Want to see CSGP full AI Analyst Report?
Top Page
CoStar Group
(NASDAQ:CSGP)
Select Model
Select Model
Rating:59Neutral
Price Target:
$31.00
▲(12.08% Upside)
Action:Reiterated
Date:07/30/26
The score is anchored by a solid financial foundation (conservative leverage and improving cash flow) and encouraging earnings-call signals around margin expansion and continued growth. These positives are tempered by a major reset in reported profitability/returns, very expensive valuation (P/E ~518), and a technically weak longer-term price trend.
Positive Factors
Recurring subscription revenue
CoStar’s subscription-first model produces predictable, recurring revenue and high renewal rates, supporting durable cash flows and easier multi-year planning. This recurring base enables cross-sell of marketplaces and software, improving lifetime value and reducing reliance on one-time transactions.
Negative Factors
Compressed profitability
Despite robust top-line growth, operating profitability has fallen sharply, signaling that revenue increases have been absorbed by costs, investments or restructurings. Persistently low net margin and ROE weaken long-term returns and limit reinvestment capacity if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue
CoStar’s subscription-first model produces predictable, recurring revenue and high renewal rates, supporting durable cash flows and easier multi-year planning. This recurring base enables cross-sell of marketplaces and software, improving lifetime value and reducing reliance on one-time transactions.
Read all positive factors
CoStar Group Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows where CoStar earns its sales across regions, revealing if growth is concentrated in the U.S. or coming from international expansion; helps you gauge exposure to local property markets, currency swings, and regional demand cycles that can boost or depress future revenue.
Shows where CoStar earns its sales across regions, revealing if growth is concentrated in the U.S. or coming from international expansion; helps you gauge exposure to local property markets, currency swings, and regional demand cycles that can boost or depress future revenue.
Data provided by:
The Fly
The FlyCoStar Group (CSGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.39B
Dividend YieldN/A
Average Volume (3M)6.87M
Price to Earnings (P/E)518.5
Beta (1Y)0.65
Revenue Growth21.96%
EPS Growth-28.75%
CountryUS
Employees8,441
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.19
Shares Outstanding408,355,700
10 Day Avg. Volume7,427,768
30 Day Avg. Volume6,873,288
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$37.44Price Target Upside35.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
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:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call emphasized strong profitability and margin expansion (record/near-record adjusted EBITDA, 20% EBITDA margin, and disciplined cost control) alongside robust product launches, subscriber growth, and segment-level turnarounds (residential achieving positive adjusted EBITDA). Key challenges include a notable year-over-year decline in net new bookings, the Ten-X restructuring that trimmed near-term revenue, and competitive and macro pressure in multifamily that pressured mix and ARPU. Management prioritized profitable growth — trading some near-term revenue growth for improved margins and efficiency — and affirmed full-year EBITDA guidance while revising revenue guidance downward. Overall, positive operational and financial momentum outweighs the near-term booking and revenue headwinds.Positive Updates
Record Revenue Growth and Consistent Double-Digit Streak
Total revenue of $925 million in Q2 2026, up 18% year-over-year; marks the company's 61st consecutive quarter of double-digit revenue growth. First-half revenue $1.82 billion, up 20% year-over-year with roughly half organic.
Negative Updates
Net New Bookings Decline Year-over-Year
Net new bookings totaled $69 million in Q2, up 3% sequentially but down roughly 26% year-over-year, raising questions about near-term booking momentum and contributing to lowered revenue outlook.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue Growth and Consistent Double-Digit Streak
Total revenue of $925 million in Q2 2026, up 18% year-over-year; marks the company's 61st consecutive quarter of double-digit revenue growth. First-half revenue $1.82 billion, up 20% year-over-year with roughly half organic.
