GET DAILY SIGNALSCoStar Group (CSGP) Q3 Earnings: Record EBITDA Growth Meets Booking Caution
Key Takeaways
- CoStar Group reported record third-quarter adjusted EBITDA of $229 million, roughly doubling year over year, with revenue up 14% to $952 million.
- Adjusted earnings per share of $0.38 beat consensus estimates, but softer net new bookings of $37 million and a slightly lower organic revenue outlook weighed on the stock.
- CSGP has moved only modestly over the trailing 30 days, trading near $27 after a post-earnings pullback erased an earlier rally toward the mid-$30s.
- Management raised full-year 2026 adjusted EBITDA guidance to a midpoint of about $830 million and reaffirmed a $1.25 billion adjusted EBITDA target for 2028.
- Cost-efficiency initiatives are driving margin expansion, with roughly $150 million in expected 2026 savings and an additional $200 million identified for the next 12–18 months.
- Sales-force capacity remains a key watch item, as total sales headcount is down about 10% from the prior year.
- For more detail on this ticker's Price Targets, Earnings, and Forecast, explore the dedicated pages.
- Explore Trending AI Robots to see how AI-driven trading systems approach stocks like CSGP.
Where CSGP Stands in the Current Market
CoStar Group (CSGP) shares have shown volatility but stayed largely range-bound over the past 30 days. After trading near the high-$20s in late September, the stock advanced toward the mid-$30s in mid-October only to give back most of those gains after the third-quarter report. The 30-day change sits at roughly 2.7%, as strong profitability numbers were tempered by concerns over net new bookings and a more cautious organic growth view.
The company posted record adjusted EBITDA and topped consensus on adjusted EPS, yet the market focused on the bookings shortfall. Management linked this to economic pressures and slower sales-force expansion. With a market capitalization in the low teens of billions, CSGP continues to serve as a useful indicator for demand in commercial and residential real estate data.
CoStar Group’s Business Model and Competitive Edge
CoStar Group provides commercial and residential real estate information, analytics, and online marketplaces, with its main operations in the United States and smaller footprints in Canada, the United Kingdom, and Europe. The commercial side centers on the CoStar Suite subscription platform and the LoopNet listing marketplace. The residential side includes Apartments.com and Homes.com, recently expanded through the Zonda acquisition in August 2026 that brought single-family home data. Other businesses such as Matterport, BizBuySell, Ten-X, and CoStar Real Estate Manager round out the portfolio. High renewal rates, proprietary data sets, and strong brand positioning give the company pricing power and recurring revenue streams.
Key Drivers from the Latest Quarter
The third-quarter 2026 results stood out for their profitability gains. Revenue climbed 14% year over year to $952 million, while adjusted EBITDA doubled to a record $229 million. Net income reached $74 million, and adjusted EPS of $0.38 exceeded expectations. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Investors zeroed in on the softer side of the report. Annualized net new bookings came in at $37 million, below internal targets, which management tied to economic conditions and slower sales-force growth. Total sales headcount fell about 10% year over year as the company shifts toward more experienced field professionals. Full-year revenue guidance was adjusted to a midpoint near $3.76 billion, incorporating roughly $60 million from Zonda but reflecting a slightly softer organic trajectory. On the brighter side, adjusted EBITDA guidance was lifted to a midpoint of about $830 million, pointing to roughly 22% margins, and further cost savings were identified. Segment performance included 13% growth at LoopNet and 50% at Homes.com, with continued progress at Matterport and BizBuySell despite soft housing and multifamily markets.
Outlook for 2026 and Key Items to Monitor
The main question going forward is whether CSGP can rebuild sales-force momentum and bookings while keeping margins on an upward path. Plans to expand capacity in 2027, decentralize recruiting, and link growth to compensation will be worth watching. Macro risks remain prominent, with high interest rates, weak home sales, and elevated multifamily vacancies creating a challenging environment. Zonda integration, the Homes.com ramp, and expansion in the U.K. and Australia will also influence results. Future bookings trends, renewal rates, margin progress toward the 2028 $1.25 billion target, and any guidance updates will help clarify the balance between cost control and growth investments.
Using Tickeron AI Tools for Deeper Analysis
In my own research process, I often turn to Tickeron’s AI Trend Prediction Engine to gauge longer-term directional signals on names like CSGP and compare them against broader market patterns. It helps surface potential scenarios based on historical data without replacing fundamental work. I find it useful as one additional lens when weighing earnings reactions and guidance updates.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CSGP in downward trend: price may decline as a result of having broken its higher Bollinger Band on October 22, 2026
CSGP broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 29 similar instances where the stock broke above the upper band. In 22 of the 29 cases the stock fell afterwards. This puts the odds of success at 76%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CSGP moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 21 similar instances where the indicator moved out of overbought territory. In 12 of the 21 cases, the stock moved lower in the following days. This puts the odds of a move lower at 57%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 46 of 62 cases where CSGP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 74%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CSGP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on CSGP as a result. In 49 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 56%.
The Moving Average Convergence Divergence (MACD) for CSGP just turned positive on October 08, 2026. Looking at past instances where CSGP's MACD turned positive, the stock continued to rise in 27 of 48 cases over the following month. The odds of a continued upward trend are 56%.
CSGP moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CSGP crossed bullishly above the 50-day moving average on October 20, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 72%.
Following a +7.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where CSGP advanced for three days, in 173 of 302 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
The Aroon Indicator entered an Uptrend today. In 93 of 154 cases where CSGP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 60%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. CSGP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 84 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 93 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.407) is normal, around the industry mean (2.122). P/E Ratio (153.000) is within average values for comparable stocks, (53.105). Projected Growth (PEG Ratio) (0.099) is also within normal values, averaging (0.683). Dividend Yield (0.000) settles around the average of (0.105) among similar stocks. P/S Ratio (3.566) is also within normal values, averaging (5.807).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CSGP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a provider of information, analytics and marketing services
Industry RealEstateDevelopment
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