| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 24 | 152.3x | 17.8x | Bottom tier | |
Growth | 56 | 22.0% | 7.1% | Around median | |
Quality | 71 | 0.5% | 4.5% | Top tier | |
Safety | 72 | — | 2.6x | Top tier | |
Capital Return | 72 | — | 2.12% | Top tier | |
Momentum | 1 | -67.6% | 2.9% | Bottom tier | |
Sentiment | 84 | 13 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CoStar Group operates an ecosystem of data, software, and digital marketplaces for commercial and residential real estate. Its core revenue sources include CoStar, CoStar Debt Solutions, LoopNet, Ten-X, STR, and Matterport on the commercial side, and Apartments.com, Homes.com, Domain, and OnTheMarket on the residential side; a large part of the model relies on annual subscriptions, paid advertising, and data and analytics services. In Q2 FY2026, commercial operations generated revenue of $481 million, or about 52% of the total, while residential operations generated $444 million, or about 48%.
In Q2 FY2026, revenue reached $925 million, up 18% year over year, and gross profit according to EDGAR data was approximately $728 million, representing a gross margin of about 78.7%. Net income was $55 million and earnings per share were $0.14, compared with net income of $3 million and earnings per share of $0.01 in Q1 FY2026. Adjusted EBITDA was also $184 million, with a 20% margin and a year-over-year improvement of 900 basis points, while residential adjusted EBITDA rose to $12 million, marking its first profitable quarter since the launch of Homes.com in Q1 FY2024.
Q2 FY2026 results reveal a clear divergence between revenue growth and profit improvement: the residential segment grew 33% year over year, compared with 8% for the commercial segment, but the commercial segment remained the largest source of profitability, with adjusted EBITDA of $172 million and a 36% margin. Apartments.com generated revenue of $318 million, up 9%, Homes.com revenue rose 66% to $28.5 million, and LoopNet generated revenue of $87 million, up 14%. On a trailing-twelve-month basis in FY2026, revenue was $3.6 billion, gross profit was $2.8 billion, and net income was $73.6 million.
The average analyst price target is $36.36, within a wide range of $26 to $44, while the consensus indicates a Buy rating; the average target is approximately 60% below the 52-week range high of $91.89, reflecting a sharp revaluation compared with the year's highest levels. The live facts do not provide a standard price-to-earnings ratio, but trailing-twelve-month net income of $73.6 million remains limited relative to a market capitalization of $13.1 billion, so the valuation depends heavily on continued EBITDA expansion and the residential investment's conversion into sustainable profits.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $925 million in Q2 FY2026, up 18% year over year, and gross profit was $728 million. Net income was $55 million and earnings per share were $0.14, compared with $3 million and $0.01 in Q1 FY2026. Adjusted EBITDA was also $184 million with a 20% margin, exceeding the high end of the company's guidance and delivering a year-over-year improvement of 900 basis points.
The residential segment generated revenue of $444 million in Q2 FY2026, up 33% year over year. It recorded positive adjusted EBITDA of $12 million, marking its first profitable quarter since the launch of Homes.com in Q1 FY2024. The company expects the segment's adjusted EBITDA to rise to between $28 million and $38 million in Q3 FY2026, making the continuation of this improvement a key test of operating leverage.
Homes.com revenue increased 66% year over year to $28.5 million in Q2 FY2026, and its annualized revenue run rate reached $116 million by the end of the period. The subscriber count exceeded 36 thousand, up 107%, and those subscribers promoted about 305 thousand active listings, equivalent to 9.3% of the 3.2 million homes listed for sale in the United States. The monthly cancellation rate declined to 2.4% in June 2026 from 6.5% in June 2025, while the average subscriber price increased to $305 in June 2026.
Automated analysis for informational purposes only — not investment advice.
CoStar Group completed the acquisition of Zonda on August 21, 2026, for $800 million in cash. Zonda's data covers land development, construction activity, home sales, community performance, and homebuilder operations, and serves more than 3,000 clients among builders, developers, lenders, manufacturers, and suppliers in North America. The transaction expands CoStar's reach in residential real estate data and software, but its $800 million value increases the importance of successful execution and converting the new assets into growth and profitability.
In Q2 FY2026, Apartments.com faced a multifamily market characterized by elevated supply and landlord price sensitivity, with about 40% of communities offering concessions to renters. The number of paid properties increased 12% to nearly 93 thousand, but average revenue per property declined approximately 3.6% year over year due to increased sales to smaller communities. The company bases its defense of its pricing on a PERQ analysis of more than 1,000 properties, which showed that leads from Apartments.com convert into leases at a rate 2.5 times that of the closest competitor.
The company expects revenue of between $3.715 billion and $3.755 billion in FY2026, representing year-over-year growth of 15% at the midpoint. It expects commercial revenue of between $1.94 billion and $1.96 billion and residential revenue of between $1.775 billion and $1.795 billion, representing growth of 9% and 22%, respectively, at the midpoints. The company maintained its adjusted EBITDA guidance of between $780 million and $820 million and adjusted earnings per share guidance of between $1.32 and $1.39, despite lowering its revenue outlook because of Ten-X, adjustments to the Homes.com sales teams, and the pricing policy at Apartments.com.
