| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 897.00 | 22.5% |
| Total Income | 897.00 | 22.5% |
| Expenditure | 894.00 | 15.3% |
| PBT | 12.00 | 279.1% |
| Net Profit | 3.00 | 120.3% |
| OPM | 0.33% | 6.18pp |
| NPM | 0.33% | 2.36pp |
| EPS | 0.01 | 125.0% |
CoStar Group Reports Q1 2026 Revenue $897 Million, Up 23% YoY, Adjusted EBITDA Up 100%
29 Apr 2026 · 29 Apr, 1:42 am
Summary
CoStar Group reported a strong first quarter for 2026, with revenue climbing 23% year-over-year to $897 million. The company achieved a net income of $3 million, a notable turnaround from a net loss of $15 million in the same period last year. Adjusted EBITDA saw a significant 100% increase to $132 million, while Adjusted Net Income grew 49% to $94 million. Management highlighted consistent double-digit revenue growth and successful product launches, including the Homes.com AI application, which drove substantial organic traffic and customer engagement, leading to an upward revision of full-year Adjusted EBITDA guidance.
Key Highlights
- 1
CoStar Group's revenue for the first quarter of 2026 increased by 23% year-over-year to $897 million, up from $732 million in Q1 2025.
- 2
The company reported a net income of $3 million for Q1 2026, a significant improvement from a net loss of $15 million in the prior year period.
- 3
Adjusted Net Income for the first quarter rose by 49% year-over-year to $94 million, with Adjusted EPS increasing by 53% to $0.23.
- 4
Adjusted EBITDA saw a substantial increase of 100% from the prior year, reaching $132 million in the first quarter of 2026.
- 5
Annualized Net New Bookings grew by 20% year-over-year to $67 million in the first quarter.
- 6
The successful launch of the Homes.com AI application in February contributed to a 119% increase in organic traffic during the first quarter.
- 7
CoStar Group is increasing its full-year 2026 Adjusted EBITDA guidance to a range of $780 million to $820 million, an increase of $30 million at the midpoint from previous guidance.
Management Comments
Andy Florance
CoStar Group produced $67 million in net new bookings in the first quarter of 2026, an increase of 20% year-over- year. We have delivered 60 consecutive quarters of consistent, double-digit revenue growth in a wide range of economic conditions. We continue to deliver on our goal of significant Adjusted EBITDA expansion in 2026 and beyond. Our strong 100% year-over-year growth in Adjusted EBITDA exceeded our expectations and was 26% higher than the midpoint of our guidance range. The successful launch of our transformative Homes.com AI application in February has contributed to a 119% increase in organic traffic in the first quarter compared to the prior year period. Customer engagement accelerated as we delivered our best-ever time on site, page views, and bounce rates. In the first quarter, we introduced Smart Search on Apartments.com, our natural language search feature, and the first AI-powered voice search in multifamily marketplaces. We have also continued our strong momentum in adding Homes.com members and today have 35,000, up more than 200% from the same period a year ago.
Christian Lown
This quarter, we delivered strong revenue and Adjusted EBITDA growth as we exceeded the midpoint of our revenue guidance and exceeded the top-end of our Adjusted EBITDA guidance.
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