CoStar’s first quarter results for 2026 met Wall Street’s revenue expectations and reported notable growth in adjusted earnings. Management identified three themes shaping the quarter: robust expansion across its residential platforms, particularly Homes.com; significant operational leverage from investments in artificial intelligence; and the clearing of distractions related to recent activist campaigns. CEO Andy Florance emphasized that Homes.com “is delivering exactly what we said it would,” highlighting rapid subscriber and engagement growth. The company also credited strong international performance and increased sales productivity for driving the topline.
Is now the time to buy CSGP? Find out in our full research report (it’s free for active Edge members).
CoStar (CSGP) Q1 CY2026 Highlights:
- Revenue: $897 million vs analyst estimates of $896.7 million (22.5% year-on-year growth, in line)
- Adjusted EPS: $0.23 vs analyst estimates of $0.18 (24.8% beat)
- Adjusted EBITDA: $132 million vs analyst estimates of $110.6 million (14.7% margin, 19.4% beat)
- The company reconfirmed its revenue guidance for the full year of $3.8 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $1.36 at the midpoint, a 6.3% increase
- EBITDA guidance for the full year is $800 million at the midpoint, above analyst estimates of $777.7 million
- Operating Margin: 0.3%, up from -5.9% in the same quarter last year
- Market Capitalization: $14.45 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CoStar’s Q1 Earnings Call
- Ryan Tomasello (KBW) questioned how bookings translate into revenue growth targets, prompting CFO Christian Lown to break down the split between subscription and non-subscription revenue and reinforce the company’s 15% revenue CAGR target.
- Peter Christiansen (Citi) asked about the impact of lower-priced customer wins on Apartments.com ARPU. CEO Andy Florance explained that recent share gains were from lower-rent properties, naturally pulling down ARPU but broadening the base without sacrificing depth advertising.
- Keen Fai Tong (Goldman Sachs) inquired about the path to reacceleration in Apartments.com revenue growth. Florance identified a need for continued sales force investment, deeper market penetration, and leveraging Homes.com’s traffic as strategic levers.
- Alexei Gogolev (JPMorgan) sought details on sales productivity ramp and hiring plans, with Florance noting that field sales teams show higher productivity and that most Homes.com reps remain in early-tenure phases, but productivity should improve as cohorts mature.
- Curtis Nagle (Bank of America) asked about the translation of Homes.com’s engagement into revenue momentum. Florance pointed to strong agent earnings data as justification for planned subscription price increases and greater revenue confidence.
Catalysts in Upcoming Quarters
As we look to coming quarters, our analyst team will monitor (1) the impact of Homes.com subscription price increases and agent retention rates, (2) progress in ramping sales productivity across both new and existing sales cohorts, and (3) the rollout and user adoption of new AI-powered search and workflow tools, especially as Apartments AI and expanded Matterport features come online. Execution in international markets and the integration of acquired platforms will also be important milestones.
CoStar currently trades at $35.93, in line with $35.96 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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