COSTAR GROUP, INC. Leases Disclosure
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 | |||||||||||
Year Ended December 31, | ||||||||||||||
Balance | Balance Sheet Location | 2025 | 2024 | |||||||||||
Operating lease liabilities | $ | 161 | $ | 139 | ||||||||||
Less: imputed interest | 21 | 18 | ||||||||||||
Present value of lease liabilities | 140 | 121 | ||||||||||||
Less: current portion of lease liabilities | 23 | 27 | ||||||||||||
Long-term lease liabilities | $ | 117 | $ | 94 | ||||||||||
Weighted-average remaining lease term in years | 5.3 | 5.6 | ||||||||||||
Weighted-average discount rate | 4.7 | % | 4.4 | % | ||||||||||
ROU Assets | Lease right-of-use assets | $ | 123 | $ | 103 | |||||||||
Finance lease liabilities | $ | 12 | $ | 17 | ||||||||||
Less: imputed interest | 1 | 2 | ||||||||||||
Present value of lease liabilities | 11 | 15 | ||||||||||||
Less: current portion of lease liabilities | 5 | 5 | ||||||||||||
Long-term lease liabilities | $ | 6 | $ | 10 | ||||||||||
Weighted-average remaining lease term in years | 2.0 | 3.0 | ||||||||||||
Weighted-average discount rate | 6.3 | % | 6.4 | % | ||||||||||
ROU Assets | $ | 13 | $ | 16 | ||||||||||
Year Ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows used in operating leases | $ | 36 | $ | 47 | $ | 45 | |||||||||||
Operating cash flows used in finance leases | $ | 1 | $ | 1 | $ | — | |||||||||||
Financing cash flows used in finance leases | $ | 5 | $ | 5 | $ | 1 | |||||||||||
ROU assets obtained in exchange for new lease obligations: | |||||||||||||||||
Operating leases | $ | 47 | $ | 57 | $ | 29 | |||||||||||
Finance leases | $ | 1 | $ | 7 | $ | 14 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.