57.2%
$5.0B→$2.1B

Current assets declined 57.2% — monitor working capital adequacy and short-term liquidity.

Capital Expenditure
Cash Flow
-47%
$579.0M→$307.0M

Capex reduced 47% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Current Liabilities
Balance Sheet
+35.1%
$552.3M→$746.0M

Current liabilities surged 35.1% — significant near-term obligations; verify ability to meet short-term debt.

Total Liabilities
Balance Sheet
+27.2%
$1.7B→$2.2B

Liabilities increased 27.2% — monitor debt-to-equity ratio and interest coverage.

Accounts Receivable
Balance Sheet
+24.5%
$187.9M→$234.0M

Receivables grew 24.5% — monitor days sales outstanding for collection efficiency.

Gross Profit
P&L
+17.6%
$2.2B→$2.6B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Revenue
P&L
+15.2%
$837.6M→$965.2M

Revenue growing 15.2% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-20
ADDED
As of February 20, 2026, 419,793,301 shares of common stock were outstanding.
Market for Registrant s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 36 Item 6.
and no event of default is continuing CRI The legal entity CoStar Realty Information, Inc., a Delaware corporation and wholly-owned subsidiary (and primary operating entity in the United States) of CoStar Group, Inc.
Group Personal Pension Plan Homes.com One of the flagship brands of our residential products and a homes for-sale listings site, which manages workflow and 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.
RevPAR Revenue Per Available Room ROU Right-of-use 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 CoStar Group Shares SaaS Software As a Service SEC The U.S.
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REMOVED
As of February 13, 2025, 410,125,610 shares of common stock were outstanding.
Market for Registrant s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6.
and no event of default is continuing CRI The legal entity, CoStar Realty Information, Inc., a Delaware corporation and wholly owned subsidiary of CoStar Group, Inc.
RevPAR Revenue per available room ROU Right-of-use RRSP A Canadian registered retirement savings plan SaaS Software as a service SEC The U.S.
and its directly and indirectly owned subsidiaries Term SOFR The forward-looking SOFR term rates administered by CME Group Benchmark Administration Limited TSR Total shareholder return U.K.
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