CoStar Posts $952 Million in Third-Quarter Revenue and Raises 2026 Outlook

Key Facts

CoStar Group reported revenue of $952 million for the quarter ended September 30, 2026, up 14% from $834 million a year earlier, as net income rose to $74 million, an increase of $105 million year over year. The company said adjusted EBITDA reached $229 million, a quarterly record and double its level in the same period of 2025. Diluted earnings per share were $0.18, while adjusted net income was $153 million, up 59% year over year. Adjusted earnings per share also rose 65% to $0.38. EL7 data show the stock closed at $33.70 on October 26, before results were scheduled for release after the market close on October 27; therefore, the data do not establish a 12% decline following the announcement.

The results highlight the widening gap between net income and diluted earnings per share, on one hand, and adjusted measures, on the other: net income was $74 million, compared with adjusted net income of $153 million, while diluted earnings per share were $0.18 versus adjusted earnings per share of $0.38. Year over year, net income increased by $105 million, adjusted net income grew 59% and adjusted earnings per share rose 65%. Chief Executive Andy Florance said adjusted EBITDA exceeded the top end of the previous guidance range, which was $190 million to $210 million, with a high end of $210 million. The result puts quarterly earnings at a record level, while revenue growth continued at an annual pace below the 18% recorded in the second quarter. The figures alone do not explain the stock's move after the results, since the available closing price is from the day before the announcement.

In the second quarter of 2026, CoStar posted revenue of $925 million, up 18% year over year from $781 million, and adjusted EBITDA of $184 million, up 116% from a year earlier. By comparison, third-quarter revenue rose to $952 million, but annual growth slowed to 14%, while adjusted EBITDA climbed to $229 million, double its level a year earlier. Before the results announcement, Investing.com, citing Reuters, reported analyst estimates of $945 million in revenue and earnings per share of $0.34 for the third quarter. Revenue in the previous quarter was $925 million; the comparison shows third-quarter revenue exceeded the revenue estimate cited in that report, while reported diluted earnings per share came in below the $0.34 estimate. The company had also said in the second quarter that its residential business achieved positive adjusted EBITDA for the first time, improving by $41 million from the first quarter.

Net new bookings totaled $37 million in the third quarter, providing a parallel operating indicator alongside revenue and profitability growth in the company's announcement. Commenting on the results, Florance said adjusted EBITDA exceeded the top end of the previous quarterly guidance and that the company sees the potential for at least $200 million in additional savings over 12 to 18 months. Management's remarks pair an operating result above the previous range with a savings plan spanning more than a year, without specifying in the available material how the savings would be distributed across periods. This follows the residential business turning adjusted-profitable for the first time in the second quarter, according to the company, with an improvement of $41 million compared with the first quarter. Net bookings and potential savings remain separate from revenue actually recorded in the quarter, while the company said quarterly adjusted earnings reached a record.

CoStar raised its 2026 revenue outlook to a range of $3.75 billion to $3.77 billion, equivalent to year-over-year growth of about 16% at the midpoint. It also increased its adjusted EBITDA outlook to a range of $820 million to $840 million, up $30 million at the midpoint compared with July guidance. The updated annual outlook for adjusted earnings exceeds the revenue growth rate the company recorded in the third quarter, while reflecting a higher estimate for annual profitability than in its previous guidance. For the fourth quarter, the company expects revenue of $976 million to $996 million and adjusted EBITDA of $275 million to $295 million. Management's call to discuss third-quarter results and the outlook was scheduled for October 27, 2026, at 5:00 p.m. Eastern Time, after the results announcement following the market close that day.