| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 925.00 | 3.1% | 18.4% |
| Total Income | 925.00 | 3.1% | 18.4% |
| Expenditure | 849.00 | 5.0% | 5.0% |
| PBT | 74.00 | 516.7% | 242.6% |
| Net Profit | 55.00 | 1733.3% | 787.1% |
| OPM | 8.22% | 7.88pp | 11.70pp |
| NPM | 5.95% | 5.61pp | 5.15pp |
| EPS | 0.14 | 1300.0% | 1300.0% |
CoStar Group Reports Q2 2026 Results: Revenue Up 18%, Net Income Soars 817%
29 Jul 2026 · 29 Jul, 1:42 am
Summary
CoStar Group reported strong financial results for the second quarter of 2026, with revenue increasing by 18% year-over-year to $925 million. Net income saw a substantial surge of 817% to $55 million, and earnings per diluted share grew to $0.14. Adjusted EBITDA more than doubled, reaching $184 million, driven by a focus on profitability and continued investment in long-term growth. Management highlighted a significant inflection point in profitability, with the residential segment achieving positive Adjusted EBITDA for the first time and expressed confidence in delivering the highest full-year Adjusted EBITDA in the company's history, supported by advancements in AI technology and strategic product launches.
Key Highlights
- 1
CoStar Group announced revenue of $925 million for the quarter ended June 30, 2026, an 18% increase over the prior year period.
- 2
Net income for the second quarter of 2026 was $55 million, an 817% increase compared to $6 million in the prior year period.
- 3
Earnings per diluted share rose to $0.14 for Q2 2026, up from $0.01 in the prior year period.
- 4
Adjusted EBITDA more than doubled year-over-year, reaching $184 million in the second quarter of 2026.
- 5
The residential segment turned Adjusted EBITDA positive for the first time, with a $41 million improvement over the first quarter.
- 6
The company expects to deliver the highest full-year Adjusted EBITDA in its history.
- 7
CoStar Group introduced Apartments.com Ai in June, which saw over half a million AI sessions within weeks, demonstrating significant user engagement and conversion improvements.
Management Comments
Andy Florance
The second quarter marked a profitability inflection point for CoStar Group as Adjusted EBITDA more than doubled year-over-year to $184 million. We held operating cost growth to just 2%, and we delivered our 61st consecutive quarter of double-digit revenue growth. For the first time, our residential segment turned Adjusted EBITDA positive — a $41 million improvement over the first quarter — and we expect to deliver the highest full-year Adjusted EBITDA in our company's history. We continue to capture more of CoStar Group's $100 billion total addressable market through new product launches and geographic expansion. Building on February's transformative launch of Homes.com Ai, we introduced Apartments.com Ai in June. Within weeks, Apartments.com Ai users completed more than half a million AI sessions — averaging 20 minutes per session, 2.8 times longer than non-AI users, viewing twice as many listings, with 3D tour usage up 224% and traffic-to-lead conversion up 256%. Our product roadmap extends these AI capabilities across CoStar, LoopNet, and our international businesses. This quarter we also delivered four major launches on our core CoStar platform — including CoStar Rent Benchmark, built from four million AI-abstracted lease agreements, and CoStar’s market entry into France. We accomplished all of this while reducing our projected expense base by roughly $100 million versus our original guidance, giving us a head start on our 2028 and 2030 Adjusted EBITDA targets.
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