CoStar Group (CSGP)
NASDAQReal EstateReal Estate ServicesSnapshot 2026-07-08
$29.34-1.77%
Close 2026-07-08 · 1-day change
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Track CSGP free→Intact: The reason to own it still holds.
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 to a range of $780 million to $820 million for the full year 2026, reflecting significant margin expansion.
Standing thesis, reviewed periodically — not a price target or advice.
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 $66 million in 2025-Q1 to $132 million in 2026-Q1, doubling year-over-year. Full-year 2025 Adjusted EBITDA was $442 million, with 2026 guidance raised to $780 million to $820 million. Management is delivering significant Adjusted EBITDA expansion consistent with stated goals.
“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”
“Adjusted EBITDA for the full year of 2025 was $442 million, up 83%”
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 at midpoint.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $732 million in 2025-Q1 to $897 million in 2026-Q1, and full-year 2025 revenue was $3.2 billion. Management reaffirms 2026 revenue guidance of $3.78 billion to $3.82 billion, targeting approximately 17% growth year-over-year. The trajectory is delivering consistent double-digit revenue growth.
“The Company reaffirms revenue in the range of $3.78 billion to $3.82 billion for the full year of 2026”
“The Company is affirming its full year guidance provided on January 7, 2026 of revenue in the range of $3.78 billion to $3.82 billion for the full year of 2026”
“The Company now expects revenue in the range of $3.135 billion to $3.155 billion for the full year 2025”
Breaks if: Zonda acquisition fails to close or integration stalls beyond 2026
Complete acquisition of Zonda, a leading new home construction data and marketplace provider, to expand CoStar Group's presence in the homebuilding industry.
Newly stated in 2026-Q2. Management announced the acquisition of Zonda for $800 million cash, expected to close in second half of 2026. This strategic move expands CoStar Group's market presence into the homebuilding industry. As this is a recent announcement, delivery is pending completion and integration.
“CoStar Group entered into a definitive agreement to acquire Zonda for $800 million in cash, expected to close in second half of 2026”