If you have been looking up matterport stock recently, expecting to see the familiar ticker MTTR on your broker's dashboard, you may have noticed something unusual: the ticker has vanished, and the stock is no longer trading. This isn't a technical glitch. On February 28, 2025, Matterport, Inc. was officially acquired by CoStar Group, Inc. (NASDAQ: CSGP) in a landmark $1.6 billion merger. As a result, Matterport's Class A common stock was permanently delisted from the NASDAQ and ceased active trading.

For previous shareholders of the spatial data giant and prospective investors looking to ride the digital twin wave, this transition shifts the landscape completely. You can no longer buy matterport stock directly, but the technology that made Matterport famous is now the engine driving some of the world's largest real estate marketplaces. To invest in Matterport’s growth today, you must look to its parent company, CoStar Group.

In this comprehensive, up-to-date guide, we will break down exactly what happened to matterport stock, how the cash-and-stock conversion was calculated, the tax implications for past shareholders, and how CoStar Group is leveraging Matterport’s AI-driven 3D capture technology to reshape the global property market.

The $1.6 Billion Acquisition: How Matterport Stock Converted

To understand the fate of matterport stock, we must look at the mechanics of the acquisition that redefined the Property Technology (PropTech) sector.

The merger process was first announced on April 21, 2024. Despite facing regulatory hurdles, including antitrust scrutiny from the Federal Trade Commission (FTC), the acquisition secured final shareholder and regulatory approvals, officially closing before the market opened on February 28, 2025. This date marked the end of Matterport’s tenure as an independent public company, with its last official trading session occurring on February 27, 2025.

Under the definitive agreement, Matterport shareholders received a combination of cash and stock. For every single share of matterport stock (MTTR) they held, investors received:

1. $2.75 in cash (without interest)
2. 0.03552 of a share of CoStar Group (NASDAQ: CSGP) common stock

Demystifying the Symmetrical Collar and the Exchange Ratio

Many retail investors wonder how the exchange ratio of 0.03552 was determined. The original merger agreement featured a "symmetrical collar" designed to protect both parties from extreme stock price volatility during the months leading up to the deal's closure.

The collar was structured based on CoStar’s 20-day volume-weighted average price (VWAP) ending three trading days prior to the closing date:

• The Ceiling: If CoStar’s average share price was greater than or equal to $94.62, the exchange ratio was capped at 0.02906 CSGP shares per MTTR share.
• The Floor: If CoStar’s average share price was less than or equal to $77.42, the exchange ratio was locked at the maximum floor ratio of 0.03552.
• The Floating Range: If CoStar’s share price floated between $77.42 and $94.62, the exchange ratio was determined by dividing $2.75 by CoStar’s average share price.

Because CoStar’s stock traded below the $77.42 threshold in the weeks preceding the February 2025 close, the symmetrical collar kicked in at the floor. Consequently, Matterport shareholders received the maximum possible equity conversion ratio of exactly 0.03552 of a CSGP share. This mechanism ensured that even though CoStar's stock price was depressed, MTTR holders were compensated with a larger slice of CoStar equity to preserve the deal's intrinsic valuation.

Portfolio Mechanics: What Happened to Your MTTR Shares?

If you owned matterport stock during the merger, the transition of your assets was handled automatically by your brokerage firm, though the exact timing and presentation depended on your custodian (such as Robinhood, Fidelity, Charles Schwab, or Vanguard). Here is a breakdown of the specific portfolio mechanics that occurred during the transition.

Share Conversion and Cash Distribution

The transition did not require active intervention for the vast majority of retail investors. Brokerage accounts automatically adjusted to reflect the change:

• Cash Component: The cash portion of $2.75 per share was deposited directly into your brokerage account's cash balance or sweep fund.
• Stock Component: Your MTTR shares were replaced with CSGP shares at the 0.03552 ratio. For example, if you owned 1,000 shares of Matterport, you received $2,750 in cash and 35.52 shares of CoStar Group.

Fractional Shares and Options Contracts

Because brokers do not typically distribute fractional shares of stock during mergers, the fractional portion of the conversion (the 0.52 of a share in the example above) was liquidated. Investors received cash in lieu of fractional CoStar shares, calculated based on the prevailing market price of CSGP stock on the closing date.

For investors holding options contracts on MTTR, the Options Clearing Corporation (OCC) issued standard contract adjustments. The underlying deliverable of MTTR options shifted from 100 shares of Matterport to a combination of cash ($275 per contract) and 3.552 shares of CSGP stock.

Crucial Tax Implications for Shareholders

For tax purposes, the merger was structured as a cash-plus-stock reorganization under Section 368 of the Internal Revenue Code.

