COSTAR GROUP, INC. FY 2025 10-K, explained in plain English

Key financials — as reported

Total revenue	$3.2B
Gross margin	78.9%
Operating income	−$72.0M
Net income	$7.0M
Diluted EPS	$0.02
Cash & equivalents	$1.6B
Total assets	$10.5B
Long-term debt	$140.0M

Key takeaway

CoStar swung to an operating loss of $72 million despite revenue of $3.247 billion, showing expenses outpaced gross profit for the year.

🔒 4 more takeaways in the full analysis

Beneath the surface

The effective income tax rate of 77% on pretax income of just $30 million produced a $23 million tax expense—an extreme rate that likely reflects nondeductible items or foreign losses not benefiting from tax relief, and largely explains why net income ($7M) is so much smaller than pretax income would suggest.

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