CoStar Group reported strong Q2 2026 profits, with adjusted EBITDA more than doubling year-over-year despite a slight revenue guidance cut. The company is strategically restructuring several businesses (Homes.com, 10X, Apartments.com) to prioritize profitability over near-term revenue, leveraging its competitive advantages and legal actions against Zillow. Management affirmed its profit guidance and highlighted strong growth in international and new product areas. Adjusted EBITDA for Q2 2026 was $184M, up >100% YoY, and residential segment swung to a positive profit of $12M.
Buzzberg 분석Q2 EBITDA doubled YoY to $184M; margin up 900 bpsCoStar Group reported strong Q2 2026 profits, with adjusted EBITDA more than doubling year-over-year despite a slight revenue guidance cut. The company is strategically restructuring several businesses (Homes.com, 10X, Apartments.com) to prioritize profitability over near-term revenue, leveraging its competitive advantages and legal actions against Zillow. Management affirmed its profit guidance and highlighted strong growth in international and new product areas. Adjusted EBITDA for Q2 2026 was $184M, up >100% YoY, and residential segment swung to a positive profit of $12M.전체 분석 보기분석 접기
CoStar Group reported strong Q2 2026 profits, with adjusted EBITDA more than doubling year-over-year despite a slight revenue guidance cut. The company is strategically restructuring several businesses (Homes.com, 10X, Apartments.com) to prioritize profitability over near-term revenue, leveraging its competitive advantages and legal actions against Zillow. Management affirmed its profit guidance and highlighted strong growth in international and new product areas. Adjusted EBITDA for Q2 2026 was $184M, up >100% YoY, and residential segment swung to a positive profit of $12M.
Full-year 2026 revenue guidance was slightly lowered to $3.715-$3.755B from $3.73-$3.78B, but EBITDA guidance was affirmed at $780-820M.
Homes.com is undergoing a significant operational shift, cutting inside sales reps by ~40% while expanding its field team, with a new focus on higher-margin depth advertising.
Apartments.com is deliberately maintaining price integrity despite competitive pressure from Zillow, expecting ROI-based value to win back churned customers.
Revenue$0.925B
+3% QoQ
EPS$0.32
+39% QoQ
Gross margin74.81%
reported
Op margin8.22%
reported
이번 분기에 달라진 점
01
Margins
Q2 EBITDA doubled YoY to $184M; margin up 900 bps
Reported gross margin was 74.81%, reinforcing the quarter's better-than-guided profitability.
02
Go-to-market
Homes.com shifting to field sales force for higher productivity
Adjusted EBITDA for Q2 2026 was $184M, up >100% YoY, and residential segment swung to a positive profit of $12M.
03
AI
Apartments.com AI drives 256% higher lead conversion
Management emphasized AI as a driver of both engagement and cost efficiency. They highlighted AI products like Apartments.com AI and Homes.ai as driving higher user engagement and conversion, and noted that AI-driven automation is reducing labor costs, with token costs…
04
Monetization
Homes.com depth advertising launch is key monetization milestone
Homes.com is undergoing a significant operational shift, cutting inside sales reps by ~40% while expanding its field team, with a new focus on higher-margin depth advertising.
AI, 자본지출 및 수요 분석
AI
플랫폼 및 수익화
Management emphasized AI as a driver of both engagement and cost efficiency. They highlighted AI products like Apartments.com AI and Homes.ai as driving higher user engagement and conversion, and noted that AI-driven automation is reducing labor costs, with token costs currently below budget.
수요
수주 및 전환
While revenue guidance was lowered, the affirmation and effective increase in profitability guidance signals management's commitment to margin expansion and confident cost control, leading to a positive read on the profit trajectory.
자본지출
투자 및 생산능력
CoStar completed a new headquarters campus in Richmond, Virginia, on schedule and under budget, funded entirely on the balance sheet. Management plans a potential future sale-leaseback to unlock capital for acquisitions or buybacks while retaining operational control.
톤 · Measured
Management acknowledged softness in bookings and guide-downs but expressed confidence in long-term strategy, focusing on cost discipline and product differentiation.
공급망 알파
A1
The reduction in the revenue guidance is driven by a deliberate strategy at Apartments.com to maintain price integrity despite competitive pressure from Zillow, expecting to win back churned customers within a year based on ROI data.
“We're maintaining our pricing integrity successfully. You see us maintaining the average ARPU roughly at about the same level, including with a share mix. And what we see is that with a 2.5x lead to lease conversion rate, we recapture a lo…”
LoopNet, CoStar's CRE marketplace, is seeing significant international growth, with paid listing counts up 24% in Canada and 52% in the UK year-over-year, and European unique visitors up 88%.
