10-Q · April 29, 2026
CoStar Group reported revenue of $897.0 million for Q1 2026, a 23% increase year-over-year and a slight beat against the consensus estimate. The company achieved a diluted EPS of $0.23, significantly exceeding the…
Earnings analysis · 10-Q
CSGP earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
CoStar delivered strong Q2 growth, with revenue up 18% to $925 million, gross margin expanding to 79%, and GAAP operating income improving to $76 million from a $27 million loss a year ago. Residential revenue grew 33%…
Read full summary
CoStar delivered strong Q2 growth, with revenue up 18% to $925 million, gross margin expanding to 79%, and GAAP operating income improving to $76 million from a $27 million loss a year ago. Residential revenue grew 33% and achieved positive segment Adjusted EBITDA, while Commercial revenue grew 8%. Offsetting these positives, annualized net new subscription bookings declined to $69 million from $93 million, cash fell to $1.3 billion after buybacks and litigation-related cash use, and the company faces an approximately $800 million pending Zonda acquisition plus campus spending commitments.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.14
What stood out
-
Revenue grew 18% year over year
Q2 revenue increased $144 million, or 18%, year over year to $925 million. This was a 3% sequential increase from $897 million in Q1 2026.
-
Margins and operating profit inflected
Gross profit rose 19% to $728 million and gross margin increased to 79% from 78% a year earlier. Operating income was $76 million, versus a $27 million operating loss in Q2 2025; the resulting 8.2% operating margin also improved from 0.3% in Q1 2026.
-
Commercial segment delivered steady growth
Commercial Real Estate revenue grew 8% to $481 million: CoStar rose 9% to $337 million and LoopNet rose 14% to $87 million. Commercial Adjusted EBITDA increased $11 million to $172 million.
-
Residential reached positive adjusted EBITDA
Residential Real Estate revenue increased 33% to $444 million, including $70 million from Domain. Segment Adjusted EBITDA improved $88 million to positive $12 million from a $76 million loss a year earlier.
-
Operating cash flow increased; revolver unused
Six-month operating cash flow increased $67 million year over year to $267 million. Cash and equivalents were $1.3 billion at June 30, and the company reported no outstanding balance on its $1.1 billion revolving credit facility.
-
Material capital return remains planned
The company repurchased 13.8 million shares for $589 million in the first six months, leaving $913 million under the $1.5 billion authorization; it anticipates at least $113 million of further 2026 repurchases.
What to watch
-
Net new subscription bookings declined
Annualized net new subscription bookings fell to $69 million in Q2 2026 from $93 million in Q2 2025, while the renewal rate was approximately 89% and cancellation rate approximately 11%. Lower bookings can constrain future subscription-revenue growth.
-
Cash declined amid significant uses
Cash and equivalents declined from $1.7 billion at December 31, 2025 to $1.3 billion at June 30, 2026. Uses included $589 million of share repurchases, a $109 million Brown Judgment settlement payment, and $110 million of investing cash outflow.
-
New Zonda acquisition and integration risk
The sole material risk-factor update concerns the pending Zonda acquisition, agreed in May 2026 for approximately $800 million in cash. Closing remains subject to regulatory and other conditions, and management cites potential integration costs, employee attrition, management distraction, and failure to achieve anticipated synergies.
-
Campus projects add near-term cash commitments
The company accrued $98 million for final Richmond-campus invoices and retainage expected to be paid in the second half of 2026, and had another $46 million of Arlington-headquarters construction obligations. The headquarters renovation is expected to require a material cash commitment in 2026 and 2027.
-
Foreign-exchange exposure increased with Domain
Approximately 14% of Q2 revenue was denominated in foreign currencies. A 10% strengthening of the U.S. dollar at the period exchange rate would have reduced quarterly revenue by approximately $13 million.
Management's outlook
The 10-Q contains no numeric revenue or EPS outlook. Management expects 2026 Commercial Real Estate growth to moderate versus 2025 because the Matterport-acquisition benefit was nonrecurring, while Residential Real Estate growth is expected to accelerate on a full-year Domain contribution and more Homes.com memberships. The pending approximately $800 million Zonda acquisition is expected to close in the second half of 2026, subject to customary conditions.
Earlier filings 4
10-K · February 26, 2026
CoStar emphasizes a durable competitive moat built on a proprietary real estate database, the “largest commercial real estate research department,” and 35+ years of data accumulation, while accelerating AI integration…
10-Q · April 24, 2024
CoStar reported quarterly revenue of $656.4 million, up from $584.4 million in the prior-year quarter, but operating performance weakened materially: loss from operations of $42.8 million versus operating income of…
10-Q · July 26, 2023
CoStar reported Q2 revenue of $605,906,000, up from $536,308,000 a year earlier, and diluted EPS of $0.25 versus $0.21 in Q2 2022. Gross profit rose to $493,544,000, but operating income fell to $79,146,000 from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.