CoStar Group Delivers Record-Breaking Q3 2026 Results, Raises Adjusted EBITDA Guidance

CoStar Group, a leading provider of real estate information and analytics, delivered an outstanding third quarter with revenue growing 14% year over year to $952 million. This marks the company's 62nd consecutive quarter of double-digit growth.

In addition to strong revenue growth, CoStar also achieved record quarterly adjusted EBITDA of $229 million, more than doubling the prior year and surpassing the previous record of $193 million set in Q4 2021. Adjusted EBITDA increased $166 million year over year to $179 million in the quarter, also a record high.

CoStar's net income was $74 million, an increase of $105 million year over year. The company's adjusted EBITDA, excluding the positive impact of Zonda, exceeded the high end of its guidance range due to strong cost control, with quarterly operating costs declining 2% year over year.

"We're generating strong margin expansion while simultaneously investing aggressively in high-potential future revenue drivers," said Andy Florance, CoStar CEO and founder. "Our 2026 margin growth came from initial steps to improve workforce marketing and procurement efficiency."

CoStar also identified an additional $200 million of cost efficiency opportunities across various areas, including procurement, organizational design, technology, infrastructure, marketing effectiveness, and post-acquisition integration. This is incremental to the $150 million expected to be saved this year.

While annualized net new bookings were below expectations at $37 million for the third quarter, attributed to economic headwinds and slower than expected sales force growth, CoStar's renewal rates remained high. The company plans to continue growing its high ROI sales force headcount to meet the needs of its multibillion-dollar subscription base.

CoStar has raised its full-year adjusted EBITDA guidance to the midpoint of $830 million, 24% above its previous record of $672 million set in 2022. This represents an adjusted EBITDA margin of 22%, up from 14% in 2025 and 9% in 2024.

CoStar remains committed to its adjusted EBITDA target of $1.25 billion in 2028, demonstrating the company's long-term vision and focus on generating strong multi-year increases in adjusted EBITDA.