COSTAR GROUP, INC.CSGP

COSTAR GROUP, INC. Segments Disclosure

10-KFiled Feb 26, 20263 min read
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 Company’s 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 Company’s 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 our reportable segments. See Note 2 for additional information.
Summarized EBITDA and Adjusted EBITDA information by operating segment consists of the following (in millions):
Commercial Real Estate
Residential Real Estate
Total
Year Ended December 31, 2025
Revenue(1)
$
1,787 
$
1,460 
$
3,247 
Less:
Personnel
861 
696 
1,557 
Marketing
77 
771 
848 
General and administrative (2)
369 
303 
672 
EBITDA
480 
(310)
170 
Stock-based compensation expense
151 
43 
194 
Acquisition and integration related costs
36 
27 
63 
Restructuring and related costs
4 
2 
6 
Settlements and impairments
1 
8 
9 
Adjusted EBITDA
$
672 
$
(230)
$
442 
Year Ended December 31, 2024
Revenue(1)
$
1,515 
$
1,221 
$
2,736 
Less:
Personnel
622 
577 
1,199 
Marketing
64 
795 
859 
General and administrative (2)
310 
245 
555 
EBITDA
519 
(396)
123 
Stock-based compensation expense
55 
34 
89 
Acquisition and integration related costs
29 
— 
29 
Restructuring and related costs
— 
1 
1 
Settlements and impairments
(1)
— 
(1)
Adjusted EBITDA
$
602 
$
(361)
$
241 
Year Ended December 31, 2023
Revenue(1)
$
1,443 
$
1,012 
$
2,455 
Less:
Personnel
608 
429 
1,037 
Marketing
92 
468 
560 
General and administrative(2)
266 
202 
468 
EBITDA
477 
(87)
390 
Stock-based compensation expense
56 
29 
85 
Acquisition and integration related costs
— 
13 
13 
Restructuring and related costs
3 
1 
4 
Adjusted EBITDA
$
536 
$
(44)
$
492 
___________________
(1) See Note 3 for revenue by segment.
(2) Excludes personnel costs.

The reconciliation of Adjusted EBITDA and EBITDA to income before income tax expense consists of the following (in millions):
Year Ended December 31,
 
2025
2024
2023
Adjusted EBITDA
$
442 
$
241 
$
492 
Stock-based compensation expense
(194)
(89)
(85)
Acquisition and integration related costs
(63)
(29)
(13)
Restructuring and related costs
(6)
(1)
(4)
Settlements and impairments
(9)
1 
— 
EBITDA
170 
123 
390 
Amortization of acquired intangible assets in cost of revenue
(74)
(30)
(32)
Amortization of acquired intangible assets in operating expenses
(118)
(44)
(42)
Depreciation and other amortization
(50)
(44)
(34)
Interest income, net
110 
213 
214 
Other income (expense), net (1)
(8)
(8)
6 
Income before income taxes
$
30 
$
210 
$
502 
__________________________
(1) Includes 21 million and 29 million of depreciation and amortization expense, including above-market lease amortization, associated with lessor activities for the years ended December 31, 2025 and 2024, respectively.

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
2017Feb 23, 2018
2016Feb 24, 2017
2015Feb 26, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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