REVENUE FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

Disaggregated Revenue

Revenues by operating segment and type of service consist of the following (in millions):


	Three Months Ended September 30,
	2025						2024
	North America		International		Total		North America		International		Total
CoStar	$	256.0	$	21.0	$	277.0	$	240.8	$	16.1	$	256.9
Information Services	36.8		4.5		41.3		28.2		4.8		33.0
Multifamily	303.0		—		303.0		271.8		—		271.8
LoopNet	74.7		4.6		79.3		68.1		2.8		70.9
Residential	20.5		34.4		54.9		17.0		10.7		27.7
Other Revenues	78.1		—		78.1		32.3		—		32.3
Total revenues	$	769.1	$	64.5	$	833.6	$	658.2	$	34.4	$	692.6


	Nine Months Ended September 30,
	2025						2024
	North America		International		Total		North America		International		Total
CoStar	$	755.2	$	57.8	$	813.0	$	713.6	$	46.6	$	760.2
Information Services	108.5		11.9		120.4		83.5		15.9		99.4
Multifamily	877.8		—		877.8		790.8		—		790.8
LoopNet	217.3		10.5		227.8		201.7		8.1		209.8
Residential	54.1		56.4		110.5		41.6		30.9		72.5
Other Revenues	197.6		—		197.6		94.1		—		94.1
Total revenues	$	2,210.5	$	136.6	$	2,347.1	$	1,925.3	$	101.5	$	2,026.8

Deferred Revenue

Deferred revenue as of September 30, 2025 and December 31, 2024 was as follows (in millions):


Balance	Balance Sheet Caption	September 30, 2025		December 31, 2024
Current portion	Deferred revenue	$	201.6	$	137.1
Non-current portion	Lease and other long-term liabilities	1.3		0.2
Total deferred revenue		$	202.9	$	137.3

Changes in deferred revenue for the period were as follows (in millions):


Balance at December 31, 2024	$	137.3
Revenues recognized in the current period from the amounts in the beginning balance	(129.4)
New deferrals, net of amounts recognized in the current period (1)	192.7
Effects of foreign currency	2.3
Balance at September 30, 2025	$	202.9
__________________________

(1) This balance includes $46.2 million of new deferrals from the acquisitions completed in 2025. See Note 5 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 September 30, 2025 and December 31, 2024 were as follows (in millions):


Balance	Balance Sheet Caption	September 30, 2025		December 31, 2024
Current portion	Prepaid expenses and other current assets	$	8.7	$	5.8
Non-current portion	Deposits and other assets	3.5		6.0
Total contract assets		$	12.2	$	11.8

Revenues were reduced by $0.1 million and $0.7 million from contract assets for the three and nine months ended September 30, 2025, respectively. Revenues were reduced by $0.6 million and $1.1 million from contract assets for the three and nine months ended September 30, 2024, respectively.

Unsatisfied Performance Obligations

Remaining contract consideration for which revenue has not been recognized due to unsatisfied performance obligations was approximately $537.0 million at September 30, 2025, which the Company expects to recognize over the next eight 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 condensed consolidated statements of operations. Commissions expense activity for the three and nine months ended September 30, 2025 and 2024 was as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Commissions incurred	$	59.8	$	40.0	$	169.0	$	136.5
Commissions capitalized in the current period	(37.2)		(24.5)		(115.7)		(92.1)
Amortization of deferred commissions costs	43.5		29.8		110.4		86.1
Total commissions expense	$	66.1	$	45.3	$	163.7	$	130.5

The Company did not recognize any impairment losses on commissions during the nine months ended September 30, 2025 and 2024.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

COSTAR GROUP, INC. 10-Q