CSGP · CoStar Group, Inc.

CoStar Group delivered a strong first quarter in 2026, with revenue growing 23% year-over-year to $897 million, marking the company's 60th consecutive quarter of double-digit revenue growth. The performance was driven by contributions from both the Commercial Real Estate segment, which generated $472 million (up 15% YoY), and the Residential Real Estate segment, which contributed $425 million (up 32% YoY). The Homes.com platform showed particularly robust momentum, with organic traffic increasing 119% year-over-year following the February launch of its transformative AI application. Membership on Homes.com surpassed 35,000, an increase of more than 200% from the prior year period. Profitability metrics improved significantly, with Adjusted EBITDA doubling to $132 million, exceeding the high end of the company's guidance range. CEO Andy Florance attributed the outperformance to strong execution and the successful integration of AI technologies across platforms, including Smart Search on Apartments.com. The company generated $152 million in operating cash flow and utilized $505 million for share repurchases during the quarter. Looking forward, management raised full-year 2026 Adjusted EBITDA guidance to a range of $780 million to $820 million, representing a $30 million increase at the midpoint from prior guidance, while reaffirming revenue expectations of $3.78 billion to $3.82 billion. CFO Christian Lown highlighted that the strong quarterly results position the company well for continued Adjusted EBITDA expansion throughout the year.