Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors

You're looking at Matterport, Inc. (MTTR) to understand its financial trajectory, and honestly, the 2025 story is less about quarterly reports and more about a massive exit: the $2.1 billion acquisition by CoStar Group that closed in February 2025, which is the ultimate valuation metric for the company's independent run. Before that deal, the company's financial health was a classic growth-vs-profitability debate, with its final independent full-year 2024 results, reported in early 2025, showing total subscription revenue hitting a record $99.6 million and Annualized Recurring Revenue (ARR) cresting at $104.2 million at year-end, driven by 1.2 million total subscribers. Still, that impressive subscription growth came with a steep cost, resulting in a full-year net loss of $256.6 million, which defintely underscores the pressure to find a path to profitability before the CoStar Group deal provided the ultimate off-ramp. We need to break down what that valuation means for the digital twin market and where the real opportunities lie now that the company is part of a real estate giant.

Revenue Analysis

You need to know where Matterport, Inc. (MTTR)'s money is actually coming from, especially now that the CoStar Group acquisition is complete. The direct takeaway is that Matterport is successfully transitioning into a true Software-as-a-Service (SaaS) business, with subscription revenue driving the growth, projected to push total 2025 revenue to an average of $185.8 million.

The company's revenue streams break down into two main buckets: Subscription (the recurring, high-margin software income) and Product & Other (mostly the one-time sale of Pro2 and Pro3 cameras, plus services). This is a critical distinction. For the full fiscal year 2024, the company reported total revenue of $169.7 million. Here's the quick math on the breakdown from that last reported year, which sets the stage for 2025:

• Subscription Revenue: $99.6 million (about 58.7% of total revenue)
• Product & Other Revenue: $70.1 million (about 41.3% of total revenue)

This is a healthy mix, but the trend is defintely toward the recurring model. Subscription revenue is the engine you should focus on.

Looking at year-over-year (Y-o-Y) growth, you see a solid, if not explosive, upward trajectory. Total revenue growth for 2024 was 8% over 2023. But the real story is the recurring revenue. Subscription revenue alone grew 14% in 2024, reaching an Annualized Recurring Revenue (ARR) of $104.2 million by the end of Q4 2024. For 2025, analysts project total revenue growth to average around 9.5%, which is a slight acceleration from the prior year, suggesting the subscription focus is paying off. That recurring revenue is what gives a company stability, so that 14% subscription growth is more important than the 8% total growth.

The most significant change in 2025 isn't just a number; it's the ownership structure. Matterport's acquisition by CoStar Group was completed in February 2025, which fundamentally changes the game. This means Matterport is no longer a public, standalone entity (it was delisted from the Nasdaq) but a subsidiary of a massive real estate data and analytics firm. This shift is a huge opportunity, as CoStar's extensive customer base and sales channels will likely accelerate the adoption of Matterport's digital twin technology, especially the new AI-powered features like the Matterport Marketing Cloud, which launched in the 2025 Winter Release. The revenue risk is lower now, but the public visibility is gone.

Here's the segment contribution and growth profile summarized:

For a deeper dive into the full financial picture, including valuation and strategic frameworks, you can check out the full analysis at Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors.

Profitability Metrics

You need to know if Matterport, Inc. (MTTR) can turn its compelling technology into real profit, and the latest numbers show a classic high-growth, pre-profitability profile. The short takeaway is that while the gross margin is solid, the company is still spending heavily to capture market share, resulting in deep operating and net losses.

Looking at the full-year 2024 results, the most recent fiscal data available as of November 2025, Matterport reported total revenue of $169.7 million. This is the top-line growth investors like to see, but the profitability story is more complex.