“Paid listings increased 9% year-over-year in the US to 220,000 and grew 24% in Canada and 52% in the UK year-over-year... LoopNet's European revenue grew 10% year-over-year, with average monthly unique visitors up 88%.”
The upcoming divestiture of non-core software assets in Australia is expected to be completed by the end of 2026, allowing management to focus on core residential and commercial objectives.
“Our program to divest non-core software assets in Australia is progressing as expected, which will enable management to concentrate on the most important residential and commercial objectives and will improve overall profitability.”
CoStar's new Richmond, Virginia headquarters campus was delivered on schedule and under budget, and despite the cost, it positions the company for a future sale-leaseback that could unlock significant capital.
“Because we own this premier trophy asset entirely on our balance sheet, we have created substantial equity value and position ourselves for a future sales leaseback that could unlock hundreds and hundreds of millions in liquid capital for…”
ImprovingGuidance · revenue to $3.735B · was IN LINE last Q
향후 가이던스
지표
기간
범위
중간값
상태
EPS
FY2026
$1.32–$1.39inline 컨센서스 대비
$1.35
MAINTAINED
EPS
FY2026 Q3
$0.31–$0.34inline 컨센서스 대비
$0.33
MAINTAINED
Op margin
FY2026
780%–820%inline 컨센서스 대비
800%
MAINTAINED
Revenue
FY2026 Q4
$3.715B–$3.755Binline 컨센서스 대비
$3.735B
MAINTAINED
RevenueRESIDENTIAL
FY2026 Q3
$0.446B–$0.451Binline 컨센서스 대비
$0.4485B
MAINTAINED
Revenue
FY2026 Q3
$0.935B–$0.945Binline 컨센서스 대비
$0.94B
MAINTAINED
RevenueCOMMERCIAL
FY2026 Q3
$0.489B–$0.494Binline 컨센서스 대비
$0.4915B
MAINTAINED
가이던스 신뢰도
3 / 3달성 또는 상회
가이던스 신뢰도
제시 시점
지표
목표 기간
가이던스
실제
결과
FY2026 Q1
EPS
FY2026 Q2
$0.27–$0.30
$0.32
Met / beat
FY2026 Q1
Revenue
FY2026 Q2
$0.922B–$0.932B
$0.925B
Met / beat
FY2025 Q4
Revenue
FY2026 Q1
$0.89B–$0.9B
$0.897B
Met / beat
기업 영향 분석
OPENAI
비상장 기업
파트너
The expanding partnership with ChatGPT is driving increased visibility and potentially traffic for Apartments.com, validating OpenAI's platform for enterprise partnerships.
“In April, Apartments.com launched a ChatGPT partnership in 100 markets and have since expanded it to 500. According to Criteo, Apartments.com has greater visibility in chat GPT than any other competitor.”
Andy FloranceFounder and Chief Executive Officer, CoStar Group
… Android. Apartments.com is industry's highest-rated rental app, and both these apps are off to a strong start with leads up 10% year-over-year in the first month. Our Q2 marketing generated more than 2.2 billion media impressions, co-branded Homes.com campaigns produced approximately 11 million views across YouTube and other outlets, and targeted digital campaigns, including World Cup-related YouTube placements. In April, Apartments.com launched a ChatGPT partnership in 100 markets and have since expanded it to 500. According to Criteo, Apartments.com has greater visibility in chat GPT than any other competitor. The U.S. multifamily market is stressed and continues to work through elevated supply, making owners more price sensitive. Q2 absorption remains strong at approximately 139,000 units, down 3% year over year, while 2026 deliveries are projected to decline 23%. Concessions remain widespread with roughly 40% of communities offering incentives. In this environment, property owners are increasingly focused on lead quality and leasing efficiency, exactly where Apartments.com differentiates. Homes.com revenue grew 66% year-over-year to $28.5 million in Q2, and the annualized …
The reduction in the revenue guidance is driven by a deliberate strategy at Apartments.com to maintain price integrity despite competitive pressure from Zillow, expecting to win back churned customers within a year based on ROI data. — This suggests CoStar is deliberately trading short-term revenue growth for long-term market share and pricing power, potentially squeezing Zillow's rental revenue model.
