NASDAQReal EstateReal Estate - ServicesSnapshot 2026-08-31
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Create your account →Warn: Primary pillar under pressure — Achieve full-year 2026 revenue of $3.78B to $3.82B: FY26 guidance $3.71B-$3.75B vs target $3.78B-$3.82B.
CoStar Group grows revenue about 17% to $3.8 billion in 2026. Profit expands with adjusted EBITDA rising to around $800 million. The acquisition of Zonda for $800 million broadens market reach in homebuilding. Recent earnings beat and stable management support growth.
The recent sharp share price drop signals risk. Growth could slow below analyst expectations. Integration of Zonda may face delays or fail to add value. Profit margins might compress under market headwinds.
The price is about 4% above our fair value near $29, reflecting roughly 16% revenue growth expected by analysts. Our fair value is below the Street median, indicating some caution versus more optimistic views.
Breaks if: adjusted EBITDA falls below $700M in 2026
Expand Adjusted EBITDA for full-year 2026 to a range of $780 million to $820 million, reflecting margin expansion and profitability improvement.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
CSGP represents a durable compounder with a focus on consistent revenue and profitability growth. The current thesis is in a watch state due to recent financial performance being below industry peers, although management remains on track with its priorities.
The market currently prices CSGP at an expensive valuation compared to peers, with a significant expectations gap. This suggests that investors may be anticipating strong future performance that is not yet fully justified by recent results.
Management has shown strong execution in increasing revenue and Adjusted EBITDA, with recent results indicating double-digit growth. However, there is near-term risk as the probability of missing expectations is low but notable, given the recent history of misses in the industry.
The long-term thesis hinges on several factors, including the potential for the Federal Reserve to cut interest rates, which could benefit CSGP and similar companies. Additionally, performance from sector leaders like CBRE and JLL will be crucial in determining market momentum.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the company's growth outlook. However, lowered revenue guidance raises concerns about future performance. The acquisition of Zonda aims to expand market presence, which could enhance growth.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. Adjusted EBITDA increased from $442M in 2025 to $184M in 2026-Q2 alone, with full year 2026 guidance raised to $780M-$820M. The trajectory shows strong profitability expansion and management is delivering on this priority.
“The Company is affirming its Adjusted EBITDA guidance for the full year of 2026 in a range of $780 million to $820 million”
“The Company is increasing its Adjusted EBITDA guidance for the full year of 2026 to a range of $780 million to $820 million”
“The Company is affirming the guidance from our January 7, 2026 press release for Adjusted EBITDA to range from $740 million to $800 million”
Breaks if: full-year 2026 revenue falls below $3.5B
Achieve full-year 2026 revenue growth in the range of $3.78 billion to $3.82 billion, representing approximately 17% year-over-year growth.
Breaks if: Zonda acquisition fails to close or integration stalls beyond 2026
Overall, CSGP's performance and strategic initiatives will be key to its trajectory over the next few years. Not investment advice.
