📊 CSGP Key Takeaways
Is Costar Group, Inc.. (CSGP) a Good Investment?
CoStar demonstrates strong revenue growth of 18.7% YoY and excellent gross margins of 78.9%, indicating a quality business model with pricing power. However, the company is currently unprofitable at the operating level with negative operating income of -72M, diluted EPS collapsed 94.1% YoY, and net margins are razor-thin at 0.2%, raising concerns about operational execution and cost management despite scale.
CoStar Group shows strong top-line momentum and a high-quality underlying business model, with 18.7% revenue growth and an exceptional 78.9% gross margin. However, that growth is currently not translating into operating profitability, as operating income turned negative and diluted EPS fell sharply, making the fundamentals solid on balance sheet strength but mixed on earnings quality.
Why Buy Costar Group, Inc.. Stock? CSGP Key Strengths
- Strong revenue growth of 18.7% YoY demonstrating market demand
- Exceptional gross margin of 78.9% indicating differentiated products and pricing power
- Solid balance sheet with 8.3B in equity, low debt/equity of 0.02x, and 1.6B cash providing financial flexibility
- Positive free cash flow of 123M and FCF margin of 3.8% despite operating losses, suggesting underlying business quality
- Strong liquidity with current ratio of 2.84x supporting operational needs
- Strong revenue growth indicates continued demand and platform expansion
- Very high gross margin suggests a scalable, attractive core business model
- Balance sheet is exceptionally strong with high liquidity, large cash reserves, and minimal leverage
CSGP Stock Risks: Costar Group, Inc.. Investment Risks
- Negative operating income of -72M and operating margin of -2.2% indicates business is not profitable at core operations level
- Net income nearly flat YoY growth (0%) while revenue grew 18.7% suggests margin compression from integration or restructuring costs
- Diluted EPS declined 94.1% YoY despite revenue growth, signaling significant per-share value destruction
- Operating cash flow of 430M heavily consumed by capex of 307M, leaving modest free cash flow relative to 3.2B revenue base
- 30 insider filings in 90 days warrants investigation into potential concerns or significant corporate activity
- Net margin of 0.2% leaves no margin for error; any revenue headwind would result in losses
- Negative operating margin shows cost growth is overwhelming revenue gains
- Net income and EPS are near break-even, limiting proof of durable earnings power
- Free cash flow margin is modest, reducing financial flexibility if investment intensity remains high
Key Metrics to Watch
- Operating income and operating margin trajectory - critical to return to profitability
- Net income growth vs. revenue growth - monitor for margin expansion or continued compression
- Free cash flow sustainability - ensure capex efficiency and OCF stability as revenue scales
- Gross margin stability - any deterioration would be concerning given thin net margins
- Nature and impact of insider activity - clarify whether related to strategic initiatives or management concerns
- Operating margin recovery
- Free cash flow conversion
Costar Group, Inc.. (CSGP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.8% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.84x current ratio provides a solid financial cushion.
CSGP Profit Margin, ROE & Profitability Analysis
CSGP vs Services Sector: How Costar Group, Inc.. Compares
How Costar Group, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Costar Group, Inc.. Stock Overvalued? CSGP Valuation Analysis 2026
Based on fundamental analysis, Costar Group, Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Costar Group, Inc.. Balance Sheet: CSGP Debt, Cash & Liquidity
CSGP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Costar Group, Inc..'s revenue has grown significantly by 67% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.92 reflects profitable operations.
CSGP Revenue Growth, EPS Growth & YoY Performance
CSGP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $692.6M | -$30.9M | $-0.07 |
| Q2 2025 | $677.8M | $6.2M | $0.01 |
| Q1 2025 | $656.4M | $6.7M | $0.02 |
| Q3 2024 | $624.7M | $6.7M | $0.13 |
| Q2 2024 | $605.9M | $6.7M | $0.05 |
| Q1 2024 | $584.4M | $6.7M | $0.02 |
| Q3 2023 | $556.9M | $72.3M | $0.18 |
| Q2 2023 | $536.3M | $83.5M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Costar Group, Inc.. Dividends, Buybacks & Capital Allocation
CSGP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Costar Group, Inc.. (CIK: 0001057352)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778361.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778356.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778348.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778333.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/wk-form4_1773778327.xml | View → |
❓ Frequently Asked Questions about CSGP
What is the AI rating for CSGP?
Costar Group, Inc.. (CSGP) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSGP's key strengths?
Claude: Strong revenue growth of 18.7% YoY demonstrating market demand. Exceptional gross margin of 78.9% indicating differentiated products and pricing power. ChatGPT: Strong revenue growth indicates continued demand and platform expansion. Very high gross margin suggests a scalable, attractive core business model.
What are the risks of investing in CSGP?
Claude: Negative operating income of -72M and operating margin of -2.2% indicates business is not profitable at core operations level. Net income nearly flat YoY growth (0%) while revenue grew 18.7% suggests margin compression from integration or restructuring costs. ChatGPT: Negative operating margin shows cost growth is overwhelming revenue gains. Net income and EPS are near break-even, limiting proof of durable earnings power.
What is CSGP's revenue and growth?
Costar Group, Inc.. reported revenue of $3.2B.
Does CSGP pay dividends?
Costar Group, Inc.. does not currently pay dividends.
Where can I find CSGP SEC filings?
Official SEC filings for Costar Group, Inc.. (CIK: 0001057352) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSGP's EPS?
Costar Group, Inc.. has a diluted EPS of $0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CSGP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Costar Group, Inc.. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CSGP stock overvalued or undervalued?
Valuation metrics for CSGP: ROE of 0.1% (sector avg: 16%), net margin of 0.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CSGP stock in 2026?
Our dual AI analysis gives Costar Group, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CSGP's free cash flow?
Costar Group, Inc..'s operating cash flow is $430.0M, with capital expenditures of $307.0M. FCF margin is 3.8%.
How does CSGP compare to other Services stocks?
Vs Services sector averages: Net margin 0.2% (avg: 10%), ROE 0.1% (avg: 16%), current ratio 2.84 (avg: 1.5).