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    CSGP
    Earnings call· Mar 2026(Q1 FY26)

    COSTAR GROUP Q1 FY26 earnings call CSGP

    Apr 28, 2026 Source

    Executive summary

    CoStar Group Q1 FY26 — Double-Digit Growth Continues, Homes.com Investment Delivering Strong ROI

    CoStar Group delivered an exceptional quarter, extending its double-digit revenue growth streak to 60 quarters, driven by strong performance across its commercial and residential segments. The significant investment in Homes.com is yielding substantial returns for agent subscribers and driving consumer engagement, positioning the segment for accelerated monetization. The company is focused on leveraging AI and expanding sales force productivity to sustain growth and achieve its long-term EBITDA targets.

    Highlights

    5

    • Total revenue grew 23% year-over-year to $897 million, marking the 60th consecutive quarter of double-digit revenue growth.

    • Adjusted EBITDA doubled year-over-year to $132 million, exceeding the high end of guidance by $17 million.

    • Homes.com revenue grew 58% year-over-year to $26 million, with agent members increasing 205% from Q1 FY25 to 35,175.

    • Homes.com subscribers saw an average commission increase of $36,400 in their first year, representing an 11x ROI on the average $3,400 annual subscription cost.

    • The company repurchased 11.4 million shares for $505 million in Q1 FY26, part of a new $1.5 billion buyback program.

    Concerns

    4

    • Apartments.com revenue growth moderated to 10% year-over-year, despite strong engagement metrics.

    • Net new bookings of $67 million, while up 20% year-over-year, represented the third consecutive quarter of sequential decline.

    • Residential adjusted EBITDA was negative $29 million in Q1 FY26, though expected to turn positive in Q2 FY26.

    • The activist campaign over the last year weighed heavily on Homes.com sales and potential partnerships.

    Guidance & targets

    21
    CategoryTargetConfidence
    Q2 FY26 Revenue
    $922 million to $932 million
    high materiality
    High
    Q2 FY26 Commercial Revenue
    $479 million to $484 million
    medium materiality
    High
    Q2 FY26 Residential Revenue
    $443 million to $448 million
    medium materiality
    High
    Q2 FY26 Adjusted EBITDA
    $160 million to $180 million
    high materiality
    High
    Q2 FY26 Commercial Adjusted EBITDA
    $160 million to $170 million
    medium materiality
    High
    Q2 FY26 Residential Adjusted EBITDA
    breakeven to $10 million
    medium materiality
    High
    Q2 FY26 Adjusted EPS
    $0.27 to $0.30 per share
    high materiality
    High
    Full Year FY26 Revenue
    $3.78 billion to $3.82 billion
    high materiality
    High
    Full Year FY26 Commercial Revenue
    $1.955 billion to $1.975 billion
    medium materiality
    High
    Full Year FY26 Residential Revenue
    $1.825 billion to $1.845 billion
    medium materiality
    High
    Full Year FY26 Adjusted EBITDA
    $780 million to $820 million
    high materiality
    High
    Full Year FY26 Adjusted EPS
    $1.32 to $1.39
    high materiality
    High
    Homes.com Net Investment Target
    $550 million
    high materiality
    High
    Homes.com Pricing Strategy
    Raise subscription fees for new customers
    medium materiality
    High
    Homes.com Rental Tools Availability
    Every tool available on Apartments.com will be available on Homes.com
    low materiality
    High
    CoStar New Homes Module Launch
    Phase 1 planned for Q2
    low materiality
    High
    CoStar France Launch
    Launches in Q2
    low materiality
    High
    CoStar Australia and LoopNet Australia Launch
    Q3 and Q4
    low materiality
    High
    CoStar Real Estate Manager AI Lease Abstraction
    Extend capabilities later this year
    low materiality
    High
    OnTheMarket AI Search Functionality
    Continue building in Q2
    low materiality
    High
    Share Repurchase Program
    $195 million
    high materiality
    High

