CoStar Group (CSGP)
NASDAQ:CSGP
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CoStar Group
(NASDAQ:CSGP)
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Rating:58Neutral
Price Target:
$37.00
▼(-6.85% Downside)
Action:Reiterated
Date:04/29/26
The score is held back primarily by weak technicals (clear downtrend) and very poor valuation support (extreme P/E). Financials are mixed: strong balance sheet and improving operating cash flow, but pressured profitability and low returns. Offsetting these, the latest earnings call was constructive with raised 2026 guidance, margin improvement expectations, and sizable share repurchase plans, though execution and bookings variability remain key watch items.
Positive Factors
High subscription retention & engagement
Extremely high renewal and engagement at Apartments.com indicate durable subscription revenue and low churn. That predictability supports steady cash flows, pricing power and customer lifetime value, underpinning long-term margin stability and reduced revenue volatility.
Negative Factors
Eroded profitability and weak returns
Negative trailing operating profit and near-zero net income reflect higher cost structure and deteriorated operating leverage. Persistently weak profitability limits reinvestment capacity, constrains long‑term return generation, and raises dependency on operational fixes to restore durable margins.
Read all positive and negative factors
Positive Factors
Negative Factors
High subscription retention & engagement
Extremely high renewal and engagement at Apartments.com indicate durable subscription revenue and low churn. That predictability supports steady cash flows, pricing power and customer lifetime value, underpinning long-term margin stability and reduced revenue volatility.
Read all positive factors
CoStar Group Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyCoStar Group (CSGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.56B
Dividend YieldN/A
Average Volume (3M)7.73M
Price to Earnings (P/E)1388.4
Beta (1Y)0.73
Revenue Growth21.33%
EPS Growth-78.82%
CountryUS
Employees8,441
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding408,355,700
10 Day Avg. Volume10,324,049
30 Day Avg. Volume7,733,433
Financial Highlights & Ratios
PEG Ratio-42.12
Price to Book (P/B)3.36
Price to Sales (P/S)8.63
P/FCF Ratio683.55
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue3.99
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda47.95
Forecast
1Y Price Target
$49.44Price Target Upside24.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)1.36
Revenue Forecast (FY)$3.80B
CoStar Group Business Overview & Revenue Model
Company Description
CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin Ame...
How the Company Makes Money
CoStar Group primarily makes money through (1) subscription revenue from real estate data, analytics, and workflow platforms and (2) marketplace/online advertising revenue from its real estate listing sites.
1) Subscriptions (information & analyt...
CoStar Group Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveys a broadly positive operating and financial update: strong revenue growth (23% YoY), a doubling of adjusted EBITDA, raised EBITDA and EPS guidance, rapid Homes.com traction with compelling ROI for subscribers, successful Matterport integration and clear international progress. The primary negatives are execution and timing risks around a recently expanded salesforce (notably at Homes.com), bookings variability/quarterly noise, some short-term residential segment loss-making (expected to turn profitable in Q2), and market/seasonality headwinds in specific geographies. Overall, the positive developments and guidance increases outweigh the near-term operational challenges.Positive Updates
Strong Top-Line Growth
Q1 2026 revenue of $897 million, up 23% year-over-year and toward the high end of guidance; organic revenue growth of 10% for the quarter.
Negative Updates
Sales Productivity and Bookings Variability
Analysts flagged three consecutive quarters of sequential declines in net bookings (despite year-over-year growth); management acknowledged a large, recently hired salesforce (notably at Homes.com) with substantial ramp time and variability in productivity cohorts.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 2026 revenue of $897 million, up 23% year-over-year and toward the high end of guidance; organic revenue growth of 10% for the quarter.
