How does CoStar Group (CSGP) make money?

CoStar Group (CSGP) generates revenue primarily from Multifamily Online Marketplace, which accounted for 25.2% of total revenue in TTM through Q1 2026. The company reported $3.41B in revenue and converted 0.7% of it into net profit, equivalent to roughly $25.30M 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 77.4% in TTM through Q1 2026, equivalent to $2.64B in gross profit on $3.41B 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 -0.8% in TTM through Q1 2026, equivalent to −$25.80M 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 0.7% in TTM through Q1 2026, equivalent to $25.30M 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 $25.30M in net income for TTM through Q1 2026, with a net profit margin of 0.7%. 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 $425.50M in research and development during TTM through Q1 2026, roughly 12.5% 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 $287.50M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 8.4% 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 $241.30M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 7.1%. 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 48.2% in TTM through Q1 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 Multifamily Online Marketplace at 25.2% of total revenue in TTM through Q1 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 Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 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 Q1 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) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Multifamily Online Marketplace	$860.97M	25.2%
CoStar Suite	$792.41M	23.2%
Residential	$735.14M	21.5%
Commercial Real Estate Segment	$478.72M	14%
LoopNet	$428.10M	12.5%
Information services	$116.57M	3.4%
Total	$3.41B	100%

Multifamily Online Marketplace$860.97M
CoStar Suite$792.41M
Residential$735.14M
Commercial Real Estate Segment$478.72M
LoopNet$428.10M
Information services$116.57M
Total$3.41B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, CoStar Group (CSGP) reports revenue across 6 operating segments; the largest segment was Multifamily Online Marketplace at 25.2%, followed by CoStar Suite (23.2%) and Residential (21.5%).

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