CoStar Group Q1 Revenue $897M (+23%), Net Income $3M, Adjusted EBITDA $132M
CoStar Group posted Q1 2026 revenue of $897 million, up 23% year-over-year, with net income swinging to $3 million from a $15 million loss, and adjusted EBITDA doubling to $132 million. The company generated $67 million in net new bookings (+20%) and raised full-year adjusted EBITDA guidance by $30 million to $780-820 million.
1. Q1 Financial Performance
CoStar Group reported revenue of $897 million in Q1 2026, a 23% increase from $732 million a year earlier. GAAP net income turned positive at $3 million versus a $15 million loss in Q1 2025, while adjusted net income rose 49% to $94 million and adjusted EPS increased 53% to $0.23.
2. Bookings and Adjusted EBITDA Growth
Adjusted EBITDA doubled to $132 million, up 100% year-over-year, driven by operational efficiencies and scale. The company generated $67 million of net new bookings, marking a 20% rise from the prior year and extending its streak of 60 consecutive quarters of double-digit revenue growth.
3. AI and Product Launches
The February launch of the Homes.com AI application led to a 119% surge in organic traffic and record engagement metrics, including best-ever time on site and page views. CoStar introduced Smart Search on Apartments.com and the first AI-powered voice search in multifamily marketplaces, while Homes.com membership grew over 200% to 35,000.
4. Updated 2026 Guidance
CoStar reaffirmed full-year 2026 revenue guidance at $3.78-3.82 billion (approximately 17% growth) and raised adjusted EBITDA guidance by $30 million to $780-820 million. Quarterly guidance forecasts Q2 revenue of $922-932 million and adjusted EBITDA of $160-180 million, with adjusted EPS expected at $0.27-0.30.