Key facts
- CoStar is shifting growth efforts for Homes.com to field sales professionals.
- Homes.com achieved close rates above 40% when demoing membership to agents.
- CoStar's total revenue rose 14% to $952 million in Q3 2026.
- The company expects to realize at least $200 million in additional cost savings over the next 12 to 18 months.
- CoStar agreed to acquire Vexcel Group for approximately $730 million.
CoStar Group is shifting its sales strategy to accelerate growth at Homes.com by prioritizing field sales professionals over its centralized inside sales team. CEO Andy Florance stated that while the Richmond-based team will continue to grow, the focus is on field representatives with real estate and sales experience in top cities, as they are generally more productive.
This strategic shift comes as CoStar reported its 62nd consecutive quarter of double-digit annual revenue growth, with total revenue reaching $952 million in the third quarter of 2026, a 14% increase year-over-year. However, net new bookings for the quarter were $37 million, falling short of expectations. Homes.com contributed $7 million in annualized net new bookings, despite a reduction in inside sales representatives.
CoStar also highlighted the performance of recent acquisitions, including Matterport, which saw subscription revenue increase by 11%, and Zonda, acquired for $815 million, which had pro forma third quarter revenue of $42 million. The company announced an agreement to acquire Vexcel Group for approximately $730 million, expecting the deal to close in the first quarter of 2027.