CoStar Group reported record third quarter 2026 results, characterized by a significant top-line beat and substantial margin expansion. The company also announced a definitive agreement to acquire Vexcel, an aerial imagery and geospatial data provider, for $730 million in cash to enhance its proprietary AI datasets.
Key Highlights
- Revenue surged 14% year-over-year to $952 million, significantly exceeding the analyst estimate of $782.4 million.
- Adjusted EBITDA reached a record $229 million, doubling from the prior year and surpassing the high end of previous management guidance.
- Adjusted EPS of $0.38 beat the consensus estimate of $0.28, driven by aggressive cost-efficiency measures.
- Management identified at least $200 million in potential additional cost savings to be realized over the next 12 to 18 months without sacrificing revenue growth.
- Full-year 2026 Adjusted EBITDA guidance was raised to a range of $820 million to $840 million.