CSGP

CoStar Group, Inc.

Next est. report 2026-10-27 · AMC

AI '24: Digital Consumer Data AI '25: Data OwnersAlt & Market Data '24: Consumer DataBuying a House '26: Residential Brokerages Data Owners '25: Property, Mortgage & Real Estate Data

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Overview

CoStar Group offers global real estate data, analytics, and online marketplaces for commercial (52%) and residential (48%) properties. It serves real estate pro

CoStar Group offers global real estate data, analytics, and online marketplaces for commercial (52%) and residential (48%) properties. It serves real estate professionals, owners, lenders, agents, and consumers. The residential segment achieved profitability in Q2 2026, a key milestone. CoStar is also acquiring Zonda and appointed Robin Rossmann as its new CFO.

What They Do (Plain English & Analogies): CoStar Group is like the 'Bloomberg Terminal' for real estate, providing a massive amount of detailed information, analysis, and online marketplaces for both commercial properties (like offices, warehouses, and shopping centers) and residential properties (apartments and homes for sale). Imagine if you needed to know everything about a building – its history, who owns it, how much it rents for, or even create a 3D virtual tour of it – CoStar provides those tools. They help real estate professionals, from brokers and investors to lenders and property managers, make smart decisions. For everyday people looking for a place to live, they run popular websites like Apartments.com and Homes.com, acting as a digital hub where you can find, compare, and connect with properties. They also use advanced technology, including artificial intelligence, to gather and analyze all this data, making it easier and faster for everyone to find what they need in the real estate world.
Very Brief History: Founded in 1987 by Andy Florance, CoStar Group began by digitizing commercial real estate data in Washington, D.C. It went public in 1998 and expanded significantly through strategic acquisitions, including LoopNet (commercial listings) in 2012 and Apartments.com (multifamily rentals) in 2014. A major strategic shift into the residential market occurred with the 2021 purchase of Homes.com. More recently, CoStar acquired Matterport in 2025, adding 3D digital twin technology, and OnTheMarket in 2023 for its international residential presence. The company is currently in the process of acquiring Zonda, a leading provider of new home construction data, analytics, and online marketplaces, with the transaction expected to close in the second half of 2026.
"Street Stereotype": CoStar Group is generally perceived as a 'Ruthless Compounder' – an exceptionally well-managed, high-margin company fortified by a robust data moat. However, it also carries a reputation for being highly litigious and an aggressive spender, particularly concerning its multi-billion dollar marketing investments aimed at capturing market share in the residential sector with Homes.com. The current market discussion largely revolves around whether this substantial residential investment represents a visionary strategic move or a costly 'ego trip,' although the recent earnings call indicated that 'the activist distraction is behind us,' allowing for a more focused pursuit of growth and EBITDA.
Subsidiaries On Linked In*: CoStar — Main commercial information and analytics platform; LinkedIn: costar-group
Apartments.com — Leading multifamily rental marketplace; LinkedIn: apartments.com
LoopNet — Commercial real estate marketplace; LinkedIn: loopnet
Homes.com — Residential homes for sale and rent marketplace; LinkedIn: homes.com
Matterport — 3D spatial data and digital twin technology; LinkedIn: matterport
Ten-X — Online auction platform for commercial real estate, now being restructured and separated from LoopNet; LinkedIn: ten-x
OnTheMarket — UK residential property portal; LinkedIn: onthemarket
Domain Group — Australian digital property portal and real-estate industry business; LinkedIn: domain-group
STR — Global leader in hotel data benchmarking and analytics; LinkedIn: str-global
Business Immo — French commercial real estate news and information; LinkedIn: business-immo
BureauxLocaux — France's specialized commercial real estate marketplace; LinkedIn: bureauxlocaux
Land.com — Umbrella for rural land marketplaces (LandsofAmerica, LandAndFarm, LandWatch); LinkedIn: land.com
BizBuySell — Largest network for buying or selling a business (includes BizQuest, FindaFranchise); LinkedIn: bizbuysell
CoStar Real Estate Manager — Real estate lease administration, portfolio management, and lease accounting software; LinkedIn: costar-real-estate-manager
Zonda — Provider of new home construction data, analytics, software, and online marketplaces (acquisition expected to close H2 2026); LinkedIn: zonda-home
Customer Sectors & Example Clients: CoStar Group serves a diverse range of professionals across multiple real estate sectors. In **Commercial Real Estate (CRE)**, their customers include brokerage firms, property managers, institutional investors, lenders, and regulators. Notable clients in this sector include global brokerage giants like CBRE and JLL. For **Residential Real Estate**, their clientele spans real estate agents, homebuilders, mortgage bankers, retailers, retail center owners, independent property owners, and large residential brokerages like eXp Realty. They also serve 663 homebuilders. With the pending acquisition of Zonda, they will further expand their reach to over 3,000 builders, developers, lenders, manufacturers, and suppliers across North America in the **new home construction** ecosystem. In the **Hospitality** sector, their data and analytics are utilized by major hotel brands, operators, and owners worldwide, with STR landing new logos like Nobu Hospitality and Baywood Hotels. Additionally, their platforms cater to **Business Sales** professionals, including business brokers and individuals involved in buying or selling businesses.
New Customers / Segments They'Re Targeting: CoStar Group is actively targeting several new customer segments and expanding its offerings. They are focusing on **commercial real estate lenders** with CoStar Debt Solutions, providing differentiated risk analytics by combining CoStar's information with lenders' proprietary loan data. This product is now applying benchmarking expertise developed with STR to help lenders improve decisions across origination, portfolio risk, and compliance. They are also expanding into the **new home construction market** through the acquisition of Zonda, which serves builders, developers, lenders, manufacturers, and suppliers with data, analytics, software, and online marketplaces. In the residential space, Homes.com is expanding its offerings to **independent owners** by making all Apartments.com tools available on Homes.com by the end of 2026. BizBuySell is also expanding with **benchmarking tools for buyers and sellers of businesses** and partnering with SBA lenders to embed financing into the marketplace.
Supply Chain And Sourcing Geographies: CoStar's core business primarily involves digital products and services, such such as data, analytics, and online marketplaces, which do not have a traditional physical supply chain. However, for Matterport, a subsidiary, the company produces cameras used for 3D mapping. The transcript mentions the Matterport 3 camera and the development of the next-generation Matterport 4. While the company is restarting hardware development for the Matterport 4, no specific manufacturing or sourcing geographies for these cameras are provided in the available information. Matterport was founded in Sunnyvale, California.
Sales Geographies And Expansion Plans: CoStar Group currently sells its products and services across a wide range of geographies, with ambitious expansion plans. In the **United States**, all major segments including CoStar, Apartments.com, LoopNet, Homes.com, Land.com, BizBuySell, Ten-X, Matterport, and STR have extensive operations. They also have a significant presence in **Canada**, with LoopNet growing paid listings. The **United Kingdom** is another key market, where CoStar launched public record search in Q2 2026, and OnTheMarket serves as a leading residential portal. In **Europe**, CoStar launched in France in Q2 2026, building on its BureauxLocaux and Business Immo acquisitions, covering major cities like Paris, Lyon, and Marseille. They plan to migrate and upgrade Business Immo subscribers to CoStar over the next two years. **Australia** is a growing market, with Domain performing strongly, and CoStar remains focused on launching CoStar in Australia in the second half of 2026, with 124 researchers and photographers already deployed. They have decided to shift the release of LoopNet in Australia to late 2027, prioritizing residential integration first. The company's broader reach also includes the **Asia Pacific and Latin America** regions.
How Key Themes May Help/Hurt: The buildout of the 'Buying a House '26: Residential Brokerages' theme is a significant opportunity for CoStar Group, particularly through Homes.com. The theme's focus on **AI-Powered Personalization and Predictive Analytics** directly aligns with CoStar's heavy investment in Homes AI and Apartments.com AI, which are driving exceptional user engagement and lead conversion. As residential brokerages increasingly seek efficiency and high ROI from their marketing spend, Homes.com's 'Your Listing, Your Lead' model and demonstrable 11x ROI for agents position CoStar to capture significant market share. The theme also highlights the importance of **AI-driven Efficiency & Reallocation** in brokerages, which CoStar is mirroring internally by optimizing its sales force and leveraging AI for cost savings. However, the theme also implies intense competition and the need for sustained investment in technology and sales force expansion, which could impact CoStar's margins if agent adoption or retention slows. The broader 'AI '25: Data Owners' theme is a strong tailwind, as CoStar's proprietary and specialized real estate data is a key differentiator for its AI models, allowing it to create unique and valuable products like CoStar Rent Benchmark and CoStar Debt Solutions. The focus on tangible monetization and ROI from AI also favors CoStar, as it is already demonstrating measurable results from its AI integrations.

