Key facts
- CoStar Group's Q2 revenue increased 18% year-over-year to $925 million.
- Net income was $55 million, with adjusted EBITDA rising 116% to $184 million.
- The residential segment achieved adjusted EBITDA profitability for the first time, generating $12 million.
- Homes.com revenue grew 66% year-over-year to $28.5 million.
- CoStar revised its full-year 2026 revenue guidance upwards to $3.715 billion-$3.755 billion.
CoStar Group reported an 18% year-over-year revenue increase for the second quarter ended June 30, reaching $925 million. The company's residential portfolio achieved adjusted EBITDA profitability for the first time, generating $12 million, a significant improvement attributed to new AI product developments like Homes.com Ai and Apartments.com Ai. These AI tools have shown increased user engagement, leading to longer session times and more listing views. Residential revenue grew 33% to $444 million, with Homes.com revenue up 66% to $28.5 million. The commercial portfolio generated $481 million in revenue, an 8% increase, with platform subscribers growing 19% to 327,000. CoStar also expanded its services to France. The company revised its full-year 2026 revenue guidance to $3.715 billion-$3.755 billion, reflecting a focus on long-term profitable growth driven by operational efficiencies and expense management. Adjusted EBITDA for the full year is expected to remain between $780 million and $820 million.