v3.26.1
REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregated Revenue
Revenue by operating segment and type of service consists of the following (in millions):
Three Months Ended March 31,
20262025
Commercial Real Estate
CoStar$331 $305 
LoopNet85 73 
Other Commercial Real Estate
56 31 
Total Commercial Real Estate
472 409 
Residential Real Estate
425 323 
Total revenue$897 $732 

The Company has recast certain prior period disclosures to align with the way it internally manages the business. See Note 2 for additional information.
The Company is domiciled in the U.S. and revenue earned outside the U.S. was $137 million and $48 million for the three months ended March 31, 2026 and 2025, respectively.
Deferred Revenue
Deferred revenue as of March 31, 2026 and December 31, 2025 was as follows (in millions):
BalanceBalance Sheet CaptionMarch 31,
2026		December 31,
2025
Current portionDeferred revenue$237 $205 
Non-current portionLease and other long-term liabilities1 1 
Total deferred revenue$238 $206 
Changes in deferred revenue for the period were as follows (in millions):
Balance at December 31, 2025
$206 
Revenue recognized in the current period from the amounts in the beginning balance(104)
New deferrals, net of amounts recognized in the current period
136 
Balance at March 31, 2026
$238 
Contract Assets
Contract assets are generated when contractual billing schedules differ from revenue recognition timing and represent a conditional right to consideration for satisfied performance obligations that becomes a receivable when the conditions are satisfied. Contract assets as of March 31, 2026 and December 31, 2025 were as follows (in millions):
BalanceBalance Sheet CaptionMarch 31,
2026		December 31,
2025
Current portionPrepaid expenses and other current assets$6 $7 
Non-current portionDeposits and other assets3 3 
Total contract assets$9 $10 
Unsatisfied Performance Obligations
Remaining contract consideration for which revenue had not been recognized due to unsatisfied performance obligations was approximately $519 million at March 31, 2026, which the Company expects to recognize over the next five years. This amount does not include contract consideration for contracts with a duration of one year or less.
Commissions
Commissions expense is included in selling and marketing expense (excluding customer base amortization) in the Company's condensed consolidated statements of operations. Commissions expense activity for the three months ended March 31, 2026 and 2025 was as follows (in millions):
Three Months Ended March 31,
20262025
Commissions incurred$52 $46 
Commissions capitalized in the current period(34)(33)
Amortization of deferred commissions costs30 31 
Total commissions expense$48 $44 
The Company did not recognize any impairment losses on commissions during the three months ended March 31, 2026 and 2025.