CoStar Group (NASDAQ:CSGP) Announces Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Q1 beat and stronger profitability outlook: CoStar reported EPS of $0.23 vs. $0.18 expected, revenue of $897M (+23% YoY) and adjusted EBITDA doubled to $132M, prompting management to raise full‑year adjusted EBITDA guidance to $780–$820M while reaffirming FY revenue targets.
• Homes.com scaling rapidly: Homes.com revenue rose 58% YoY to $26M with ~35,175 agent subscribers and March ARR around $106M, and management will raise subscription pricing for new customers effective May 1.
• Capital return and mixed market reaction: The board authorized a $1.50 billion share repurchase (up to ~5.3% of shares), yet the stock traded down about 0.8% after the print amid analyst price‑target cuts and investor skepticism about near‑term profitability vs. growth spending.

CoStar Group (NASDAQ:CSGP - Get Free Report) released its quarterly earnings results on Tuesday. The technology company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.05, FiscalAI reports. CoStar Group had a return on equity of 2.53% and a net margin of 0.23%.The company had revenue of $897.00 million during the quarter, compared to the consensus estimate of $897.69 million. During the same quarter last year, the business posted ($0.04) earnings per share. CoStar Group's revenue was up 22.5% compared to the same quarter last year. CoStar Group updated its Q2 2026 guidance to 0.270-0.300 EPS and its FY 2026 guidance to 1.320-1.390 EPS.

Here are the key takeaways from CoStar Group's conference call:

• Q1 results beat expectations — total revenue grew 23% YoY to $897M, adjusted EBITDA doubled to $132M (above guidance), and management raised full‑year adjusted EBITDA guidance to $780–$820M while reaffirming FY revenue guidance.
• Homes.com is scaling quickly — Q1 revenue up 58% YoY to $26M, 35,175 agent subscribers, March ARR ~$106M, strong member ROI (average ~11x first‑year return) and management will raise subscription pricing for new customers effective May 1.
• AI and Matterport integrations are driving engagement and product differentiation — Homes AI and Apartments AI users spend far more time and generate materially more leads, and Matterport features (including new exteriors/X‑ray) are boosting conversions across platforms.
• Bookings and sales productivity show variability — net new bookings were $67M (up 20% YoY) but bookings have been uneven sequentially, many recent sales hires remain junior, and management declined to provide bookings guidance, leaving short‑term conversion risk.
• International and product expansion progressing — accelerated growth in the U.K., Canada, Australia and new product launches (CoStar Rent Benchmark, New Homes, Debt Solutions >$100M and upcoming CRE debt benchmarking) offer upside but require execution over time.

CoStar Group Trading Down 0.8%

NASDAQ:CSGP traded down $0.29 during mid-day trading on Tuesday, reaching $35.95. The company's stock had a trading volume of 7,345,272 shares, compared to its average volume of 6,744,886. The company's fifty day simple moving average is $42.56 and its two-hundred day simple moving average is $57.64. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.84 and a quick ratio of 2.84. CoStar Group has a twelve month low of $34.75 and a twelve month high of $97.43. The stock has a market cap of $15.09 billion, a P/E ratio of 3,598.90, a P/E/G ratio of 0.94 and a beta of 0.92.

CoStar Group announced that its Board of Directors has initiated a share repurchase program on Wednesday, January 7th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the technology company to purchase up to 5.3% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of analysts recently commented on CSGP shares. BTIG Research decreased their price objective on CoStar Group from $60.00 to $55.00 and set a "buy" rating on the stock in a research note on Wednesday, April 15th. Needham & Company LLC dropped their price objective on CoStar Group from $80.00 to $60.00 and set a "buy" rating for the company in a research report on Wednesday, February 25th. BNP Paribas Exane started coverage on CoStar Group in a research report on Wednesday, January 14th. They set a "neutral" rating and a $64.00 price objective for the company. Citigroup dropped their price objective on CoStar Group from $100.00 to $70.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Finally, The Goldman Sachs Group dropped their price objective on CoStar Group from $73.00 to $63.00 and set a "buy" rating for the company in a research report on Thursday, March 19th. Twelve research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, CoStar Group currently has a consensus rating of "Moderate Buy" and a consensus price target of $66.47.

