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EarningsQ3 2026 Earnings Report
CSGP Q3 2026 EPS Results
Actual EPS$0.38
Consensus EPS$0.34
Beat/MissBeat by +$0.04
One Year Ago EPS$0.23
CSGP Q3 2026 Revenue Results
Actual Revenue$952.00M
Expected Revenue$945.82M
Beat/MissBeat by +$6.18M
YoY Revenue Growth+14.20%
Earnings Announcement Details
QuarterQ3 2026
Date10/27/2026
TimeAfter Close
Conference CallTuesday, October 27, 2026
CSGP Upcoming Earnings
CoStar Group's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CSGP Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. CoStar delivered record revenue, adjusted EBITDA, margins, net income and cash flow, raised full-year profit guidance, identified substantial efficiency opportunities and announced strategic AI, international, acquisition and product initiatives. The principal negatives were weaker-than-expected bookings, reduced sales capacity, softer Apartments.com and Domain trends, and challenging residential market conditions. Management nevertheless expressed confidence in reaccelerating sales force growth and bookings while maintaining its long-term EBITDA target.Company Guidance
Record Revenue and Adjusted EBITDA
Q3 revenue grew 14% year-over-year to $952 million, marking the 62nd consecutive quarter of double-digit growth. Adjusted EBITDA reached a record $229 million, double the prior year and above the previous record of $193 million from Q4 2021. Adjusted EBITDA margin was 24%, up 10 percentage points year-over-year and representing the seventh consecutive quarter of expansion.
Improved Net Income and Adjusted EPS
Net income was $74 million compared with a net loss of $31 million a year ago. Adjusted EPS was $0.38, up 65% year-over-year and above the company’s $0.31 to $0.34 guidance range.
Raised Full-Year Profit Guidance
The company raised full-year 2026 adjusted EBITDA guidance to $820 million to $840 million, or $830 million at the midpoint, 24% above the prior record of $672 million set in 2022. The midpoint represents a 22% adjusted EBITDA margin, compared with 14% in 2025 and 9% in 2024. Adjusted EPS guidance was raised to $1.38 to $1.41, $0.04 above July guidance and $0.12 above February guidance at the midpoint.
Significant Cost Efficiency Progress
Quarterly operating costs declined 2% year-over-year, and adjusted operating expenses were down 2% year-over-year, or 5% on a pro forma basis including savings from Domain and Zonda. The company expects 2026 costs to be approximately $150 million below its original February guidance, up from the $100 million expected in July. It also identified approximately $200 million of additional cost-efficiency opportunities over the next 12 to 18 months across organizational design, integration, procurement, marketing, technology and infrastructure.
Maintained 2028 EBITDA Target
CoStar reaffirmed its commitment to an adjusted EBITDA target of $1.25 billion in 2028. Management said it expects to use identified efficiencies to improve margins while continuing to invest in future revenue drivers.
Strong Commercial Real Estate Performance
Commercial revenue was $492 million in Q3, up 7% year-over-year and in line with guidance. Commercial adjusted EBITDA was $180 million, a 37% margin and above the guided range of $162 million to $172 million.
CoStar Subscription and Customer Metrics
CoStar revenue grew 8% year-over-year to $344 million. Subscriber accounts increased 17% to 331,000, renewal rates remained strong at 92%, and NPS reached a record 70. The CoStar sales force grew 4% during the quarter and was expected to return to Q4 2025 levels by year-end.
LoopNet Growth and Sales Expansion
LoopNet revenue increased 13% year-over-year to $89 million. Its sales force grew 20% year-over-year to 220 representatives, contributing to a 30% sequential increase in Q3 annualized net new bookings and the strongest bookings quarter of 2026.
International Expansion and Product Launches
CoStar now serves all five leading brokerage firms in Canada and has subscribers participating in 80% of U.K. commercial real estate transactions, with August renewal rates of 94%. France began migrating and upselling more than 1,100 Business Immo customers, while Australia is nearing launch with more than 93,000 commercial properties, 45,000 curated listings and 123,000 tenant records. CoStar also launched Debt Solutions Benchmark based on $1.5 trillion of CRE debt across more than 155,000 loans.
AI-Driven CoStar Tenant Research
CoStar is launching an AI-driven research process for CoStar Tenant that management believes can increase researcher productivity more than tenfold. The process is intended to update all 6.7 million tenant locations annually. In head-to-head tests, an AI agent using only publicly available data had a 75% error rate, while management said its solution is believed to operate with single-digit error rates.
