CoStar Group, Inc. stock research
FY2025 Q3
CoStar Group (CSGP) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also grew, and the gross margin improved sequentially but weakened versus the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also grew, and the gross margin improved sequentially but weakened versus the year-ago period.
- The most notable margin driver this quarter is the slower growth in cost of revenue relative to revenue, which contributed to the sequential improvement in gross margin. Year over year, cost of revenue grew faster than revenue, leading to a slight decline in gross margin.
- Sequentially, gross margin improved from the prior quarter. Compared to the same quarter one year ago, gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.3%
Gross profit
$661.4M
Revenue
$833.6M
Cost of revenue
$172.2M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $709.2M | $568.8M | $140.4M | 80.2% |
| Mar 31, 2025 | $732.0M | $579.0M | $153.0M | 79.1% |
| Jun 30, 2025 | $781.3M | $613.5M | $167.8M | 78.5% |
| Sep 30, 2025 | $833.6M | $661.4M | $172.2M | 79.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.8 pts
Year-over-year change
Sep 30, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver this quarter is the slower growth in cost of revenue relative to revenue, which contributed to the sequential improvement in gross margin. Year over year, cost of revenue grew faster than revenue, leading to a slight decline in gross margin.
Sequentially, gross margin improved from the prior quarter. Compared to the same quarter one year ago, gross margin was slightly lower.
Monitor the company's construction commitments, as disclosed in the filing, which could influence future cost structures.