CoStar Group Q2 2026: revenue up 18%, net income $55 million
CoStar Group's second quarter was the quarter the profit finally showed up: revenue rose 18.4% to $925 million while operating costs grew only 2%, so GAAP net income jumped to $55 million from $6 million and Adjusted EBITDA more than doubled to $184 million. The case here rests on margin, not growth — guidance points to roughly 13% revenue growth next quarter. Read the numbers below with that trade-off in mind.
1 · Expected vs. Actual
Free preview belowGAAP earnings per diluted share was $0.14 against $0.01 a year ago, and Adjusted EPS was $0.32 against $0.17 — an 88% increase. The $0.32 beat the $0.2992 consensus estimate by about 7.0%. The catch is the $0.18 gap between GAAP and adjusted: it is mostly $63 million of acquired intangible amortization and $38 million of stock-based compensation, plus an $18 million credit from settlements and impairments.
Revenue of $925 million was up 18.4% from $781 million a year earlier, with the commercial segment adding 7.8% to $481 million and residential adding 32.5% to $444 million. Residential is now 48.0% of the total, so CoStar's growth story is increasingly a homes story. Net new bookings of $69 million rose just 3.0% from the first quarter, a much slower pace than reported revenue.
Management affirmed full-year 2026 Adjusted EBITDA guidance of $780 million to $820 million and said the midpoint is $30 million above February's guidance, while revising full-year revenue guidance to $3.715 billion to $3.755 billion, about 15% growth at the midpoint. Full-year Adjusted EPS was reaffirmed at $1.32 to $1.39. For the third quarter, the company guided to $935 million to $945 million of revenue, $190 million to $210 million of Adjusted EBITDA and $0.31 to $0.34 of Adjusted EPS.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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