3 Main Long-Term Bull Details

Unrivaled Data Moat and AI Leadership: CoStar possesses a proprietary, verified real estate data moat, built over decades with extensive research and AI abstraction, which is exceptionally difficult for competitors to replicate. The company is aggressively leveraging this by dedicating significant resources to AI-powered features like Homes AI and Apartments.com AI, driving superior consumer engagement and lead conversion. The deep integration of Matterport's digital twin technology further enhances proprietary data and AI innovation across all platforms.
Residential Market Disruption with 'Your Listing, Your Lead' Model: Homes.com is rapidly gaining significant traction with its agent-friendly 'Your Listing, Your Lead' business model, offering extraordinary returns on investment for subscribing agents (average 11x ROI) and accelerating both membership growth and monetization. This strategy directly challenges established incumbents like Zillow by aligning with agents, positioning CoStar to capture a larger and more profitable share of the massive residential market.
Global Expansion and High-Margin Scalability: CoStar is successfully exporting its highly profitable commercial business model and expanding its residential platforms into international markets, demonstrating strong growth in the UK, Canada, and Australia, with new launches in France. This global diversification, combined with the inherent scalability of its digital platforms, provides access to a massive addressable market and a robust 'war chest' generated by its high-margin commercial segment to fund further strategic growth initiatives.

3 Main Long-Term Bear Details

Residential 'Money Pit' Risk: Despite improving profitability, the residential segment remains a substantial 'land grab' that necessitates sustained, heavy marketing expenditures. There is an inherent risk that consumer behavior may not shift sufficiently or quickly enough from established incumbents, potentially leading to significant margin compression if subscriber retention or agent adoption rates slow down. The reduction in Homes.com sales reps and marketing spend indicates ongoing optimization efforts.
Cyclical CRE Exposure and Potential Pricing Pressure: While CoStar's core commercial business has demonstrated resilience, it is not immune to prolonged volatility within the commercial real estate sector. A deeper or extended downturn in office or retail valuations could eventually pressure renewal rates. Additionally, the restructuring of Ten-X due to declining revenue highlights the sensitivity of transactional businesses to market conditions.
Intensifying Competitive and Regulatory/Legal Headwinds: CoStar's aggressive acquisition strategy and dominant market position frequently attract regulatory scrutiny and legal challenges, such as the FTC and state attorney general lawsuits against Zillow (which CoStar is also suing). If key competitors successfully navigate their ongoing legal challenges and effectively adapt their business models, or if new tech-native entrants discover more cost-effective methods to aggregate real estate data, CoStar's competitive advantages could diminish over time.

Competitors And Differentiation: CoStar Group faces competition across its commercial and residential segments. In **commercial real estate**, competitors include other providers of online marketplaces, information, and analytics. CoStar differentiates itself through its comprehensive and proprietary data moat, built over decades with extensive research and AI abstraction, offering a 'first-of-its-kind' data set like CoStar Rent Benchmark. In the **residential market**, Apartments.com competes with players like Zillow. CoStar differentiates Apartments.com by emphasizing superior lead quality and leasing efficiency, with its leads converting at 2.5x the rate of the next closest competitor. For Homes.com, its 'Your Listing, Your Lead' model directly challenges competitors by providing agents with direct leads, and it is rapidly gaining traction with strong ROI for agents. CoStar also leverages its Matterport 3D digital twin technology across its platforms to enhance user experience and engagement. The company is also highly litigious, having sued Zillow for alleged unlawful agreements and unauthorized use of copyrighted photographs.
Recent Performance & What The Market'S Focused On: CoStar Group reported strong Q2 2026 financial results, marking a profitability inflection point. Revenue grew 18% year-over-year to $925 million, its 61st consecutive quarter of double-digit revenue growth. Adjusted EBITDA more than doubled year-over-year to $184 million, the second-highest quarterly level in company history, with a 20% adjusted EBITDA margin. Net income increased by 817%. Notably, the residential segment achieved positive adjusted EBITDA for the first time, reaching $12 million, a $41 million improvement over Q1. Net new bookings for the quarter were $69 million, up 3% sequentially but down approximately 26% year-over-year, which is a point of market focus. The company revised its full-year 2026 revenue guidance to $3.715 billion to $3.755 billion (a 15% YoY increase at the midpoint), a slight reduction from previous guidance, primarily due to the restructuring of Ten-X, optimization of the Homes.com sales force, and maintaining price integrity at Apartments.com. However, CoStar affirmed its full-year adjusted EBITDA guidance range of $780 million to $820 million, expecting to deliver the highest full-year adjusted EBITDA in its history. The market is focused on the balance between revenue growth and profitability, particularly the trajectory of Homes.com's monetization and the impact of sales force optimization and marketing spend reductions on future growth. The pending acquisition of Zonda is also a key event.

Revenue Segments And Estimated Mix: Commercial Real Estate — Mix: ~52.0% ($481 million); Source: Q2 2026 transcript; Trend: Increased 8% year-over-year
Residential Real Estate — Mix: ~48.0% ($444 million); Source: Q2 2026 transcript; Trend: Increased 33% year-over-year, achieved positive adjusted EBITDA for the first time
CoStar (within Commercial) — Mix: ~36.4% ($337 million); Source: Q2 2026 transcript; Trend: Increased 9% year-over-year
Apartments.com (within Residential) — Mix: ~34.4% ($318 million); Source: Q2 2026 transcript; Trend: Increased 9% year-over-year
LoopNet (within Commercial) — Mix: ~9.4% ($87 million); Source: Q2 2026 transcript; Trend: Increased 14% year-over-year
Other Commercial (primarily Ten-X, Matterport, STR, BizBuySell, Land.com) — Mix: ~6.2% ($57 million); Source: Q2 2026 transcript; Trend: Declined 5% year-over-year, primarily due to lower transaction volumes at Ten-X
Homes.com (within Residential) — Mix: ~3.1% ($28.5 million); Source: Q2 2026 transcript; Trend: Increased 66% year-over-year
Domain (within Residential) — Mix: n/m; Source: Q2 2026 transcript; Trend: Strong Q2, 9% year-over-year on a pro forma basis
Matterport Subscription Revenue (within Other Commercial) — Mix: n/m; Source: Q2 2026 transcript; Trend: Grew 16% year-over-year
Product Brands: CoStar Property
CoStar COMPS
CoStar Market Analytics
CoStar Tenant
CoStar Lease Comps and Analysis
CoStar Lease Analysis
CoStar Public Record
CoStar Real Estate Manager
CoStar Risk Analytics
CoStar Investment
CoStar Rent Benchmark
CoStar Debt Solutions
CoStar in France
Apartments.com
ApartmentFinder.com
ForRent.com
ApartmentHomeLiving.com
WestsideRentals.com
AFTER55.com
CorporateHousing.com
ForRentUniversity.com
Apartamentos.com
Off Campus Partners
Apartments.com Ai
LoopNet
LoopNet Premium Lister
LoopNet Diamond Ads
LoopNet Platinum Ads
LoopNet Gold Ads
LandsofAmerica.com
LandAndFarm.com
LandWatch.com
Land.com
BizBuySell.com
BizQuest.com
FindaFranchise.com
Ten-X
HomeSnap
Homes.com
Homes AI
Homes.com rentals
Homes.com Platinum marketing tier
Matterport
Matterport 3 camera
Matterport 4 camera
Matterport E57 import
Matterport digital twin experience
OnTheMarket
Domain
commercialrealestate.com.au
allhomes.com.au
STR
Business Immo
BureauxLocaux
Wikicasa
NewHomeSource (Zonda)
Livabl (Zonda)
Zonda Envision

