CoStar Group, Inc.

Good day and thank you for standing by. Welcome to the Q4 and year-end 2025 CoStar Group Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. I would now like to hand the conference over to your speaker today, Rich Simonelli, head of investor relations.

Hello, and thank you for joining us to discuss the full year and fourth quarter 2025 results of CoStar Group. Before I turn the call over to Andy Florence, CoStar CEO and founder, and Chris Lown, our CFO, I'd like to review our safe harbor statement. Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the first quarter, full year of 2026, and beyond. These statements are based on current beliefs and assumptions, and forward-looking statements involve many risks and certainties of assumptions, estimates, and other factors that can cause actual results to differ materially from such statements involved. Important factors that can cause actual results to differ include, but are not limited to, those stated in CoStar Group's press release issued earlier today and in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q, included under the heading Risk Factors in these filings, as well as other filings with the SEC available on the SEC's website. All forward-looking statements are based on the information available to COSTAR on the date of this call. COSTAR assumes a new obligation to update these statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Reconciliation is the most directly comparable gap measure of any non-gap financial measure discussed on this call, as shown in detail in our press release. issue today, along with the definitions of those terms. Press release is available on our website, located at costargroup.com under Press Room. Please refer to the press release on how to access the replay of this call. So remember, it's one question during the Q&A session, so make it a good one. Be good. And with that, I'd like to turn the call over to our founder and CEO, Andy Florence.

I think today we're going to do two questions. Nice. Good afternoon, everybody. Revenue for the fourth quarter rose 27% year-over-year to $900 million. That's an increase of $191 million from $709 million of revenue in the fourth quarter of 2024. Revenue for 2025 was $3.2 billion, up 19% from $2.7 billion in 2024. This is our 59th consecutive quarter of double-digit revenue growth. Adjusted EBITDA of 2025 was $442 million, up 83% from $241 million in 2024. This result positions us well to achieve our guidance range of $740 million to $800 million full-year adjusted EBITDA in 2026. With a heavy lifting of Homes.com national brand launch behind us, we are entering a phase of significant EBITDA expansion. We delivered our strongest year ever for annualized net new sales bookings in 2025, reaching 308 million, up 23% from 2024. Fourth quarter net new bookings were up 42% year over year. We consider CoStar, LoopNet, Real Estate Manager, 10X, Biz by Cell, and Elements of Matterport as commercial real estate related businesses, and their operations are connected and related. These commercial businesses as a group grew 20% year over year and generated $471 million of revenue in the fourth quarter of 2025. For the full year, the commercial business grew 18% to reach $1.79 billion for the full year of 2025. The U.S. commercial real estate market is showing good recovery from the extraordinary headwinds it experienced in the COVID years. After years of massive negative absorption of office space, it has now turned positive, and the past two quarters, and it's been positive for the past two quarters, and vacancies are clearly dropping. After the ultra-low COVID vacancy rates, industrial vacancy rates are normalizing. With the leasing fundamentals stabilizing, commercial sales volumes have climbed 30% year-over-year, and in fact, now are above long-term averages. The CRE economy is shifting from headwind to tailwind. For our disclosures moving forward, we have combined CoStar with what we've previously referred to as information services. Any reference to CoStar now includes our information services products. As the CRE economy improves and we continue to expand the product offering, CoStar has generated seven consecutive quarters of accelerating growth. Net new bookings in Q4-25 were up 54% year-over-year. CoStar revenues grew 10% year-over-year, generating $325 million in the fourth quarter of 25. We have grown the CoStar sales team 20% year-over-year to 492 reps and believe that will support further revenue acceleration. We ended 2025 with our NPS at an all-time high of 70, and our quarterly renewal rate rose to 94%. CoStar now has more than 300,000 subscribers, up 26% year-over-year in Q4. Total searches in CoStar climbed 14% year-over-year to 422 million. CoStar Canada is solidly profitable, and revenues grew 21% year-over-year. Canadian CoStar is French-English bilingual. CoStar UK is solidly profitable, is enjoying a 92% renewal rate, and has gained significant competitive share in 2025. A primary UK competitor, EG Radius, shut down their operations in December 2025. We have onboarded 166 of their reported 150 clients, so I think we got most of them, with 75% of them on three-year