CoStar Group (CSGP) investor relations material

Executive summary

• Q2 2026 marked a profitability inflection point, with revenue up 18% year-over-year to $925 million and net income rising to $55 million, an 817% increase from Q2 2025, driven by strong performance in both Commercial and Residential Real Estate segments and contributions from Domain and Matterport acquisitions.

• Adjusted EBITDA more than doubled year-over-year to $184 million, the second-highest in company history.

• Residential segment achieved positive Adjusted EBITDA for the first time since Homes.com launch, improving $41 million sequentially from Q1 2026.

• Strategic cost management reduced projected 2026 expenses by $100 million, supporting long-term EBITDA targets.

• Net new bookings reached $69 million, up 3% sequentially.

Financial highlights

• Q2 2026 revenue: $925 million (up 18% YoY); year-to-date revenue: $1.82 billion (up 20% YoY).

• Net income for Q2 2026 was $55 million (up from $6 million YoY); Adjusted EBITDA: $184 million (20% margin); Adjusted Net Income: $128 million ($0.32 per diluted share).

• Commercial revenue: $481 million (+8% YoY); Residential revenue: $444 million (+33% YoY); Commercial Adjusted EBITDA: $172 million; Residential Adjusted EBITDA: $12 million.

• Gross profit for Q2 2026 was $728 million (79% margin), up 19% YoY.

• Share repurchases totaled $587–$589 million YTD, with $700 million planned for 2026 and $913 million remaining authorized.

Outlook and guidance

• Q3 2026 revenue guidance: $935–$945 million (+13% YoY at midpoint); Adjusted EBITDA: $190–$210 million (21% margin); Adjusted EPS: $0.31–$0.34.

• Full-year 2026 revenue guidance revised to $3.715–$3.755 billion (+15% YoY at midpoint); Adjusted EBITDA: $780–$820 million (21–22% margin); Adjusted EPS: $1.32–$1.39.

• Commercial revenue expected at $1.94–$1.96 billion (+9–10% YoY); Residential at $1.775–$1.795 billion (+22–23% YoY).

• Organic revenue growth expected to slow to 8% for the full year, with 1–1.5% in the second half.

• Residential Real Estate revenue growth expected to accelerate in 2026 due to Domain and increased Homes.com memberships; Zonda acquisition expected to close in H2 2026, funded with cash on hand.