CoStar Group, Inc. (NASDAQ:CSGP), a prominent player in the real estate data and information arena, recently detailed its main business, financial, and governance priorities aimed at strengthening its performance through 2026 and beyond. In conjunction with outlining this strategic vision, the company greenlit a new $1.5 billion share repurchase program following the expeditious completion of its previously announced $500 million buyback slated for 2025.
The company's forecast for 2026 envisions revenues ranging between $3.78 billion and $3.82 billion, representing an approximate 18% increase relative to the midpoint of its earlier guidance for 2025. Correspondingly, CoStar expects its net income to lie within a bracket of $175 million to $215 million, while adjusted earnings per share (EPS) are projected between $1.22 and $1.33.
Adjusted EBITDA is also anticipated to reach record-setting levels in 2026, with estimates falling between $740 million and $800 million. This projection signifies a year-over-year jump of approximately 83% compared with 2025 guidance midpoints, together with a margin close to 20% at the midpoint—marking a historic high for the company.
Alongside financial targets, CoStar plans to intensify the integration of artificial intelligence technologies throughout its operations during 2026. AI has already contributed to streamlining areas such as content creation, public records research, software coding, and the extraction of lease-related data. Further expansion of AI applications across its real estate marketplaces aims to enhance the overall user experience and fortify the company's competitive position in the market.
Looking toward the mid-term horizon, from 2025 through 2028, CoStar anticipates delivering a compound annual growth rate (CAGR) of roughly 15% in revenue. Moreover, by 2028, the firm targets adjusted EBITDA to reach $1.25 billion, indicating continued profitability gains and operational scale.
A pivotal element within CoStar’s residential portfolio is Homes.com, which is highlighted as a fast-expanding asset alongside Apartments.com and other real estate platforms. Recognizing the need for efficiency and sustained profitability, CoStar is adjusting its financial commitments toward Homes.com by planning a significant reduction in net investment—from $850 million in 2025 to below $550 million in 2026. Furthermore, the company intends to curtail expenditures related to Homes.com by more than $100 million annually through 2030.
Regarding profitability milestones for Homes.com, projections indicate that revenues will surpass expenses starting in 2029, followed by the achievement of positive adjusted EBITDA by 2030, marking an important transition toward sustainable earnings from this particular business segment.
CEO and Founder Andy Florance commented, “These strategies position CoStar Group to capitalize on strong growth opportunities both in the near term and over the longer run, with meaningful expansion of adjusted EBITDA anticipated across multiple years. Homes.com constitutes a vital component of our ecosystem, and with a definitive path established to accelerate top-line gains and improve profitability, we are optimistic about our outlook. Through leveraging our scalable AI platform and exercising disciplined capital allocation, we are strongly positioned to continue building on our growth momentum and deliver enhanced value to shareholders.”
As of Wednesday's trading session, CoStar Group’s stock price showed a decline, dropping 2.73% to $65.36 per share based on Benzinga Pro data at the time of reporting.