Over the past nine months, CoStar Group’s Board has added three independent directors—two nominated by Third Point and D.E. Shaw—bringing half of the Board to members appointed within the last three years. The company also appointed a new independent Board Chair and oversaw the retirement of its prior Chair and two other independent directors. In parallel, management formed a Capital Allocation Committee charged with reviewing the company’s capital structure, allocation priorities and financial targets for key brands including CoStar, Apartments.com, LoopNet and Homes.com. This governance refresh underscores CoStar’s commitment to aligning oversight with long-term stockholder value creation.

CoStar Group has accelerated its $500 million share repurchase program initiated in 2025 and authorized an additional $1.5 billion in January 2026. Concurrently, the company plans to moderate investment in Homes.com—reducing net outlays by $300 million in 2026 and more than $100 million annually thereafter—to drive the platform to breakeven by year-end 2029. CoStar will also deploy AI initiatives across its digital ecosystem to capture efficiency gains and invest in commercial product enhancements such as lease benchmarking, loan origination modules, hospitality analytics and international expansion, reinforcing a disciplined approach to capital allocation.

Since completing its initial investment phase, Homes.com has seen subscriber growth surge 337% from Q1 2024 through late 2025, validating CoStar’s residential strategy. The platform now forms a critical component of a digital ecosystem that includes Apartments.com, Domain, OnTheMarket and Land.com, extending CoStar’s addressable market beyond $100 billion. Management expects Homes.com to scale rapidly with lower capital intensity, leveraging a proven playbook of disciplined acquisitions—over 40 transactions totaling $7.3 billion in the past 15 years that delivered IRRs between 17% and 39%—and organic investments to broaden market reach.

At the midpoint of 2026 guidance, CoStar Group forecasts revenue of $3.8 billion (an 18% year-over-year increase) and Adjusted EBITDA of $770 million, representing an 83% rise and a margin expansion to 20% from 13% in 2025. Looking further out, management targets Adjusted EBITDA of $2.3 billion with a 35% margin by 2030, underpinned by strong free cash flow generation and a solid balance sheet. CoStar’s long-term strategy aims to sustain top-quartile total stockholder returns—achieving approximately 290% over the last decade—and build on a track record of outperforming both the S&P 500 and relevant real estate marketplace peers.