CoStar Group, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsCoStar Group is a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology, operating across commercial and residential real estate in the U.S., Europe, Australia, Canada, and Asia-Pacific.
What they do
CoStar Group operates two reportable segments: Commercial Real Estate and Residential Real Estate. The Commercial Real Estate segment offers subscription-based information, analytics, and online marketplaces (e.g., CoStar, LoopNet) plus 3D digital twin technology. The Residential Real Estate segment hosts marketplaces that aggregate consumer demand for homes and apartments, selling marketing and leads to agents, owners, landlords, and property managers. Core brands include Apartments.com, Homes.com, and Ten-X auction platform.
Revenue drivers
- Commercial Real Estate (CoStar, LoopNet, STR) — Subscription-based services for commercial real estate intelligence, listings, and benchmarking; largest segment by revenue.
- Residential Real Estate (Apartments.com Network, Homes.com, Domain) — Marketing and lead generation for apartment and home listings; recently turned Adjusted EBITDA positive.
- Transaction-based services — Premium listings, digital twin capture services, Matterport camera sales, and Ten-X auction fees.
- International operations — Online marketplaces in Europe, UK, Australia, and Asia-Pacific; includes recent entry into France and Domain acquisition.
Recent performance
Revenue for Q2 2026 was $925 million, up 18% year-over-year, with net income of $55 million (EPS $0.14) versus $6 million (EPS $0.01) in the prior year. Adjusted EBITDA more than doubled to $184 million, and the residential segment turned Adjusted EBITDA positive for the first time. The company posted its 61st consecutive quarter of double-digit revenue growth. Full-year 2025 revenue was $3.25 billion with net income of $6.5 million, down sharply from 2024's $138.7 million.
Strategy
CoStar's strategy is to digitize real estate through its comprehensive proprietary database and 3D digital twin technology, expanding into new geographies and product lines. Management is investing in AI capabilities, having launched Homes.com Ai and Apartments.com Ai, with plans to extend AI across CoStar, LoopNet, and international businesses. The company completed the Domain acquisition in August 2025 to strengthen its residential presence in Australia. It is also reducing its projected expense base by roughly $100 million versus original guidance to achieve higher Adjusted EBITDA targets for 2028 and 2030.
Risks
- Client retention and acquisition — If unable to attract or retain subscribers to information, analytics, and marketplace services, revenue and financial position would be adversely affected.
- Competition and market share — Operates in a highly competitive and rapidly changing market; failure to compete for advertisers could harm results.
- Economic cyclicality — Global economic uncertainties or downturns in real estate may decrease customer demand for services.
- Acquisition integration — If unable to successfully integrate and manage costs related to acquisitions like Domain and Matterport, operations and financial position could be adversely affected.
Outlook
Management affirmed 2026 Adjusted EBITDA guidance of $780 million to $820 million, up $30 million at the midpoint from February guidance, and expects the highest full-year Adjusted EBITDA in company history. Revenue guidance for 2026 was raised to $3.715-3.755 billion, representing roughly 15% growth. For Q3 2026, they expect revenue of $935-945 million and Adjusted EBITDA of $190-210 million. They reaffirmed full-year Adjusted EPS of $1.32-1.39, assuming a non-GAAP tax rate of 26%.