CoStar Group (CSGP) Gross Margin — Quarter Ended Dec 31, 2025

Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while gross margin declined slightly. Cost of revenue also increased.

Gross margin takeaway

Quarter ended Dec 31, 2025 · FY2025 Q4

Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while gross margin declined slightly. Cost of revenue also increased.

The increase in cost of revenue relative to revenue was the primary factor behind the gross margin decline.
Quarter over quarter, gross margin weakened, reflecting a higher cost of revenue. Year over year, gross margin also weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

78.6%

Gross profit

$707.2M

Revenue

$899.9M

Cost of revenue

$192.7M

Quarter-over-quarter change

-0.8 pts

Year-over-year change

-1.6 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
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%
Dec 31, 2025	$899.9M	$707.2M	$192.7M	78.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2025

-0.8 pts

Year-over-year change

Dec 31, 2024

-1.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The increase in cost of revenue relative to revenue was the primary factor behind the gross margin decline.

Quarter over quarter, gross margin weakened, reflecting a higher cost of revenue. Year over year, gross margin also weakened.

Monitor the trend in cost of revenue as a proportion of revenue.