CoStar predicts Homes.com’s profitability by 2030

While the update paints a pretty rosy picture for the company as a whole in 2026, with an estimated 18% year-over-year revenue growth to between $3.78 billion and $3.82 billion and net income of $175 million to $215 million for the year, things aren’t looking so good for CoStar’s Homes.com.

Although Homes.com has registered a 337% increase in subscribers since the first quarter of 2024, the company says it does not expect Homes.com to achieve positive adjusted EBITDA until 2030, according to CoStar.

“Ultimately, CoStar Group expects Homes.com to be a strong contributor to Adjusted EBITDA and shareholder value,” the press release said.

CoStar will implement “proven playbook.”

To achieve this projection, CoStar said it is “implementing its proven playbook to continue to scale Homes.com and increase profitability.” As part of this playbook, CoStar said it plans to reduce net investments, less directly attributable revenues and allocated costs on Homes.com by more than $300 million by 2026, down from $850 million by 2025.

Beyond 2026, CoStar expects to continue to reduce net investments in Homes.com by more than $100 million annually through 2030.

According to CoStar, this plan will enable Homes.com to “generate revenues that exceed expenses beginning in 2029, supported by subscriber acquisition, deep advertising, builder partnerships, the company’s Boost program and continued cost reduction.”

“Building on our strong foundation, we continue to expand and evolve our platforms and increase the efficiency of our business model to accelerate profitability while growing revenue,” said Andy Florance, the CEO and founder of CoStar Group, in a statement. “Homes.com is an important part of our ecosystem; we now have a clear path to accelerate revenue growth and drive profitability. Through the deployment of our scalable AI platform and our disciplined approach to capital allocation, we are well positioned to build on our strong trajectory and drive greater shareholder value.”

In addition to these projections, CoStar also announced another $1.5 billion repurchase of common stock, a measure recommended by the Capital Allocation Committee. This latest authorization follows CoStar’s accelerated completion of its $500 million share repurchase program by 2025. The company said it continues to finance its organic growth primarily through capital generated from its operations.