Gross, Operating, and Net Margins: The Quick Math

Here's the quick math on Matterport's core profitability ratios, which tell you how efficiently they manage costs at different levels of the business:

• Gross Margin: 48.9%
• Operating Margin: -96.02% (Trailing Twelve Months)
• Net Profit Margin: -151.22% (Trailing Twelve Months)

The gross margin (Gross Profit divided by Revenue) of 48.9% is based on a gross profit of $82.91 million against the total revenue of $169.7 million for FY 2024. This means for every dollar of revenue, about 49 cents is left after covering the direct costs of delivering the service, like cloud hosting and customer support. That's a decent margin, but it defintely signals a business model that includes a non-trivial hardware component and service delivery costs, not a pure-play, high-scale software-only model.

Comparing to the SaaS Industry Benchmark

When you stack Matterport's profitability against the broader Software-as-a-Service (SaaS) industry, the gap in gross margin is clear. For established SaaS companies, a healthy gross margin typically falls between 70% and 90%. Matterport's 48.9% is significantly lower, which can be attributed to its mixed model, which includes hardware sales and the cost of managing a massive spatial data platform.

The real challenge shows up further down the income statement. The operating margin of -96.02% reflects an operating loss of -$162.95 million in 2024. This loss is driven by aggressive spending on Research & Development and Sales & Marketing, which are necessary to build out their digital twin technology and expand their subscriber base of 1.2 million. For context, the median net profit margin for public SaaS companies recently turned positive, sitting around 2%. Matterport's net loss of -$256.62 million and a net profit margin of -151.22% is a stark reminder of its high-burn, growth-at-all-costs strategy.

Profitability Trends and Operational Efficiency

The trend in profitability, however, offers a glimmer of hope. While still losing money, Matterport has been improving its operational efficiency (reducing its losses) year-over-year. The net loss per share in FY 2024 was -$0.80, which represented a 73% year-over-year improvement in non-GAAP net loss per share.

The shift to a subscription-first model is the key driver here. Subscription revenue hit a record $99.6 million in FY 2024, up 14% from the prior year, and is the higher-margin, recurring part of the business. This focus is what drives the gross margin expansion, which is critical because it gives the company more gross profit dollars to cover its huge operating expenses. The operational efficiency gains are a direct result of this shift and disciplined cost management, which has significantly reduced the cash burn from operations.

The company is making a strategic trade-off: sacrifice near-term net profitability for long-term market dominance in the geospatial data space. You can read more about their strategic focus here: Mission Statement, Vision, & Core Values of Matterport, Inc. (MTTR).

What this estimate hides is the impact of the pending acquisition by CoStar Group, Inc., which, once completed, will likely change the financial reporting structure and potentially accelerate the path to consolidated profitability by leveraging CoStar's scale and resources.

Debt vs. Equity Structure

You're looking at Matterport, Inc. (MTTR)'s balance sheet to figure out how they fund their growth, and the answer is clear: this company is an equity-first operation. They have historically relied on shareholder capital, not debt, to fuel their expansion in the spatial data market.

The company maintains a remarkably clean balance sheet, carrying virtually zero interest-bearing debt. As of the most recent quarterly data for the 2025 fiscal year, Matterport, Inc.'s total debt-to-equity (D/E) ratio stood at a tiny 0.05x. This is a huge deviation from the median D/E ratio for the broader prepackaged software industry, which was around 0.89 in 2024. Put simply, Matterport, Inc. has less than a nickel of debt for every dollar of shareholder equity, while the average peer has nearly a dollar of debt.

Here's the quick math on their leverage: the company's debt levels are negligible. For instance, the Current Portion of Leases, which is a form of short-term obligation, was only $0.21 million in the last reported annual figures for FY 2024, and there was no significant long-term debt reported. They are defintely not a highly leveraged company.

• Debt-to-Equity: 0.05x (Extremely low leverage).
• Industry Median: 0.89x (Software industry benchmark).
• Short-Term Debt: Minimal, just $0.21 million in lease obligations.

This low-debt strategy is typical for high-growth software companies that prioritize financial flexibility and rely on venture capital or public equity to cover their operating losses and R&D. They avoid the fixed interest payments that can crush a business during a downturn, but this also means they haven't used debt to potentially amplify returns on equity (ROE).

