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CoStar Group (CSGP) AI Stock Analysis

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CSGP

CoStar Group

(NASDAQ:CSGP)

Select Model
Rating:67Neutral
Price Target:$34.00â–²(4.36% Upside)
Action:reiterated
Date:10/29/26

The score is led by solid financial durability (especially a low-leverage balance sheet and positive cash generation) and a constructive earnings update with raised guidance, margin expansion, and sizable efficiency opportunities. These positives are tempered by weak technical positioning (price below major moving averages) and a premium valuation (high P/E with no dividend yield provided).

Positive Factors
Recurring subscription growthGrowth in subscriber accounts combined with a 92% renewal rate supports recurring revenue visibility and demonstrates ongoing customer value. A large retained user base can strengthen CoStar’s data advantages, support pricing and provide a durable foundation for expansion across products and markets.
Negative Factors
Bookings and sales capacity weaknessLower bookings and a smaller sales force create a near- to medium-term risk to organic growth, particularly because management said the team cannot reach many additional prospects. Rebuilding capacity is planned for 2027, leaving execution and pipeline conversion dependent on a future ramp.

CoStar Group Key Performance Indicators (KPIs)

Revenue by GeographyShows where CoStar earns its sales across regions, revealing if growth is concentrated in the U.S. or coming from international expansion; helps you gauge exposure to local property markets, currency swings, and regional demand cycles that can boost or depress future revenue.

$0.00$200.00M$400.00M$600.00M$800.00MMar 21Jun 21Sep 21Dec 21Mar 22Jun 22Sep 22Dec 22Mar 23Jun 23Sep 23Dec 23Mar 24Jun 24Sep 24Dec 24Mar 25Jun 25Sep 25
Chart Insights

CoStar Group's North American revenue continues its steady climb, reflecting strong market penetration and strategic growth in commercial information and marketplaces. International revenue, while smaller, shows a recent surge, particularly in Q3 2025, driven by successful domain acquisitions and AI integration. The earnings call underscores this momentum, highlighting a 20% year-over-year revenue increase and significant gains in residential portals. Despite competitive pressures and seasonal booking impacts, CoStar's strategic initiatives, including AI advancements and acquisitions, are positioning it for sustained growth and market leadership.

Data provided by:The Fly

CoStar Group (CSGP) vs. SPDR S&P 500 ETF (SPY)

-80%-60%-40%-20%0%20%CSGP-51.75%SPY+15.63%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$12.60B
Dividend Yield
―
Average Volume (3M)
6.45M
Price to Earnings (P/E)
71.6
Beta (1Y)
0.66
Revenue Growth
20.20%
EPS Growth
745.11%
Country
US
Employees
8,441
Sector
General
Sector Strength
55
Industry
Real Estate - Services

CoStar Group Business Overview & Revenue Model

Company Description

CoStar Group, Inc. (CSGP) stands as a premier global provider of comprehensive information, sophisticated analytics, and dynamic online marketplace services. The company caters to professionals within the commercial real estate, hospitality, resident...

How the Company Makes Money

CoStar primarily makes money through (1) subscription revenue from data, analytics, and software-like information services and (2) marketplace and advertising revenue from its online property platforms. 1) Subscriptions (information services): CoStar...

CoStar Group Earnings Call Summary

Earnings Call Date:Oct 26, 2026(Q3-2026)|% Change Since:1.78%|Next Earnings Date:Feb 22, 2027
Earnings Call SentimentPositive

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.

Positive Updates

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.

Negative Updates

Bookings Below Expectations
Annualized net new bookings were $37 million in Q3, down from $84 million in Q3 of the prior year and below management’s expectations. The company attributed the decline to economic headwinds and slower-than-expected sales force growth, with the decline concentrated in residential.

Company Guidance

For the fourth quarter, CoStar expects revenue of $976 million to $996 million, up 10% at the midpoint, including commercial revenue of $490 million to $500 million, up 5% at the midpoint, and residential revenue of $486 million to $496 million, up 14%; adjusted EBITDA is expected at $275 million to $295 million, a 29% margin at the midpoint and more than 900 basis points above the fourth quarter of 2025, with commercial at $177 million to $187 million and residential at $98 million to $108 million. For the full year, revenue guidance is $3.75 billion to $3.77 billion, up 16% at the midpoint, with commercial revenue of $1.935 billion to $1.945 billion, up 9%, and residential revenue of $1.815 billion to $1.825 billion, up 25%; adjusted EBITDA guidance is $820 million to $840 million, representing a 22% margin, more than 800 basis points above 2025, and adjusted EPS guidance is $1.38 to $1.41 on 405 million weighted average shares. Zonda is expected to contribute approximately $60 million of revenue and $10 million of adjusted EBITDA in 2026 and to be accretive to adjusted EPS in its full year, while Vexcel is not included in guidance; the company expects to realize approximately $200 million of additional cost efficiency opportunities over the next 12 to 18 months, reaccelerate sales force growth in 2027, see sequential improvement in bookings in the fourth quarter, and remains committed to its adjusted EBITDA target of $1.25 billion in 2028.