deals. EG Radius has passed between various ownership groups through time, but it descends from Estates Gazette, which was the clear major market leader in the UK when we entered that market 21 years ago. We have built out the software and data sets for CoStar France and expect to release in the second quarter and expect to have similar successes there. We are now well underway in staffing our COSTAR research and photography capabilities in Australia with over 50 people already in place. These teams are instrumental in generating a depth of proprietary data and visual assets that's not currently available in Australia. In just over six weeks, we've added thousands of listings and we expect to release COSTAR for Australia in late 26. In a typical year, there are about 1 million new single-family homes and condos built in the U.S. with a combined value of just under half a trillion dollars. The developers and lenders behind these projects need reliable information on supply, absorption, prices, land comps, and model mixes. Because 300-plus developers are feeding us data to market their new homes for sale on homes.com, we can release a new homes information module in CoStar in the third quarter of 26th. With the wealth of residential land valuation analytic information already in CoStar, we can build a very competitive offering. We expect demand for new homes information is a $200 to $300 million revenue opportunity for CoStar. In December, we launched our coverage of nearly 4,000 data centers worldwide. For each property, we have data on capacity, redundancy, and resilience attributes, and how well it fits in the broader build out of the power grid infrastructure. The product also provides visibility into substation locations, transmission lines, their peak capacity, and retail utility providers. Our dataset includes over 1,600 individual centers with sales value exceeding $43 billion and over 29 gigawatts of power capacity. In an increasingly AI-centric global economy, our rapidly growing dataset will prove an invaluable day-to-day tool for center developers, operators, and owners. As discussed on previous earning calls, we're developing a rent benchmark product, which we expect to deliver in Q2. Built upon the industry's largest collection of lease deals, CoStar Rent Benchmark uses AI to extract starting rents, TI allowances, rent concessions, escalations, and more from the actual legal leasing document. After abstraction, leases are anonymized and aggregated to deliver the industry's only net effective rent product, allowing the user to understand the true cost of occupancy. Corporate occupiers, owners, and brokers alike will reap tremendous value from being able to tap into the largest source of verified lease information to inform their leasing decisions and more effectively manage their real estate portfolios. In January 2026, we added more than 110 million residential parcels into our CoStar information product, providing our users with public record information across every parcel in America. For STR, Q4 capped off a record-breaking 2025, delivering the highest net new revenue in the company's history there. 25% of that net new revenue came from owner and management companies. Q4 also marked the completion of a major client migration, ultimately bringing 98,000 new users into the CoStar platform with the STR benchmark feature serving as their entry point. Q4 was equally pivotal from a product development perspective. culminating in a major release this week. Yesterday, STR announced the launch of a profitability benchmarking, giving hotel owners and operators a fully integrated view of top-line and bottom-line performance. With this release, CoStar with STR Benchmark becomes the only hotel benchmarking solution to integrate revenue, expenses, profits, and full property lifecycle insights into one place. We have rebranded our lender product to CoStar Debt Solutions to better reflect the breadth of customers we serve, including banks, credit unions, private lenders, insurers, agency lenders, and debt funds, CMBS investors, and regulators. CoStar Debt Solutions has surpassed 100 million in annual run rate revenue. And we see a clear path to a billion-dollar-plus opportunity as we expand our debt product with benchmarking, loan origination, and residential solutions. We expect to launch debt benchmarking in the second half of this year with loan origination in the first quarter of 2027. Having had a chance to look at some of the features of the debt benchmarking, it's really remarkable, and I think it'll be an incredibly strong product. CoStar Real Estate Manager had an exceptionally strong fourth quarter with net new bookings in the quarter up 48% year over year and up 211% quarter over quarter. Revenues now exceed $120 million. We've extended our reach into the Fortune 50 in 2025 with a new client win that's our largest initial contract ever for Real Estate Manager. We also won business from one of the top three real estate service providers in our industry, who will sunset their legacy in-house lease management technology in favor of outsourcing to Real Estate Manager. I'm pleased with the progress we're making on our product