CoStar Group (CSGP) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $952M, up 14% YoY and the 62nd consecutive quarter of double-digit growth; net income was $74M versus a $31M loss, and Adjusted EBITDA reached a record $229M, double YoY.

• Residential revenue grew 23% to $460M, compared with 7% growth in Commercial revenue to $492M; net new bookings were $37M.

• Management cited at least $200M of additional potential cost savings over 12–18 months while pursuing AI and proprietary-data opportunities.

Financial highlights

• Q3 revenue was $952M, up 14% YoY; nine-month revenue was $2.774B, up 18%.

• Q3 Adjusted EBITDA was $229M, a 24.1% margin; nine-month Adjusted EBITDA was $545M, a 20% margin.

• Q3 Adjusted Net Income was $153M, or $0.38 per diluted share; Adjusted EPS rose 65% YoY. Q3 GAAP diluted EPS was $0.18 versus $(0.07).

• Q3 gross profit rose 12% to $741M; operating income was $84M versus an operating loss of $51M a year earlier.

• Adjusted operating expenses declined 2% YoY, or 5% pro forma for Domain and Zonda savings; selling and marketing and G&A each fell 12%.

Outlook and guidance

• FY26 revenue guidance is $3.75B–$3.77B, up 16% at midpoint; Q4 guidance is $976M–$996M, up 9%–11% YoY.

• FY26 Adjusted EBITDA guidance is $820M–$840M at a 22% margin, with midpoint raised $30M from July and $60M from February; Q4 guidance is $275M–$295M at a 29% midpoint margin.

• FY26 Adjusted EPS guidance is $1.38–$1.41 on 405M weighted-average shares; Q4 guidance is $0.46–$0.50.

• FY26 revenue guidance includes ~$60M from Zonda; excluding Zonda, the outlook was $35M, or 1%, below July.

• The 2028 Adjusted EBITDA target remains $1.25B; at least $200M of additional potential cost efficiencies are targeted over 12–18 months, alongside growth investment.