CoStar Group

CoStar Group sells real estate information and runs online real estate marketplaces. It reports two segments. Commercial Real Estate includes the CoStar database and analytics, which brokers, owners and lenders buy by subscription, the LoopNet listing marketplace and other services such as Ten-X auctions; it had $481 million of revenue in Q2 2026. Residential Real Estate includes Apartments.com, where landlords pay to list rentals, and Homes.com, where agents pay for advertising, with $444 million of revenue in Q2 2026.

In August 2026, CoStar bought Zonda, a new-home data and marketplace company, for $800 million in cash. Most revenue is recurring subscription and listing fees. For years, CoStar spent heavily on Homes.com marketing to win home search traffic, and in 2026 it cut this spending to raise profit.

The market prices CoStar at a discount because it doubts that the large spending on Homes.com will pay off, and it fears that AI search can weaken listing marketplaces and data subscriptions. Revenue growth is slowing: in July 2026, CoStar cut its 2026 revenue outlook to $3.715 billion to $3.755 billion from about $3.8 billion, and net new bookings of $69 million in Q2 were about 26% lower than a year earlier. The stock fell about 14% after that report, and the CFO left at the end of July 2026. Activist investors Third Point and D.E.

Shaw pushed for changes at the board and at Homes.com earlier in 2026. For the gap to close, CoStar must show that profit grows while revenue keeps growing at double digits. The checks are full-year adjusted EBITDA within the $780 million to $820 million outlook, a Residential segment that stays profitable after it turned positive in Q2 2026, net new bookings that grow again, and AI products such as Homes.com Ai and Apartments.com Ai that raise leads and keep customers. The first test is the Q3 2026 report on October 27, 2026, with guided revenue of $935 million to $945 million and adjusted EBITDA of $190 million to $210 million.

The full-year report and 2027 outlook in February 2027 are the next test. If profit and bookings both improve, the gap can close slowly over 2027 and 2028. The main risk is that AI tools from large technology companies take traffic from Homes.com and Apartments.com.

1. Oct 27, 2026Pending

   Q3 2026 results: revenue, bookings and Residential profitRevenue within the $935 million to $945 million guide, adjusted EBITDA of $190 million or more and a profitable Residential segment pass; revenue below the guide or bookings that fall again fail.
2. Feb 2027 · est.Pending

   Full-year 2026 results and 2027 outlookFull-year adjusted EBITDA within $780 million to $820 million and a 2027 outlook with double-digit revenue growth pass; a lower revenue outlook fails.
3. Jul 2027 · est.Pending

   Q2 2027 results: bookings recoveryNet new bookings higher than the $69 million of Q2 2026 pass; bookings that keep falling fail.

Every passed and failed checkpoint across all picks

CoStar has more cash than debt. Its only debt is $1.0 billion of 2.800% senior notes due July 15, 2030. Read more

• AI search tools can change how people search for homes and rentals, and how brokers get data. If large AI platforms send traffic around Homes.com and Apartments.com, the value of paid listings falls. CoStar launched its own AI tools in 2026, and their effect on revenue is not proven yet.
• Revenue growth slows. CoStar cut its 2026 revenue outlook in July 2026, and Q2 net new bookings were about 26% lower than a year earlier. Management said the fall came from its own choices to improve efficiency, but lower bookings lead to slower revenue later.
• Homes.com competes with larger home search sites, and the Residential segment lost money until Q2 2026. If spending cuts weaken its traffic, the past investment loses value. If CoStar raises spending again, profit falls.
• Management changes. A new CFO started on July 31, 2026, a new President of Homes.com in September 2026, and activist investors pushed for board changes earlier in 2026. Changes in strategy can add cost and risk.
• Commercial real estate weakness, such as high office vacancy, can slow subscriptions from brokers, owners and lenders.

• October 1, 2026CoStar said that it will report Q3 2026 results on October 27, 2026.
• September 14, 2026CoStar named Felix Kusch, a European home search executive, as President of Homes.com.
• August 21, 2026CoStar completed the purchase of Zonda, a provider of new-home data, homebuilder software and the NewHomeSource.com and Livabl marketplaces, for $800 million in cash.