    Segment performance

    11
    SegmentRevenueYoYQoQMargin
    Commercial
    Revenue and adjusted EBITDA were in line with guidance. Organic growth was 7%.
    Organic Growth Rate: 7%Adjusted EBITDA Margin: 34%
    		$472 million15%—$161 million
    Residential
    Revenue was at the high end of guidance. Adjusted EBITDA was better than guidance, though still negative.
    Organic Growth Rate: 13%
    		$425 million32%—-$29 million
    CoStar
    Growth driven by both volume and price, with strong international growth. CoStar Debt Solutions crossed $100 million in revenue.
    Annualized Net New Bookings (core product): up 16% year-over-yearUsers: 317,000 (up 22% year-over-year)Broker Sales: up 29% year-over-yearTenant Sales: up 27% year-over-yearNPS: 69Quarterly Renewal Rate: 92%
    		$331 million9%——
    LoopNet
    Growth attributable to increased paid listings from focus on selling silver ads. Asset-based pricing rolled out across U.S. markets.
    Organic Growth Rate: 11%Paid Listings Growth (U.S.): 10% year-over-yearPaid Listings Growth (Canada): 35% year-over-yearPaid Listings Growth (U.K.): 63% year-over-yearSilver Listings Sold ($300+): grew 650% (Feb to March)Listings Sold (below $40): grew 1100% (Feb to March)Average Monthly Unique Visitors (Europe): over 900,000 (up 102% year-over-year)
    		$85 million16%——
    Other Commercial
    Year-over-year increase primarily due to inorganic contribution from Matterport acquisition.
    Matterport Subscription Revenue Growth: 19%
    		$56 million81%——
    Apartments.com
    15th consecutive quarter of double-digit revenue growth. Smart Search users spend 94% more time on site and view 63% more listings.
    Renter Visits: 220 millionTours: 370,000Applications Submitted: 300,000Matterport Tours: 40 millionMonthly Renewal Rate: 99%Brand Media Impressions: 1.7 billion (up 189% year-over-year)Unique Visitors (comScore): up 3% year-over-year (March)Sales Meetings: 185,000NPS: 89Matterport 3D Tours on Platform: 250,000Matterport 3D Exteriors: 1,500Time on Listings with Matterport: 46% moreTour Requests per Listing with Matterport: 56x more
    		$312 million10%——
    Homes.com
    Investment is delivering as expected, with accelerating membership growth and monetization. ROI for agents is significant. Fastest organic revenue build for a new product.
    Member Agents: 35,175 (up 205% from Q1 FY25)Agents on Annual Contracts: 76%Net New Bookings: $11 millionMarch Annual Revenue Run Rate: $106 million (up 92% year-over-year)Trailing 12-month Average ARPU: $287Promoted Active Listings: 260,000 (8.7% of U.S. homes for sale)Organic Traffic: up 119% year-over-year (March)Average Annual Session Duration: up 26% year-over-year (March)Bounce Rate: down 29% (March)AI Users Searches: nearly 4x as manyAI Users Favorites: 7x as manyAI Users Leads: 7x as manyTime on Site (AI Users): 18 minutesTime on Site (Non-AI Users): 4 minutes, 32 secondsNew Homebuilders Signed: 663New Home Activity Coverage: 75% of U.S. productionPaid Single-Family Rental Listings Growth: 33% year-over-yearHomes.com Rental Visits Increase: 13 million (Q1 FY26 vs Q1 FY25)Independent Owners using Rental Tools: 214,000
    		$26 million58%——
    Land.com
    Boosted by replacing site-specific ads with county-targeted network ads.
    Net New Bookings: up 126% year-over-year (record)Inventory: tripledAds Sold: quadrupled
    		—8%——
    Domain Australia
    Strong Q1 with sustained elevated audience volume and uptake of premium products. Discontinued SPA ads due to low profitability.
    Core Residential Revenue Growth: 11% year-over-yearMonthly Unique Audience: 8 million (average), 8.4 million (March)Total Users: 21.9 million (up 47% year-over-year)Listings: up 28%
    		$68 million———
    OnTheMarket
    Eclipsed Zoopla as U.K.'s #2 portal by inventory and has more new home listings than Rightmove. Growth accelerated by signing Connells Group.
    Positive Net New Bookings: 23rd consecutive monthTotal Time on Site: up 16% year-over-yearPage Views: up 24% year-over-yearLeads: up 23% year-over-yearEstate Agents and New Home Developer Customers: 17,500NPS: 46%
    		————
    BizBuySell
    Rapidly turning into a true end-to-end transaction platform with integrated financing, 3D tours, and document sharing.
    Broker Subscribers: 2,345 completed sales transactionsEnterprise Value of Transactions: $2 billionTransactions Involving Commercial Real Estate: 59%Buyer Profiles: 24,000Broker Adoption: 15%
    		$8.8 million———

    Operational metrics

    22
    Adjusted EBITDA
    $132 milliondoubled year-over-year
    Q1 FY26

    Outperformance primarily due to lower personnel costs from cost-saving efforts and AI efficiencies.

