CoStar Group (CSGP)
NASDAQ:CSGP
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CoStar Group
(NASDAQ:CSGP)
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Rating:61Neutral
Price Target:
$34.00
▼(-14.40% Downside)
Action:Reiterated
Date:05/30/26
The score is anchored by solid financial resilience (low leverage and ongoing revenue growth) and a constructive earnings outlook with raised guidance and significant buybacks. These positives are tempered by currently depressed profitability/returns, a weak technical trend, and a very demanding valuation on earnings.
Positive Factors
Recurring subscriptions & marketplaces
CoStar’s core model combines recurring subscription revenue with high-traffic marketplaces, creating durable revenue visibility and network effects. This mix supports retention, cross-sell and pricing power over time, underpinning steady cash flow and long-term customer relationships.
Negative Factors
Deteriorated profitability
Operating profit and net margins have deteriorated materially versus prior years, reflecting higher operating costs and weaker operating leverage. Persistently thin profitability limits internal funding capacity and reduces returns on capital unless structural margin recovery is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscriptions & marketplaces
CoStar’s core model combines recurring subscription revenue with high-traffic marketplaces, creating durable revenue visibility and network effects. This mix supports retention, cross-sell and pricing power over time, underpinning steady cash flow and long-term customer relationships.
Read all positive factors
CoStar Group Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyCoStar Group (CSGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.75B
Dividend YieldN/A
Average Volume (3M)8.00M
Price to Earnings (P/E)545.2
Beta (1Y)0.71
Revenue Growth21.33%
EPS Growth-78.82%
CountryUS
Employees8,441
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding408,355,700
10 Day Avg. Volume6,438,463
30 Day Avg. Volume7,996,668
Financial Highlights & Ratios
PEG Ratio-42.12
Price to Book (P/B)3.36
Price to Sales (P/S)8.63
P/FCF Ratio683.55
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue3.80
Enterprise Value/Gross Profit4.91
Enterprise Value/Ebitda45.65
Forecast
1Y Price Target
$50.21Price Target Upside26.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)1.36
Revenue Forecast (FY)$3.80B
CoStar Group Business Overview & Revenue Model
Company Description
CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin Ame...
How the Company Makes Money
CoStar Group primarily makes money through (1) subscription revenue from real estate data, analytics, and workflow platforms and (2) marketplace/online advertising revenue from its real estate listing sites.
1) Subscriptions (information & analyt...
CoStar Group Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveys a broadly positive operating and financial update: strong revenue growth (23% YoY), a doubling of adjusted EBITDA, raised EBITDA and EPS guidance, rapid Homes.com traction with compelling ROI for subscribers, successful Matterport integration and clear international progress. The primary negatives are execution and timing risks around a recently expanded salesforce (notably at Homes.com), bookings variability/quarterly noise, some short-term residential segment loss-making (expected to turn profitable in Q2), and market/seasonality headwinds in specific geographies. Overall, the positive developments and guidance increases outweigh the near-term operational challenges.Positive Updates
Strong Top-Line Growth
Q1 2026 revenue of $897 million, up 23% year-over-year and toward the high end of guidance; organic revenue growth of 10% for the quarter.
Negative Updates
Sales Productivity and Bookings Variability
Analysts flagged three consecutive quarters of sequential declines in net bookings (despite year-over-year growth); management acknowledged a large, recently hired salesforce (notably at Homes.com) with substantial ramp time and variability in productivity cohorts.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 2026 revenue of $897 million, up 23% year-over-year and toward the high end of guidance; organic revenue growth of 10% for the quarter.
