CoStar Group, Inc. (NASDAQ:CSGP) on Wednesday outlined its key business, financial and governance initiatives for 2026 and beyond.
The company also approved a new $1.5 billion share buyback program, following the accelerated completion of the $500 million buyback in 2025.
Outlook for 2026
CoStar expects revenue of $3.78 to $3.82 billion, reflecting approximately 18% growth from the midpoint of previously provided 2025 guidance.
The company expects net income of $175 million to $215 million and adjusted earnings per share of $1.22 to $1.33 for 2026.
CoStar expects adjusted EBITDA of $740 million to $800 million, the highest in company history, with a 20% margin at the midpoint and 83% year-over-year growth compared to the 2025 midpoint.
In addition, the company plans to accelerate progress through broader deployment of AI in 2026, already improving efficiencies in content creation, public records research, coding and leasing data extraction.
The company also wants to enhance AI in its marketplaces to improve user experience and strengthen its competitive advantage.
Medium-term guidance
The company expects a compound annual growth rate (CAGR) of ~15% from 2025-2028 and adjusted EBITDA of $1.25 billion in 2028.
Homes.com is a fast-growing part of CoStar Group’s residential portfolio, alongside Apartments.com and other real estate platforms.
CoStar is now shifting its focus to efficiently scaling and improving profitability, and plans to reduce net investments in Homes.com by more than $300 million in 2026, from $850 million in 2025, and reduce expenses by more than $100 million each year through 2030.
The company expects Homes.com to exceed revenue above costs by 2029 and achieve positive adjusted EBITDA by 2030.
Management commentary
Andy FlorenceFounder and Chief Executive Officer of CoStar Group, said: “This positions CoStar Group to deliver compelling near- and long-term growth with significant adjusted EBITDA expansion for years to come. 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.”
CSGP Price Action: Shares of CoStar Group fell 2.73% to $65.36 at the time of publication on Wednesday, according to data from Benzinga Pro.
Photo by Piotr Swat via Shutterstock
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