Read all positive updates
Company Guidance
CoStar provided Q3 guidance of $935–$945 million in revenue (≈+13% year-over-year at the midpoint), with commercial revenue of $489–$494 million (+7% at the midpoint) and residential revenue of $446–$451 million (+20% at the midpoint); Q3 adjusted EBITDA is guided to $190–$210 million (≈21% margin at the midpoint) with commercial adjusted EBITDA $162–$172 million and residential adjusted EBITDA $28–$38 million, and adjusted EPS of $0.31–$0.34 (assumes ~403 million weighted shares). For full-year 2026 CoStar raised revenue guidance to $3.715–$3.755 billion (≈+15% at the midpoint), with commercial revenue $1.94–$1.96 billion (+9% at midpoint) and residential $1.775–$1.795 billion (+22% at midpoint), and affirmed full-year adjusted EBITDA of $780–$820 million and adjusted EPS $1.32–$1.39; the guidance excludes any financial impact from the expected Zonda acquisition. Management also reiterated plans for ~$700 million of 2026 share repurchases (2.4M shares / $82.1M repurchased in Q2; 13.75M shares / ~$587M repurchased YTD), and highlighted that Q2 outperformance put them a quarter ahead on margin targets (Q2 adjusted EBITDA was $184M, 20% margin).CoStar Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.56B | 3.25B | 2.74B | 2.46B | 2.18B | 1.94B |
| Gross Profit | 2.72B | 2.44B | 2.18B | 1.96B | 1.77B | 1.59B |
| EBITDA | 418.30M | 272.00M | 384.40M | 640.20M | 624.36M | 575.15M |
| Net Income | 74.10M | 7.00M | 138.70M | 374.70M | 369.50M | 292.60M |
Balance Sheet | ||||||
| Total Assets | 10.14B | 10.54B | 9.26B | 8.92B | 8.40B | 7.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.27B | 1.73B | 4.68B | 5.22B | 4.97B | 3.83B |
| Total Debt | 1.02B | 1.14B | 1.04B | 1.11B | 1.11B | 1.11B |
| Total Liabilities | 2.19B | 2.17B | 1.70B | 1.58B | 1.53B | 1.55B |
| Stockholders Equity | 7.93B | 8.33B | 7.55B | 7.34B | 6.87B | 5.71B |
Cash Flow | ||||||
| Free Cash Flow | 312.00M | 41.00M | -245.30M | 464.20M | 420.05M | 404.51M |
| Operating Cash Flow | 497.30M | 430.00M | 392.60M | 489.50M | 478.62M | 469.73M |
| Investing Cash Flow | -1.89B | -2.82B | -912.90M | -238.60M | -69.10M | -381.34M |
| Financing Cash Flow | -1.06B | -559.00M | -13.70M | -3.70M | 733.98M | -15.68M |
CoStar Group Technical Analysis
Neutral
27.66
Price Trends
30.88
Negative
34.93
Negative
49.26
Negative
Market Momentum
-0.90
Positive
40.70
Neutral
18.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGP, the sentiment is Neutral. The current price of 27.66 is below the 20-day moving average (MA) of 29.00, below the 50-day MA of 30.88, and below the 200-day MA of 49.26, indicating a neutral trend. The MACD of -0.90 indicates Positive momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 18.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.92B | 18.07 | 12.35% | ― | 11.23% | 68.38% | |
69 Neutral | $17.84B | 35.50 | 4.95% | 1.68% | -8.90% | -21.42% | |
67 Neutral | $2.88B | 19.30 | 10.85% | 0.97% | 23.03% | 88.89% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $43.06B | 33.42 | 15.35% | ― | 14.53% | 22.31% | |
61 Neutral | $3.20B | 42.42 | 3.79% | ― | 10.40% | -54.85% | |
59 Neutral | $12.39B | 518.46 | 0.30% | ― | 21.96% | -28.75% |
* Real Estate Sector Average
CSGP
CoStar Group
29.83
-66.42
-69.01%
CBRE
CBRE Group
147.78
-9.59
-6.09%
JLL
Jones Lang Lasalle
340.00
67.62
24.83%
NMRK
Newmark Group
14.89
0.13
0.89%
CWK
Cushman & Wakefield
13.50
1.24
10.11%
BEKE
KE Holdings Inc. Sponsored ADR Class A
16.67
-1.64
-8.97%
CoStar Group Corporate Events
Business Operations and StrategyExecutive/Board Changes
CoStar Group Appoints New Chief Financial Officer
Positive
Jul 13, 2026
On July 13, 2026, CoStar Group’s board appointed Robin Rossmann, currently Managing Director, Europe, as Chief Financial Officer effective July 31, 2026, succeeding CFO Christian Lown, who resigned effective the same date to pursue an opport...
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...
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.