CoStar CEO Andy Florance Stays the Course on Homes.com

CoStar Group CEO Andy Florance summed up the data giant’s first-quarter earnings by promising better days ahead.

In the first earnings call following investor Third Point dropping its activist campaign and liquidating its entire stake in CoStar, Florance described the firm as “more focused” on its pursuits.

“The activist campaign over the last year did weigh heavily on Homes.com sales and potential partnerships,” Florance said. “Nonetheless, we made durable progress through it.”

For the last year, hedge fund Third Point had been pressuring the commercial real estate giant to end its push into the residential home search space through its investment in Homes.com, which rose to as much as $3 billion by the end of 2025.

CoStar responded in January of this year by announcing it would begin slashing its investment in Homes.com by 35 percent in 2026 to $550 million, and continue cutting costs with a goal of reaching profitability by 2030.

But Third Point CEO Daniel Loeb, in an April open letter to the firm, criticized CoStar’s “feckless board” for granting CEO Andy Florance “exorbitant pay packages,” despite falling stock prices, and “misallocation of billions of dollars” on its residential efforts overall, citing an estimated $5 billion spent for an expected $80 million in revenue for 2025.

“Homes.com investment is delivering exactly what we said it would,” Florance said on the earnings call, adding that the company is on pace to hit its investment goal for the year and its 2030 deadline for profitability.

The business generated $26 million in the first quarter, up 58 percent from the same time last year. Homes.com added over 4,300 subscribers and $11 million in net new bookings in the first quarter.

Florance also touted the “extraordinary return on investment” from Homes.com subscribers, saying members earned an average $36,000 more in commissions in their first year of joining. That figure is measured against $3,400 the average annual subscription cost.

He said CoStar plans to raise subscription fees for new members beginning May 1 and look into “measured potential renewal increases.”

Traffic to Homes.com doubled year-over-year, according to Florance. The CEO said year-old efforts to integrate Apartments.com, CoStar’s multifamily portal, and Homes.com, drove 10 percent of Apartments.com’s traffic in 2025.

The company produced $3 million in net income, an improvement from a $15 million loss in the first quarter of last year. Its reported adjusted EBITDA of $132 million, up 100 percent from the same time last year and above the high-end of its guidance for the quarter.

CoStar reported revenue of $897 million, up 23 percent year-over-year. Its commercial business generated $472 million in revenue, and its residential business, which includes Apartments.com Homes.com and U.K.-based OnTheMarket.com, produced $425 million in revenue.

Before earnings were released on Tuesday, the company’s stock price closed at $35.96.