Bull / Bear Details

CoStar Group is solidifying its global real estate data and AI leadership, leveraging its high-margin commercial business to fuel profitable residential expansi

Thesis

CoStar Group is solidifying its global real estate data and AI leadership, leveraging its high-margin commercial business to fuel profitable residential expansion. As of July 30, 2026, the residential segment achieved positive adjusted EBITDA in Q2, validating its investment. Homes.com demonstrates exceptional agent ROI and consumer engagement via AI, while strategic international growth and a robust data moat, further strengthened by the Zonda acquisition, reinforce a compelling bullish case despite near-term booking softness.

Bull case

Homes.com's "Your Listing, Your Lead" model is proving highly effective, evidenced by 66% Q2 revenue growth, a $116 million annualized run rate, and a significantly reduced monthly cancellation rate of 2.4%. The upcoming Q3 launch of the Platinum marketing tier, CoStar's first depth advertising offering, is expected to accelerate monetization and ARPU expansion, mirroring successful models in Apartments.com and Domain.
CoStar's deep investment in AI and proprietary data continues to yield competitive advantages and operational efficiencies. New offerings like CoStar Rent Benchmark, CoStar Debt Solutions' record bookings (up 96% y/y), and Apartments.com AI's exceptional engagement (3x longer site visits, 256% lead conversion) demonstrate successful product innovation. The Zonda acquisition further expands the data moat in new home construction.
The company achieved a significant profitability inflection point in Q2 2026, with adjusted EBITDA more than doubling year-over-year to $184 million and the residential segment turning profitable. This, combined with disciplined expense management and affirmed full-year EBITDA guidance, validates the long-term investment strategy and demonstrates scalable, profitable growth across global expansion efforts in France and the U.K.

Bear case

Despite the residential segment achieving profitability, overall net new bookings declined 26% year-over-year in Q2, indicating potential challenges in rapid scaling and agent adoption. The optimization of the Homes.com sales force, while aiming for efficiency, involved reducing inside reps, which could impact near-term growth momentum and customer acquisition efforts.
The core commercial business remains exposed to market volatility, as evidenced by the restructuring of Ten-X and its $4 million revenue decline due to lower transaction volumes. In the multifamily market, Apartments.com faces competitive discounting and a mix shift to smaller communities, resulting in largely flat ARPU, despite maintaining price integrity.
The intense competitive landscape, particularly in residential, is highlighted by ongoing lawsuits against Zillow (FTC, state AGs, CoStar's copyright suit). While potentially beneficial long-term, this environment necessitates sustained high marketing spend and aggressive sales tactics, creating execution risks and potential for margin pressure if market share gains or monetization efforts slow.

Bull / Bear Case

Bear Case: Despite achieving residential profitability, CoStar faces significant headwinds. Overall net new bookings declined 26% year-over-year in Q2, indicating potential challenges in rapid scaling and agent adoption, exacerbated by the optimization of the Homes.com sales force. The core commercial business is not immune to market volatility, as seen with Ten-X's restructuring and revenue decline due to lower transaction volumes. In multifamily, Apartments.com faces competitive discounting and a mix shift to smaller communities, leading to largely flat ARPU despite maintaining price integrity. The intense competitive and regulatory landscape, particularly against Zillow, necessitates sustained high marketing spend and aggressive tactics, creating execution risks and potential for margin pressure if market share gains or monetization efforts falter.
Bull Case: CoStar Group is poised for continued growth, leveraging its dominant commercial real estate data moat and aggressive AI investments to drive innovation and efficiency. The residential segment achieved a critical profitability inflection point in Q2 2026, validating its substantial investment. Homes.com's 'Your Listing, Your Lead' model is demonstrating exceptional agent ROI and consumer engagement, with the upcoming Platinum marketing tier expected to significantly accelerate monetization and ARPU. Strategic global expansion in Europe and Australia, coupled with the Zonda acquisition, further expands CoStar's addressable market and data leadership. Disciplined expense management and affirmed full-year EBITDA guidance underscore a commitment to scalable, profitable growth, with AI also contributing to cost savings.
More Compelling & Why: Bear. CoStar's EV/EBITDA multiple, ranging from 41.21x to 49.1x, remains elevated despite a significant stock price decline over the past year and a 26% year-over-year drop in net new bookings in Q2. This premium valuation, coupled with near-term growth moderation and ongoing competitive/macro pressures, suggests limited room for execution missteps. My view would flip if net new bookings consistently re-accelerate, demonstrating that strategic adjustments are translating into robust, profitable top-line growth that justifies the current valuation.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Residential Segment Adjusted EBITDA Performance in Q3 2026	Q2 2026 marked the first quarter of profitability for the residential segment, a significant milestone. Sustaining and growing this profitability in Q3 is crucial to validate the substantial investments made in Homes.com and Apartments.com, demonstrating a clear path to long-term margin expansion and overall company profitability.	Reported Adjusted EBITDA for the Residential segment in Q3 2026. Management's guidance for Q3 is $28 million to $38 million.	Bullish if Q3 2026 Residential Adjusted EBITDA is at or above the guided range of $28 million to $38 million, indicating continued successful monetization and expense management. Bearish if it falls below the guided range or shows signs of deceleration.	Q3 2026 earnings call (expected late October 2026), company press release.	Industry reports on multifamily rental market conditions (e.g., absorption rates, concession levels) from NAHB, NMHC, or local real estate boards.
LoopNet Paid Listings Growth and Average Revenue Per Listing (ARPL) from Asset-Based Pricing	LoopNet's asset-based pricing strategy is successfully driving adoption across different listing values and contributing to sequential net new bookings acceleration. Continued growth in paid listings and ARPL indicates effective monetization and market penetration in commercial real estate, contributing to the commercial segment's overall revenue growth.	Reported growth in U.S., Canadian, and U.K. paid listings. Trends in average revenue per property/listing. Sequential acceleration of net new bookings for LoopNet.	Bullish if LoopNet paid listings continue to grow at strong rates (e.g., >9% y/y in U.S., >24% in Canada, >52% in U.K.) and ARPL shows positive trends, indicating successful value capture from the asset-based pricing model. Bearish if paid listings growth decelerates significantly or ARPL declines.	Future earnings calls, investor presentations.
Completion of the Zonda Acquisition	Zonda is a leading provider of new home construction data, analytics, and marketplaces. Its acquisition expands CoStar's data moat into the new homes market, a significant growth area, and is expected to be accretive. The closing will integrate valuable data assets and potentially lead to updated, more robust financial guidance for CoStar Group.	Official announcement of the closing of the Zonda acquisition. The company expects the transaction to close in the second half of 2026.	Bullish if the acquisition closes as expected in H2 2026, signaling successful expansion into a new, valuable data segment and potential for updated, accretive financial guidance. Bearish if the closing is delayed or faces unexpected regulatory hurdles.	Company press releases, SEC filings (8-K), CoStar Group investor relations website.	News articles and industry publications covering M&A in the real estate data sector.
Homes.com Platinum Marketing Tier Launch and Adoption of Depth Advertising	This is Homes.com's first depth advertising offering, a critical monetization step expected to generate the majority of future Homes.com revenue, similar to Apartments.com and Domain. Successful adoption validates the business model and drives average revenue per user (ARPU) expansion, significantly impacting the residential segment's profitability and overall growth.	Rollout of the Platinum marketing tier in Q3 2026. Initial pricing multiples over standard listings. Number of agents subscribing to Platinum ads. Revenue contribution from Platinum ads in Q3 and Q4 2026.	Bullish if Platinum ads are priced at significant multiples over standard listings and show strong initial agent uptake, leading to accelerated ARPU growth and increased revenue contribution. Bearish if adoption is slow or pricing power is weaker than expected.	Q3 2026 earnings call (expected late October 2026), company press releases, investor presentations.	Google Trends: 'Homes.com Platinum,' 'Homes.com advertising.' Real estate agent forums/subreddits (e.g., r/realtors) for agent sentiment and discussion.	Similarweb/Semrush: Homes.com traffic, engagement metrics (pages per visit, average session duration). Thinknum: Homes.com job postings for sales roles related to depth advertising.
Continued Engagement with Apartments.com AI and Expansion of ChatGPT Partnership	Strong user engagement with AI features like Apartments.com AI and strategic partnerships such as with ChatGPT enhance lead quality, conversion rates, and overall user experience. This reinforces Apartments.com's market leadership and competitive differentiation, driving traffic and ultimately revenue in a competitive multifamily rental market.	Updates on Apartments.com AI user sessions, time on site, listings viewed, 3D tour usage, and traffic to lead conversion. Further expansion of the ChatGPT partnership beyond 500 markets.	Bullish if Apartments.com AI engagement metrics continue to show significant improvement (e.g., sustained 3x longer site visits, 256% traffic to lead conversion) and the ChatGPT partnership expands further, demonstrating successful innovation and market capture. Bearish if engagement metrics plateau or decline, or if the partnership does not yield significant traffic/leads.	Future earnings calls, investor presentations, company product announcements.	Criteo reports on Apartments.com visibility in ChatGPT (if publicly shared).	Similarweb/Semrush: Apartments.com traffic, engagement metrics, referral sources (to identify ChatGPT impact).