roadmap to consolidate Real Estate Manager, Visual Lease, CoStar, and our Transaction Manager into one best-in-class corporate real estate solution. In combination with AI-powered lease abstraction benchmarking, I believe we can take very significant share in this category over the next several years. LoopNet had an outstanding 2025, generating 312 million in revenue. Q4-25 was the fastest growth at LoopNet since 2021, ending at 17% year-over-year. All of this was driven by record and net new sales, which tripled for the full year of 25 compared to 24. We intend to build on these extremely valuable gains by rapidly expanding the LoopNet sales team. We ended 25 with 177 sales reps, and we plan to hire 80 more reps in 26, a 43% increase. Over 22 to 24, LoopNet had over-indexed on-depth advertising at the expense of coverage, and to some extent, to the expense of a predictable advertiser ROI. I'm pleased that our focus has changed and that 93% of this record net new bookings in 2025 came from silver listings, which tend to have consistent higher renewal rates. Consequently, paid listings increased by 9% in the US, 42% in Canada, and 156% in the UK. In fact, LoopNet offers more listings and therefore more searcher choice now in 90% of the US markets versus last year, including every top 10 market in the US. In addition, our asset-based pricing tests now have thousands of transactions across multiple U.S. markets, and the results are in. The strategy of linking price to the value of space being advertised is working. We intend to launch this new pricing model broadly across the U.S. market and expect that it will continue to deliver material incremental growth in 2026. We're building out the first and only global commercial real estate marketplace with LubeNet. At the beginning of 25, LoopNet was only present in Canada, the US, and UK. During the year, we launched in Spain and France, increasing the number of listings in Europe four times to over 130,000. In 2026, we will continue expanding LoopNet coverage by launching in Australia and then Germany. As we grow, the network effects of LoopNet are increasing. In 2026, we delivered over 400,000 leads and inquiries, and 633 million total listing impressions. We are investing in Matterport Salesforce in 26, growing the team from 30 to 90 over the course of the year. This will enable us to expand our customer base, accelerate revenue growth in a wide range of segments, including residential, commercial, architecture, construction, insurance, and manufacturing. We eliminated approximately 120 million in cash and equity costs from the business in 25, mostly from duplicative public company costs. The market-leading Pro3 camera has been the workhorse for our customers for the past few years. It's a wonderful camera. We will make it more accessible going forward for a wide range of customers by introducing a subscription-based pricing model in the future, which is a little bit more of a razor blade model. We're currently hard at work on developing the next generation camera, the Pro4, which we expect will launch next year. The very popular defurnish feature launched last year, which allows customers to remove objects such as furniture and clutter from spaces. We are developing the furnish feature, which uses generative AI to virtually stage or imagine different uses for rooms. One result of this development is that we're gaining better semantic understanding of the space. We glean property data from this process that we can include in our centralized source of truth that can be leveraged across all CoStar products. As part of Matterport exteriors, we're developing X-ray functionality that will allow users to remove elements of the building, such as the roof or an entire floor, to better understand the space in the context of the surroundings. We are integrating these capabilities into a seamless fly-through experience, This high-fidelity transition from exterior to interior creates a sophisticated narrative for the property, significantly elevating its market appeal and utility. BizBuySell generated $36 million in revenue in 2025 and growing EBITDA 19% over 24, while delivering a 37% EBITDA margin. More than $143 billion in businesses for sale assets were marketed on the platform during the year, including $34 billion in commercial real estate. We were also steadily expanding the value of the platform through business comp, data, and workflow automation. Ed's subscription revenue grew 35% in 25 as customers increasingly rely on our benchmarks to price with greater confidence. At the same time, we are introducing features to streamline deal execution through Deal Accelerator. Adoption of Deal Accelerator continues to build with 14% of broker members now using the product by year end capturing 10,000 qualified buyer profiles. CoStar Group's residential businesses aggregate consumer demand from homes for rent or sale or apartments for rent or sale, and we sell marketing and leads to the agents, owners, landlords, property management companies that need to market these properties to those consumers we aggregate. CoStar's residential business includes Apartments.com, Homes.com, Domain Residential, On the