CoStar Q3 2026 Revenue Rises 14% as Residential Growth Leads

CoStar Group (NASDAQ: CSGP) reported third-quarter 2026 revenue of $952 million, up 14% from a year earlier, as faster growth in its Residential segment supported the company’s 62nd consecutive quarter of double-digit revenue expansion. The real estate information and marketplaces provider also recorded net income of $74 million and adjusted EBITDA of $229 million, representing a 24% margin.

Residential revenue increased 23% year over year to $460 million, compared with 7% growth in Commercial revenue to $492 million. The Commercial segment remained the larger contributor to profitability, generating adjusted EBITDA of $180 million, while Residential delivered $49 million.

Adjusted net income for the quarter was $153 million, or $0.38 per diluted share. Net new bookings totaled $37 million. CoStar defines that operating metric as the annualized change in sales bookings from new and modified subscription contracts, as well as cancellations; the company cautioned that it is not comparable to, or a substitute for, revenue analysis.

Year-to-date performance

Revenue for the first nine months of 2026 reached $2.774 billion, an increase of 18% year over year. Net income was $132 million, while adjusted EBITDA totaled $545 million, equivalent to a 20% margin. Adjusted net income was $375 million, or $0.92 per diluted share.

Commercial revenue rose 10% to $1.445 billion during the year-to-date period, with segment adjusted EBITDA of $513 million. Residential revenue increased 29% to $1.329 billion and generated adjusted EBITDA of $32 million. The year-to-date figures indicate that Residential’s stronger revenue growth has not yet translated into profitability on the same scale as the Commercial business.

Fourth-quarter and full-year outlook

For the fourth quarter, CoStar expects revenue of $976 million to $996 million, representing year-over-year growth of 9% to 11%. Net income is projected at $95 million to $109 million, and adjusted EBITDA is expected to range from $275 million to $295 million, for a margin of 28% to 30%. Adjusted net income is forecast at $183 million to $198 million, or $0.46 to $0.50 per share.

The company expects fourth-quarter Commercial revenue of $490 million to $500 million, up 4% to 6%, and Residential revenue of $486 million to $496 million, up 13% to 16%. Commercial adjusted EBITDA is projected at $177 million to $187 million, with a 36% to 37% margin. Residential adjusted EBITDA is expected to reach $98 million to $108 million, corresponding to a 20% to 22% margin.

For full-year 2026, management forecasts revenue of $3.75 billion to $3.77 billion, or 16% growth. Net income is expected to be between $226 million and $241 million, while adjusted EBITDA is projected at $820 million to $840 million, representing a 22% margin. Adjusted net income is forecast at $558 million to $573 million, or $1.38 to $1.41 per share.

Full-year Commercial revenue is expected to total $1.935 billion to $1.945 billion, an increase of 8% to 9%, while Residential revenue is projected at $1.815 billion to $1.825 billion, up 24% to 25%. CoStar expects Commercial adjusted EBITDA of $690 million to $700 million and Residential adjusted EBITDA of $130 million to $140 million.

The outlook contains forward-looking statements that are subject to risks described in CoStar’s regulatory filings. The company said the projections reflect information available as of the presentation date and could differ materially from actual results. Adjusted results exclude items including stock-based compensation, acquisition and integration costs, restructuring expenses, certain settlements and impairments, and amortization of acquired intangible assets and related costs.