Key Reported Metrics, Reratings Triggers & Results3 rows

The Residential segment achieved positive adjusted EBITDA in Q2 2026 for the first time since its launch, signaling a critical inflection point for profitabilit

Upcoming print · 2026-10-27

Key reported metrics
Metric	Last period	Why it matters
Residential Segment Adjusted EBITDA	N/A	The Residential segment achieved positive adjusted EBITDA in Q2 2026 for the first time since its launch, signaling a critical inflection point for profitability. Its sustained positive performance is essential to validate the significant investment in residential expansion.
Homes.com Revenue	66%	Homes.com is CoStar's fastest-growing segment and central to its residential strategy. Continued strong revenue growth, especially with the Q3 launch of the Platinum marketing tier, will validate its market disruption and monetization efforts, driving overall company expansion.
Adjusted EBITDA	116%	Adjusted EBITDA is crucial as it tracks overall profitability and the impact of aggressive residential expansion. Management is guiding for the highest full-year adjusted EBITDA in company history, making its continued growth a key indicator of financial health and a rerating threshold.

Last reported · 2026-07-28

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
Adjusted EBITDA	100%	Achieving these Adjusted EBITDA targets is crucial as it validates the Homes.com investment strategy, proving the residential 'land grab' is yielding scalable, profitable results. It signals a significant inflection point, reassuring investors that the high-margin commercial business will no longer be offset by residential losses, thereby justifying a higher valuation multiple.	For CoStar Group (CSGP) to rerate higher, the Residential segment's Adjusted EBITDA for Q2 2026 must be positive and at or above management's guided range of breakeven to $10 million. Additionally, the company needs to report a consolidated Adjusted EBITDA margin narrowing to better than -15%, and management must further increase its full-year 2026 Adjusted EBITDA guidance from the current range of $780 million to $820 million.	Achieving these Adjusted EBITDA targets is crucial as it validates the Homes.com investment strategy, proving the residential 'land grab' is yielding scalable, profitable results. It signals a significant inflection point, reassuring investors that the high-margin commercial business will no longer be offset by residential losses, thereby justifying a higher valuation multiple.	2026-07-28	Consolidated Adjusted EBITDA: $184 million (100% y/y growth). Residential Adjusted EBITDA: $12 million. Consolidated Adjusted EBITDA margin: 20% (+9.0pp). Full-year 2026 Adjusted EBITDA guidance: Affirmed at $780 million to $820 million.	Partially	The Residential segment's Adjusted EBITDA of $12 million was positive and exceeded the guided range of breakeven to $10 million. The consolidated Adjusted EBITDA margin of 20% was significantly better than the -15% threshold. However, management affirmed the full-year 2026 Adjusted EBITDA guidance rather than increasing it, missing one aspect of the rerating trigger. Management highlighted Q2 as a 'profitability inflection point' and noted consolidated Adjusted EBITDA was 'above the high end of our guidance range'.
Homes.com Revenue	58%	Sustaining high Homes.com revenue growth and achieving residential segment profitability validates the significant investment in Homes.com, proving its 'Your Listing, Your Lead' model can capture market share from Zillow. This shifts the narrative from a capital-intensive 'money pit' to a scalable, high-growth engine, justifying a higher valuation multiple and addressing investor skepticism about the long-term ROI of residential expansion.	For CoStar Group (CSGP) stock to rerate higher, Homes.com revenue needs to sustain its year-over-year growth rate above 50% (compared to the current 58% in Q1 2026). Additionally, Homes.com's performance must enable the Residential segment to achieve Adjusted EBITDA profitability in Q2 2026, with management guiding between breakeven and $10 million. This also requires Homes.com net new bookings to exceed Q1's $11 million, demonstrating continued agent adoption and successful integration of the May 1st price increase without materially slowing new customer acquisition.	Sustaining high Homes.com revenue growth and achieving residential segment profitability validates the significant investment in Homes.com, proving its 'Your Listing, Your Lead' model can capture market share from Zillow. This shifts the narrative from a capital-intensive 'money pit' to a scalable, high-growth engine, justifying a higher valuation multiple and addressing investor skepticism about the long-term ROI of residential expansion.	2026-07-28	Homes.com revenue: $28.5 million (66% y/y growth). Residential segment Adjusted EBITDA: $12 million. Homes.com net new bookings: Consistent with Q1 ($11 million).	Partially	Homes.com revenue grew 66% year-over-year, exceeding the 50% growth target. The Residential segment achieved positive Adjusted EBITDA of $12 million, surpassing the breakeven to $10 million guidance. However, Homes.com net new bookings were reported as 'consistent with Q1', meaning they did not exceed Q1's $11 million, which was a specific requirement for the rerating trigger.
Net New Bookings	20%	Hitting this threshold would validate the effectiveness of CoStar's sales force and the traction of its new products, particularly Homes.com's 'Your Listing, Your Lead' model and AI features. Strong bookings are a primary leading indicator for future subscription revenue growth, signaling that substantial investments in the residential segment are yielding scalable results and moving towards profitability, thereby justifying a higher valuation and addressing market concerns over sequential bookings performance.	CoStar Group's overall Net New Bookings need to achieve a year-over-year growth rate of at least 25%, accelerating from Q1's 20% growth. This should translate to an absolute value exceeding $75 million for the quarter, demonstrating strong sequential growth from Q1's $67 million. Additionally, Homes.com net new bookings should surpass Q1's $11 million.	Hitting this threshold would validate the effectiveness of CoStar's sales force and the traction of its new products, particularly Homes.com's 'Your Listing, Your Lead' model and AI features. Strong bookings are a primary leading indicator for future subscription revenue growth, signaling that substantial investments in the residential segment are yielding scalable results and moving towards profitability, thereby justifying a higher valuation and addressing market concerns over sequential bookings performance.	2026-07-28	Overall Net New Bookings: $69 million (-26% y/y growth). Homes.com net new bookings: Consistent with Q1 ($11 million).	No	Overall Net New Bookings for Q2 2026 were $69 million, which was below the $75 million target and represented a 26% year-over-year decline, failing to meet the required 25% year-over-year growth. Additionally, Homes.com net new bookings were consistent with Q1 at approximately $11 million, not surpassing it. Management attributed the softness to the restructuring of Ten-X and strategic decisions at Homes.com and Apartments.com.