Matterport Performance and Profitability Plan
Matterport subscription revenue increased 11% year-over-year, direct sales bookings rose 14%, and new enterprise customers increased 46%. Pro3 shipments rose 52% year-over-year to their highest level since launch following the shift toward a subscription model. The company expects Matterport to be profitable by the end of 2027.
BizBuySell Subscription Growth
BizBuySell’s Q3 net new subscription revenue grew 282% year-over-year, driven by strong supply-side demand. Membership increased 23% to a record level.
Residential Revenue and EBITDA Expansion
Residential revenue was $460 million, up 23% year-over-year as reported and 8% organically. Residential adjusted EBITDA quadrupled sequentially to a record $49 million, compared with $12 million in Q2 and $118 million of improvement from the prior year. Excluding Zonda, residential adjusted EBITDA was $46 million, above the guided range of $28 million to $38 million.
Apartments.com Audience and Engagement Growth
Apartments.com revenue reached $320 million, up 6% year-over-year. Average monthly unique visitors increased 10% to 48 million, quarterly visits rose 6% to 237 million, tour requests increased 57%, and apartment applications more than doubled. Matterport-enabled listings generated more than four times more leads and nearly six times as many tours or application requests.
Apartments.com Brand and Attribution Strength
Apartments.com maintained an 86 NPS and 63% unaided brand awareness in September, up 4 points year-over-year and more than 25 points ahead of the nearest competitor. In an attribution challenge involving the first six clients, Apartments.com delivered on average more than double the leases reported by clients’ existing attribution systems. Within less than a month, 75 property management companies had signed up.
Homes.com Growth and Pricing Expansion
Homes.com revenue increased 50% year-over-year to approximately $31 million. Membership exceeded 36,000, up 47% year-over-year, and average subscriber pricing reached $271 in September. The launch of Platinum Premium Advertising increased average sales price 58% in October to $429. Homes.com generated $7 million of annualized net new bookings in Q3 despite reducing inside sales representatives from a peak of 655 to 267.
Homes.com Traffic and Lead Generation
Homes.com renter traffic increased 12% year-over-year, organic traffic rose 30%, and leads from Homes.com to Apartments.com multifamily customers grew 462%. Unaided awareness reached 37% in June, NPS was 41, and more than half of September traffic came from direct and organic channels.
Domain and OnTheMarket Platform Strategy
CoStar is planning a combined Domain and Homes.com platform, targeted for release in 2027, followed by integration of the U.K. OnTheMarket platform. OnTheMarket delivered 29 consecutive months of positive net new bookings, served more than 17,000 customer branches and new home developments, and increased total listings 14% to 875,000. Q3 leads rose 7% to 4.7 million.
Zonda Acquisition and New Homes Opportunity
Zonda was acquired on August 21 for $815 million. It serves more than 3,000 builders, developers, suppliers and lenders, and its pro forma Q3 revenue was $42 million, with three-quarters subscription-based and subscription revenue up 4% despite a difficult new homes market. Zonda is expected to contribute approximately $60 million of 2026 revenue and $10 million of adjusted EBITDA and to be accretive to adjusted EPS in its full year.
Vexcel Acquisition
CoStar announced an agreement to acquire Vexcel for approximately $730 million. Vexcel generated roughly $140 million of revenue in the last 12 months, is growing more than 30% on recurring multiyear data contracts, and has an adjusted EBITDA margin of around 20%. Management said the transaction is accretive in the first year excluding synergies and is expected to be four times more accretive than an open-market CoStar share buyback by year three when modest synergies are included. Vexcel was not included in guidance.
Operating Cash Flow and Share Repurchases
Q3 operating cash flow was $188 million and year-to-date operating cash flow was $455 million after the $109 million brand settlement. Excluding that payment, year-to-date operating cash flow was up roughly $300 million from the prior year. The company repurchased 2.7 million shares for $81 million in Q3 and 16.5 million shares for $668 million in 2026, with the $700 million 2026 repurchase program expected to be completed in Q4.
Fourth-Quarter Growth Outlook
Q4 revenue guidance is $976 million to $996 million, up 10% at the midpoint. Commercial revenue is expected to be $490 million to $500 million, up 5% at the midpoint, and residential revenue is expected to be $486 million to $496 million, up 14%. Q4 adjusted EBITDA guidance is $275 million to $295 million, representing a 29% margin at the midpoint and more than 900 basis points above Q4 2025.
CSGP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed