CoStar Group reported a strong Q1 2026, with revenue up 23% and adjusted EBITDA doubling, leading to raised full-year EBITDA and EPS guidance. The company highlighted the success of its Homes.com investment, showcasing strong ROI for subscribers and accelerating revenue growth. Management emphasized momentum in its core commercial business and international expansion. Q1 revenue was $897M, up 23% YoY, with adjusted EBITDA of $132M, doubling YoY and beating guidance.
CoStar Group reported a strong Q1 2026, with revenue up 23% and adjusted EBITDA doubling, leading to raised full-year EBITDA and EPS guidance. The company highlighted the success of its Homes.com investment, showcasing strong ROI for subscribers and accelerating revenue growth. Management emphasized momentum in its core commercial business and international expansion. Q1 revenue was $897M, up 23% YoY, with adjusted EBITDA of $132M, doubling YoY and beating guidance.
CoStar Group reported a strong Q1 2026, with revenue up 23% and adjusted EBITDA doubling, leading to raised full-year EBITDA and EPS guidance. The company highlighted the success of its Homes.com investment, showcasing strong ROI for subscribers and accelerating revenue growth.…
Q1 revenue was $897M, up 23% YoY, with adjusted EBITDA of $132M, doubling YoY and beating guidance.
Homes.com revenue grew 58% YoY to $26M, with members showing an average 11x ROI on subscriptions.
LoopNet revenue grew 16% YoY, driven by the rollout of asset-based pricing which expanded its customer base.
Management emphasized AI as a core driver of engagement and product differentiation, highlighting Homes AI's ability to increase user time on site by ~4x, the upcoming launch of Apartments.ai, and AI lease abstraction capabilities. They are also deploying AI agents internally to improve cost efficiencies.
Homes.com organic traffic up 119% in March. Management projected strong forward momentum, highlighted accelerating product adoption and ROI metrics, and dismissed past activist distractions while reaffirming long-term growth and EBITDA targets.
No specific capex discussion; management reaffirmed the $550 million net investment target for Homes.com in 2026 and noted continued investment in sales force growth.
Management projected strong forward momentum, highlighted accelerating product adoption and ROI metrics, and dismissed past activist distractions while reaffirming long-term growth and EBITDA targets.
“On average, a Homes.com subscriber earned 36,400 more in commissions in their first year as a member.”
“At the high end, the volume of silver listings sold at $300 or above per month grew 650% from February to March. At the low end, listings sold below $40 grew over 1100%.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | $1.32–$1.39 | $1.35 | RAISED |
| EPS | FY2026 Q2 | $0.27–$0.30 | $0.29 | GUIDED |
| Revenue | FY2026 | $3.78B–$3.82B | $3.8B | MAINTAINED |
| RevenueCOMMERCIAL | FY2026 Q2 | $0.479B–$0.484B | $0.4815B | GUIDED |
| RevenueRESIDENTIAL | FY2026 Q2 | $0.443B–$0.448B | $0.4455B | GUIDED |
| Revenue | FY2026 Q2 | $0.922B–$0.932B | $0.927B | GUIDED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2025 Q4 | Revenue | FY2026 Q1 | $0.89B–$0.9B | $0.897B | Met / beat |
eXp Realty is gaining a new distribution channel for its agents' listings, which could increase its listings' visibility and agent value proposition.
“In March 26, we significantly expand our relationship with eXp Realty, the largest residential firm by transaction size in 25. The new partnership lets eXp's A3000 agents prominently display pre-market coming soon listings on homes.com.”
… many leads. In April, time on site reached 18 minutes for AI users versus four minutes, 32 seconds for non-AI users. Put plainly, when consumers experience Holmes AI, they spend roughly four times longer than they do on conventional residential search. This is precisely the dynamic that precedes meaningful consumer share shift. and is exactly the proof point we expected our AI investment to produce. In March 26, we significantly expand our relationship with eXp Realty, the largest residential firm by transaction size in 25. The new partnership lets eXp's A3000 agents prominently display pre-market coming soon listings on homes.com. You may recall we partnered earlier with eXp Commercial in December 24 when they became a major subscriber to CoStar's information and analytics. We've been integrating Apartments.com with Homes.com since early 2025. Last year, Homes.com rentals drove over 10% of Apartments.com's traffic, making Homes.com Apartments.com's largest syndication partners. This combination produced nearly 650,000 paid single-family home rental listings in 25. Paid single-family rental listings in Q1 2026 grew 33% year-over-year. According to Comscore, Homes.com is now the …
CoStar's strong ROI data for Homes.com subscribers suggests that the investment is beginning to translate into revenue growth, and management is raising prices. — If Homes.com can demonstrate a clear ROI to agents, it will increasingly compete for agent subscription dollars against Zillow and other portals, potentially shifting the competitive landscape.
“Zillow unique visitors were down 5% year-over-year. And Zillow's expanded rental network, Zillow plus Realtor plus Redfin, was down 3%. Zillow has now seen unique visitors decline year over year for 15 consecutive months.”
OnTheMarket (OTM) is growing its inventory and competitive position against Zoopla, potentially pressuring Zoopla's market share and pricing power.
“On the Market has eclipsed Zoopla as the UK's number two portal by inventory and now has more new home listings than Rightmove.”
… savings on traditional photography. The launch generated significant positive media coverage. Q1 was another strong quarter for on the market. We closed it with our 23rd consecutive month of positive net new bookings. Total time on site was up 16% and page views up 24% year over year, driving a 23% year over year increase in leads. On the market now has 17,500 state agents and new home developer customers on site, the highest in its history. On the Market has eclipsed Zoopla as the UK's number two portal by inventory and now has more new home listings than Rightmove. The growth was accelerated by signing the Connells Group, the UK's largest estate agent, with over 80 brands and more than 1,200 branch locations. Our On the Market sales team is delivering real value for customers. NPS came in at a solid 46 for the period. In Q2, we'll continue building AI search functionality as we progress towards integrating on the market into the homes.com software environment in 2027. In closing, I want to acknowledge our outstanding management team. The breadth and depth of expertise across this company is what makes everything you've heard today possible. There's a lot of it. I am very …
Data suggests that despite soft rental search demand on Google, CoStar's Apartments.com is gaining market share, implying a shift in consumer behavior away from generic search engines.
“According to Google, overall rental search demand remains soft. Even so, ComScore data shows Apartments.com network unique visitors up 3% year-over-year in March.”
… longer we invest in our brand on behalf of our clients, the more efficiently we deploy that investment. Clear example, our first ever co-branded Super Bowl commercial with homes.com aired on February 8th, reaching 126 million viewers, the highest peak viewership in U.S. media history. Combined with our industry-leading SEO and SEM, these efforts continue to produce the most qualified audience of apartment seekers on the Internet. According to Google, overall rental search demand remains soft. Even so, ComScore data shows Apartments.com network unique visitors up 3% year-over-year in March. Zillow unique visitors were down 5% year-over-year. And Zillow's expanded rental network, Zillow plus Realtor plus Redfin, was down 3%. Zillow has now seen unique visitors decline year over year for 15 consecutive quarters. Let's make that 15 consecutive months, not 15 consecutive quarters. I was just sort of picking up the 15 consecutive quarters of double-digit growth we had. Our Salesforce conducted 185,000 quality meetings in Q1 for Apartments.com and achieved an outstanding NPS of 89. In Q1, Apartments.com introduced Smart Search, our natural language search feature, and the first …
CoStar's strong ROI data for Homes.com subscribers suggests that the investment is beginning to translate into revenue growth, and management is raising prices. — If Homes.com can demonstrate a clear ROI to agents, it will increasingly compete for agent subscription dollars against Zillow and other portals, potentially shifting the competitive landscape.
… up 92% year over year. Our trailing 12 month average ARPU is $287. We are now seeing clear, quantifiable evidence that Homes.com business model is working and that our subscribers gain an extraordinary return on their investment. We analyzed the first 11,400 Homes.com members and compared their commission earnings in the 12 months before joining Homes.com to the earnings in the 12 months after they became a Homes.com subscriber. The findings are striking. On average, a Homes.com subscriber earned 36,400 more in commissions in their first year as a member. Against an average annual subscription cost of just $3,400, that's an 11 times return on their investment. In the same time period, our members saw commissions grow 16%, while the average non-member saw their commissions decline. The ROI is even stronger for the agents who need it most. Agents who have had earned 50,000 or less in the prior year earned 58,000 more after joining. Pre-membership earnings were 26,000 on average, and that jumped to 82,000 on average. There are hundreds of thousands of agents in this earnings cohort. Agents in the 50 to 100,000 bracket earned $41,000 more in commissions after joining. Agents in the …
LoopNet's new asset-based pricing is dramatically expanding its inventory at both the high and low ends, leading to a surge in ad sales. — The move is not only increasing revenue but also opening a new inventory of smaller advertisers, which could pose a threat to traditional competitors and increase the value of CoStar's data moat.