Read all positive updates
Company Guidance
For Q2 2026 CoStar guided revenue of $922–$932 million (up 18%–19% YoY, ~10% organic at the midpoint), with commercial revenue $479–$484M (up 7%–9%) and residential $443–$448M (up 32%–34% YoY, 12%–14% organic); adjusted EBITDA of $160–$180M (17%–19% margin, ~700 bps improvement vs. Q2‑2025) with commercial adjusted EBITDA $160–$170M (34%–35% margin) and residential adjusted EBITDA expected to be breakeven to $10M; and adjusted EPS of $0.27–$0.30 on ~409 million weighted average shares. For full‑year 2026 the company reaffirmed revenue of $3.78–$3.82 billion (16%–18% growth) with commercial revenue $1.955–$1.975B and residential $1.825–$1.845B, raised full‑year adjusted EBITDA to $780–$820M (up $30M at midpoint and +1 percentage point of margin) and raised adjusted EPS to $1.32–$1.39 (up $0.09 at midpoint); management also expects $700M of share repurchases in 2026 (Q1 repurchases: $505M for 11.4M shares, with ~$195M remaining).CoStar Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
80
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.41B | 3.25B | 2.74B | 2.46B | 2.18B | 1.94B |
| Gross Profit | 2.64B | 2.44B | 2.18B | 1.96B | 1.77B | 1.59B |
| EBITDA | 284.20M | 272.00M | 151.60M | 389.80M | 588.90M | 571.86M |
| Net Income | 25.30M | 7.00M | 138.70M | 374.70M | 369.50M | 292.60M |
Balance Sheet | ||||||
| Total Assets | 10.16B | 10.54B | 9.26B | 8.92B | 8.40B | 7.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 1.73B | 4.68B | 5.22B | 4.97B | 3.83B |
| Total Debt | 1.14B | 1.14B | 1.04B | 1.11B | 1.11B | 1.11B |
| Total Liabilities | 2.21B | 2.17B | 1.70B | 1.58B | 1.53B | 1.55B |
| Stockholders Equity | 7.91B | 8.33B | 7.55B | 7.34B | 6.87B | 5.71B |
Cash Flow | ||||||
| Free Cash Flow | 241.30M | 41.00M | -245.30M | 464.20M | 420.05M | 404.51M |
| Operating Cash Flow | 528.80M | 430.00M | 392.60M | 489.50M | 478.62M | 469.73M |
| Investing Cash Flow | -1.96B | -2.82B | -912.90M | -238.60M | -69.10M | -381.34M |
| Financing Cash Flow | -1.03B | -559.00M | -13.70M | -3.70M | 733.98M | -15.68M |
CoStar Group Technical Analysis
Neutral
39.72
Price Trends
36.25
Negative
44.21
Negative
59.97
Negative
Market Momentum
-0.93
Negative
43.96
Neutral
63.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGP, the sentiment is Neutral. The current price of 39.72 is above the 20-day moving average (MA) of 33.17, above the 50-day MA of 36.25, and below the 200-day MA of 59.97, indicating a neutral trend. The MACD of -0.93 indicates Negative momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 63.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSGP.
CoStar Group Risk Analysis
CoStar Group disclosed 80 risk factors in its most recent earnings report. CoStar Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CoStar Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $13.73B | 15.12 | 12.35% | ― | 11.23% | 68.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $13.75B | 545.23 | 0.30% | ― | 21.33% | -78.82% | |
60 Neutral | $37.44B | 28.28 | 15.35% | ― | 14.77% | 34.03% | |
60 Neutral | $3.07B | 39.99 | 3.79% | ― | 10.40% | -54.85% | |
60 Neutral | $19.88B | 37.40 | 4.95% | 2.26% | -8.90% | -21.42% | |
57 Neutral | $2.56B | 17.08 | 9.81% | 0.68% | 23.00% | 105.99% |
* Real Estate Sector Average
CSGP
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CoStar Group Corporate Events
Business Operations and StrategyM&A Transactions
CoStar Group to Acquire Zonda in $800 Million Deal
Positive
May 29, 2026
On May 28, 2026, CoStar Group, through its subsidiary CoStar Realty Information, entered into a stock purchase agreement to acquire Zonda, a leading provider of new home construction data, homebuilder software, and residential real estate marketpl...
Business Operations and StrategyRegulatory Filings and Compliance
CoStar Highlights Website as Key Investor Information Channel
Neutral
Apr 28, 2026
CoStar Group has stated that it plans to use its corporate website as a primary channel for distributing material company information, including periodic investor presentations aimed at the financial community. The company emphasized that informat...
Executive/Board Changes
CoStar Group Appoints Nana Banerjee to Board of Directors
Positive
Mar 16, 2026
On March 15, 2026, CoStar Group, Inc. appointed Nana Banerjee to its Board of Directors, with the new director immediately joining the company’s existing governance structure and becoming eligible to participate in its standard director comp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.