CoStar Group has unveiled its strategic roadmap for 2026 and the medium term, emphasizing key financial and operational advancements. The company’s board has authorized a substantial $1.5 billion share repurchase initiative, building on the successful and early conclusion of its prior $500 million buyback scheme in 2025.
For the upcoming fiscal year 2026, CoStar projects a robust financial performance, with an anticipated revenue ranging from $3.78 billion to $3.82 billion, signifying an approximate 18% increase compared to the midpoint of its 2025 financial outlook. The company also expects net income to be between $175 million and $215 million, with adjusted earnings per share projected at $1.22 to $1.33. Notably, CoStar is targeting an adjusted EBITDA of $740 million to $800 million, which would mark an unprecedented high for the company, boasting an 83% year-over-year surge from its 2025 guidance midpoint. This growth is further propelled by an accelerated adoption of AI technologies across various operations, enhancing efficiency in content creation, data analysis, and market intelligence.
Looking ahead to the mid-term, CoStar anticipates a revenue compound annual growth rate of approximately 15% from 2025 to 2028, with an ambitious goal of reaching $1.25 billion in adjusted EBITDA by 2028. A significant part of this strategy involves optimizing Homes.com, a rapidly expanding asset within CoStar’s residential portfolio. The company plans to reduce net investment in Homes.com by over $300 million in 2026, down from $850 million in 2025, with further annual reductions exceeding $100 million through 2030. This focused approach is expected to lead Homes.com to generate revenue exceeding expenses by 2029 and achieve positive adjusted EBITDA by 2030. CEO Andy Florance expressed confidence that these strategic moves will position CoStar Group for sustained long-term growth and enhanced shareholder returns.
CoStar Group's forward-looking strategies, particularly its significant investment in AI and its clear path to profitability for Homes.com, illustrate a dynamic and adaptive business model. These initiatives not only underscore a commitment to innovation and efficiency but also reflect a positive outlook on future market opportunities, reinforcing the company's trajectory towards sustained growth and value creation for its stakeholders.