CoStar Group Projects Rapid Adjusted EBITDA Expansion Amid Homes.com Subscriber Boom and $1.5B Share Repurchase Plan

Financial Outlook Signals Historic Profitability Surge

CoStar Group (NASDAQ: CSGP) has unveiled long-term projections set to reshape its financial trajectory. The company expects 2026 adjusted EBITDA to reach between $740 million and $800 million—representing an unprecedented 83% increase over 2025 estimates at the midpoint. This leap forward comes on the back of approximately 18% anticipated revenue growth, with annual revenues targeted at $3.78 to $3.82 billion.

The company’s 2026 net income is projected between $175 million and $215 million, putting diluted EPS in the $0.42 to $0.52 range. On a non-GAAP basis, adjusted EPS is expected at $1.22 to $1.33. Medium-term, CoStar aims for a 15% revenue CAGR through 2028 and sets its sights on adjusted EBITDA of $1.25 billion by then—a clear signal it foresees both scale and operational efficiency in its expanding portfolio.

Homes.com Drives Residential Ambitions With Explosive Subscriber Growth

A standout in CoStar’s outlook is the performance of Homes.com, which has seen a remarkable 337% jump in subscribers since Q1 2024. The company plans to continue scaling via its proven playbook, aiming to make Homes.com profitable by lowering its net investment in the platform. Net investment is expected to fall more than $300 million in 2026 compared to 2025, and get trimmed by at least $100 million annually until 2030.

On current trends, Homes.com expects to generate revenue in excess of expenses by the end of 2029, and to provide positive adjusted EBITDA in 2030. Management positions Homes.com as a future cornerstone of EBITDA contribution and shareholder value, reinforcing its growth ambitions in digital real estate marketplaces.

Capital Deployment and Governance Updates Aim for Shareholder Alignment

CoStar isn’t just focusing on growth—it’s also returning capital. The newly authorized $1.5 billion share repurchase program underscores confidence in its long-term prospects. This fresh buyback authorization follows the early completion of a $500 million repurchase plan in 2025, with the company funding repurchases primarily from organic business cash flows.

In addition, CoStar recently revamped its executive compensation scheme to address stockholder feedback—raising the bar with more quantitative goals, added transparency, and a simplified framework to better align leadership pay with performance and shareholder returns.

AI-driven Efficiency Yields Cost Savings and Extends Market Edge

Technology and artificial intelligence remain central to CoStar’s strategy. The company is actively deploying AI to refine both internal processes (content creation, lease data extraction, coding, and research) and user-facing platforms. Efficiencies from these initiatives are already factored into CoStar’s positive 2026 outlook, suggesting the company’s tech-forward approach is delivering measurable savings while laying the groundwork for additional future gains.

Sustainable Growth Roadmap: What Investors Should Watch

Looking further ahead, CoStar’s core business revolves around a high-margin subscription model and impressive customer retention, designed to deliver resilience and predictability regardless of market cycles. The company’s strategy combines investment in high-growth digital platforms like Homes.com with disciplined cost control and proactive capital return.

Key Takeaway

CoStar Group’s 2026 and medium-term roadmap demonstrates a clear focus on profit acceleration, prudent investment, and maximizing shareholder returns. The company’s historic EBITDA expansion ambitions are powered by tech-driven efficiencies and a commitment to disciplined capital allocation. With a surging Homes.com subscriber base and a robust share buyback plan, investors have tangible milestones to monitor as the company pushes toward new financial highs.

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