• Taxable "Boot": The cash received ($2.75 per share) is generally treated as a taxable gain (often referred to as "boot") to the extent of any realized gain on the transaction.
• Tax-Deferred Rollover: The portion of the transaction received in CoStar stock was generally eligible for tax-deferred treatment. This means you do not pay immediate capital gains tax on the stock portion; instead, your original cost basis from your matterport stock is carried over and adjusted into your new CSGP shares.

Disclaimer: Tax laws are complex and depend on individual holding periods and cost bases. Former shareholders should consult a qualified Certified Public Accountant (CPA) or refer to IRS Form 8937 published on CoStar's Investor Relations page to accurately report this transaction on their tax returns.

The Strategic Vision: Why CoStar Wanted Matterport

To understand why this merger occurred—and why it makes CoStar Group an intriguing investment—one must look at the immense value of Matterport’s technology.

Matterport pioneered the concept of the "Digital Twin" in the real estate space. By utilizing specialized 3D cameras, smartphones, and its proprietary AI-driven software engine, Cortex, Matterport allowed users to digitize physical environments into dimensionally accurate, photorealistic virtual representations.

Before the acquisition, Matterport had built the world's largest spatial database. The company had digitized:

• Over 14 million distinct spaces
• More than 50 billion square feet of the built world
• Operations spanning across 177 countries

Despite this technological dominance, Matterport as a standalone public company struggled to reach consistent profitability. The business model relied heavily on subscription revenues from real estate agents and enterprise customers, which proved highly cyclical and expensive to acquire.

CoStar's Master Plan

CoStar Group is the undisputed titan of real estate data, analytics, and online marketplaces. Its portfolio includes household brands such as:

• Apartments.com: The leading platform for rental properties.
• Homes.com: CoStar's rapidly expanding residential homebuying portal, designed to compete head-on with Zillow and Realtor.com.
• LoopNet: The dominant marketplace for commercial real estate sales and leases.
• CoStar Information Services: The gold standard subscription database used by commercial brokers, appraisers, and institutional investors worldwide.

For CoStar’s founder and CEO, Andy Florance, acquiring Matterport was not just about buying a cool 3D camera company; it was about fully digitizing the property search experience. Florance famously noted that today’s buyers, renters, and commercial tenants routinely make multi-million dollar real estate decisions on their mobile devices without ever stepping foot inside a physical property.

By integrating Matterport's 3D digital twins directly into Homes.com and Apartments.com, CoStar has created an unparalleled, immersive search environment. Instead of looking at flat, potentially misleading wide-angle photographs, home buyers can virtually walk through a property, measure walls with millimeter accuracy, and assess the layout via AI-generated "X-ray" and exterior rendering views. This deep integration dramatically boosts user engagement, increases the time spent on CoStar platforms, and drives higher-quality leads to real estate agents and property managers.

Evaluating CoStar Group (CSGP) Stock as the New Matterport Proxy

Since matterport stock is no longer available on the open market, investors seeking exposure to the digitization of the built world must analyze CoStar Group (NASDAQ: CSGP).

Let’s dive into a comprehensive evaluation of CoStar Group's financial health, strategic execution, and stock performance.

Strong Financial Performance

CoStar Group's financial results demonstrate that the integration of Matterport and the scaling of Homes.com are yielding impressive fundamental results:

• Revenue Growth: Total revenue has reached $897 million per quarter, representing a robust 23% year-over-year increase compared to $732 million in the prior year period.
• EBITDA Surge: Adjusted EBITDA doubled to $132 million in the first quarter, an outstanding 100% year-over-year expansion that beat Wall Street consensus estimates by 26%.
• Returning to Net Profitability: CoStar posted a positive net income of $3 million, a marked turnaround from the net loss of $15 million reported in the prior year period when marketing spend for the launch of Homes.com was at its absolute peak.
• Substantial Bookings: Annualized net new bookings grew 20% year-over-year to $67 million, showing steady adoption of CoStar’s premium listing tiers by agents.

The Role of Matterport's Tech in CoStar's Growth

Management repeatedly highlights how Matterport's spatial data and AI integrations are driving product differentiation:

• Homes.com AI and Smart Search: CoStar's "Smart Search" on Apartments.com and advanced AI tools on Homes.com rely heavily on Matterport’s underlying computer vision and spatial data to understand natural queries like "Find a home with a large kitchen island and a backyard view from the master bedroom."
• Higher Engagement and Leads: Properties featuring fully integrated 3D digital twins and AI-rendered exterior tours see significant increases in user dwell time. More importantly, Homes AI users submitted 7 times more high-intent email leads to listing agents than traditional users, proving the tangible ROI of Matterport's technology.

CSGP Valuation: A Unique Buying Opportunity?