Insider Transactions at CoStar Group

In other CoStar Group news, Director Louise S. Sams purchased 1,000 shares of the firm's stock in a transaction on Friday, March 6th. The shares were purchased at an average cost of $48.36 per share, with a total value of $48,360.00. Following the purchase, the director owned 20,409 shares in the company, valued at approximately $986,979.24. This represents a 5.15% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Insiders own 1.09% of the company's stock.

Hedge Funds Weigh In On CoStar Group

Hedge funds and other institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC lifted its stake in shares of CoStar Group by 71.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,850 shares of the technology company's stock valued at $149,000 after purchasing an additional 774 shares in the last quarter. Osterweis Capital Management Inc. acquired a new position in shares of CoStar Group in the 2nd quarter valued at about $146,000. Zions Bancorporation National Association UT lifted its stake in shares of CoStar Group by 268.7% in the 4th quarter. Zions Bancorporation National Association UT now owns 2,076 shares of the technology company's stock valued at $140,000 after purchasing an additional 1,513 shares in the last quarter. NewEdge Advisors LLC lifted its stake in shares of CoStar Group by 727.5% in the 1st quarter. NewEdge Advisors LLC now owns 1,473 shares of the technology company's stock valued at $117,000 after purchasing an additional 1,295 shares in the last quarter. Finally, Quarry LP lifted its stake in shares of CoStar Group by 221.3% in the 3rd quarter. Quarry LP now owns 1,269 shares of the technology company's stock valued at $107,000 after purchasing an additional 874 shares in the last quarter. 96.60% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about CoStar Group

Here are the key news stories impacting CoStar Group this week:

• Positive Sentiment: Q1 EPS beat and year‑over‑year improvement: CoStar posted adjusted EPS of $0.23, ahead of consensus (~$0.18) and up from $0.14 a year ago, signaling improving operating leverage. Read More.
• Positive Sentiment: Solid top‑line growth and return to GAAP profitability: Revenue was $897M, +23% YoY, and CoStar swung to net income (vs. a loss prior year), showing demand momentum across its platforms. Read More.
• Positive Sentiment: Management lifted margin guidance and raised profitability targets: CoStar increased full‑year adjusted EBITDA guidance (and provided stronger FY and Q2 EPS ranges), which supports the view of accelerating adjusted profitability. Read More.
• Neutral Sentiment: Company will use its website as a primary investor‑communications channel — useful for tracking releases and guidance but unlikely to move the stock materially by itself. Read More.
• Neutral Sentiment: Company research/data (e.g., London office leasing) continue to show product relevance, supporting long‑term TAM but not directly tied to near‑term stock moves. Read More.
• Negative Sentiment: Investors remain skeptical about near‑term profitability vs. growth spend (Homes.com): commentary and pre‑earnings positioning suggest the market is treating CoStar as a “show‑me” story, pushing the shares lower despite beats. Read More.
• Negative Sentiment: Media highlight that the stock dropped despite results — headlines point to mixed reactions (in‑line revenue vs. expectations and investor rotation), which can amplify intraday volatility. Read More.
• Negative Sentiment: Broader worries (e.g., AI disruption narratives) and varied analyst views/targets keep sentiment split; that uncertainty can weigh on the multiple until consistent margin expansion is visible. Read More.

About CoStar Group

CoStar Group, Inc is a provider of information, analytics and online marketplaces for the commercial real estate industry. The company gathers property-level data, builds market analytics and supplies research tools used by brokers, owners, lenders, investors and other real estate professionals to evaluate markets, track inventory and manage listings. CoStar's offerings are delivered primarily through subscription-based platforms that combine proprietary databases, mapping and workflow applications to support decision-making across the property life cycle.

In addition to its core CoStar research service, the company operates prominent online listing and marketing platforms that connect buyers, sellers, tenants and brokers.

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