CoStar posts record $952 million in revenue and raises 2026 guidance
Key Facts
Net income was $74 million, compared with a net loss of $31 million in the third quarter of 2025, and diluted earnings per share under accounting standards were $0.18. On an adjusted basis, net income reached $153 million, up 59% year over year, and adjusted earnings per share were $0.38. The company’s statement did not cite analyst estimates or the extent to which results exceeded them, so these figures remain indicators of the company’s own performance. The results put higher revenue and improved profitability alongside management’s bets on operating efficiency and savings, while the company’s shares closed at $33.7 on October 26, before results were announced.
Revenue growth accelerated over the first three quarters of the year, rising from $897 million in the first quarter to $925 million in the second, then to $952 million in the third. Adjusted earnings before interest, taxes, depreciation and amortization were $229 million, compared with $114 million in the same period of 2025. Chief Executive Andy Florance said the measure “doubled year over year” and came well above the top end of the previous quarterly guidance range of $210 million, within a range of $190 million to $210 million. He added that the company achieved further efficiencies during the quarter, lifting expected savings in 2026 to about $150 million compared with the original guidance. Florance said the company is meeting its commitment to “expand margins as we emerge from an investment period.”
As an indicator of new business volume, net new bookings totaled $37 million during the quarter. This coincided with the improvement in adjusted earnings, while management said its expense review identified at least $200 million in additional potential savings that it expects to achieve over 12 to 18 months. The company also maintained its 2028 target of $1.25 billion in adjusted earnings before interest, taxes, depreciation and amortization. These targets reflect the reliance of part of the profitability plan on continued cost discipline alongside revenue growth. The company presents the savings as forward-looking estimates, while third-quarter results came in as actual figures.
CoStar raised its 2026 revenue guidance range to between $3.75 billion and $3.77 billion, equivalent to year-over-year growth of about 16% at the midpoint. It also raised its full-year adjusted earnings before interest, taxes, depreciation and amortization guidance range to between $820 million and $840 million. The company said the midpoint of guidance for this measure increased by $30 million compared with July guidance, and by $60 million cumulatively compared with February guidance. These changes show an upward revision to annual expectations during the year, alongside the quarterly results the company delivered. The updated annual guidance therefore came in above the previous levels set by management in July and February.
For the fourth quarter of 2026, the company expects revenue of between $976 million and $996 million, with year-over-year growth of about 10% at the midpoint. It also forecast adjusted earnings per share of between $0.46 and $0.50. Management was scheduled to discuss third-quarter results and the company’s outlook on an investor call at 5:00 p.m. Eastern time on October 27, 2026. After results were announced, the stock fell 12.5% in extended trading, following a 5.01% decline during the regular session that day. The after-hours move followed the stock’s close at $33.7 on October 26, before the results were released.