CoStar Group Financial Statement Overview

Summary

Strong balance sheet strength (low leverage and high flexibility) and positive operating/free cash flow support stability. Offsetting this, profitability remains modest (thin EBIT and net margins) and cash flow has been uneven historically, with margin compression versus 2021–2023 despite a rebound from the 2025 trough.

Income Statement

62Positive

Balance Sheet

84Very Positive

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.67B3.25B2.74B2.46B2.18B1.94B
Gross Profit2.80B2.44B2.18B1.96B1.77B1.59B
EBITDA575.90M293.00M384.40M640.20M624.36M575.15M
Net Income179.00M7.00M138.70M374.70M369.50M292.60M
Balance Sheet
Total Assets10.27B10.54B9.26B8.92B8.40B7.26B
Cash, Cash Equivalents and Short-Term Investments500.00M1.73B4.68B5.22B4.97B3.83B
Total Debt1.17B1.14B1.04B1.11B1.11B1.11B
Total Liabilities2.27B2.17B1.70B1.58B1.53B1.55B
Stockholders Equity7.97B8.33B7.55B7.34B6.87B5.71B
Cash Flow
Free Cash Flow65.40M41.00M-245.30M464.20M420.05M404.51M
Operating Cash Flow617.10M430.00M392.60M489.50M478.62M469.73M
Investing Cash Flow-1.07B-2.82B-912.90M-238.60M-69.10M-381.34M
Financing Cash Flow-1.08B-559.00M-13.70M-3.70M733.98M-15.68M

CoStar Group Technical Analysis

Technical Analysis SentimentPositive
Last Price32.58

Price Trends

50DMA30.29Positive
100DMA30.18Positive
200DMA36.34Negative

Market Momentum

MACD0.31Positive
RSI52.05Neutral
STOCH48.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGP, the sentiment is Positive. The current price of 32.58 is above the 20-day moving average (MA) of 31.13, above the 50-day MA of 30.29, and below the 200-day MA of 36.34, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 52.05 is Neutral, neither overbought nor oversold. The STOCH value of 48.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSGP.

CoStar Group Risk Analysis

CoStar Group disclosed 40 risk factors in its most recent earnings report. CoStar Group reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

CSGP against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JLLJLL72Outperform$17.33B15.9014.64%―11.40%76.93%
CWKCWK70Outperform$3.36B46.673.50%―11.04%-66.92%
MMIMMI67Neutral$1.10B77.552.44%1.76%11.89%―
CSGPCSGP67Neutral$12.80B71.622.23%―20.20%745.11%
CBRECBRE60Neutral$39.41B28.8316.03%―14.17%15.41%
NMRKNMRK60Neutral$2.18B14.209.93%1.51%16.50%41.22%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-60%-40%-20%0%20%CSGPCBREJLLMMINMRKCWKDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
CSGP and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
CSGPCoStar Group32.58-34.78-51.63%
CBRECbre Group141.11-8.88-5.92%
JLLJones Lang Lasalle390.33102.2635.50%
MMIMarcus & Millichap Inc29.550.592.03%
NMRKNewmark12.36-4.51-26.74%
CWKCushman & Wakefield14.93-0.49-3.18%

CoStar Group Corporate Events

Business Operations and StrategyFinancial DisclosuresM&A Transactions

CoStar Group Posts Record Quarter, Raises 2026 Outlook

Positive
Oct 27, 2026

On October 27, 2026, CoStar Group reported record third-quarter results, with revenue for the period ended September 30, 2026 climbing 14% year-on-year to $952 million and net income reaching $74 million, a $105 million improvement from the prior-yea...

Business Operations and StrategyM&A Transactions

CoStar Group Completes Acquisition of Zonda Real Estate Platform

Positive
Aug 21, 2026

On August 21, 2026, CoStar Group, Inc. announced it had completed the acquisition of Bora, Inc. and its subsidiaries, collectively known as Zonda, for $800 million in cash. The deal expands CoStar’s portfolio of real estate data and analytics a...

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.

Date of analysis: Oct 29, 2026