Highlights

  • Third quarter 2026 revenue was $952 million, compared with $834 million for the quarter ended September 30, 2025.
  • Net income was $74 million, or $0.18 per diluted share, compared with a net loss of $31 million a year earlier.
  • CoStar Group agreed to acquire Vexcel for $730 million in cash, with closing expected in the first quarter of 2027.
  • Full-year 2026 Adjusted EBITDA guidance is now $820 million to $840 million, and revenue guidance is $3.75 billion to $3.77 billion.

CoStar Group, Inc. (NASDAQ:CSGP) shares were trading at USD 27.45 on October 28, 2026, down 14.24%, with a relative volume at time of 4.96. The real estate information and marketplaces company completed its Zonda acquisition, agreed on October 27 to acquire Vexcel and reported third quarter 2026 results with raised full-year guidance.

CoStar Group is incorporated in Delaware and has its principal executive offices in Arlington, Virginia. The company describes itself as a provider of online real estate marketplaces, information, analytics and 3D digital twin technology in the property markets. Its major brands include CoStar, LoopNet, Apartments.com and Homes.com. Since the fourth quarter of 2025 it has reported two segments: Commercial Real Estate and Residential Real Estate.

Third Quarter 2026 Results

Revenue for the quarter ended September 30, 2026 was $952 million, up 14% from $834 million for the quarter ended September 30, 2025. Revenue for the nine months was $2,774 million, compared with $2,347 million. Net new bookings were $37 million for the quarter.

Gross profit was $741 million, compared with $662 million. Income from operations was $84 million, compared with a loss from operations of $51 million. Net income was $74 million, or $0.18 per diluted share, compared with a net loss of $31 million, or $0.07 per diluted share.

On a non-GAAP basis, EBITDA was $179 million and Adjusted EBITDA was $229 million, compared with $114 million a year earlier. Adjusted Net Income was $153 million, and Adjusted EPS was $0.38, compared with $0.23.

By segment, Commercial Real Estate Adjusted EBITDA was $180 million, compared with $183 million. Residential Real Estate Adjusted EBITDA was $49 million, compared with a loss of $69 million.

Cash Flow and Capital

Cash and cash equivalents were $500 million at September 30, 2026, compared with $1,633 million at December 31, 2025. Net cash provided by operating activities for the nine months was $455 million, compared with $268 million. Cash paid for acquisitions, net of cash acquired, was $789 million, and repurchases of stock were $668 million.

Vexcel Agreement and Developments

On October 27, 2026, CoStar Group entered into a merger agreement to acquire Vexcel Group, Inc., a provider of aerial imagery and geospatial data programs, for $730 million in cash, subject to customary working capital and other post-closing adjustments. The company expects to fund the purchase from cash on hand and its existing revolving credit facility.

Closing is subject to conditions that include expiration of Hart-Scott-Rodino waiting periods. Either party may terminate the agreement if the transaction is not completed by July 27, 2027, subject to extension in specified circumstances. The transaction is not subject to CoStar Group stockholder approval or a financing condition.

On the call, management said the Zonda purchase price was $815 million and that Residential revenue included Zonda from August 21.

2026 Outlook

The company increased its full-year 2026 Adjusted EBITDA guidance to a range of $820 million to $840 million, and its revenue guidance to a range of $3.75 billion to $3.77 billion. Full-year Adjusted EPS is guided to a range of $1.38 to $1.41 based on 405 million shares.

For the fourth quarter of 2026, the company expects revenue of $976 million to $996 million, Adjusted EBITDA of $275 million to $295 million and Adjusted EPS of $0.46 to $0.50. Management said it identified potential additional savings of at least $200 million, expected over the next 12 to 18 months, and referred to a 2028 Adjusted EBITDA target of $1.25 billion. The company expects the Vexcel acquisition to be accretive to Adjusted EPS in the first full year of ownership.