Key Questions

Will Homes.com's rollout of its Platinum marketing tier and depth advertising in Q3 successfully accelerate ARPU expansion and overall residential revenue growt

Will Homes.com's rollout of its Platinum marketing tier and depth advertising in Q3 successfully accelerate ARPU expansion and overall residential revenue growth, validating its monetization strategy?

Question 2: Can the Residential segment sustain and grow its adjusted EBITDA profitability in Q3 2026, as guided to $28 million to $38 million, demonstrating consistent progress towards long-term margin targets despite ongoing investments and competitive pressures?
Question 3: Will net new bookings show a significant year-over-year improvement in Q3 2026, demonstrating that the strategic adjustments in Homes.com sales force, Ten-X restructuring, and Apartments.com's price integrity strategy are effectively driving future revenue growth?

Earnings Transcript Summary3 rows

2026-07-28 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Profitability and EBITDA Growth: Management highlighted Q2 2026 as a "profitability inflection point," with adjusted EBITDA more than doubling year-over-year to $184 million and confirming expectations for the highest full-year adjusted EBITDA in company history. They emphasized disciplined expense management and achieving a 20% adjusted EBITDA margin a quarter ahead of expectations. 2. Strategic Investment in AI and Product Innovation: Andy Florance detailed numerous product launches and advancements, including CoStar Rent Benchmark, CoStar in France, U.K. public record search, AI-powered lease abstraction, Matterport 4 prototypes, and Apartments.com AI. They also mentioned the Zonda acquisition to enhance new home construction data. 3. Optimizing Sales Force Productivity and Go-to-Market Strategy: Management discussed restructuring Ten-X, optimizing the Homes.com sales force by reducing inside reps and expanding field teams for higher productivity, and maintaining price integrity at Apartments.com despite competitive discounting. This focus aims to drive long-term profitable growth.	Call Takeaway & ToneThe call highlighted CoStar Group's achievement of a significant profitability inflection point in Q2 2026, driven by strong adjusted EBITDA growth and disciplined expense management. While there were some near-term revenue adjustments due to strategic optimizations in Ten-X, Homes.com, and Apartments.com, management expressed strong confidence in their long-term growth initiatives, particularly in AI-powered products and global expansion. The company is committed to its long-term EBITDA targets. The tone was largely confident and strategic, with management emphasizing their focus on profitable growth and the long-term value of their investments. There was an underlying combative stance regarding competition, particularly with Zillow in the residential market, and a clear message of discipline in expense management and sales force optimization.	Prior Quarter'S Y/Y Growth By SegmentTotal Revenue: 23% year-over-year. Commercial Business: 15% year-over-year. CoStar revenue: 9% year-over-year. LoopNet revenue: 16% year-over-year. Other commercial revenue (Matterport subscription revenue): 81% year-over-year (Matterport subscription revenue up 19% year-over-year). Residential revenue: 32% year-over-year. Apartments.com: 10% year-over-year. Homes.com: 58% year-over-year. Land.com: 8% year-over-year. Domain Australia (core Residential): 11% year-over-year. BizBuySell: Not explicitly detailed for Q1 2026.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Net New Bookings Decline and Revenue Guidance Revision: Analysts questioned the Q2 net new bookings of $69 million (up 3% sequentially but down 26% year-over-year) and the reduction in full-year revenue guidance. Management attributed the softness primarily to the restructuring of Ten-X (transactional business) and strategic decisions at Homes.com (sales force optimization) and Apartments.com (maintaining price integrity). They expressed confidence in future growth driven by new product launches and sales force expansion. 2. Apartments.com Growth Deceleration and Pricing Pressure: Analysts inquired about the deceleration in Apartments.com's growth and potential pressure on pricing per community, including tier downgrades, due to macro conditions and competition. Management acknowledged the stressed multifamily market and aggressive competitor discounting but affirmed their commitment to price integrity, citing Apartments.com's 2.5x lead-to-lease conversion rate and strong property growth (up 12% y/y). They believe their superior ROI will win out. 3. Homes.com Sales Force Optimization and Scaling Expectations: Analysts pressed on the changes to the Homes.com sales force (reducing inside reps, expanding field teams) and whether this impacts the timeline to scale the business or customer acquisition costs. Management explained that the shift to field sales is for higher productivity (2x that of inside sales) and better-profile hires, which is a natural evolution for a maturing sales force. They stated the fundamental strategy remains the same and they are optimizing for profitability without materially changing the time to scale.	Revenue SegmentsTotal Revenue: $925 million, an 18% increase year-over-year. Commercial Real Estate Business: $481 million, an 8% increase year-over-year. CoStar revenue: $337 million, up 9% year-over-year. LoopNet revenue: $87 million, up 14% year-over-year. Other commercial revenue: $57 million, down 5% year-over-year. Matterport subscription revenue: Grew 16% year-over-year. BizBuySell revenue: Grew 5% year-over-year. Residential revenue: $444 million, up 33% year-over-year. Apartments.com: $318 million, up 9% year-over-year. Homes.com revenue: $28.5 million, grew 66% year-over-year. Domain in Australia (pro forma): Grew 9% year-over-year. Domain Core residential revenue (excluding developers, agent solutions, print): Increased 15% year-over-year. Land.com revenue: Grew 9% year-over-year.

2026-04-28 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Delivering exceptional financial performance: Management highlighted Q1 2026 as an exceptional quarter with the 60th consecutive quarter of double-digit revenue growth, adjusted EBITDA doubling, and being on track for the highest full-year adjusted EBITDA in CoStar Group's history. 2. Homes.com investment and AI innovation: Management emphasized that the Homes.com investment is delivering as promised, with extraordinary returns for member agents, high consumer engagement with Homes AI (4x longer time on site for AI users), and Homes.com being the fastest-growing residential portal in the U.S. 3. Driving EBITDA growth and margin expansion: With the 'activist distraction' behind them, management is now more focused than ever on growing EBITDA, improving sales force productivity, and leveraging AI to find efficiencies and accelerate customer onboarding and support.	Call Takeaway & ToneThe overall takeaway of the call was highly positive and confident. CoStar Group delivered strong Q1 2026 results, exceeding guidance for adjusted EBITDA and demonstrating robust revenue growth across segments. Management emphasized the successful execution of the Homes.com strategy, highlighting significant agent ROI and consumer engagement driven by Homes AI. The tone was forward-looking, with a clear focus on accelerating EBITDA growth, leveraging AI across all platforms, and expanding internationally, particularly now that 'activist distraction' is behind them.	Prior Quarter'S Y/Y Growth By SegmentTotal Revenue: 27% year-over-year. Commercial segment (as a group): 20% year-over-year. CoStar revenue (CoStar Suite): 10% year-over-year. Residential revenue: 35% year-over-year. Apartments.com: 11% year-over-year. Homes.com: 63% year-over-year (full year 2025 revenue growth). CoStar Canada: 21% year-over-year. Specific Q4 2025 year-over-year growth rates for LoopNet, Land.com, Domain Australia, CoStar U.K., and Other commercial (Matterport) were not explicitly detailed in the prior quarter's earnings summary.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Bookings trends and translation to revenue: Analysts questioned if the $67 million in net new bookings was in line with expectations and how bookings translate into revenue growth, especially given sequential declines. Management responded that Q1 bookings were broadly in line, reaffirmed revenue and increased EBITDA guidance, explained the components of subscription vs. non-subscription revenue, and reiterated commitment to 2028 and 2030 EBITDA targets. They also noted Q1 is typically a lighter bookings quarter and Q2 is usually the strongest. 2. Apartments.com revenue growth moderation and pricing: Analysts asked about the sequential moderation in Apartments.com's revenue growth to 10% year-over-year and what would drive reacceleration. Management attributed some moderation to winning lower ARPU rooftops from Rent.com during a share shift opportunity. They believe continued sales force growth, strengthening single-family presence through Homes.com syndication, and new AI features like Smart Search and Apartments AI will improve the growth rate. 3. Sales force productivity and resource deployment: Analysts inquired about ramp times, quota attainment, and where incremental sales resources would be deployed. Management detailed varying productivity by brand, the multi-year ramp-up for sales reps (especially Homes.com's relatively junior sales force), and plans to grow field sales for Homes.com (50 more reps in batches of 5 cities) and Apartments.com, as well as the Matterport sales team. They also indicated that the Homes.com product is currently underpriced given the value delivered.	Revenue SegmentsTotal Revenue: 23% year-over-year. Commercial Business: 15% year-over-year. CoStar revenue: 9% year-over-year. LoopNet revenue: 16% year-over-year. Other commercial revenue: 81% year-over-year (Matterport subscription revenue up 19% year-over-year). Residential revenue: 32% year-over-year. Apartments.com: 10% year-over-year. Homes.com: 58% year-over-year. Land.com: 8% year-over-year. Domain Australia (core Residential): 11% year-over-year. CoStar U.K.: 25% year-over-year. CoStar Canada: 22% year-over-year.

