CoStar Group (CSGP) risk factors: FY2025 10-K

1. We may not be able to attract and retain new clients, which could adversely affect our revenue and financial position. Our success and revenue depend on attracting and retaining subscribers to our information, analytics, and online marketplace services, which generate the largest portion of our revenue.reworded
2. We may not be able to successfully develop and introduce new or upgraded online marketplace services, information, and analytics that are attractive to our users and advertisers or successfully combine or shift focus from current services with less demand, which could decrease our revenue and our profitability.reworded
3. Competition could render our services uncompetitive and reduce our profitability. The markets for information systems and services and for online marketplaces in general are highly competitive and rapidly changing in response to changing consumer behavior and new technological advancements.reworded
4. Our operating results and revenue are subject to fluctuations, and our quarterly financial results may be subject to market cyclicality, each of which could negatively affect our stock price.reworded
5. 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.
6. If we are unable to hire qualified persons for, or retain and continue to develop our sales force, or if our sales force is unproductive, our revenue could be adversely affected.reworded
7. Our internal and external investments may place downward pressure on our operating margins.
8. Introducing new products may be difficult and expensive. If we are unable to do so successfully, our brands may be adversely affected, and we may not be able to maintain or grow our current revenue and profit levels.
9. We may be unable to increase awareness of our brands, including CoStar, LoopNet, Matterport, BizBuySell, STR, Apartments.com, Homes.com, Land.com, OnTheMarket, and Domain which could adversely affect our business.reworded
10. 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.
11. If we are not able to successfully identify, finance, integrate, and/or manage costs related to acquisitions, our business operations and financial position could be adversely affected.
12. We may not be able to complete certain strategic transactions if a proposed transaction is subject to review or approval by regulatory authorities pursuant to applicable laws or regulations.
13. We may be unable to realize the benefits of the acquisition of either Matterport or Domain, which could have an adverse effect on us.reworded
14. If third-party suppliers upon which Matterport relies are not able to fulfill its needs, Matterport’s ability to timely and cost effectively bring its hardware products to market could be affected.new
15. Cyberattacks and security vulnerabilities could result in material harm to our reputation, business, and financial condition.Cybersecurity
16. Technical problems or disruptions that affect either our customers’ ability to access our services, or the software, internal applications, database, and network systems underlying our services, could damage our reputation and lead to reduced demand for our online marketplace services, information, and analytics, lower revenue and increase costs.reworded
17. The significant costs associated with undertaking a large infrastructure project to build out our campus in Richmond, Virginia, have impacted and will continue to impact our financial condition and results of operations.
18. Our current or future geographic expansion plans may not result in increased revenue, which may negatively impact our business, results of operations, and financial position.reworded
19. We are subject to a number of risks related to acceptance of credit cards and debit cards and facilitation of other customer payments.
20. Climate-related events and other events beyond our control could harm our business.
21. Attention to corporate responsibility matters may require us to incur additional costs or otherwise adversely impact our business.reworded

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1. 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.
2. 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.
3. Use of new and evolving technologies, including AI, could impact our ability to protect our data and intellectual property from misappropriation by third parties.AI
4. We may be subject to legal liability for collecting, displaying, or distributing information, or integrating generative AI Technologies in our products and services.newAI
5. If we are unable to obtain or retain listings from real estate brokers, agents, property owners, and apartment property managers, our marketplace services could be less attractive to current or potential customers, which could reduce our revenue.reworded
6. We may not be able to maintain or establish relationships with third-party listing providers, which could limit the information we have to power our products and services and impair our ability to maintain stable data feeds and attract or retain customers.

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1. International operations expose us to additional business risks, which may reduce our profitability.
2. Fluctuating foreign currency exchange rates may negatively impact our business, results of operations, and financial position.

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1. We have a significant amount of indebtedness, which could decrease our flexibility and adversely affect our business, financial condition, and results of operations.
2. A lowering or withdrawal of the ratings assigned to our debt securities by rating agencies may increase our future borrowing costs, reduce our access to capital, or result in the loss of certain covenant suspensions.

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1. Our actual or perceived failure to comply with privacy, security and evolving AI and data-related laws and standards could adversely affect our business, financial condition, and results of operations.rewordedAI
2. Changes in tax laws, regulations, or fiscal and tax policies, or the manner of their interpretation or enforcement could adversely impact our financial performance.
3. Third-party claims, litigation, regulatory proceedings, or government investigations to which we are subject or in which we become involved, regardless of their merit, may significantly increase our expenses and adversely affect our stock price.
4. We do not currently intend to pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.
5. Stock repurchases under our Stock Repurchase Program are discretionary, and we cannot guarantee that our Stock Repurchase Program will achieve the desired objectives. Share repurchases diminish our cash reserves and could also increase the volatility of the trading price of our common stock.

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Headings in the FY2024 10-K with no match this year.

1. Our business depends on retaining and attracting highly capable management and operating personnel.
2. We may be subject to legal liability for collecting, displaying, or distributing information.