CoStar rises as 2026 outlook targets record EBITDA and lower Homes.com spending
CoStar Group shares are rising after the company laid out a 2026 outlook calling for adjusted EBITDA of $740 million to $800 million on revenue of $3.78 billion to $3.82 billion. The plan includes cutting Homes.com net investment by more than $300 million in 2026 and executing large share repurchases, improving the profitability narrative.
1. What’s moving the stock today
CoStar Group (CSGP) is trading higher as investors refocus on management’s 2026 roadmap, which targets a step-up in profitability alongside a slower cash burn at Homes.com. The company’s outlook calls for adjusted EBITDA of $740 million to $800 million in 2026 on revenue of $3.78 billion to $3.82 billion, framing 2026 as a margin-expansion year after a heavy investment cycle. (costargroup.com)
2. Homes.com spending moderation is the key swing factor
A central driver of the improved sentiment is CoStar’s plan to reduce net investment in Homes.com by more than $300 million in 2026, down from $850 million in 2025. That shift signals a transition from aggressive scaling toward tighter spend discipline while still pursuing growth, which can lift confidence in medium-term cash generation and margins. (costargroup.com)
3. Capital returns add support
Alongside the profitability targets, CoStar has tied its medium-term framework to significant share repurchases, including a $1.5 billion authorization announced with its 2026 outlook and additional planned repurchases in 2026. For a stock that has been sensitive to the cost of building Homes.com, a bigger emphasis on buybacks and EBITDA expansion can act as a near-term catalyst. (investing.com)