2025-10-28 · 2025Q3 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. AI Integration and 'Smart Search': Management is allocating 50% of Homes.com software development to AI, specifically launching AI Smart Search which has already driven a 51% increase in leads and 5x higher user return rates. 2. Residential Market Disruption: Scaling the 'Your Listing, Your Lead' model on Homes.com to gain market share from Zillow, which management highlighted as being 'under siege' from multiple federal and antitrust lawsuits. 3. Strategic Integration of Acquisitions: Rapidly integrating Domain (Australia) and Matterport to digitize the global real estate market, with Matterport bookings already up 194% y/y.	Call Takeaway & ToneTakeaway: CoStar is successfully transitioning from a commercial-only powerhouse to a diversified global real estate data and AI leader. The company is capitalizing on its proprietary data moat to launch agentic AI features while aggressively attacking Zillow's business model during a period of regulatory weakness for the incumbent. Tone: Highly confident, aggressive, and combative toward competitors.	Prior Quarter'S Y/Y Growth By SegmentCoStar: 7% y/y; Apartments.com: 13% y/y; LoopNet: 7% y/y; Residential: 40% y/y; Information Services: 10% y/y; Total Revenue: 12% y/y.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Booking Seasonality and Trajectory: Analysts questioned the sequential dip in total bookings; Management responded that the decline was seasonal following the major NAA event in Q2, while Homes.com bookings actually accelerated 53% quarter-over-quarter. 2. Sales Force Productivity: Analysts asked about the ramp-up time for the 500+ new sales reps; Management stated that productivity per rep is at its highest level since 2023 and the ROI on new hires remains very strong. 3. AI Spending and 2026 Margins: Analysts pressed on whether the AI pivot would increase costs; Management clarified that the AI focus is a reallocation of existing resources and they anticipate flat or lower investment spending for Homes.com in 2026.	Revenue SegmentsCoStar: 8% y/y; Apartments.com: 11% y/y; LoopNet: 12% y/y; Residential: 31.3% y/y; Information Services: 19% y/y; Total Revenue: 20% y/y.