Market, and Land.com. CoStar Group's residential revenue was $429 million in the fourth quarter of 2025, up 35% year-over-year. For the full year 2025, revenue was $1.46 billion, up 20% year-over-year. Our residential business is projected to be profitable in 2026, and we believe that it will eventually reach 50% margins. Apartments.com generated $308 million of revenue in the fourth quarter for an 11% increase year over year. Full year 25 revenue was $1.25 billion. Apartments.com delivered 841 million renter visits during the year, And those renters took 152 million Matterport 3D tours. They viewed over 16 billion photos, drove 16 million clicks directly to our customer community websites, and they submitted over 1 million applications directly from Apartments.com. 1 million applications. That's good. Apartment owners and managers realized that Apartments.com is the number one site recognized by apartment seekers with our 67% brand awareness in December, up four points from Q3 25. While in contrast, the second rental competitor fell five points to 36%. We were thus able to accelerate our paying property count significantly in 25 by adding almost 14,000 properties to our network to end the year at 89,275 properties. That's the largest number of properties we've ever added in a year. We won many of these new properties from rent.com after Redfin, quote unquote, sold those clients to Zillow. We estimate that Redfin had about 4.5 thousand apartment properties marketing on their platform that were not already on apartments.com. We signed approximately 1,200 of them to apartments at just over about $1,000 a month, and we didn't have to acquire anything or end up in a legal thing. This increase in properties coupled with our 99% monthly renewal rate and 92% and 92 NPS confirms that property owners and managers understand the value of the apartments.com site built specifically for the apartment industry. This is further reinforced by our number one ranking 82% of the time for the core 10,000 multifamily SEO keywords and the most comprehensive SEM program in the industry. In 2025, our marketing campaign delivered over 12 billion media impressions, reaching 90% of U.S. households. As you saw in our Super Bowl ad, we've begun to co-brand ApartmentsWithHomes.com, the place to find a place. The campaign featuring Jeff Goldblum and Heidi Gardner, who have excellent chemistry together, kicked off with a Super Bowl, which had a total audience of 125 million and the highest peak viewership in U.S. media history. According to Comscore, visits to Apartments.com network were up 14% year-over-year in January. Our growth is in contrast with Comscore's data that showed that Zillow's rental traffic was down 48% year-over-year, and Zillow's partner Redfin Rentals was down 46% year-over-year. Zillow's expanded rental network, Zillow Realtor Redfin, was down 29% year-over-year in January. Zillow's rental revenue fell sequentially in the fourth quarter compared to the third quarter as the rental traffic was falling. With traffic falling, our closest competitor is now doing something called shotgunning leads. That's encouraging potential renters to contact not just the person you intend to contact, but all the competitor's properties. And while this increases and distorts the number of pure leads, it significantly lowers the quality of the leads and therefore hurts ROI and lead-to-lease conversion rate. Poor leads create more work for the apartment community as they sort through these leads to ultimately produce less leases. This behavior by our closest competitor, their drop in brand awareness coupled with their traffic having declines and in-site visits year over year every single month in 25, according to Comscore, makes us feel that our position within the multifamily industry is very solid. We currently have the largest and most active sales force in the industry. We had over 100 field and mid-market sales reps in 25 and ended the year with 522 total sales reps. These reps conducted 750,000 quality meetings in 25 with over 350,000 of them in person. Our newer sales reps will continue to contribute more as our experience has been that the reps that have been with us for a year add more net new revenue for us each year of experience they gain until those reps with five years of experience are contributing two to three times what they did in year one. We will continue to grow this sales team in 26 as the opportunity in front of us is indeed massive. We still have approximately 460,000 prospects, five units or larger, and 22 million prospects under five units to sell to, with a total TAM of 10 billion. Apartment owners and managers need us now more than ever. They're operating in a macro environment with overall vacancy rates still rising in the fourth quarter to 8.5%, while vacancy in four or five-starred buildings were close to 12%, and new supply, while lower in 24 than in 24, continued to exceed demand. The use of concessions continues to climb. In January, we saw almost half of all apartment buildings offering some type of concession, and that's up from 13% a year earlier. In just two years, Homes.com has become the fastest growing residential portal