CoStar Group Reports Strong Q2 Earnings with Margin Expansion, Strategic Restructuring
In its second-quarter earnings report for fiscal year 2026, CoStar Group (CSGP) highlighted a significant improvement in profitability. Adjusted EBITDA more than doubled to $184 million compared to the prior year, driven by disciplined cost management and improved margins of 20%. Commercial revenue grew 8%, largely due to record performance from its Debt Solutions division, which saw net new monthly bookings increase by 96%. The residential segment also reached positive adjusted EBITDA for the first time since launching Homes.com in 2024. This was supported by a 33% revenue growth and improved marketing efficiency. CoStar restructured its Ten-X business, reducing costs by $7 million year-to-date despite temporary revenue declines. The company maintained pricing power on Apartments.com amid aggressive competitor discounting due to superior lead conversion rates. Looking ahead, the firm revised full-year guidance for 2026 adjusted EBITDA between $780 million and $820 million with a reduced expense base of $100 million. Revenue is now expected in the range of $3.715 billion to $3.755 billion due to strategic shifts, including sales force optimization.
Topics: cost_reduction profitability revenue_growth strategic_restructuring