COSTAR GROUP, INC.CSGP

COSTAR GROUP, INC. Revenue Disclosure

10-KFiled Feb 26, 20263 min read
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 completed in 2025. See Note 4 for further discussion of acquisitions.
Contract Assets
Contract assets are generated when contractual billing schedules differ from revenue recognition timing and represent a conditional right to consideration for satisfied performance obligations that becomes a receivable when the conditions are satisfied. Contract assets as of December 31, 2025 and 2024 were as follows (in millions):
December 31,
Balance
Balance Sheet Caption
2025
2024
Current portion
Prepaid expenses and other current assets
$
7 
$
6 
Non-current portion
Deposits and other assets
3 
6 
Total contract assets
$
10 
$
12 
Revenue was reduced by a net of $2 million from contract assets for the years ended both December 31, 2025 and 2024.
Unsatisfied Performance Obligations
Remaining contract consideration for which revenue had not been recognized due to unsatisfied performance obligations was $527 million at December 31, 2025, which the Company expects to recognize over the next four years. This amount does not include contract consideration for contracts with a duration of one year or less.
Commissions
Commissions expense is included in selling and marketing expense (excluding customer base amortization) in the Company's consolidated statements of operations. Commissions expense activity for the years ended December 31, 2025, 2024, and 2023, was as follows (in millions):
Year Ended December 31,
2025
2024
2023
Commissions incurred
$
226 
$
180 
$
174 
Commissions capitalized in the current period
(152)
(120)
(120)
Amortization of deferred commissions costs
141 
117 
95 
Total commissions expense
$
215 
$
177 
$
149 
The Company did not recognize any impairment losses on commissions as of both December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 22, 2023
2021Feb 23, 2022
2020Feb 24, 2021
2019Feb 26, 2020
2018Feb 28, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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