What the changes say
- AI regulation, especially the EU AI Act, is newly identified as a material operational and compliance risk.
- The filing drops standalone risks covering macroeconomic conditions, talent, investment margins, traffic, advertising, payments, intellectual property, and information liability.
- Data reliability risk expands to include losing third-party or broker data and intellectual-property enforcement; cyber insurance coverage is newly emphasized.
- The changes reduce emphasis on customer-demand and marketplace risks while increasing emphasis on AI, data access, and cybersecurity protection.
What changed since the prior 10-K
New
- NewRisks related to regulatory compliance and legal matters
Already, certain existing legal regimes (e.g., relating to data privacy) regulate certain aspects of AI Technologies, and new laws regulating AI Technologies have either entered into force in the United States and the EU in 2025 or are expected to enter into force in 2026
The EU AI Act and other emerging AI laws may require costly compliance changes and restrict CoStar’s use and commercialization of AI technologies.
Dropped
- DroppedRisks related to our business
Global 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
Economic downturns or real-estate consolidation could reduce demand for CoStar’s services.
- DroppedRisks related to our business
Our business depends on retaining and attracting highly capable management and operating personnel
CoStar may struggle to retain or attract senior leaders and highly skilled technical, sales, and other employees.
- DroppedRisks related to our business
Our internal and external investments may place downward pressure on our operating margins
Significant product, content, sales, and marketing investments could pressure operating margins.
- DroppedRisks 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 rankings could reduce traffic to CoStar’s real-estate and business marketplaces.
- DroppedRisks 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 professionals and other advertisers could reduce spending or leave CoStar’s marketplaces.
- DroppedRisks 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
- DroppedRisks 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
Payment-processing failures or risks involving cards, debit cards, and ACH transactions could harm the business.
- DroppedRisks related to our data, intellectual property, and listings
We may be subject to legal liability for collecting, displaying, or distributing information
Reworded
- 98% rewrittenRisks 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. Our success depends on our clients’ confidence in the comprehensiveness, accuracy, and reliability of the data and analysis we provide
The data-reliability risk now adds potential loss of third-party or broker data and incorporates intellectual-property ownership risks.
Was: 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
- 52% rewritten
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
The heading now focuses on inadequate or unavailable cyber insurance, while the underlying discussion still covers service disruptions and system reliability.
Risk factor headings as read
Headings as the filing states them, in filing order.
Other
- 01The 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 all52% rewritten
Risks related to our data, intellectual property, and listings
- 02If 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. Our success depends on our clients’ confidence in the comprehensiveness, accuracy, and reliability of the data and analysis we provide98% rewritten
Risks related to regulatory compliance and legal matters
- 03Already, certain existing legal regimes (e.g., relating to data privacy) regulate certain aspects of AI Technologies, and new laws regulating AI Technologies have either entered into force in the United States and the EU in 2025 or are expected to enter into force in 2026New
Other Costar Group 10-Ks
- FY2024 10-K risk factorsRisk factors section under review
CoStar depends on real estate advertising, marketplace traffic, and customer demand across its property platforms.
Filed Feb 20, 2025
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.