Transcript Tidbits3 rows

2026-07-28

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketCoStar Debt Solutions delivered its best quarter ever with over $4 million in net new monthly bookings, up 96% year-over-year, by providing differentiated risk analytics to commercial real estate lenders. The company launched CoStar Rent Benchmark, a first-of-its-kind data set built from 4 million AI abstracted actual leases, with plans to build similar solutions in Australia and the United Kingdom. CoStar expanded its international presence by launching in France, covering office, logistics, and hospitality across major cities, and released public record search in the U.K., providing extensive transparency into 6.9 million ownership titles. Matterport strengthened its position as a unified platform for 3D spatial data with the full release of E57 import. LoopNet expanded its sales force and is driving adoption among lower-value listings while capturing more value from higher-value listings through asset-based pricing. Investment in Wikicasa in Italy creates the opportunity to add Italian coverage to LoopNet, partnering with dozens of Italy's largest brokerage firms. STR continued its market expansion, with nearly 70% of its net new revenue coming from brand-new logo sales globally. BizBuySell is expanding its business with benchmarking tools and by partnering with SBA lenders to embed financing into the marketplace. Homes.com plans to roll out its platinum marketing tier in the third quarter, its first depth advertising offering, which is expected to be priced at multiples over standard listings. CoStar announced an agreement to acquire Zonda, a leading provider of new home construction data, analytics software, and online marketplaces, expected to close in the second half of this year.	About CompetitionApartments.com is holding firm on price integrity, despite a competitor aggressively discounting to buy share, believing their quality gap is measurable. PERQ, a digital marketing analytics firm, found that Apartments.com leads convert at 2.5x the rate of the next closest competitor. Google Analytics reported Apartments.com traffic up 7% year-over-year in June, while comScore reported June visits to Zillow's network declined 35% year-over-year. Apartments.com remains the most recognizable brand in apartment search with 66% unaided consumer awareness, 25 points ahead of its nearest competitor. The FTC and multiple state attorney generals have sued Zillow for allegedly entering an unlawful agreement that reduced competition in multifamily rental advertising, and CoStar Group has separately sued Zillow for unauthorized use of tens of thousands of CoStar-owned copyright apartment photographs. OnTheMarket, CoStar's U.K. residential portal, increased its total property inventory by 12%, surpassing Zoopla and becoming the second largest property portal in the U.K. by inventory for the first time. Apartments.com has greater visibility in ChatGPT than any other competitor, according to Criteo.	About The Broader IndustryThe U.S. multifamily market is currently stressed due to elevated supply, leading to increased price sensitivity among property owners. Q2 absorption remained strong at approximately 139,000 units, though down 3% year-over-year, while 2026 deliveries are projected to decline 23%. Concessions remain widespread in the multifamily market, with roughly 40% of communities offering incentives. In this environment, property owners are increasingly focused on lead quality and leasing efficiency.	Where Things Are HeadedCoStar Group expects to deliver the highest full year adjusted EBITDA in its history in 2026, confirming its full year guidance range of $780 million to $820 million, and anticipates two consecutive quarters of its highest ever adjusted EBITDA. Ten-X will be separated from LoopNet with dedicated sales, marketing, and leadership to more effectively drive growth. CoStar plans to build similar high-quality rent solutions in Australia and the United Kingdom, following the launch of CoStar Rent Benchmark. Over the next two years, CoStar plans to migrate and upgrade roughly 1,100 Business Immo subscribers to the CoStar platform in France. The company remains focused on launching CoStar in Australia in the second half of this year. Matterport will deploy a new pricing plan that reduces the price of the Matterport 3 camera and shifts more revenue into SaaS, aiming to accelerate adoption and subscription revenue growth. The next-generation Matterport 4, offering higher measurement location accuracy and resolution, is anticipated to be delivered in late 2027. The release of LoopNet in Australia has been shifted to late 2027, prioritizing residential integration first to achieve significant potential margin enhancements sooner. By the end of 2026, every tool independent owners use on Apartments.com is expected to also be available on Homes.com. In the third quarter, Homes.com plans to roll out its platinum marketing tier, its first depth advertising offering, with platinum ads expected to be priced at multiples over standard listings. The majority of Homes.com revenue is expected to be generated by depth advertising in the future. CoStar expects to finalize all divestitures of noncore software assets in Australia by the end of 2026. The acquisition of Zonda is expected to close in the second half of this year. For Q3 2026, CoStar is guiding revenue to range between $935 million and $945 million, and adjusted EBITDA to range from $190 million to $210 million. The full year 2026 revenue guidance has been revised to $3.715 billion to $3.755 billion, while the adjusted EBITDA guidance of $780 million to $820 million has been affirmed. The company is committed to its adjusted EBITDA targets for 2026 through 2030.	Updates On ThemeResidential	Broader Themes EmergingAI-driven efficiency and cost savings are emerging as a significant theme, with CoStar noting more cost savings from AI than cost increases from tokens, and anticipating further labor savings from AI-powered tools like lease abstraction and coding efficiencies. There is a strategic shift in sales force optimization towards field teams for higher productivity, as seen with Homes.com and Apartments.com, where field staff typically achieve about 2x the productivity of inside sales staff. The monetization of digital platforms through depth advertising is a key emerging strategy, with Homes.com rolling out its platinum marketing tier, following the successful model of Apartments.com and Domain, where depth advertising is expected to generate the majority of revenue.	Bullish-Leaning Quotes (Short)adjusted EBITDA more than doubled year-over-year to $184 million. This is the second highest quarterly level in company history. We generated $925 million of revenue in the second quarter, an 18% increase year-over-year. That is our 61st consecutive quarter of double-digit revenue growth. Net income increased by 817% and EBITDA rose 441%. We expect to deliver the highest full year adjusted EBITDA in CoStar Group's history in '26. CoStar Debt Solutions delivered its best quarter ever with over $4 million in net new monthly bookings, up 96% year-over-year. Early customer response has been very encouraging. Within days of launch, we signed our first major global brokerage customer's French business. Matterport performed well in the second quarter. Subscription revenue grew 16% year-over-year. LoopNet generated $87 million of revenue in Q2, up 14% year-over-year. STR delivered a strong Q2 with nearly 70% of its net new revenue coming from brand-new logo sales. Our residential segment to a positive adjusted EBITDA in Q2. Apartments.com delivered $318 million of revenue in the second quarter, up 9% year-over-year. June's gross sales were the third highest sales month in Apartments.com history. Apartments.com leads convert at 2.5x the rate of the next closest competitor. Homes.com revenue grew 66% year-over-year to $28.5 million in Q2, and the annualized run rate reached $116 million at the quarter end, up 78% year-over-year. Our monthly cancel rate dropped again to just 2.4% in June, our lowest yet, down from 6.5% in June of '25. Homes.com organic traffic is up 115% year-to-date. Domain in Australia delivered a strong Q2, growing revenue 9% year-over-year on a pro forma basis. Q2 was another strong quarter for on the market, our U.K. residential portal. Total property inventory increased 12%, surpassing Zoopla and now for the first time, making on market the second largest property portal in the U.K. by inventory. Financially, this is a highly strategic deployment of capital. Adjusted EBITDA was $184 million for the quarter, above the high end of our guidance range and represented a 20% adjusted EBITDA margin. This is an impressive 900 basis point increase year-over-year. We're excited about additional product launches and the investments we've made on the commercial side primarily that are coming in the next four to six quarters. in June, our demo to close rate, I believe, was 45% number I saw. So that's an incredible close rate. so far, I believe we have more cost savings from AI than we have cost increases from tokens.	Bearish-Leaning Quotes (Short)Overall, commercial revenue accelerating growth was partly offset by Ten-X, where we have been restructuring the business for future growth and cost control. During this restructuring, revenue declined by $4 million. We have decided to shift the release of LoopNet in Australia to late 2027. BizBuySell revenue grew a moderate 5% year-over-year. Average revenue per property was largely flat, just down about 3.6% year-over-year. The decline was primarily due to a mix change in sales to smaller communities. The U.S. multifamily market is stressed and continues to work through elevated supply, making owners more price sensitive. concessions remain widespread with roughly 40% of communities offering incentives. Net new bookings for the quarter were $69 million, up 3% from the first quarter. That was up 3% sequentially, but down roughly 26% year-over-year. The change in guidance really was primarily driven by Ten-X, which as you know, is a transaction business. We are less than thrilled with results that we've seen through time on linear TV and some of the streaming, and we're finding -- and we're shifting a little bit more to SEM and digital.	HiringCoStar Group held its increase in operating costs to just 2% year-over-year while continuing to invest in long-term growth initiatives. The restructuring of Ten-X enabled a cost reduction of $7 million year-to-date. CoStar has 124 researchers and photographers deployed on the ground in Australia for its upcoming launch. The LoopNet sales force was expanded to 225 reps, up from 191 a year ago. CoStar is optimizing its Homes.com sales force for efficiency and productivity, reducing inside sales reps from 660 at the end of Q4 2025 to about 400 today, while retaining top producers. The company is expanding its Homes.com field team to 50 reps focused on five major metros (Washington D.C., Tampa, Atlanta, Dallas, and Chicago), with plans for further expansion. The new consolidated headquarters campus in Richmond, Virginia, allows CoStar to scale from 2,500 employees today to 4,000 with limited capital cost and no additional construction. Sales headcount at June 30 was 1,975, up 8% year-over-year and roughly flat on an organic basis, with increases in LoopNet and apartment sales staff offset by the strategic reduction of Homes.com sales reps. CoStar believes it has more cost savings from AI than cost increases from tokens, particularly from labor savings through AI-powered lease ingestion and other efficiencies. Recruiting was purposely slowed down until the new facility was ready, and CoStar believes it can now out-recruit just about any company.

