Matterport
3D digital twin platform for real estate and construction, now owned by CoStar.
On the record
Checkpoint: CoStar Q2 2026 earnings: Homes.com profitability target and Zillow API status
The call
Matterport now runs inside CoStar's growth engine, while Zillow's exit and AI-native capture rivals test how long it keeps its place there.
Matterport makes 3D home tours for real estate listings. It is no longer independent; CoStar bought it in February 2025 and now runs it as part of a much larger real estate software business. The threat is real: Zillow built its own free 3D tool and stopped showing Matterport tours on its website in October 2025, and cheaper AI-powered capture services are emerging that can turn photos into floor plans and measurements without a camera operator. The game changes if CoStar's Homes.com website beats Zillow in the market or if Zillow and CoStar decide to work together again instead of fight.
Why
01
AI pressure: AI-native 3D capture tools (Tripo AI, iGUIDE, CloudPano, Panoee). AI-native capture tools promise faster, cheaper 3D scans, undercutting Matterport's camera-based capture business. Could AI do the core job? Only partly.
02
Bigger players: Zillow (free 3D Home/Showcase). Zillow ships free 3D Home tours and pulled Matterport listings from its own sites in October 2025. Could a giant copy it? Probably.
03
What protects it. CoStar embeds Matterport twins across Apartments.com, LoopNet, and CoStar.com, tying its data into daily workflows.
What would change this call
Whether Zillow and Matterport renew or restore their API/listing integration by late 2026. Renewal would show Matterport regaining distribution; continued rift shows share loss to Zillow's own tool.
CoStar's Homes.com hitting its stated Q2 2026 profitability target. Success would signal CoStar's residential push (and Matterport's role in it) is gaining ground versus Zillow.
Any public headcount cuts or de-investment specifically labeled Matterport within CoStar filings. Would show CoStar deprioritizing Matterport as a standalone brand inside the integration.
CoStar's Homes.com hitting its stated Q2 2026 profitability target. Success would signal CoStar's residential push (and Matterport's role in it) is gaining ground versus Zillow.
Any public headcount cuts or de-investment specifically labeled Matterport within CoStar filings. Would show CoStar deprioritizing Matterport as a standalone brand inside the integration.
Key numbers
- $56M Q1 2026 revenue, +81% YoY
- ~300k Matterport twins embedded in CoStar sites
- $2.1B equity value in CoStar acquisition
Named risks
- Zillow-CoStar API rift unresolved since Oct 2025, cutting Matterport's largest residential distribution channel.
- AI-native capture tools (Tripo, CloudPano, Panoee) threaten to make hardware-based capture obsolete for SMB tier.
- No independent post-acquisition Matterport headcount or profit disclosure, obscuring integration health.
- CSGP trading near 52-week lows on Homes.com profitability doubts could pressure Matterport unit investment.
- Industry-wide AI-driven layoffs (156,000+ in 2026) create precedent for CoStar to consolidate Matterport roles.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Zillow | losing to | Pulled Matterport tours from Zillow/StreetEasy Oct 2025 after API deal lapse; pushes free 3D Home tool |
| Tripo AI | contesting | Markets AI-generated 3D capture as up to 50% faster than camera-based capture (vendor claim, undated) |
| iGUIDE | contesting | Markets itself on faster capture, lower cost, and data ownership versus Matterport (vendor claim, undated) |
| CoStar (parent) | gaining on | Embedded ~300,000 Matterport twins into own marketplaces pre-acquisition (March 2024), driving 81% YoY segment growth Q1 2026 |
Questions people ask
- Is Matterport still a publicly traded company?
- No. CoStar Group completed its acquisition of Matterport on February 28, 2025, and Matterport common stock (MTTR) no longer trades independently; it is now folded into CoStar's financials under an 'Other Commercial' reporting line as of Q1 2026 (April 28, 2026).
- Who owns Matterport now?
- Matterport is a wholly owned subsidiary of CoStar Group (NASDAQ: CSGP) since the acquisition closed on February 28, 2025. CoStar originally announced the deal on April 22, 2024, valuing Matterport at $5.50/share, about $2.1B equity value.
- Is Matterport profitable inside CoStar?
- Matterport-specific profitability isn't separately disclosed. CoStar's 'Other Commercial' segment, driven mainly by Matterport, hit $56M revenue in Q1 2026 (up 81% YoY, with 19% subscription growth), reported April 28, 2026, but no standalone Matterport profit figure exists post-acquisition.
- Could AI replace Matterport's core product?
- Much of Matterport's manual value-add, measurement extraction, floor plans, furniture removal, is increasingly automatable by generative AI. Competitors like Tripo AI market pure AI-generated 3D capture as up to 50% faster than camera-based capture (vendor claim, undated), pressuring Matterport's hardware-based model.
- Is Zillow a threat to Matterport?
- Yes. In October 2025, Zillow removed all Matterport 3D tours from Zillow and StreetEasy listings after failing to renew an API/content deal with CoStar, Matterport's owner and a rival portal operator via Homes.com. Tours are still accessible by direct link but no longer embed natively.
- Did Matterport have layoffs recently?
- The last confirmed Matterport-specific layoff was July 11, 2023, when it cut 170 jobs (about 30% of its workforce) per an SEC filing. No independent Matterport headcount or layoff disclosure has been found since the February 2025 CoStar acquisition.
Timeline
- 2026-04-28CoStar reports Q1 2026 Other Commercial (Matterport-driven) revenue of $56M, up 81% YoY
- 2026-04-28CoStar posts $897M Q1 2026 revenue, 60th consecutive double-digit growth quarter; CSGP near 52-week lows
- 2026-01-07CoStar issues FY2026 outlook citing broad AI deployment and cost savings
- 2025-10-31Zillow removes Matterport 3D tours from Zillow and StreetEasy after API deal lapses
- 2025-02-28CoStar completes acquisition; Matterport becomes wholly owned subsidiary
- 2025-02-25Matterport ships 2025 Winter Release with AI marketing tools, model merge, smart tagging
- 2024-05-07Matterport publishes generative AI defurnishing research using Stable Diffusion
- 2024-04-22CoStar announces definitive agreement to acquire Matterport for $5.50/share (~$2.1B equity)
- 2023-07-11Matterport cuts 170 jobs, about 30% of workforce, per SEC filing
- 2022-08-31Matterport launches Pro3 camera with LiDAR
Revision history
23 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- CoStar Group to Acquire Matterport (2024-04-22)
- CoStar Group Completes Acquisition of Matterport (2025-02-28)
- CoStar (CSGP) Q1 2026 Earnings Call Transcript (2026-04-28)
- CoStar Group to Acquire Matterport (2024-04-22)
- Matterport 2025 Winter Release (2025-02-25)
- Matterport to Cut 170 Jobs (2023-07-11)
- Matterport (2026-07-23)
- Cortex AI (2025-01-06)
- Bringing Generative AI to Digital Twins (2025-05-26)
- Zillow vs. Matterport 3D Virtual Tours (2026-05-18)
- Understanding Your Options Beyond Matterport for Virtual Tours
- iGUIDE vs. Matterport Comparison