CoStar Lifts 2026 Adjusted EBITDA Outlook After Record Quarter

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter revenue was $952 million and Adjusted EBITDA of $229 million exceeded the high end of prior guidance.

CoStar Group (CSGP), a provider of online real estate marketplaces, information, analytics, and 3D digital twin technology, reported record third-quarter revenue of $952 million, up 14% from $834 million a year earlier, after 18% growth in the prior quarter.

Profitability moved faster. Adjusted EBITDA was $229 million, doubling from $114 million in the year-ago quarter, after a 116% year-over-year increase in the second quarter. Founder and Chief Executive Officer Andy Florance said the result was “considerably above the high end of our $190 million to $210 million guidance range.”

Net income was $74 million, or $0.18 a share, versus a $31 million loss, or $0.07 a share, a year earlier. Adjusted Net Income was $153 million, up 59% year-over-year, and Adjusted EPS was $0.38, up 65% year-over-year.

The company said it achieved additional efficiencies in the quarter, bringing total anticipated 2026 cost savings to approximately $150 million versus original guidance. Florance said an ongoing expense review identified potential additional savings of at least $200 million that the company believes will improve efficiency without sacrificing revenue growth, to be realized over the next 12 to 18 months and keeping CoStar on track for a 2028 Adjusted EBITDA target of $1.25 billion.

Residential Real Estate revenue was $460 million, up from $373 million a year earlier. Commercial Real Estate revenue was $492 million, up from $461 million. Within Commercial Real Estate, CoStar contributed $344 million, LoopNet $89 million, and Other Commercial Real Estate $59 million.

Residential Real Estate Adjusted EBITDA was $49 million, after a $69 million loss a year earlier. Commercial Real Estate Adjusted EBITDA was $180 million, down from $183 million. Residential Real Estate EBITDA was $16 million, after a $101 million loss a year earlier; Commercial Real Estate EBITDA was $163 million, up from $114 million.

Net new bookings were $37 million, down from $69 million in the second quarter.

CoStar raised full-year 2026 Adjusted EBITDA guidance to $820 million to $840 million, a $30 million midpoint increase from July guidance of $780 million to $820 million. For the fourth quarter of 2026, the company expects Adjusted EBITDA of $275 million to $295 million, a 29% margin at the midpoint.

Full-year 2026 revenue guidance was $3.75 billion to $3.77 billion, about 16% year-over-year growth at the midpoint, below the April range of $3.78 billion to $3.82 billion. Fourth-quarter 2026 revenue is expected at $976 million to $996 million, about 10% year-over-year growth at the midpoint. Full-year 2026 Adjusted EPS guidance was raised to $1.38 to $1.41 on 405 million shares, from $1.32 to $1.39 on 409 million shares in April. Fourth-quarter Adjusted EPS is expected at $0.46 to $0.50 on 400 million shares.

Florance said the company is leveraging AI and proprietary ground-truth data and that the acquisition of Zonda and an agreement to acquire Vexcel demonstrate its ability to enhance proprietary datasets and global scale. CoStar’s websites attracted 121 million average monthly unique visitors in the third quarter.