CoStar Group Q3 2026: EBITDA Doubles, Guidance Raised, and a $730M Deal
As seen on the 24/7 Wall St. homepage on October 27, 2026.
Adjusted EBITDA doubled year over year to $229 million, clearing management's own guidance and signaling the spending cycle is ending. Full-year revenue and EBITDA guidance both went up, and a cash deal for aerial imagery firm Vexcel is already queued for Q1 2027.
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Adjusted EPS of $0.38 beat expectations while revenue of $952 million came in slightly under estimates, and the margin story below the top line is what changed the investment case.
Adjusted EBITDA of $229 million doubled from the year-ago period, exceeding management's own guidance range, as CEO Andy Florance pointed to cost savings already banked and more efficiencies identified ahead.
Residential swung to $49 million in adjusted EBITDA from negative $69 million a year earlier, removing the loudest argument from skeptics that CoStar was spending too aggressively for too little return.
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Management raised full-year 2026 revenue guidance to roughly 16% year-over-year growth at the midpoint and reaffirmed its 2028 adjusted EBITDA target.
The $730 million all-cash acquisition of aerial imagery provider Vexcel Group is expected to close in Q1 2027 and add to adjusted EPS in its first full year, with CoStar routing Vexcel through its existing salesforce.
Mentioned: CSGP