Read all positive updates
Company Guidance
For Q2 2026 CoStar guided revenue of $922–$932 million (up 18%–19% YoY, ~10% organic at the midpoint), with commercial revenue $479–$484M (up 7%–9%) and residential $443–$448M (up 32%–34% YoY, 12%–14% organic); adjusted EBITDA of $160–$180M (17%–19% margin, ~700 bps improvement vs. Q2‑2025) with commercial adjusted EBITDA $160–$170M (34%–35% margin) and residential adjusted EBITDA expected to be breakeven to $10M; and adjusted EPS of $0.27–$0.30 on ~409 million weighted average shares. For full‑year 2026 the company reaffirmed revenue of $3.78–$3.82 billion (16%–18% growth) with commercial revenue $1.955–$1.975B and residential $1.825–$1.845B, raised full‑year adjusted EBITDA to $780–$820M (up $30M at midpoint and +1 percentage point of margin) and raised adjusted EPS to $1.32–$1.39 (up $0.09 at midpoint); management also expects $700M of share repurchases in 2026 (Q1 repurchases: $505M for 11.4M shares, with ~$195M remaining).CoStar Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
80
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.41B | 3.25B | 2.74B | 2.46B | 2.18B | 1.94B |
| Gross Profit | 2.64B | 2.44B | 2.18B | 1.96B | 1.77B | 1.59B |
| EBITDA | 284.20M | 272.00M | 151.60M | 389.80M | 588.90M | 571.86M |
| Net Income | 25.30M | 7.00M | 138.70M | 374.70M | 369.50M | 292.60M |
Balance Sheet | ||||||
| Total Assets | 10.16B | 10.54B | 9.26B | 8.92B | 8.40B | 7.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 1.73B | 4.68B | 5.22B | 4.97B | 3.83B |
| Total Debt | 1.14B | 1.14B | 1.04B | 1.11B | 1.11B | 1.11B |
| Total Liabilities | 2.21B | 2.17B | 1.70B | 1.58B | 1.53B | 1.55B |
| Stockholders Equity | 7.91B | 8.33B | 7.55B | 7.34B | 6.87B | 5.71B |
Cash Flow | ||||||
| Free Cash Flow | 241.30M | 41.00M | -245.30M | 464.20M | 420.05M | 404.51M |
| Operating Cash Flow | 528.80M | 430.00M | 392.60M | 489.50M | 478.62M | 469.73M |
| Investing Cash Flow | -1.96B | -2.82B | -912.90M | -238.60M | -69.10M | -381.34M |
| Financing Cash Flow | -1.03B | -559.00M | -13.70M | -3.70M | 733.98M | -15.68M |
CoStar Group Technical Analysis
Negative
39.72
Price Trends
38.38
Negative
47.48
Negative
62.94
Negative
Market Momentum
-1.75
Negative
40.87
Neutral
44.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGP, the sentiment is Negative. The current price of 39.72 is above the 20-day moving average (MA) of 34.49, above the 50-day MA of 38.38, and below the 200-day MA of 62.94, indicating a bearish trend. The MACD of -1.75 indicates Negative momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 44.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSGP.
CoStar Group Risk Analysis
CoStar Group disclosed 80 risk factors in its most recent earnings report. CoStar Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CoStar Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.40B | 22.41 | 12.35% | ― | 11.23% | 68.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $38.19B | 31.35 | 15.35% | ― | 14.77% | 34.03% | |
62 Neutral | $2.54B | 47.47 | 9.81% | 0.68% | 23.00% | 105.99% | |
58 Neutral | $13.56B | 1,388.37 | 0.30% | ― | 21.33% | -78.82% | |
58 Neutral | $2.96B | -56.63 | 3.79% | ― | 10.40% | -54.85% | |
56 Neutral | $20.38B | 347.41 | 4.29% | 2.26% | 1.28% | -25.40% |
* Real Estate Sector Average
CSGP
CoStar Group
33.80
-42.57
-55.74%
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CoStar Group Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
CoStar Highlights Website as Key Investor Information Channel
Neutral
Apr 28, 2026
CoStar Group has stated that it plans to use its corporate website as a primary channel for distributing material company information, including periodic investor presentations aimed at the financial community. The company emphasized that informat...
Executive/Board Changes
CoStar Group Appoints Nana Banerjee to Board of Directors
Positive
Mar 16, 2026
On March 15, 2026, CoStar Group, Inc. appointed Nana Banerjee to its Board of Directors, with the new director immediately joining the company’s existing governance structure and becoming eligible to participate in its standard director comp...
Business Operations and StrategyRegulatory Filings and Compliance
CoStar Expands Use of Website for Investor Disclosures
Positive
Feb 24, 2026
CoStar Group announced that it plans to use its corporate website as a primary channel for distributing material company information, including investor presentations. The company noted that while these materials will be available online for stake...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
CoStar Amends Executive Severance Plan Amid Activist Pressure
Neutral
Feb 13, 2026
On February 13, 2026, CoStar Group amended its Executive Severance Plan to delete a board-composition-based clause from the definition of “change in control,” while leaving all other provisions intact. The removed director clause, prev...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.