CoStar Group, Inc.

CoStar Group reported Q2 2026 revenue of $925 million, up 18% year over year, with adjusted EBITDA of $184 million, up 441% year over year, and a 20% adjusted EBITDA margin, up 900 basis points year over year. Commercial revenue was $481 million, up 8% year over year, and residential revenue was $444 million, up 33% year over year. CoStar said net new bookings were $69 million, up 3% sequentially. On guidance, Q3 revenue is expected to be $935 million to $945 million, adjusted EBITDA $190 million to $210 million, and adjusted EPS $0.31 to $0.34. Full-year 2026 revenue guidance was revised to $3.715 billion to $3.755 billion, while adjusted EBITDA guidance was affirmed at $780 million to $820 million and adjusted EPS at $1.32 to $1.39.

Andy Florance framed the quarter as a profitability inflection point and emphasized that the company is now balancing growth with margin expansion. He highlighted major product launches across CoStar, Matterport, Apartments.com, Homes.com, and international markets, and repeatedly pointed to AI, field sales, and depth advertising as future growth levers. His tone was confident and aggressive, especially around maintaining price integrity, expanding product breadth, and hitting the company’s long-term EBITDA targets.

Christian Lown focused on margin expansion, cost discipline, and capital allocation. He said adjusted EBITDA of $184 million was above the high end of guidance, while the 20% margin came a full quarter ahead of expectations; he also noted the residential segment generated a record $12 million of adjusted EBITDA, its first profitable quarter since Homes launched. He said the company repurchased 2.4 million shares for $82.1 million in Q2, bringing 2026 repurchases to 13.75 million shares for $587 million, and reiterated a full-year repurchase target of $700 million. He also said the company reduced its 2026 expense base by roughly $100 million and that the revised revenue outlook reflects deliberate choices at Ten-X, Homes.com, and Apartments.com.

Analysts pressed on the decline in net new bookings, the lowered revenue guide, and whether the softness was concentrated in Homes.com, Ten-X, or Apartments.com. Management said the main drivers were Homes.com sales-force optimization, Ten-X restructuring, and Apartments.com pricing discipline amid competition and a weak multifamily market, but they said they remain confident bookings and revenue can reaccelerate over time. Questions also focused on multifamily pricing pressure and the shift to field sales at Homes.com; management said field reps are more productive, the ramp takes time, and there is not a material cost difference versus centralized sales. On AI and token costs, management said AI is already creating more savings than cost increases and that token spending is currently below budget.