CoStar Q1 EBITDA Doubles to $132M as Homes.com Revenue Rises 58%
CoStar’s Q1 net income turned positive at $3 million versus a $15 million loss last year, and adjusted EBITDA doubled to $132 million, topping guidance. Homes.com revenue climbed 58% to $26 million as CoStar cuts 2026 Homes.com investment 35% to $550 million and hikes subscription fees May 1.
1. Q1 Financial Turnaround
CoStar Group reported $3 million net income in Q1, reversing a $15 million loss a year earlier. Adjusted EBITDA climbed 100% to $132 million, exceeding the high end of guidance for the quarter.
2. Strong Homes.com Growth
Homes.com generated $26 million in Q1 revenue, up 58% year-over-year. The portal added 4,300 subscribers and $11 million in net new bookings, while traffic doubled and members earned an average $36,000 in first-year commissions versus a $3,400 subscription cost.
3. Strategy Shift and Cost Cuts
Following the end of Third Point’s activist campaign, CoStar plans to reduce Homes.com investment by 35% in 2026 to $550 million and target profitability by 2030. The company will raise subscription fees for new members on May 1 and explore measured renewal increases, leveraging integration with Apartments.com that drove 10% of its traffic last year.