The most significant capital event for Matterport, Inc. in the 2025 fiscal year, however, is not a debt issuance but an equity transaction: the pending acquisition by CoStar Group. This deal, valued at $5.50 per share in a mix of cash and stock, essentially concludes the company's independent financing strategy. The acquisition, which was expected to close in the first quarter of 2025, is the ultimate form of equity funding, providing an exit for existing shareholders and integrating Matterport, Inc.'s assets into CoStar Group's larger, more complex capital structure. To dig deeper into the players involved in this pivot, you should check out Exploring Matterport, Inc. (MTTR) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if Matterport, Inc. (MTTR) has enough immediate cash to cover its short-term bills, and the answer is a qualified yes. The company's liquidity position is strong, primarily due to a substantial cash and short-term investments balance, but you still need to watch its negative operating cash flow.

The latest available annual data, which covers the full fiscal year 2024 and forms the basis for our 2025 analysis, shows Matterport, Inc. has a healthy buffer. Here's the quick math on their immediate coverage:

• Current Ratio: 2.58
• Quick Ratio: 2.54

A Current Ratio of 2.58 means Matterport, Inc. holds $2.58 in current assets (cash, receivables, inventory, etc.) for every dollar of current liabilities (bills due within a year). A ratio over 2.0 is defintely strong. Plus, the Quick Ratio (which strips out inventory, a less liquid asset) is nearly identical at 2.54. This tells you the company's liquidity isn't tied up in unsold cameras or other physical goods; it's mostly in highly liquid assets like cash and short-term investments, which totaled $246.6 million at the end of fiscal year 2024.

Working Capital and Liquidity Trends

The working capital (current assets minus current liabilities) is a solid $226.68 million (calculated from $370.41 million in current assets and $143.73 million in current liabilities for FY 2024). This positive figure is a clear strength, giving management ample room to fund operations and pursue strategic initiatives without immediate financing pressure. The trend is positive for solvency, but the cash flow statement tells a more nuanced story about their core business health.

What this estimate hides is the operational cash burn. The liquidity strength is a function of past capital raises, not current business profitability, which brings us to the cash flow statement.

Cash Flow Statement Overview

When you look at the cash flow statement for fiscal year 2024, the trends highlight the company's stage of growth. The three core cash flow activities show a clear pattern:

The -$21.31 million in Operating Cash Flow (OCF) is the key risk. It means Matterport, Inc. is still using cash to run its business and grow its subscriber base, which is typical for a high-growth technology company focused on expanding its digital twin platform. The good news is this deficit has been shrinking, indicating improved operational efficiency over time. The $89.76 million positive Investing Cash Flow is largely due to the sale of investments, which is a one-time source of cash, not a sustainable business model. For a deeper look at the company's long-term strategy, you should review their Mission Statement, Vision, & Core Values of Matterport, Inc. (MTTR).

Potential Liquidity Concerns and Strengths

The primary strength is the massive cash cushion, which ensures no near-term liquidity crisis. With a Current Ratio of 2.58, Matterport, Inc. can easily cover its current liabilities of $143.73 million more than twice over. However, the consistent negative OCF is the main concern. They are burning cash to grow. While the cash burn rate has slowed significantly-from -$118.56 million in 2022 to -$21.31 million in 2024-they still rely on that cash cushion to cover the operational deficit. The next step is to see if the subscription revenue growth can push OCF into positive territory in the 2025 reports.

Valuation Analysis

You're looking at Matterport, Inc. (MTTR) and wondering if the price you see reflects its true value. The short answer is that for a high-growth, pre-profit company like this, traditional valuation metrics are broken, but the stock is trading at a premium based on its market opportunity, not its current earnings.

We are seeing a stock that has climbed significantly, with the 52-week price range running from a low of $1.73 to a high of $5.46. That's a massive move, showing the market's renewed interest in their spatial data platform. As of November 2025, the stock is trading near the high end of that range, which defintely suggests optimism.

Is Matterport, Inc. Overvalued or Undervalued?

