Highlights

  • CoStar Group lifted third-quarter 2026 Revenue 14% to US$952 million, led by 23% growth in residential real estate.
  • Adjusted EBITDA roughly doubled to US$229 million, while GAAP Net Income reached US$74 million against a prior-year loss.
  • The company agreed to acquire Vexcel Group for about US$730 million in cash, with completion expected in Q1 2027.
  • Full-year 2026 guidance now calls for revenue of US$3.75 billion to US$3.77 billion and higher adjusted EBITDA.

An agreed US$730 million cash purchase of aerial imagery specialist Vexcel Group arrived alongside a raised full-year outlook from CoStar Group, Inc. (NASDAQ:CSGP) on 27 October 2026. The commercial and residential property marketplace and data provider reported revenue of US$952 million for the quarter ended 30 September 2026, up 14% from US$834 million a year earlier.

Founder and Chief Executive Andy Florance said the company delivered strong profit growth and expanding margins as it moves out of a period of heavy investment, with adjusted EBITDA ahead of the top of its own guidance range.

Residential Turnaround Drives Third-Quarter Profit

Commercial real estate revenue grew 7% to US$492 million, including US$344 million from CoStar, up 8%, and US$89 million from LoopNet, up 13%. Residential real estate revenue rose 23% to US$460 million.

GAAP net income came in at US$74 million, or US$0.18 per diluted share, compared with a loss of US$31 million in Q3 2025. Adjusted EPS climbed 65% to US$0.38. Adjusted EBITDA reached US$229 million, a Margin of about 24%; the residential segment contributed US$49 million against a loss of US$69 million a year earlier, while commercial adjusted EBITDA was US$180 million. Net new bookings totaled US$37 million.

Vexcel Adds Proprietary Aerial Imagery

Vexcel operates a survey-grade aerial imagery program capturing more than 60 million images a year across more than 45 countries and 320 major metros, using UltraCam cameras it designs and manufactures. Its revenue exceeded US$140 million over the last twelve months, up more than 30%, with an adjusted EBITDA margin of about 20%.

CoStar plans to fund the deal from cash on hand and its revolving Credit facility, and expects it to be accretive to adjusted EPS in the first full year of ownership. Completion is expected in Q1 2027, subject to customary conditions and regulatory approvals. Vexcel will keep its brand, with Chief Executive Erik Jorgensen continuing to lead it. CoStar has already completed its Acquisition of Zonda.

Guidance Raised for 2026 and 2028 Target Reaffirmed

Management now expects full-year 2026 adjusted EBITDA of US$820 million to US$840 million, up US$30 million at the midpoint from its July outlook, and adjusted EPS of US$1.38 to US$1.41. For Q4 2026, it guided revenue of US$976 million to US$996 million and adjusted EBITDA of US$275 million to US$295 million. The company reaffirmed its 2028 adjusted EBITDA target of US$1.25 billion.

CoStar expects about US$150 million of cost savings this year and has identified at least US$200 million of potential additional savings over 12 to 18 months. Share repurchases totaled US$668 million in the nine months to 30 September 2026, leaving cash of US$500 million. Shares closed at US$30.17 on 30 October 2026, up 7.21% on the day, giving a market Capitalization of about US$12.14 billion.