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CoStar Group, Inc.
S&P 500
$13.5B
Market Cap
3,362.0
P/E
1.34
PEG
-0.3%
ROCE
0.1%
ROE
0.12
D/E
-2.2%
OPM
-63.7%
% from 52W High
11
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for CSGP including FX impact
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About

CoStar Group, Inc. provides information, analytics, and online marketplace services to real estate and related business communities in the United States, Australia, Canada, Europe, the Asia Pacific, and Latin America.

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📈 Growth Pattern
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⭐ Superinvestors Holding CSGP
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Manager Shares Value % of Fund Period
Tiger Global Management Tiger Global Management LLC 1.50M $60.5M 0.26% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED CoStar Group Q1 2026: Revenue $897M, 23% YoY growth, EBITDA doubled to $132M
Revenue & Profitability
Q1 2026 revenue was $897 million, up 23% year-over-year. Adjusted EBITDA was $132 million, double the prior year. Net income was positive with adjusted EPS of $0.23. Net new bookings were $67 million, up 20% year-over-year. Full-year 2026 revenue guidance is reaffirmed at $3.78-$3.82 billion, and adjusted EBITDA guidance was raised to $780-$820 million.
Outlook
Management noted that overall rental search demand remains soft according to Google, but Homes AI is driving significantly higher engagement (4x time on site). Commercial real estate market conditions are improving, as evidenced by strong broker and tenant sales growth. The company expressed confidence in delivering double-digit revenue growth and significant earnings expansion through 2030 and beyond.
Growth Drivers
Key growth drivers include Homes.com (58% revenue growth, $26 million in Q1), Apartments.com (10% growth, 15th consecutive double-digit quarter), international expansion (UK revenue up 25%, Canada up 22%, Australia launches planned), new products like CoStar Rent Benchmark and Debt Solutions, and AI-powered features such as Smart Search and Apartments AI.
Balance Sheet & CapEx
Not discussed as a separate line item. Investment areas include the $550 million net investment target for Homes.com in 2026, share buybacks of $505 million in Q1 (with $700 million planned for the year), and expansion of the sales force to 2,090 reps. AI and technology development are also key investment priorities.
Margins
Commercial segment reported adjusted EBITDA of $161 million (34% margin). Residential segment EBITDA was negative $29 million but is expected to reach profitability in Q2 2026. Full-year 2026 adjusted EBITDA guidance was raised to $780-$820 million, representing margin improvement driven by cost efficiencies from AI and personnel initiatives.
Key Risks
Management flagged that the activist distraction is now behind them, which had weighed on sales and partnerships. Other risks include the timing of sales force productivity ramp (especially for Homes.com's rookie sales force), variability in net bookings quarter-to-quarter, and the continued investment needed in residential to achieve growth targets.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Q2 2026 saw revenue up 18% and adjusted EBITDA more than double year-over-year, driven by strong residential and commercial growth, disciplined cost management, and new product launches. Full-year guidance was revised for revenue but affirmed for EBITDA, with continued focus on profitability and innovation.
Q1 2026 Q1 2026 2026-04-28
Q1 2026 delivered 23% revenue growth and doubled adjusted EBITDA, with strong performance across commercial and residential segments. Homes.com and Matterport drove engagement and ROI, while guidance for full-year revenue and earnings was raised.
Q4 2025 Q4 2025 2026-02-24
Revenue grew 19% to $3.2B in 2025, with adjusted EBITDA up 83% to $442M. Strong growth in both commercial and residential segments, record net new bookings, and the launch of Homes AI position the company for continued margin expansion and global reach in 2026.
Q3 2025 Q3 2025 2025-10-28
Q3 2025 saw 20% revenue growth to $834M, with adjusted EBITDA up 51% and strong performance across all segments. Major investments in AI and the Domain acquisition are driving future growth, while legal and regulatory risks remain a focus.
Q2 2025 Q2 2025 2025-07-22
Q2 2025 saw 15% revenue growth to $781M and record Net New Bookings of $93M, with adjusted EBITDA up 108%. Strong segment performance, sales force expansion, and new product initiatives drove results. Full-year revenue and EBITDA guidance were raised, and the Domain Holdings acquisition is expected to close in Q3.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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