How does CoStar Group (CSGP) make money?

CoStar Group (CSGP) generates revenue primarily from Commercial Real Estate Segment, which accounted for 33.6% of total revenue in TTM through Q2 2026. The company reported $3.56B in revenue and converted 2.1% of it into net profit, equivalent to roughly $74.1M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of CoStar Group (CSGP)?

CoStar Group (CSGP) reported a gross profit margin of 76.5% in TTM through Q2 2026, equivalent to $2.72B in gross profit on $3.56B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of CoStar Group (CSGP)?

CoStar Group (CSGP) reported an operating profit margin of 2.2% in TTM through Q2 2026, equivalent to $77.4M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of CoStar Group (CSGP)?

CoStar Group (CSGP) reported a net profit margin of 2.1% in TTM through Q2 2026, equivalent to $74.1M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is CoStar Group (CSGP) profitable?

Yes. CoStar Group (CSGP) reported $74.1M in net income for TTM through Q2 2026, with a net profit margin of 2.1%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does CoStar Group (CSGP) invest in research and development?

CoStar Group (CSGP) invested $435M in research and development during TTM through Q2 2026, roughly 12.2% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does CoStar Group (CSGP) spend on capital expenditures?

CoStar Group (CSGP) spent $185M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 5.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does CoStar Group (CSGP) generate?

CoStar Group (CSGP) generated $312M in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 8.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of CoStar Group (CSGP)?

CoStar Group (CSGP) had an effective tax rate of 26.8% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of CoStar Group (CSGP)?

CoStar Group (CSGP) reports revenue across 6 reportable product segments, led by Commercial Real Estate Segment at 33.6% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How CoStar Group Makes Money: 2026 Visual Revenue Map

CoStar Group (CSGP) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 29, 2026).

CoStar Group discloses geographic revenue only in annual filings. to view the full breakdown.

CoStar Group (CSGP) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for CoStar Group (CSGP), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Commercial Real Estate Segment	$1.19B	33.6%
Residential	$858M	24.1%
Multifamily Online Marketplace	$542M	15.2%
CoStar Suite	$495M	13.9%
LoopNet	$394M	11.1%
Information services	$73.8M	2.1%
Total	$3.56B	100%

Commercial Real Estate Segment$1.19B
Residential$858M
Multifamily Online Marketplace$542M
CoStar Suite$495M
LoopNet$394M
Information services$73.8M
Total$3.56B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, CoStar Group (CSGP) reports revenue across 6 reportable product segments; the largest segment was Commercial Real Estate Segment at 33.6%, followed by Residential (24.1%) and Multifamily Online Marketplace (15.2%).

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Operating Margin2.2%

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Employees6.6K

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