CoStar Group Q2 2026: Revenues Up 18% as Residential Becomes EBITDA Positive

CoStar Group recorded its 61st consecutive quarter of year-on-year double-digit revenue growth in the second quarter of 2026, as the Group announced it now expects to deliver the highest full-year Adjusted EBITDA in the company's history.

Highlights include:

• Group revenues hit $925m, up 18% year on year
• of which, Residential revenues were $444million, up 32%
• Net new bookings were $69 million, up 3% quarter-on-quarter
• Net income was $55 million, up from $6 million
• EBITDA was $157 million, up from $29 million
• Adjusted EBITDA was $ 184 million, up from $85 million
• Commercial segment records EBITDA of $172 million
• Residential EBITDA was $12 million

Andy Florance, CEO, said:

"The second quarter marked a profitability inflection point for CoStar Group as Adjusted EBITDA more than doubled year-over-year to $184 million. We held operating cost growth to just 2%, and we delivered our 61st consecutive quarter of double-digit revenue growth. For the first time, our residential segment turned Adjusted EBITDA positive—a $41 million improvement over the first quarter—and we expect to deliver the highest full-year Adjusted EBITDA in our company's history.

"We continue to capture more of CoStar Group's $100 billion total addressable market through new product launches and geographic expansion. Building on February's transformative launch of Homes.com Ai, we introduced Apartments.com Ai in June. Within weeks, Apartments.com Ai users completed more than half a million AI sessions—averaging 20 minutes per session, 2.8 times longer than non-AI users, viewing twice as many listings, with 3D tour usage up 224% and traffic-to-lead conversion up 256%.

"Our product roadmap extends these AI capabilities across CoStar, LoopNet, and our international businesses. This quarter we also delivered four major launches on our core CoStar platform—including CoStar Rent Benchmark, built from four million AI-abstracted lease agreements, and CoStar’s market entry into France. We accomplished all of this while reducing our projected expense base by roughly $100 million versus our original guidance, giving us a head start on our 2028 and 2030 Adjusted EBITDA targets."

CoStar recently switched up its financial reporting to roll up Homes.com and Domain into an overarching Residential segment.

CoStar's Residential Real Estate segment generated revenue of $444 million in the second quarter of 2026, up from $335 million in the same period of 2025. For the six months to 30 June 2026, segment revenue reached $869 million, versus $658 million a year earlier. CoStar does not share net income by segment, so no residential-specific net income figure exists; the $55 million net income and $0.14 diluted EPS reported for the quarter are group-wide totals.

On profitability, Residential's EBITDA loss narrowed to $5 million in the quarter, from an $89 million loss in Q2 2025. Across the first half, the segment's EBITDA loss stood at $51 million, compared with $193 million in the first half of 2025. More significantly, Residential Adjusted EBITDA turned positive for the first time, at $12 million, against a $76 million loss a year earlier.

Florance tied the improvement partly to product investment, pointing to February's launch of Homes.com Ai and June's launch of Apartments.com Ai.

CoStar Group recently took a 30% stake in the Italian proptech business Wikicasa, adding to its international footprint.