CoStar Group, Inc. (NASDAQ:CSGP) on Wednesday outlined its key business, financial, and governance initiatives for 2026 and beyond.
Also, the company approved a new $1.5 billion share repurchase program, following the accelerated completion of the $500 million buyback in 2025.
2026 Outlook
CoStar projects revenue of $3.78 to $3.82 billion, reflecting approximately 18% growth over the midpoint of its previously provided 2025 guidance.
The company sees net income of $175 million-$215 million and adjusted EPS of $1.22 to $1.33 for 2026.
CoStar sees adjusted EBITDA of $740 million-$800 million, marking the highest in company history, with a 20% margin at the midpoint and 83% year-over-year growth compared to the 2025 guidance midpoint.
Apart from this, in 2026, the company plans to accelerate progress through broader AI deployment, already driving efficiencies in content creation, public records research, coding, and lease data extraction.
The company also aims to enhance AI across its marketplaces to improve user experience and strengthen its competitive advantage.
Mid-Term Guidance
The company projects a revenue compound annual growth rate (CAGR) of ~15% for 2025-2028 and adjusted EBITDA of $1.25 billion in 2028.
Homes.com is a fast-growing part of CoStar Group’s residential portfolio, alongside Apartments.com and other property platforms.
CoStar is now shifting focus to scaling efficiently and improving profitability, planning to cut net investment in Homes.com by over $300 million in 2026, down from $850 million in 2025, and reduce spending by more than $100 million each year through 2030.
The company projects Homes.com to exceed revenue over expenses by 2029 and achieve positive adjusted EBITDA in 2030.
Management Commentary
Andy Florance, Founder and Chief Executive Officer of CoStar Group stated, “This positions CoStar Group to capture compelling near- and long-term growth with significant adjusted EBITDA expansion for several years to come. Homes.com is an important part of our ecosystem; we now have a clear path to accelerate top-line growth and drive profitability. Through the deployment of our scalable AI platform and our disciplined capital allocation approach, we are well positioned to build on our strong trajectory and drive enhanced stockholder value.”
CSGP Price Action: CoStar Group shares were down 2.73% at $65.36 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by Piotr Swat via Shutterstock
