CoStar Group Reports Strong Q1 Results, Doubles Adjusted EBITDA, and Raises Full-Year Profit Guidance
Summary
CoStar Group reported strong Q1 2026 financial results, including a return to net income and a 100% increase in Adjusted EBITDA, and raised its full-year Adjusted EBITDA guidance despite a slightly lower Q2 revenue outlook.
Key Events
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Strong Q1 Financial Performance
Q1 2026 revenue grew 23% year-over-year to $897 million. Net income turned positive at $3 million, compared to a $15 million net loss in Q1 2025. Adjusted EBITDA increased 100% year-over-year to $132 million, exceeding guidance.
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Raised Full-Year Adjusted EBITDA Guidance
The company increased its full-year 2026 Adjusted EBITDA guidance to a range of $780 million to $820 million, an increase of $30 million at the midpoint from previous guidance.
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Robust Homes.com Growth
Homes.com organic traffic increased 119% year-over-year in Q1, and the platform now has 35,000 members, up over 200% from the prior year period, following the launch of its AI application.
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Reaffirmed Full-Year Revenue Outlook
CoStar Group reaffirmed its full-year 2026 revenue guidance in the range of $3.78 billion to $3.82 billion, representing approximately 17% year-over-year growth at the midpoint.
Analysis
CoStar Group delivered strong first-quarter 2026 financial results, marking a significant turnaround to net income of $3 million compared to a $15 million loss in the prior year. Adjusted EBITDA surged by 100% year-over-year to $132 million, exceeding expectations. The company also reported robust growth in its Homes.com platform, with organic traffic up 119% and members increasing over 200%. While second-quarter revenue guidance came in slightly below some market expectations, the company notably increased its full-year 2026 Adjusted EBITDA guidance by $30 million at the midpoint, signaling improved profitability and operational efficiency. This positive profitability outlook, especially with the stock trading near its 52-week low, could be a significant catalyst for investor sentiment.
At the time of this filing, CSGP was trading at $34.48 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $15.1B. The 52-week trading range was $34.75 to $97.43. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.