CoStar Group Reports Revenue Growth Deceleration Amid Strategic Adjustments
CoStar Group (CSGP) has experienced a slowdown in its quarterly revenue growth, with the rate falling from 26.89% year over year in Q4 2025 to 18.44% by Q2 2026 — marking two consecutive quarters of deceleration. This trend is notable as it predates explanations provided during its most recent earnings call, where management attributed the slowdown to strategic decisions such as restructuring Ten-X and reducing staff at Homes.com. While CoStar raised full-year adjusted EBITDA guidance by $30 million amid margin expansion, GAAP EBITDA figures reveal significant volatility over the past eight quarters. Quarterly swings ranged from a low of $18.1 million to a high of $161 million, with year-over-year changes varying between -69% and +332%. This contrast highlights how management's narrative focuses on smoother adjusted metrics while raw data tells a more erratic story. Investors are being asked to place trust in these adjustments as CoStar navigates restructuring costs from Ten-X, Homes.com, Matterport integration, and the pending Zonda acquisition. The company’s net new bookings also fell by 26% year over year in Q2 — directly linked to its slowing growth trajectory.
Tickers: $CSGP
Topics: earnings call growth deceleration guidance change revenue