in the U.S. In 25, The homes.com network had over 2.1 billion views and 100 million average monthly unique visitors to the network. Our January 26 organic traffic increased 134% year over year and 21% month over month, hitting an all-time high. We feel we have achieved a good balance between SEM, SEO, and direct traffic. This allows us to optimize SEM for quality traffic and leads, not just pure quantity. Average session duration rose from 3 minutes and 36 seconds in January 25 to 4 minutes 33 seconds in January 26. Our page sessions rose from 3.4 to 6.9 in the same year-over-year time period. Our bounce rate fell from 63% in January 25 to 41% percent in January 26. Lead volume rose 48 percent from January 25 to January 26. Member lead volume rose 187 percent from January 25 to January 26. Rental lead volume rose 54 percent from January 25 to January 26. Homes.com subscribers paid to promote 216,000 active listings representing 9.4% of the 2.3 million homes for sale in the U.S. in Q4-25. We now have over 31,000 agent subscribers generating $100 million in annualized revenue run rate, with 76% of them on annual contracts. For CoStar, this group, this is the fastest organic revenue build we've ever had for a new product, and we've achieved this revenue level faster than our U.S. competitors, years faster. We have built a dedicated sales force of 600 sales reps to reach the top 750,000 agents in the business. We've achieved and climbed to an excellent NPS score of 42 in less than two years, and it's still improving. Our You're Listing Your Lead principle in our Market at the Home and Win More Listings model is now clearly resonating with agents. Homes.com is the only real estate portal in the United States whose core business model is to use the power of the Internet to help real estate agents market their listings to potential homebuyers. The Homes.com business model is the global best practice for real estate portals, and it's utilized by REA Group, EDLista, Rightmove, Scout24, Hemnet, Domain, and many, many others. If you normalize these portals' financials from their home countries to the U.S. on a GDP basis, they would be generating $4 to $21 billion in revenue in the U.S. and $1.5 to $11 billion of EBITDA in the U.S., which is orders of magnitude more than anyone has ever generated in the United States. We believe we can generate $4.75 billion of revenue and $2.85 billion of EBITDA with Homes.com inside the next 13 years. Apartments.com has a very similar business model to Homes.com, and grew revenue initially at a measured pace, but now over 13 years has reached $1.2 billion of revenue run rate with very high margins. The growth of apartments and homes looks very similar at this point. Apartment real estate in the U.S. is worth $6 trillion, while single-family homes and condos are worth almost 10 times as much at $56 trillion. So $6 trillion for apartments, $56 trillion for homes. In that context, it's very credible believe that homes.com can generate 5 billion in revenue with the next decade or so. Homes has a clear empirical potential for a very high IRR, similar to high IRRs ranging from 17 to 53%. We've generated on our other major investments like CoStar Apartments, LoopNet, Real Estate Manager, Land, Biz, Buy, Sell, and STR. We have a clear path to accelerate top line growth and drive profitability. Thus, we've reduced our net investment in homes.com by $300 million in 26 over 25 and continued to continue reducing the investment each year with discipline until we reach run rate profitability in 29 and full profit year profitability in 2030. Competing U.S. real estate portals suffer from a lack of profitability and low growth, not because there's MLS in the U.S., but because they have chosen an inferior business model. In contrast to Homes.com, our U.S. competitor's primary business model is to sell lower-value buyer agency leads to a much smaller audience rather than marketing the valuable homes. Selling buyer agency leads became their primary business model when their iBuying business models failed spectacularly. Last week, we launched the game-changing Homes AI, which we believe is the best in class, and first fully integrated proprietary vertical real estate application built upon the best strengths of the leading LLMs. One of the unique aspects of this product is that the UX is completely aware of the AI, and the AI is completely aware of the UI, and they work together seamlessly and beautifully. We strongly believe Homes AI will drive higher engagement, support significant growth in organic traffic, and contribute to a meaningful increase in agent subscriptions. Homes AI is either conversational or text interface with a highly artificial, with a highly intelligent artificial intelligence real estate expert that guides the home buyer through the search, exploration, comparison of homes, communities, and valuations. Homes.ai is like having a conversation with a knowledgeable real estate advisor who knows everything about all the properties rather than spending your time doom scrolling through a static website searching with filters. It's the perfect example of extraordinary discontinuous innovation. The most common