The data business mints money. Management is spending it — and more — to build Homes.com into a Zillow rival.
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✦ The bottom line
CoStar posted an operating loss of $72M — not because the core is weak, but because it's pouring profits into Homes.com.
↓ the brief below
Operating income · fiscal year 2025
−$72
M
A small, deliberate loss on $3.25B of sales — Homes.com marketing outran its early revenue.
Source · 10-K · Consolidated Statements of Operations · FY2025 · Filed Feb 26, 2026
✦ Teach me
Operating income
Profit from the core business after its running costs, before one-offs. CoStar's established products earn strong operating profit — but heavy investment spending on a new product (Homes.com) pulls the company-wide number negative on purpose.
Wall Street calls this
Operating income / operating loss
A loss from investing for growth is very different from a loss because the business is failing.
Cash on hand · fiscal year-end 2025
$1.6
B
Down from $4.7B — much of it spent on acquisitions and the Homes.com push. Still a large war chest.