CoStar Group Q2 2026: Profitability Inflection — Revenue +18%, Net Income +817%, Residential Turns Profitable
CSGP is trading near its 52-week low of $26.68 (3.1% above the low).
Summary
CoStar Group's Q2 2026 results mark a profitability inflection: revenue up 18% to $925M, net income up 817% to $55M, and the residential segment turned profitable for the first time. Full-year Adjusted EBITDA guidance was affirmed at $780M-$820M.
Key Events · Earnings and Guidance · CSGP
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Revenue Surges 18% to $925M
Q2 2026 revenue reached $925 million, up 18% year-over-year, driven by 13% growth in Commercial Real Estate and 33% growth in Residential Real Estate.
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Net Income Explodes 817% to $55M
Net income jumped to $55 million ($0.14 per diluted share) from $6 million a year ago, as operating expense growth was held to just 2%.
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Residential Segment Turns Profitable
The residential segment achieved positive Adjusted EBITDA of $12 million, a $41 million improvement from Q1 2026, marking the first profitable quarter for the Homes.com business.
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Adjusted EBITDA More Than Doubles
Adjusted EBITDA reached $184 million, up 116% year-over-year, the second-highest quarterly level in company history, with margin expanding significantly.
Analysis · CSGP · Trade & Services
This quarter fundamentally reshapes the investment narrative. Revenue surged 18% to $925 million, while net income exploded 817% to $55 million—a direct result of disciplined cost control that kept operating expense growth to just 2%. For the first time, the residential segment turned Adjusted EBITDA positive, a $41 million sequential swing that validates the Homes.com strategy after years of margin pressure. Adjusted EBITDA more than doubled to $184 million, the second-highest quarterly level in company history. Management affirmed full-year Adjusted EBITDA guidance of $780-$820 million, raising the midpoint by $30 million. With the stock trading near its 52-week low, these results directly challenge the market's skepticism about heavy spending on residential expansion. The combination of accelerating revenue, explosive profit growth, and a clear path to record full-year profitability makes this a thesis-altering report.
At the time of this filing, CSGP was trading at $27.51 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $12.4B. The 52-week trading range was $26.68 to $97.43. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.