CoStar Group, Inc.: Miss — EPS $0.38, Revenue $952M
Earnings MissQ3 2026 · After-market
Did CoStar Group, Inc. (CSGP) beat earnings today?
No, CoStar Group, Inc. (CSGP) missed Wall Street analyst expectations for Q3 2026, reporting lower-than-expected revenue.
Earnings Per Share
$0.38Actual
vs. year ago +65.0%
Total Revenue-0.77% surprise
$952MActual
Expected: $959.39M
vs. year ago +14.0%
Released Oct 27 · 4:14 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $952.00M | $834.00M | +14.0% |
| Revenue detail — reported lines | |||
| └─CoStar | $344.00M | $318.00M | +8.2% |
| └─LoopNet | $89.00M | $79.00M | +12.7% |
| └─Other Commercial Real Estate | $59.00M | $64.00M | -7.8% |
| └─Total Commercial Real Estate | $492.00M | $461.00M | +6.7% |
| └─Residential Real Estate | $460.00M | $373.00M | +23.3% |
| Net income | $74.00M | $(31)M | - |
| Basic EPS | $0.18 | $(0.07) | - |
| Diluted EPS | $0.18 | $(0.07) | - |
| Adjusted EPS | $0.38 | $0.23 | +65.0% |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY 2026 Outlook |
|---|---|---|
| Revenue | $976M-$996M (+~10% YoY) | $3.75B-$3.77B (+~16% YoY) |
| Adjusted EBITDA | $275M-$295M (29% margin midpoint) | $820M-$840M |
| Adjusted EPS | $0.46-$0.50 | $1.38-$1.41 |
| Diluted Shares | 400.0M | 405.0M |
| Net income | $95M-$109M | $226M-$241M |
| Income tax expense | $33M-$39M | $72M-$77M |
| Income before income taxes | $128M-$148M | $298M-$318M |
| Amortization of acquired intangible assets | $77M | $278M |
| Stock-based compensation expense | $40M | $152M |
| Acquisition and integration related costs | $22M-$28M | $28M |
| Interest related to settlements | — | $9M |
| Restructuring and related costs | — | $4M |
| Settlements and impairments | — | $(15)M |
| Adjusted Net Income | $183M-$198M | $558M-$573M |
| Diluted EPS | $0.24-$0.27 | $0.56-$0.60 |
| EBITDA | $233M-$253M | $651M-$671M |
| Amortization in cost of revenue | $29M | $112M |
| Amortization in operating expenses | $48M | $166M |
| Depreciation and other amortization | $24M | $78M |
| Interest expense (income), net | $4M | $(2)M |
| Other income, net | — | $(1)M |
| EBITDA Commercial Real Estate | $151M-$161M | $604M-$614M |
| EBITDA Residential Real Estate | $82M-$92M | $47M-$57M |
| Total EBITDA | $233M-$253M | $651M-$671M |
| Adjusted EBITDA Commercial Real Estate | $177M-$187M | $690M-$700M |
| Adjusted EBITDA Residential Real Estate | $98M-$108M | $130M-$140M |
| Total Adjusted EBITDA | $275M-$295M | $820M-$840M |
Business Highlights
- ➤Leveraging AI and proprietary ground-truth data for information clients.
- ➤Using global scale to deliver consumer-facing AI functionality across marketplaces.
- ➤Completed the acquisition of Zonda to enhance proprietary datasets.
- ➤Entered an agreement to acquire Vexcel.
- ➤CoStar Group provides online real estate marketplaces, information, analytics and 3D digital twin technology.
- ➤Matterport turns buildings into data through its spatial-data platform.
- ➤STR provides global hospitality data and benchmarking.
- ➤Websites attracted 121 million average monthly unique visitors during the third quarter.
- ➤LoopNet is the company’s commercial real estate marketplace.
- ➤Homes.com is a residential real estate marketplace.
- ➤Domain operates as an Australian property marketplace.
- ➤Ten-X provides online commercial real estate auctions and negotiated bids.
Management Commentary
Andy Florance, Founder and Chief Executive Officer of CoStar Group
“CoStar Group generated outstanding profitability growth in the third quarter, delivering on our commitment to expand margins as we exit a period of investment. Adjusted EBITDA doubled year-over-year and was considerably above the high end of our $190 million to $210 million guidance range. We achieved significant additional efficiencies in the quarter, bringing total anticipated cost savings this year to approximately $150 million versus our original guidance. Our ongoing deep expense review has identified potential additional savings of at least $200 million that we believe will improve efficiency without sacrificing revenue growth. We expect to realize these over the next 12 to 18 months, keeping us on track to achieve our 2028 Adjusted EBITDA target of $1.25 billion.”
Andy Florance, Founder and Chief Executive Officer of CoStar Group
“We are demonstrating our ability to meaningfully grow profitability and are confident in our strategy to fuel future growth. We are leveraging AI and our proprietary ground truth data, giving us a unique competitive advantage in providing value to our information clients. Furthermore, our global scale enables us to deliver best-in-class consumer-facing AI functionality on our marketplaces at significantly lower costs than our competitors. Our acquisition of Zonda and agreement to acquire Vexcel demonstrate our ability to further enhance our proprietary datasets and global scale, which are real differentiators in the world of AI.”