Despite CoStar's sterling financial momentum, the macroeconomic climate and specific market dynamics have put severe downward pressure on CSGP stock:

• The Price: CSGP stock is currently trading around $33.95 per share, hovering near its 52-week low and down significantly from its historical highs.
• The Index Headwind: The stock experienced temporary, forced selling by passive index funds and ETFs due to index rebalancing, pulling down the share price regardless of the company's strong underlying business performance.
• Expanding Free Cash Flow: While the market has beaten down the stock, CoStar's financials tell a highly bullish story. The company's capital expenditure and heavy marketing investments for Homes.com peaked in 2025. As a result, its Free Cash Flow (FCF) is projected to surge from just $40 million to over $510 million—an extraordinary increase that the depressed stock price has yet to acknowledge.
• Analyst Sentiment: Out of more than 20 Wall Street analysts covering CoStar Group, the consensus remains a resounding "Buy" (with 17 Buy ratings, 4 Holds, and only 1 Sell). The average 12-month price target sits at $48.61, implying a massive potential upside of approximately 43% to 50% from its current trading price around $34. These analysts point to a Discounted Cash Flow (DCF) intrinsic value of roughly $62.84 per share, indicating that the stock is steeply undervalued.

For investors who originally loved Matterport for its long-term potential to dominate virtual real estate but feared its lack of profitability, CoStar Group represents the perfect evolution. It pairs Matterport's cutting-edge spatial tech with CoStar's fortress balance sheet, consistent double-digit revenue growth, and massive cash-flow generation.

Key Strategic Risks to Consider

While the integration of Matterport technology into CoStar Group's global empire presents immense upside, any prudent investor evaluating CSGP stock must weigh the primary risks facing the company.

1. High Valuation Multiples

CoStar Group has historically traded at a premium valuation compared to traditional real estate firms because it operates as a software-and-data subscription business. Even with the recent stock price correction to $33.95, CoStar still carries elevated price-to-earnings (P/E) and price-to-sales (P/S) multiples relative to the broader market. If the macroeconomic environment experiences a prolonged slowdown or if interest rates remain elevated, high-multiple growth stocks could face continued valuation compression.

2. Intense Residential Competition

CoStar is investing heavily to make Homes.com the absolute leader in the residential real estate marketplace. However, it faces deeply entrenched competitors in Zillow, Redfin, and Realtor.com. While CoStar's "your listing, your lead" model (which does not auction off buyer leads to competing agents) is highly popular with listing agents, displacing Zillow as the consumer’s default home search app requires billions of dollars in ongoing marketing and product development.

3. Real Estate Market Cyclicality

Although 95% of CoStar's revenue is subscription-based, its clients are real estate brokerages, property management firms, and commercial developers. A severe downturn in either the residential housing market or the commercial real estate (CRE) sector—particularly office space defaults—could lead to increased churn rates among subscription members, putting pressure on CoStar’s top-line growth.

Frequently Asked Questions About Matterport Stock

To provide quick clarity, here are direct answers to the most common questions investors are asking regarding matterport stock and its transition.

Is Matterport stock still trading on the stock exchange? No. Matterport, Inc. (formerly traded under NASDAQ: MTTR) was acquired by CoStar Group on February 28, 2025. It is no longer an independent public company, and its stock is no longer active.

What did Matterport shareholders receive in the merger? For each share of Matterport Class A common stock, shareholders received $2.75 in cash and 0.03552 of a share of CoStar Group (NASDAQ: CSGP) common stock. Fractional shares were paid out in cash.

What is the ticker symbol for Matterport now? Matterport no longer has a dedicated ticker symbol. Its technology and assets are represented under the ticker symbol CSGP (CoStar Group, Inc.) on the NASDAQ.

Are there tax implications for the MTTR stock conversion? Yes. The merger was structured as a cash-plus-stock reorganization. Generally, the cash portion ($2.75 per share) is taxable as a realized capital gain, while the stock portion (CSGP shares received) qualifies for a tax-deferred exchange. Shareholders should consult a CPA and review CoStar’s Form 8937 for specific tax filings.

Is CoStar Group a good stock to buy instead of Matterport? For many investors, CoStar Group is a fundamentally stronger way to invest in spatial data. Unlike Matterport, which struggled with profitability, CoStar is a highly profitable industry leader with consecutive quarters of double-digit revenue growth, a diversified business model, and massive free cash flow expansion.

Conclusion: The New Era of Immersive Real Estate

The story of matterport stock is a classic tale of a groundbreaking technology finding its perfect commercial home. While Matterport’s journey as a volatile, hyper-growth SPAC stock came to an end, its technology is more vital than ever.

By merging with CoStar Group, Matterport’s 3D spatial data, Cortex AI engine, and digital twin ecosystem have been elevated from a niche real estate marketing tool to a foundational standard for the global property markets.

For investors, the opportunity hasn’t disappeared—it has simply matured. Buying CoStar Group (NASDAQ: CSGP) stock at its current valuation allows you to own Matterport’s industry-leading technology, backed by the stability, massive cash flow, and market dominance of a verified real estate titan.