Over the past nine months, CoStar Group has added three new independent directors to its Board, including two nominees from Third Point and D.E. Shaw, bringing 50% of all directors on board to appointments made in the last three years. The company also appointed a new independent Board Chair and saw the retirement of its prior Chair along with two other independent directors. To further strengthen oversight, CoStar formed a Capital Allocation Committee tasked with reviewing the firm’s capital structure, allocation priorities and financial targets, ensuring disciplined investment in its core brands—CoStar, Apartments.com, LoopNet and Homes.com—and aligning governance with long-term stockholder interests.

CoStar has committed to reduce net investment in its Homes.com platform by $300 million in 2026 and by more than $100 million annually thereafter, targeting breakeven profitability by year-end 2029. Concurrently, the company accelerated its existing $500 million share repurchase program initiated in 2025 and authorized a new $1.5 billion repurchase plan in January 2026. Key investments include expanded AI deployments across the organization, enhancements to commercial offerings—such as real estate lease benchmarking, loan origination modules and hospitality profit/loss analytics—and international expansion. These measures are underpinned by a proven acquisition track record: over 15 years, CoStar acquired more than 40 businesses for approximately $7.3 billion, delivering internal rates of return between 17% and 39%.

For fiscal 2026, CoStar projects revenue of $3.8 billion, representing an 18% increase over the prior year, with Adjusted EBITDA of $770 million—a rise of 83%—translating to a 20% margin versus 13% in 2025. Longer-term, management expects Adjusted EBITDA to reach $2.3 billion with a 35% margin by 2030. The Homes.com platform, having completed its initial investment phase, has achieved subscriber growth of 337% since Q1 2024, setting the stage for scalable revenue growth with lower capital intensity. CoStar’s free cash flow and strong balance sheet are projected to fund continued platform enhancements and capital returns, supporting the company’s goal of sustained total stockholder return outperformance.