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CoStar Group
(NASDAQ:CSGP)
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Rating:61Neutral
Price Target:
$31.00
▼(-21.95% Downside)
Action:Reiterated
Date:06/25/26
CSGP scores as moderate: the strongest support comes from a low-leverage balance sheet and improving operational outlook from the latest earnings call (raised guidance and significant buybacks). Offsetting this are weakened current profitability/returns and volatile free cash flow, while technicals remain decisively bearish and valuation is highly demanding given the extremely high P/E and lack of dividend support.
Positive Factors
Recurring subscription and marketplace model
A subscription-plus-marketplace model creates durable recurring revenue and high customer lifetime value. Proprietary data and marketplaces produce network effects and cross-sell opportunities that sustain revenue visibility, reduce churn risk, and support long-term margin expansion.
Negative Factors
Deteriorated operating profitability
Negative TTM operating profit and near‑breakeven net income show operating leverage has weakened. Unless sustained margin improvement occurs, thin returns constrain reinvestment capacity, reduce free cash flow conversion, and heighten sensitivity to revenue volatility across quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription and marketplace model
A subscription-plus-marketplace model creates durable recurring revenue and high customer lifetime value. Proprietary data and marketplaces produce network effects and cross-sell opportunities that sustain revenue visibility, reduce churn risk, and support long-term margin expansion.
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
$12.25B
Dividend YieldN/A
Average Volume (3M)8.49M
Price to Earnings (P/E)512.8
Beta (1Y)0.65
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. Volume7,784,597
30 Day Avg. Volume8,489,284
Financial Highlights & Ratios
PEG Ratio-42.10
Price to Book (P/B)3.36
Price to Sales (P/S)8.63
P/FCF Ratio683.55
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue3.59
Enterprise Value/Gross Profit4.64
Enterprise Value/Ebitda34.70
Forecast
1Y Price Target
$47.27Price Target Upside19.00% Upside
Rating ConsensusStrong 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. (CSGP) stands as a premier global provider of comprehensive information, sophisticated analytics, and dynamic online marketplace services. The company caters to professionals within the commercial real estate, hospitality, resid...
How the Company Makes Money
CoStar Group primarily makes money by selling access to proprietary real estate data, analytics, and workflow tools, and by monetizing online marketplaces that connect property sellers/landlords and brokers with prospective buyers/tenants.
1) Sub...
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 | 353.40M | 272.00M | 384.40M | 640.20M | 624.36M | 575.15M |
| 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
32.93
Negative
38.25
Negative
54.22
Negative
Market Momentum
-1.24
Positive
43.12
Neutral
36.03
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 31.22, above the 50-day MA of 32.93, and below the 200-day MA of 54.22, indicating a bearish trend. The MACD of -1.24 indicates Positive momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 36.03 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $15.19B | 17.24 | 12.35% | ― | 11.23% | 68.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $41.46B | 32.18 | 15.35% | ― | 14.77% | 34.03% | |
61 Neutral | $12.25B | 512.82 | 0.30% | ― | 21.33% | -78.82% | |
61 Neutral | $3.28B | 43.47 | 3.79% | ― | 10.40% | -54.85% | |
60 Neutral | $16.68B | 32.80 | 4.95% | 2.26% | -8.90% | -21.42% | |
57 Neutral | $2.79B | 18.74 | 9.81% | 0.68% | 23.00% | 105.99% |
* Real Estate Sector Average
CSGP
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CoStar Group Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
CoStar Shareholders Approve 2026 Employee Stock Plan
Positive
Jun 25, 2026
At its June 23, 2026 annual meeting, CoStar Group stockholders approved a new 2026 Employee Stock Purchase Plan authorizing up to 2,500,000 shares of common stock, replacing the company’s 2021 plan and signaling continued use of equity-based...
Business Operations and StrategyM&A Transactions
CoStar Group to Acquire Zonda in $800 Million Deal
Positive
May 29, 2026
On May 28, 2026, CoStar Group, through its subsidiary CoStar Realty Information, entered into a stock purchase agreement to acquire Zonda, a leading provider of new home construction data, homebuilder software, and residential real estate marketpl...
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...
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.