To determine if Matterport, Inc. is overvalued or undervalued, we have to look past the standard metrics that work for mature, profitable companies. Here's the quick math on the key valuation multiples for the company, using the most recent data available in 2025:

• Price-to-Earnings (P/E) Ratio: This ratio is effectively N/A. Matterport, Inc. is not yet profitable, reporting a negative Earnings Per Share (EPS) for the Trailing Twelve Months (TTM). Analysts project the company's EPS for the full 2025 fiscal year to be around -$0.01. Since the denominator is negative, the P/E ratio is not a useful tool here.
• Enterprise Value-to-EBITDA (EV/EBITDA): This is also N/A. The company's TTM Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is negative, specifically around -$139.7 million, which again renders the ratio meaningless for relative valuation.
• Price-to-Book (P/B) Ratio: This is a more relevant metric for an asset-light technology company, and it stands at about 4.43. This multiple is high, meaning the stock trades at over four times the value of its net assets (equity), which is a clear sign the market is pricing in future growth and intellectual property, not just what's on the balance sheet.

What this estimate hides is the market's focus on recurring subscription revenue, which is why the Enterprise Value-to-Sales (EV/Sales) multiple of approximately 8.93 is a better proxy for valuation. It's a high multiple, but not uncommon for a company with a strong software-as-a-service (SaaS) component and a large total addressable market.

If you want to dig deeper into who is betting on this growth, you should look at Exploring Matterport, Inc. (MTTR) Investor Profile: Who's Buying and Why?

Analyst Consensus and Dividend Profile

The analyst community is currently cautious but not negative. The consensus rating from a group of analysts is a straightforward Hold. The average 12-month price target is $5.50, suggesting minimal upside from the current price, but this target was last formally updated in April 2024, so it might not fully capture the latest market sentiment.

Matterport, Inc. is a growth stock, so it doesn't pay a dividend. The dividend yield and payout ratio are both 0.00%. This is normal; they are reinvesting every dollar of cash flow back into the business to scale operations, acquire new subscribers, and develop their platform, which is exactly what you want to see from a company in this stage.

Here is a quick snapshot of the key valuation data:

Your action here is to treat Matterport, Inc. as a speculative growth play. The valuation is stretched on a P/B basis, but that's the price of admission for a potential leader in the digital twin space. You're buying the future, not the present.

Risk Factors

The risk profile for Matterport, Inc. (MTTR) changed fundamentally with the consummation of its merger with CoStar Group on February 28, 2025. The primary existential risk-achieving standalone profitability-is now mitigated by the financial strength of its parent company. Still, as a subsidiary, Matterport faces distinct operational and market challenges that impact its value within the larger organization.

You're looking at a company that was bleeding cash, reporting a net loss of $0.80 per share for the full fiscal year 2024, before the acquisition. Now, the risks are about execution and market fit in a consolidating industry. The quick math says the financial floor is higher, but the ceiling depends on integration.

Operational and Financial Risks Post-Acquisition

The most immediate internal risk is the successful integration into CoStar Group's ecosystem. Failure to realize the projected synergies could undermine the strategic rationale for the acquisition. Before the merger, Matterport's operational expenses had ballooned to over 150% of total sales, which is unsustainable for a standalone entity. While CoStar Group's resources help, Matterport must rapidly improve its operating efficiency.

• Integration Failure: Disruption to product development or customer service during the transition.
• Talent Retention: Losing key engineers or sales staff post-merger, which slows innovation.
• Profitability Drag: Continued losses, with analysts forecasting a negative EPS of -$0.01 for the full fiscal year 2025, which could strain CoStar Group's resources if not quickly reversed.

External and Market Risks

Matterport's core business remains heavily exposed to the real estate sector, which is navigating a complex environment in late 2025. The company's technology is a proptech firm, and as such, its growth is sensitive to the health of the commercial and residential property markets.

The market for digital twin technology is also intensely competitive. Matterport's initial moat-its easy-to-use 3D tours-is constantly being challenged by rivals offering similar or more specialized solutions. They need to keep innovating, especially with their AI-powered features, to justify their position within the CoStar Group portfolio.