“The FTC and multiple state attorney generals have sued Zillow for allegedly entering an unlawful agreement that reduced competition in multifamily Rental Advertising, and CoStar Group has separately sued Zillow for the unauthorized use of”
Andy FloranceFounder and Chief Executive Officer, CoStar Group
… By contrast, ComScore reports that June visits to Zillow's network declined 35% year-over-year. Apartments.com remains the most recognizable brand in apartment search, with 66% unaiding consumer awareness among apartment seekers. That's 25 points ahead of our nearest competitor, according to Dynata. We have continued to grow despite competitive distortions in the multifamily rental marketplace. The FTC and multiple state attorney generals have sued Zillow for allegedly entering an unlawful agreement that reduced competition in multifamily Rental Advertising, and CoStar Group has separately sued Zillow for the unauthorized use of tens of thousands of CoStar-owned copyright apartment photographs that it used to build its rental marketplace. While these cases are pending, together they raise a broader question, whether Zillow's rental expansion was built through lawful competition or through shortcuts that regulators and rights holders are now challenging in court. that may result in significant setbacks for them. To date, the sales leads generated from the conference resulted more than 7 million in new annualized sales, up 1 million from last year. Leveraging our successful …
ZOOPLA
비상장 기업
경쟁사
CoStar's UK portal, OnTheMarket, has overtaken Zoopla in property inventory, marking a significant competitive shift in the UK residential market.
“Total property inventory increased 12%, surpassing Zoopla and now for the first time making on the market the second largest property portal in the UK by inventory.”
CoStar's acquisition of Zonda is expected to close in the second half of 2026, bringing a comprehensive data set for the new home construction market, which will expand CoStar's offerings.
Andy FloranceFounder and Chief Executive Officer, CoStar Group
… energy. Financially, this is a highly strategic deployment of capital. Centralizing operations eliminates fragmented lease costs and directly enhances employee efficiency, accelerating product cycle sales and client retention. Because we own this premier trophy asset entirely on our balance sheet, we have created substantial equity value and position ourselves for a future sales leaseback that could unlock hundreds and hundreds of millions in liquid capital for acquisitions or share buybacks while retaining uninterrupted operational control. We hope to replicate the playbook from our former DC headquarters where we achieved 145% value gain then in one year. In May, we announced our agreement to acquire Zonda, a leading provider of new home construction data, analytics software, and online marketplaces. Zonda's comprehensive data set covers land development, construction activity, home sales, community performance, and builder operations, serving more than 3,000 builders, developers, lenders, manufacturers, and suppliers across North America. We expect the transaction to close in the second half of this year. At this point, I'll turn the call over to our CFO, Mr. Christopher Lown.
Andy FloranceFounder and Chief Executive Officer, CoStar Group
Thank you, Chris. As announced, this is Chris's last earnings call in our CFO seat. On behalf of the Board of Directors and our colleagues, I want to thank him deeply for his many contributions to the company over the past two years. We wish him Godspeed as he heads to Allstate to take the CFO seat there. Allstate will be in good hands. As Chris departs, we congratulate Robin Rossman on his promotion to CoStar Group's new Chief Financial Officer. Robert brings more than two decades of financial, operational, and strategic leadership, including over a decade at Deloitte and more than a decade successfully running CoStar Group's businesses around the world. He has proven he can drive margin expansion and profitable growth. Over the past two years, he dramatically improved the margins of our European business, eliminating approximately $50 million in costs, roughly 25% of the European cost structure, while still delivering double-digit revenue growth. Last week, Robin and I enjoyed dinner with CoStar Group's three former CFOs, Karketi, who served nine years enjoying a 489 stock appreciation, Radecki, who served for eight years with only a 270% stock increase, and Wheeler, who served …
Matterport's business is accelerating under CoStar's ownership, with strong subscription revenue growth and record enterprise customer acquisition, indicating a positive trajectory for the Matterport brand.
Andy FloranceFounder and Chief Executive Officer, CoStar Group
… It converts complex lease documents into structured, audible records and significantly reduces the time clients spend onboarding and managing leases. We remain focused on launching CoStar in Australia in the second half of this year. We now have 124 researchers and photographers deployed on the ground in Australia. covering 30,000 listings, 23,000 property profiles, and more than 10,000 sale and lease transactions. Matterport performed well in the second quarter. Subscription revenue grew 16% year over year, and we achieved Matterport's all-time best month of enterprise customer acquisition in June. Tomorrow, we will deploy a new pricing plan that reduces the price of the Matterport 3 camera and shifts more of the revenue into SaaS. We believe this will accelerate both adoption and subscription revenue growth. We continue to advance the product roadmap. We fully released E57 import, strengthening Matterport's position as a unified platform for storing, managing, and using multiple sources of 3D spatial data in one spot. The team also released a more powerful digital twin experience. It presents a home's exterior through a Gaussian splat, lets viewers rotate and fly around …
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