    Adjusted EPS
    $0.23considerably higher than guidance
    Q1 FY26

    CoStar posted positive net income and adjusted EPS.

    Organic Revenue Growth
    10%
    Q1 FY26

    Company-wide organic revenue growth.

    Net New Bookings
    $67 millionup 20% year-over-year
    Q1 FY26

    Stronger start to 2026 after a record 2025.

    Sales Headcount
    2,090
    End of March

    Total sales headcount across all brands.

    Sales Headcount
    570
    End of March

    Largest sales team.

    Sales Headcount
    520
    End of March

    Second largest sales team.

    Sales Headcount
    475
    End of March

    CoStar sales team headcount.

    Sales Headcount
    225
    End of March

    LoopNet sales team headcount.

    Contract Renewal Rate
    89%held consistently
    Past 7 quarters

    Company-wide contract renewal rate.

    Contract Renewal Rate (5+ year subscribers)
    95%
    Current

    Renewal rate for customers subscribed for at least 5 years.

    Subscription Revenue on Annual Contracts
    73%up from 71% in Q4 FY25
    Q1 FY26

    Percentage of total revenue from subscription on annual contracts. Domain does not operate using annual subscriptions.

    Share Repurchase Program (2025)
    $500 million
    2025

    First share repurchase program completed.

    Share Repurchase Program (Q1 FY26)
    $505 million
    Q1 FY26

    Part of the new $1.5 billion buyback program announced in January 2026.

    Homes.com Average Annual Subscription Cost
    $3,400
    Annual

    Used to calculate 11x ROI for agents.

    Homes.com Agent Commission Increase (Average)
    $36,400
    First year as member

    Average increase in commissions for Homes.com subscribers compared to the 12 months prior to joining.

    Homes.com Agent Commission Increase (Low Earners)
    $58,000
    After joining

    Significant increase for agents who earned $50,000 or less in the prior year.

    Homes.com Agent Commission Increase ($50-100k Bracket)
    $41,000
    After joining

    Increase in commissions for agents in the $50,000 to $100,000 bracket.

    Homes.com Agent Commission Increase ($100-150k Bracket)
    $38,000
    After joining

    Increase in commissions for agents in the $100,000 to $150,000 bracket.

    LoopNet Silver Listings Growth ($300+)
    650%
    February to March

    Growth in volume of silver listings sold at $300 or above per month.

    LoopNet Listings Growth (below $40)
    1,100%
    February to March

    Growth in listings sold below $40, opening up a new category of inventory.

    Commercial Unique Visitor Audience Growth
    129%year-over-year
    Q1 FY26

    Growth for the Australia CRE marketing platform.

    Industry KPIs

    5
    MetricValueDetails
    Leasing revenue growth29%%
    Property sales revenue growth$2 billionUSD
    Development in process pipeline—
    Segment operating profit growth34%%
    Mortgage origination loan servicing26%%

    Deals & partnerships

    2
    eXp RealtyExpanded partnership for premarket listings on Homes.com

    Expanded relationship in April 2026, allowing eXp's 3,000 agents to prominently display premarket coming soon listings on Homes.com. Follows a December 2024 partnership with eXp Commercial.

    Connells GroupSigned as a customer for OnTheMarket

    Connells Group, the U.K.'s largest estate agent with over 80 brands and 1,200 branch locations, signed with OnTheMarket, accelerating its growth.

    Risks & headwinds

    3
    Activist Campaign Distractionlast year

    weighed heavily on Homes.com sales and potential partnerships

    Mitigation: The distraction is now behind us, allowing for more focused energy on accelerating revenue across the portfolio.

    Soft Rental Search Demandcurrent

    overall rental search demand remains soft

    Mitigation: Apartments.com network unique visitors still up 3% YoY in March, outperforming competitors (Zillow down 5%, Zillow+Realtor+Redfin down 3%).

    Market Cyclicality (Australia)Q1 FY26

    The Australian market is highly cyclical and Q1 is always seasonally soft

    Mitigation: Despite seasonality, core Domain Residential revenue grew 11% YoY, and EBITDA growth was delivered despite significant investments.

