CoStar Group Unveils $1.5B Buyback, Projects 83% Profit Surge and $3.8B Revenue for 2026

CoStar Group, Inc. (NASDAQ:CSGP), a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology in the property markets, today provided an update on key business, financial, and corporate governance initiatives for 2026 and beyond, which have all been unanimously approved by the Company's Board of Directors and its Capital Allocation Committee. As a result of a robust review undertaken by the Capital Allocation Committee, the plan calls for significant expansion of Adjusted EBITDA. CoStar Group also announced the authorization of a new $1.5 billion share repurchase program.

Based on its results to date and the initiatives underway, the Company is providing the following outlook for 2026:

• Revenue: $3.78 billion to $3.82 billion, representing approximately 18% year-over-year growth over the midpoint of our previously provided 2025 guidance
• Net income: $175 million to $215 million and $0.42 to $0.52 per diluted share based on 416 million shares for the full year 2026
• Adjusted EBITDA: $740 million to $800 million, the highest Adjusted EBITDA in Company history, representing a 20% margin at the midpoint, and 83% year-over-year growth over the midpoint of our previously provided 2025 guidance
• Adjusted EPS or Non-GAAP net income per diluted share: $1.22 to $1.33 based on 416 million shares

The Company is also providing the following medium-term targets:

• Revenue: ~15% compound annual growth rate (CAGR) from 2025 to 2028
• Adjusted EBITDA: $1.25 billion in 2028

Homes.com is an important component of our Residential portfolio which includes Apartments.com, Domain, OnTheMarket, and Land.com. Homes.com is experiencing rapid growth, with a 337% increase in subscribers since Q1 2024. The Company is implementing its proven playbook to continue to scale Homes.com and drive profitability. This includes lowering the capital intensity of Homes.com. CoStar Group intends to reduce net investment, revenue less directly attributable and allocated costs, by more than $300 million in 2026, down from $850 million in 2025. Moving forward, CoStar Group expects to continue to reduce net investment in Homes.com by $100+ million annually until 2030.

CoStar Group now expects Homes.com to:

• Deliver revenue in excess of expenses exiting 2029, supported by subscriber acquisition, in-depth advertising, builder partnerships, the Company's Boost program, and continued reduction in expenses.
• Attain positive Adjusted EBITDA in 2030.
• Ultimately, CoStar Group expects Homes.com to be a strong contributor to Adjusted EBITDA and stockholder value.

"Building on our strong foundation, we continue to expand and evolve our platforms and increase the efficiency of our business model to accelerate profitability while growing the top-line," said Andy Florance, Founder and Chief Executive Officer of CoStar Group. "We deliver unparalleled value to customers and extend our market-leading positions through our comprehensive ecosystem, underpinned by unmatched, integrated infrastructure and the world's largest proprietary real estate information database. This positions CoStar Group to capture compelling near- and long-term growth with significant Adjusted EBITDA expansion for several years to come. Homes.com is an important part of our ecosystem; we now have a clear path to accelerate top-line growth and drive profitability. Through the deployment of our scalable AI platform and our disciplined capital allocation approach, we are well positioned to build on our strong trajectory and drive enhanced stockholder value."

CoStar Group's core business has strong momentum driven by its high-growth, high-margin subscription business model that continues to deliver excellent customer retention resulting in predictable and resilient revenue streams. The Company is taking action to accelerate progress in 2026, including the continued rollout of its comprehensive deployment of AI across CoStar Group to drive revenue growth and reduce costs. The Company has already achieved outstanding efficiencies through AI deployment – particularly in content creation, research of public records, writing code, and lease data extraction – the savings of which are included in the 2026 outlook provided today. Additionally, CoStar Group intends to make AI enhancements to the user experience on all marketplace platforms to extend its competitive advantages.

"The actions announced today are the result of a thorough, independent review by the Capital Allocation Committee and reflect the Board's commitment to aligning capital allocation and executive compensation programs with the interests of all stockholders," said Louise Sams, Independent Chair of the Board. "These updates follow robust engagement with stockholders over the last six months and implement the feedback we've received. The Board unanimously believes that CoStar Group is executing the right strategy to drive sustainable, profitable growth and is focused on holding management accountable to deliver on the Company's objectives for the benefit of our stockholders."

Increased Return of Capital to Stockholders

In alignment with CoStar Group's commitment to disciplined and proactive return of capital to stockholders, the Capital Allocation Committee recommended, and the Board authorized, a new $1.5 billion repurchase of common stock.1 This new authorization follows the Company's accelerated completion of its $500 million share repurchase program in 2025. The Company continues to fund its organic growth primarily through capital generated from its businesses, maintaining ample liquidity to support its business strategy as well as returning capital to stockholders.