CoStar Group (CSGP) is higher today as investors react to the company’s latest quarterly update and outlook. In its first-quarter 2026 report, CoStar posted revenue of $897 million, up 23% year over year, and adjusted EPS of $0.23; management also raised its full-year adjusted EBITDA outlook, a key driver of sentiment given ongoing scrutiny around investment spending in residential initiatives.

CoStar’s Q1 results showed adjusted EBITDA of $132 million, and the company increased full-year 2026 adjusted EBITDA guidance to $780 million to $820 million while reaffirming full-year revenue guidance of $3.78 billion to $3.82 billion. For Q2 2026, CoStar guided revenue to $922 million to $932 million, signaling continued high-teens year-over-year growth and strengthening profitability expectations versus prior views.

A major focus remains the ramp at Homes.com and broader residential profitability. Management highlighted Homes.com revenue of $26 million (up 58%) and cited rapid subscriber growth, while also pointing to improved residential segment profitability trends and an expectation that the residential segment reaches profitability in Q2 2026—an important marker as the company continues to invest heavily to scale the platform.