CoStar Group, Inc. stock research
FY2025 Q1
CoStar Group (CSGP) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased, gross profit increased, and cost of revenue rose. As a result, gross margin weakened slightly compared to the previous quarter but improved compared to the same quarter one year ago.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased, gross profit increased, and cost of revenue rose. As a result, gross margin weakened slightly compared to the previous quarter but improved compared to the same quarter one year ago.
- The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew at a slower pace than revenue relative to the prior quarter, while cost of revenue increased more rapidly, leading to a slightly lower gross margin.
- Compared to the prior quarter, gross margin was lower and cost of revenue was higher. Compared to the same quarter one year ago, gross margin was higher, and both revenue and gross profit were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.1%
Gross profit
$579.0M
Revenue
$732.0M
Cost of revenue
$153.0M
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $677.8M | $542.0M | $135.8M | 80.0% |
| Sep 30, 2024 | $692.6M | $552.0M | $140.6M | 79.7% |
| Dec 31, 2024 | $709.2M | $568.8M | $140.4M | 80.2% |
| Mar 31, 2025 | $732.0M | $579.0M | $153.0M | 79.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-1.1 pts
Year-over-year change
Mar 31, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew at a slower pace than revenue relative to the prior quarter, while cost of revenue increased more rapidly, leading to a slightly lower gross margin.
Compared to the prior quarter, gross margin was lower and cost of revenue was higher. Compared to the same quarter one year ago, gross margin was higher, and both revenue and gross profit were higher.
Monitor the trend of cost of revenue growth relative to revenue growth in upcoming quarters.