Costar Group's biggest risks in the FY2024 10-K
- CoStar depends on real estate advertising, marketplace traffic, and customer demand across its property platforms.
- Growth investments may pressure margins while the business relies on accurate data and functioning online services.
- Cybersecurity, payment processing, intellectual property, and information-distribution claims could disrupt operations or increase costs.
The risks most specific to Costar Group
- Risks related to our business
Our internal and external investments may place downward pressure on our operating margins
Investments in product, content, sales, and marketing could increase revenue but put downward pressure on operating margins.
- Risks related to our business
If internet search engines do not prominently feature our websites on the search engine results page, traffic to our websites would decrease, and, if we are unable to maintain or increase traffic to our marketplaces, our business and operating results could be adversely affected
Search-engine ranking changes at Google, Bing, DuckDuckGo, or others could reduce traffic to CoStar, LoopNet, Apartments.com, Homes.com, and related marketplaces.
- Risks related to our business
If real estate professionals or other advertisers reduce or cancel their advertising spending with us and we are unable to attract new advertisers, our operating results would be harmed
Real estate brokers, agents, property managers, owners, and other advertisers could reduce spending or leave CoStar’s marketplace platforms.
- Risks related to our business
The coverage under our insurance policies for cybersecurity and related issues may not be adequate to reimburse us for losses caused by cyberattacks or other security incidents or be available on economically reasonable terms or at all
Cyberattacks, security incidents, or technical outages could disrupt CoStar’s marketplaces, information, and analytics, while insurance may not cover resulting losses.
- Risks related to our business
We are subject to a number of risks related to acceptance of credit cards and debit cards and facilitation of other customer payments
Failures or increased costs involving vendors processing cards, debit cards, or ACH payments could affect CoStar, renters, landlords, and Homes.com customers.
- Risks related to our data, intellectual property, and listings
If we are not able to obtain and maintain accurate, comprehensive, or reliable data, we could experience reduced demand for our online marketplace services, information, and analytics
Inaccurate, incomplete, or unreliable property data and analysis could reduce customer confidence and demand for CoStar’s services.
- Risks related to our data, intellectual property, and listings
If we are unable to enforce or defend our ownership and use of intellectual property, our business, brands, competitive position, and operating results could be harmed
Weaknesses in protecting or defending intellectual property covering CoStar’s methodologies, databases, services, software, and brands could harm its competitive position.
- Risks related to our data, intellectual property, and listings
We may be subject to legal liability for collecting, displaying, or distributing information
Collecting, displaying, and distributing third-party information could expose CoStar to contract, defamation, negligence, copyright, trademark, privacy, and data-protection claims.
Risk factor headings as read
Headings as the filing states them, in filing order.
Risks related to our business
- 01Global economic uncertainties and downturns or a downturn or consolidation in the real estate industry may decrease customer demand for our services and adversely affect our business and results of operations
- 02Our business depends on retaining and attracting highly capable management and operating personnel
- 03Our internal and external investments may place downward pressure on our operating margins
- 04If internet search engines do not prominently feature our websites on the search engine results page, traffic to our websites would decrease, and, if we are unable to maintain or increase traffic to our marketplaces, our business and operating results could be adversely affected
- 05If real estate professionals or other advertisers reduce or cancel their advertising spending with us and we are unable to attract new advertisers, our operating results would be harmed
- 06The coverage under our insurance policies for cybersecurity and related issues may not be adequate to reimburse us for losses caused by cyberattacks or other security incidents or be available on economically reasonable terms or at all
- 07We are subject to a number of risks related to acceptance of credit cards and debit cards and facilitation of other customer payments
Risks related to our data, intellectual property, and listings
- 08If we are not able to obtain and maintain accurate, comprehensive, or reliable data, we could experience reduced demand for our online marketplace services, information, and analytics
- 09If we are unable to enforce or defend our ownership and use of intellectual property, our business, brands, competitive position, and operating results could be harmed
- 10We may be subject to legal liability for collecting, displaying, or distributing information
Other Costar Group 10-Ks
- FY2025 10-K risk factorsRisk factors section under review
AI regulation, especially the EU AI Act, is newly identified as a material operational and compliance risk.
Filed Feb 26, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.