2026-04-28

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketCoStar is launching a net effective rent benchmark product this summer and a new homes module in Q2. CoStar Debt Solutions is on track to launch CRE debt benchmarking in H2 '26 and loan origination workflow in Q1 '27. International expansion includes CoStar France launching in Q2, and CoStar and LoopNet launching in Australia in Q3 and Q4. LoopNet's asset-based pricing has opened up new inventory and attracted smaller advertisers. BizBuySell is being transformed into an end-to-end transaction platform. Homes.com is now the fastest-growing rental site in the U.S. and will integrate all Apartments.com features by end of 2026. Homes.com has also generated $3.3 million in annualized net new bookings from new homebuilders, with data feeds covering 75% of U.S. production new home activity. Land.com net new bookings hit a record, up 126% year-over-year. OnTheMarket has eclipsed Zoopla as the U.K.'s #2 portal by inventory and has more new home listings than Rightmove, boosted by signing the Connells Group.	About CompetitionCoStar U.K.'s growth was supported by the 'recollapse of one of our primary competitors there'. Apartments.com network unique visitors were up 3% year-over-year in March, while Zillow unique visitors were down 5% year-over-year, and Zillow's expanded rental network was down 3%. Zillow has seen unique visitors decline year-over-year for 15 consecutive months. Homes.com hit its current revenue levels faster than U.S. competitors did at their start. OnTheMarket has eclipsed Zoopla as the U.K.'s #2 portal by inventory and now has more new home listings than Rightmove.	About The Broader IndustryOverall rental search demand remains soft. Six states already require rental price transparency, and the FTC concluded its public comment period on similar rules. The Australian market is highly cyclical, with Q1 being seasonally soft. Improving commercial real estate market conditions are indicated by strong broker and tenant sales for CoStar.	Where Things Are HeadedCoStar Rent Benchmark launches this summer, and CoStar New Homes Phase 1 is planned for Q2. CoStar Debt Solutions will launch CRE debt benchmarking in H2 '26 and loan origination workflow in Q1 '27. CoStar France launches in Q2, and CoStar and LoopNet will launch in Australia in Q3 and Q4. AI lease abstraction capabilities will extend to CoStar Real Estate Manager later this year. Apartments AI, a conversational search experience, will launch ahead of the June Apartmentalize trade show. By the end of 2026, all Apartments.com tools will be available on Homes.com. Adjusted EBITDA is now expected to range from $780 million to $820 million for full year 2026, an increase of $30 million at its midpoint. The company is committed to delivering double-digit revenue growth and significant earnings expansion through 2030 and beyond. OnTheMarket will continue building AI search functionality and integrate into the Homes.com software environment in 2027.	Updates On ThemeData	Broader Themes EmergingAI integration into operational efficiencies and internal processes, with the deployment of 'multiple AI agents internally' for customer onboarding, support, and automation. A shift in user interaction paradigms towards natural language and voice search, exemplified by Apartments.com's 'Smart Search' and 'AI-powered voice search'. An emerging regulatory trend impacting the real estate industry, with several states already requiring rental price transparency and the FTC considering similar rules.	Bullish-Leaning Quotes (Short)This was an exceptional quarter. We delivered our 60th consecutive quarter of double-digit revenue growth. Our adjusted EBITDA doubled, and we're on track for the highest full year adjusted EBITDA in CoStar Group's history. Homes.com is the fastest-growing residential portal in the United States. Q1 net bookings of $67 million were up 20% year-over-year. On average, a Homes.com subscriber earned $36,400 more in commissions in their first year as a member. For CoStar Group as a whole, this is the fastest organic revenue build we've ever achieved for a new product. When consumers experience Homes AI, they spend roughly 4x longer than they do on conventional residential search. The strategy is working. I've never been more confident in our plan to deliver double-digit revenue growth and significant earnings expansion through 2030 and beyond.	Bearish-Leaning Quotes (Short)The activist distraction is behind us. The activist campaign over the last year did weigh heavily on Homes.com sales and potential partnerships. Google, overall rental search demand remains soft. Zillow has now seen unique visitors decline year-over-year for 15 consecutive months. Our first quarter tends to be a little lighter.	HiringProductivity is expected to build from sales reps hired throughout 2025. Sales headcount at the end of March was 2,090, with Homes.com having 570 reps, Apartments.com 520, CoStar 475, and LoopNet 225. The company will be adding reps for other brands throughout the remainder of the year. For Homes.com, there's a focus on driving productivity and efficiency in 2026, and the company will continue to grow its field sales force, adding about 50 more folks in batches of 5 cities at a time, as they are more productive than inside sales. New homes advertising salespeople at Homes.com are also highly productive. The Apartments.com and LoopNet field sales teams are expected to continue growing at a measured pace. The Matterport sales team is growing in measured batches of approximately 20 per quarter. Efficiencies from AI are contributing to lower personnel costs.

2025-10-28

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketCoStar is aggressively expanding its TAM through several vectors: the Homes.com 'Boost' product for homeowners alone represents a $2 billion U.S. TAM. The company is scaling its 'Lender' business, which reached a $100 million revenue milestone and is expanding into loan origination systems. International expansion is a major focus following the $1.9 billion Domain acquisition in Australia and the integration of French listings into LoopNet. Management believes digitizing the $350 trillion global real estate market creates a $1 trillion addressable market opportunity.	About CompetitionManagement describes primary competitor Zillow as being 'under siege' from five federal lawsuits and an FTC suit regarding multifamily advertising. CoStar claims a superior business model by not using 'lead diversion,' allowing them to sell to over 50% of agents compared to competitors who are limited to roughly 5%. Homes.com reportedly has 5x the number of marketed listings (130,000) compared to Zillow's Showcase product (24,500). In Australia, CoStar plans to use its technology to help Domain compete more effectively against market leader REA Group.	About The Broader IndustryThe industry is shifting from traditional SEO to AEO (Answer Engine Optimization) and GEO (Generative Engine Optimization). While GEO currently accounts for less than 1% of top-of-funnel traffic, it is expected to become a major feed. There is a broader move away from iBuying and lead diversion models toward pure marketing and digital twin integration. Management notes that general-purpose AI models often fail in real estate, necessitating specialized vertical solutions built on proprietary data.	Where Things Are HeadedCoStar is pivoting 50% of its Homes.com software development effort toward AI-empowered features, including 'Smart Search.' The company is targeting long-term adjusted EBITDA margins of over 40% for its residential portals. Strategic plans include launching a commercial loan origination system in 2026 and integrating CoStar Real Estate Manager with the CoStar Suite by late 2026. LoopNet is expected to return to 20%+ annual growth rates in the near future.	Updates On ThemeData	Broader Themes EmergingThe emergence of AEO (Answer Engine Optimization) and GEO (Generative Engine Optimization) as successors to traditional Search Engine Optimization (SEO) for digital marketplaces.	Bullish-Leaning Quotes (Short)Homes.com is now the fastest-growing revenue product we've ever launched.; 58th consecutive quarter of double-digit revenue growth.; We have 5x the number of listings marketed or boosted on our site [vs Zillow Showcase].; Matterport's Q3 revenue was 12% higher than our expectations.	Bearish-Leaning Quotes (Short)Fourth quarter is expected to be slightly impacted by... lower camera sales at Matterport as we sunset the Pro 2 camera.; Domain was previously constrained... operated with short-term EBITDA strategy.; Zillow is under siege facing an unprecedented wave of lawsuits.	HiringThe Apartments.com sales force has grown to over 500 representatives. Homes.com has 500 sales reps in production with another 150 in preproduction. CoStar plans to expand the Matterport sales force by 200 by the end of 2026. Total sales force across the company now exceeds 2,000 people.

NotesTable

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-04-28	CoStar reported strong Q1 2026 with 23% revenue growth and doubled adjusted EBITDA, raising full-year guidance. Homes.com showed significant traction and agent ROI, with the residential segment nearing profitability in Q2. Despite this positive messaging and operational strength, the market reacted negatively, with the stock underperforming SPY by 4.71% post-earnings, possibly due to concerns over sequential bookings decline or sustained residential investment.	Earnings Transcript	Negative		-3.45% (vs SPY: -4.71%)

Upcoming Events5 rows

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
CSGP_db6727b5	Q1 of '27	2027-01-01	2027-03-31	Launch of CRE loan origination workflow by CoStar Debt Solutions.	This full workflow solution will further integrate CoStar into the commercial lending process, offering significant value to financial institutions and potentially boosting subscription revenue.	Ticker	2026-04-28	earnings_transcript
CSGP_5a200462	Q4	2026-10-01	2026-12-31	Launch of the LoopNet platform in Australia.	Expanding LoopNet globally extends its network effects, potentially driving more listings, traffic, and revenue in the Australian commercial real estate market.	Ticker	2026-04-28	earnings_transcript
CSGP_bf9e21ad	by the end of 2026	2026-10-01	2026-12-31	Finalization of the divestiture of noncore software assets in Australia.	This will allow management to focus on core residential and commercial objectives in Australia and is expected to improve overall profitability.	Ticker	2026-07-28	earnings_transcript
CSGP_f6ecfc62	Q3	2026-07-01	2026-09-30	Launch of the CoStar platform in Australia.	This expansion into Australia opens a new market for CoStar's core commercial real estate data and analytics services, contributing to global revenue diversification.	Ticker	2026-04-28	earnings_transcript
CSGP_269c08d7	second half of '26	2026-07-01	2026-12-31	Launch of CRE debt benchmarking product by CoStar Debt Solutions.	This will enhance the product offering for financial institutions, potentially driving increased adoption and revenue for the Debt Solutions segment.	Ticker	2026-04-28	earnings_transcript