reaction we get from people who see it for the first time is, wow. A Homes.com member named... Kim Owen said, that's amazing. Quote, I'm just flabbergasted. I think this is probably one of the best investments we've ever made. Steffi Kolanoff, another Homes.com member, said, quote, freaking amazing. Seriously, thank you. I love it. I could totally see my clients jonesing on this, and I think it's great for us as well. Like, it's really easier than searching MLS. Seriously, it's really terrific. End quote. Yet another Homes.com member, Susan Rerez, gushed, quote, you have just absolutely floored me. I cannot believe this. I mean, truly, this is a, what did you call it? Homes.ai, end quote. In the first week post-release, Homes.ai is having a huge impact on user engagement. Site visitors that hit the AI mode are on the site for 16 minutes, 50 seconds, as opposed to four minutes, 24 seconds for non-users. AI users do nearly four times as many searches, favorite seven times as many properties, look at four times as many properties, and submit seven times as many email leads. This transformative home search experience is powered by Microsoft Azure OpenAI Advanced AI Models, integrated with several other large and small models, including some models from AWS, as well as our own proprietary AI model. Using multiple models gives us tremendous flexibility and keeps token costs down. Using dynamic example injection, queries that originally consumed 2,000 tokens have been optimized to just 20 tokens. Unlike other AI implementations, Homes AI data remains entirely within the homes.com proprietary ecosystem and is never used to train or refine external AI models, giving us a real advantage as we build out the best-in-class real estate AI. While we're launching the capability of Homes.com, we plan to deploy it to Apartments.com, CoStar, LoopNet, Land, Biz by Cell as soon as possible. I believe that our deployment of this advanced AI software will result in substantial competitive advantage for CoStar Group for years to come. Homes.com is already and will become an even more important part of Apartments.com's strategic success. While the Apartments.com brand is optimized to institutional rentals, Homes.com is optimized to single-family home and rental condos. With tens of millions of single-family rentals in the U.S., we believe that it represents at least half of the rental market in the U.S., and it's a $5 billion TAM. Homes.com is our essential gateway to reach the single-family rental market. In addition, just over half of all renters begin their home shopping journey open to renting or buying. Apartments.com needs Homes.com in order to bring those considering buying into the top of the rental funnel on one of our platforms. Our homes.com rentals traffic, which grew 25% year-over-year, is robust and important, and homes.com is second only to apartments.com as the top rentals traffic contributor to our network of 10 rental brands. In Q4-25, homes.com rentals traffic already accounted for 10% of the apartments network traffic, and we anticipate that it will grow very significantly. Our residential business achieved a record of 642,000 paid single family rental listings in 25, up 49% over the prior year. 400,000 new independent owners used our rental tools in 25. We made the processing of over 5.5 billion in rents faster, allowing independent owners to receive 60% of their rent payments faster through Express Pay. In 26, we will complete the process of offering all of the tools for the individual owner trying to manage rentals that you find on Apartments.com. It'll be available on Homes.com, allowing those owners to rent their house, condo, townhouse on either platform. We began selling enhanced exposure on Homes.com to new home builders in August of 25. In Q3, we delivered 524,000 annualized net new bookings for new construction. In Q4, we generated 1.2 million in annualized net new bookings, a 125% quarter-by-quarter increase. In just four months, this resulted in a total of 1.7 million in annualized net new bookings. Our domain residential platform in Australia, in Q4, our residential marketplace domain had revenue of $73 million, which was well ahead of our expectations. Domain residential marketplace is profitable, delivering approximately 28% margins in 25. Domain will become a part of homes.com within a year to 18 months. In the fourth quarter, we had exceptional audience momentum, resulting in domain's strongest audience quarter on record. with an average of 8 million monthly unique audience. In October, Domain delivered a record residential audience of 9 million, up from 6.6 million in July, the month prior to our acquisition. Domain added six times more audience volume than its nearest competitor in Q4-25 compared to Q3-25. We did this through strategic increases in marketing investment, improved media mix, and leveraging Homes.com technology capabilities to deliver improvements in product speed, latency, and user experience. These results highlight our ability to realize global synergies that deliver a competitive advantage. As our audience grew, quality remains a key advantage. Inquiry volumes grew 21% year over year. Last week, we announced