Here's a snapshot of the primary external risks:

Mitigation Strategies and Outlook

The biggest mitigation is the acquisition itself. CoStar Group provides a massive, established distribution channel, especially in the commercial real estate space, which should immediately boost Matterport's reach. This strategic move is intended to translate the forecasted 2025 revenue of $185.84 million into a profitable growth trajectory. Plus, Matterport's solid liquidity position, holding more cash than debt and having liquid assets exceed short-term obligations, provides a buffer during the integration period. It's a classic case of a high-growth, unprofitable company finding a financially stable home.

For a deeper dive into the company's financial state before and after the merger, you can read more at Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors.

The company already took action in 2023, completing a restructuring plan that included a workforce reduction of approximately 30% to streamline its cost structure. This shows a commitment to operational efficiency, which CoStar Group will now accelerate.

Next Step: Investment Committee: Review CoStar Group's Q3/Q4 2025 earnings call transcripts for specific commentary on Matterport integration progress and synergy realization targets.

Growth Opportunities

You're looking for a clear path forward for Matterport, Inc. (MTTR), but the biggest news for 2025 is that the company's future is now intertwined with a real estate giant. The primary driver for Matterport, Inc.'s growth is no longer its standalone strategy, but its acquisition by CoStar Group, Inc., which was successfully completed on February 28, 2025. This move is a strategic accelerator, immediately integrating Matterport's technology into CoStar Group's massive network of online real estate marketplaces and property data.

Honestly, the acquisition changes the entire risk/reward profile. The immediate risks of achieving profitability as a standalone entity are now mitigated by CoStar Group's scale and resources.

Near-Term Financial Projections (Pre-Acquisition Context)

Before the CoStar Group acquisition, Matterport, Inc. was on a path of strong revenue growth but was still navigating its way to consistent profitability. For the full fiscal year 2025, analyst consensus revenue estimates stood at $185.84 million, representing a roughly 9.5% increase from the $169.7 million recorded in FY 2024. The earnings per share (EPS) forecast for FY 2025 was a non-GAAP loss of -$0.01.

Here's the quick math on the subscription base, which is the core value: Matterport, Inc. ended FY 2024 with 1.2 million subscribers and over 50.7 billion square feet digitized, a huge, defensible data asset.

Key Growth Drivers: AI and Market Expansion

The future growth is fueled by two main engines: product innovation, especially in artificial intelligence (AI), and deeper penetration into the vast digital twin market. The company's Cortex AI software, which automates the creation of 3D digital twins from 2D data, is a key product innovation. The 2025 Winter Release, for example, introduced the Matterport Marketing Cloud, an all-in-one platform for real estate agents that includes AI-driven tools like a one-click defurnish feature.

The market expansion is about moving beyond residential real estate into massive enterprise sectors. The total addressable market (TAM) in the global building stock is estimated to be over $240 billion, so there's plenty of room to run.

• AI Automation: Tools like 'defurnish' streamline property workflows.
• Enterprise Focus: Expanding sales in construction, facilities management, and insurance.
• Platform Accessibility: Device-agnostic capture, including the Pro3 camera and Smartphone Capture.

Strategic Synergy and Competitive Moat

The CoStar Group acquisition is the definitive strategic initiative, positioning Matterport, Inc. to dominate the spatial data market. CoStar Group brings the financial muscle and a huge customer base, while Matterport, Inc. provides the proprietary technology and the world's largest spatial data library, with over 14 million spaces digitized. This combination is a powerful competitive advantage (or 'moat') that is defintely hard to replicate.

The competitive advantage is built on the scale and precision of the data library and the proprietary technology that converts two-dimensional images into accurate, immersive three-dimensional digital twins. This specialized expertise and data volume create high barriers to entry for competitors. For more on the underlying mission that drives this technology, you can look at the Mission Statement, Vision, & Core Values of Matterport, Inc. (MTTR).