CoStar Q4 EPS Tops Estimates, Revenue Jumps 27% but Shares Drop 5%
CoStar Group posted Q4 non-GAAP EPS of $0.31, a 13.8% beat, on $900 million in revenue, up 26.9% year-over-year, but shares fell 5.2% pre-market. The company ended the quarter with $1.63 billion cash, executed a $500 million buyback and set Q1 revenue guidance of $890–900 million.
1. Q4 Financial Results
CoStar reported non-GAAP EPS of $0.31 in Q4, beating estimates by 13.8%, on revenues of $900 million, up 26.9% year-over-year. Despite its 59th consecutive quarter of double-digit revenue growth, shares fell 5.2% in pre-market trading.
2. Segment Performance
Commercial Real Estate bookings and Residential offerings drove revenue growth. Commercial Real Estate revenues of $471 million accounted for 52.3% of sales, while Residential revenues reached $429 million, up 34.9% year-over-year; net new bookings rose 41.5% to $75 million.
3. Cash Position and Buybacks
The company closed the quarter with $1.63 billion in cash and cash equivalents against $993 million in long-term debt. Operating cash flow totaled $430 million, and CoStar completed a $500 million share repurchase program during the period.
4. Guidance
For Q1 2026, CoStar expects revenue of $890–900 million, implying 22–23% year-over-year growth, and adjusted EBITDA of $95–115 million. Full-year 2026 revenue guidance stands at $3.78–3.82 billion, with non-GAAP EPS projected at $1.22–1.33.