the planned divestment of a number of non-core, non-strategic products at Domain, so that we can sharpen our focus on the marketplace core businesses which operate at excellent margin. This will temporarily eliminate some revenue, but will have a positive impact on profitability and will allow the business to be more strongly focused on the key opportunities we see in commercial and residential in Australia. We are actively working on integrating the main residential platform into Homes.com and the Homes AI software platform. Doing so is essential to improving margins by limiting duplicative development efforts and creating a cost-efficient competitive edge in Australia. In the UK, we had an excellent year on the market. We ended 25 with our 20th consecutive month of positive net new bookings. We now have about the same number of listings as the number two player in the United Kingdom, and we have more new home listings than the number one player, continuing to gain share there. We have achieved huge growth since our acquisition two years ago, growing sales leads by 94%, properties on site by 47%, increasing brand awareness by 54%, increasing time on site by 77%. Importing best practices from homes.com on the market has dramatically improved the consumer experience with list and map view, along with rich map layers, property alerts, that have become our largest source of leads. We plan to integrate on the market into homes.com software platform environment in 27 after we've completed migrating domain into homes.com. Our land business maximizes listings and brand exposure for American's top farm and lifestyle ranch brokerages. This is a $4.4 trillion asset class, and they're essentially homes. In 25, we had almost 9,000 member agents promoting 144,000 listings. Our addition to the more agricultural focus, acre value strengthened our offering with aggregated nationwide farmland data, such as soil surveys, flood hazards, crop productivity, and sales. This powers farmer max farmland price index and has created powerful automated valuation tools for use by lenders. CoStar Group is emerging as a clear winner in the artificial intelligence era. We're positioned to take transformative share with the advantage Holmes AI gives us. We are using AI to cut significant costs and improve our product offerings and quality. We're launching new transformative products that would not have been feasible without our AI innovation. Finally, LLMs do not create information from thin air. Effective LLMs require massive amounts of accurate, accessible data, And no one has more proprietary real estate information than CoStar Group. CoStar information products are protected by strong authentication. We've accumulated over 2.4 trillion fields of data. Only about 25% of our data is available on CoStar Group marketing portals. That means that the CoStar Group information content is not available to LLMAI crawlers. LLMs do not have the rights and cannot display CSGP imagery. including Matterport photos and videos. Over 35 years, we've collected nearly 700,000 Matterports and billions of proprietary images. The agentic tagging of our photographs creates hundreds of billions of new searchable, displayable, and model-ready data fields. We have massive proprietary information, 150 million properties. We receive direct leads of information from our clients that don't appear on the open internet. Over 94,000 hotels provide us confidential performance data. More than 500 financial institutions provide us with detailed confidential loan data. Over 2,000 corporations, including half the Fortune 500, provide us with millions of confidential lease documents. Hundreds of thousands of real estate brokerages feed us millions of listings digitally, many of which do not appear on the open Internet. 280 Homebuilders, it's actually 300 homebuilders, feed us details digitally on their communities. And nearly 85,000 apartment managers give us direct digital access to extensive details about their properties. While there's a lot of accessible real estate data open to LLM crawlers, only CoStar has the massive, very difficult to replicate volumes of high quality system of record proprietary real estate data. We believe that we will be competitively advantaged in building the most transformative AI-powered real estate solutions. So let me close with this. The results in the plan you heard today reflect what CoStar has always done, build durable platforms on proprietary data, run them with discipline, and compound long-term shareholder value. We've strengthened our governance and capital allocation oversight, and we're matching strategy with clear financial priorities profitable growth, expanding adjusted EBITDA, and returns of capital. We're scaling homes.com because it strengthens our entire real estate ecosystem globally and the completeness of our data. And we're doing it with a clear investment glide path. And on AI, we're not conceding the future. We're productizing our proprietary information with experiences like you see in Homes.ai. while driving efficiency across the company. So thank you for your trust and partnership, and I'll turn the call over to Mr. Chris Ong, our CFO.