    What to watch in Q2 FY26

    5

    Residential Adjusted EBITDA

    Q2 FY26
    Current-$29 million
    Targetpositive (breakeven to $10 million)

    Why it matters

    This indicates the Residential segment's path to profitability, a key milestone for the Homes.com investment.

    Residential adjusted EBITDA is anticipated to be positive in Q2 2026, ranging between breakeven and $10 million.

    Q&A highlights

    8

    How do Q1 net new bookings align with expectations, and how should investors translate bookings into revenue growth, considering the mix of subscription vs. non-subscription revenue and the 15% revenue CAGR target?

    Q1 bookings were broadly in line with expectations, supporting reaffirmed revenue and increased EBITDA guidance. Approximately 15% of revenue is non-subscription. For FY26, about 40% of the revenue increase is from acquisitions/non-subscription, with the remaining $330M driven by net new bookings. For FY27-28, subscription revenue needs to grow by $1B, with Homes.com growing significantly faster than other brands. The company is committed to 2028/2030 adjusted EBITDA targets, achievable through 15% revenue CAGR, investing in growth, or cost rationalization.

    “We are committed to delivering on the adjusted EBITDA targets we set out for 2028 and 2030. And this can occur in a number of ways. We can deliver it through our 15% revenue CAGR, which we're very committed to.”

    asked by Ryan Tomasello · answered by Christian Lown

    2 min read6 chapters

    Detailed Narrative

    01

    Homes.com Performance and Strategy

    Homes.com is delivering on its investment thesis, with revenue up 58% YoY to $26 million in Q1. Agent membership grew 205% from Q1 FY25 to 35,175, with 76% on annual contracts. The March annual revenue run rate reached $106 million, up 92% YoY. Analysis shows Homes.com subscribers earned an average of $36,400 more in commissions in their first year, an 11x ROI on the average $3,400 annual subscription. This strong performance supports a planned price increase for new customers on May 1 and evaluation of renewal increases.

    02

    AI Innovation and Engagement

    AI is a significant driver of engagement and future innovation. Homes AI users run nearly 4x as many searches, favorite 7x as many properties, and submit 7x as many leads, spending 18 minutes on site compared to 4 minutes 32 seconds for non-AI users. Apartments.com introduced Smart Search, an AI-powered voice search, with users spending 94% more time and viewing 63% more listings. Apartments AI, a conversational search experience, will launch ahead of the June Apartmentalize trade show.

    03

    International Expansion and Product Development

    CoStar is expanding its international footprint with strong growth in the U.K. (revenue up 25%, net new bookings up 44%) and Canada (revenue up 22%). CoStar France is set to launch in Q2, leveraging 32,000 existing subscribers from Business Immo. CoStar and LoopNet are expected to launch in Australia in Q3 and Q4. New products like CoStar Rent Benchmark and CoStar New Homes (Phase 1 in Q2) are in development, enhancing data offerings and market insights.

    04

    Sales Force Productivity and Growth

    The company is focused on enhancing sales force productivity across all brands. Total sales headcount at the end of March was 2,090, with Homes.com having the largest team at 570 reps. Productivity is building, especially from sales reps hired in 2025. The company plans to add 50 more field sales personnel for Homes.com in batches of 5 cities and continue growing field sales teams for Apartments.com and LoopNet, as these roles consistently demonstrate higher productivity.

    05

    Matterport Integration and Differentiation

    Matterport is proving to be a critical differentiator, driving engagement and conversion across CoStar Group platforms. Subscription revenue for Matterport was up 19% YoY, with new enterprise accounts up 31% YoY in March. Matterport listings on Apartments.com see 46% more time on site and 56x more tour requests. The company is refocusing Matterport towards professional users with higher SaaS subscriptions and is aggressively developing new features like Matterport Exteriors with X-ray.

    06

    Share Repurchase Program

    CoStar Group completed its first share repurchase program in 2025, buying back $500 million worth of stock (7.1 million shares). A new $1.5 billion buyback program was announced in January 2026. In Q1 FY26, the company repurchased 11.4 million shares for $505 million, primarily through an accelerated share repurchase plan. An additional $195 million is expected to be repurchased in the remaining 9 months of 2026, totaling $700 million for the year.

    AI-generated summary of the company’s earnings call. Not investment advice.