10-Q · July 29, 2026
CoStar delivered strong Q2 growth, with revenue up 18% to $925 million, gross margin expanding to 79%, and GAAP operating income improving to $76 million from a $27 million loss a year ago. Residential revenue grew 33%…
Earnings analysis · 10-Q
CSGP earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
CoStar delivered record Q3 revenue of $952 million, up 14% year over year, while adjusted EPS of $0.38 exceeded the $0.33 consensus estimate; GAAP diluted EPS was $0.18. Management raised full-year 2026 revenue,…
Read full summary
CoStar delivered record Q3 revenue of $952 million, up 14% year over year, while adjusted EPS of $0.38 exceeded the $0.33 consensus estimate; GAAP diluted EPS was $0.18. Management raised full-year 2026 revenue, adjusted EPS, and adjusted EBITDA outlooks, supporting a positive operating trajectory. The principal offsets are acquisition execution risk from Zonda and pending Vexcel, a $7.5 billion goodwill and intangible-asset balance, and continued exposure to foreign-exchange and financing conditions.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.18
What stood out
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Record revenue growth
Q3 revenue was a record $952 million, up 14% from $834 million in Q3 2025 and approximately 3% from $925 million in Q2 2026.
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Adjusted EPS beat estimates
Adjusted EPS was $0.38, 15.2% above the $0.33 consensus estimate. GAAP diluted EPS was $0.18, materially below adjusted EPS because of reported adjustments.
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Adjusted EBITDA outlook raised
Management raised full-year 2026 adjusted EBITDA guidance to $820 million-$840 million, an increase of $30 million at the midpoint versus July and $60 million versus February.
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Cash balance remains substantial
The company held $500 million of cash and cash equivalents as of September 30, 2026, diversified among multiple financial institutions and AAA-rated government and Treasury money-market funds.
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Share repurchases continued
CoStar repurchased 2.7 million shares for $81 million during Q3, leaving approximately $832 million available under the authorized repurchase program at September 30, 2026.
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Currency exposure disclosed
Foreign-currency exposure was material but quantifiable: 15% of Q3 revenue was denominated in foreign currencies, and a 10% strengthening of the U.S. dollar would have reduced Q3 revenue by approximately $14 million.
What to watch
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Zonda integration execution
The Zonda acquisition, completed on August 21, 2026, may generate higher-than-expected transaction and integration costs, employee losses, management distraction, or disruption. The filing states CoStar may not realize the anticipated growth, synergies, or other benefits.
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Vexcel closing and integration risk
CoStar announced the Vexcel acquisition on October 26, 2026, but closing remains subject to customary conditions, including applicable Hart-Scott-Rodino waiting periods and the absence of a material adverse effect. Pending-transaction costs and disruption could adversely affect the business before closing.
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Large goodwill impairment exposure
Goodwill and intangible assets totaled approximately $7.5 billion as of September 30, 2026. Adverse changes in the economy, industry, or company performance could lead to impairment charges.
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Debt and interest-rate exposure
The company had $1.0 billion of fixed-rate senior notes and a variable-rate revolving facility with borrowing capacity of up to $1.1 billion. Although no revolver borrowings were outstanding at September 30, 2026, future variable-rate borrowings could increase financing costs.
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Foreign-exchange sensitivity
A 10% strengthening of the U.S. dollar would have reduced Q3 revenue by approximately $14 million; foreign-currency revenue represented 15% of Q3 revenue.
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Acquisition control integration
CoStar continues integrating internal controls for recent acquisitions. The filing notes that these activities may require modifications to processes, systems, and other components of financial reporting controls.
Management's outlook
Management's full-year 2026 outlook was raised, with revenue guidance of $3.75 billion-$3.77 billion and adjusted EPS guidance of $1.38-$1.41. Full-year adjusted EBITDA guidance was increased to $820 million-$840 million, up $30 million at the midpoint versus July and $60 million versus February. Q4 adjusted EPS guidance was $0.46-$0.50.
Earlier filings 4
10-Q · April 29, 2026
CoStar Group reported revenue of $897.0 million for Q1 2026, a 23% increase year-over-year and a slight beat against the consensus estimate. The company achieved a diluted EPS of $0.23, significantly exceeding the…
10-K · February 26, 2026
CoStar emphasizes a durable competitive moat built on a proprietary real estate database, the “largest commercial real estate research department,” and 35+ years of data accumulation, while accelerating AI integration…
10-Q · April 24, 2024
CoStar reported quarterly revenue of $656.4 million, up from $584.4 million in the prior-year quarter, but operating performance weakened materially: loss from operations of $42.8 million versus operating income of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.