CoStar Group, Inc. Q2 2026 Earnings Recap

The stock edged up modestly by 2.3% following Q2 results that continued steady revenue growth and margin improvement, though the market's tepid reaction suggests tempered enthusiasm amid ongoing restructuring at Ten-X and no significant upside to guidance.

Key Takeaways

• Revenue rose 18% year-over-year to $925 million, marking 61 consecutive quarters of double-digit revenue growth.
• Adjusted EBITDA more than doubled year-over-year to $184 million, reaching the company's second highest quarterly level; operating costs increased only 2%.
• Commercial real estate segment revenue grew 8% to $481 million with adjusted EBITDA up 7%, while CoStar segment revenue increased 9% to $337 million alongside a 24% acceleration in net new bookings.
• Ten-X revenue declined by $4 million amid restructuring efforts that cut costs by $7 million year-to-date, signaling challenges as the unit resets.
• Continued expansion with launches in France and the UK, and further product innovation, including AI-powered lease abstraction and advancing presence in Australia.