Costar Group Inc

XMUN:RLG

Profitability inflection: CoStar said Q2 marked a major margin turn, with adjusted EBITDA of $184 million, more than doubling year over year and reaching a 20% margin a full quarter earlier than expected.

Revenue growth: Revenue was $925 million, up 18% year over year, extending the company’s streak to 61 straight quarters of double-digit revenue growth.

Guidance reset: Full-year revenue guidance was lowered to $3.715 billion to $3.755 billion, but adjusted EBITDA guidance was reaffirmed at $780 million to $820 million thanks to tighter expense control.

Homes.com shift: Management said Homes.com is moving toward a more efficient sales model, with more field selling, less expensive marketing, and a planned launch of depth advertising in the third quarter.

Apartment resilience: Apartments.com continued to grow despite tougher multifamily conditions and aggressive competition, while management said its lead-to-lease conversion advantage and pricing discipline remain intact.

AI push: CoStar highlighted new AI products across rent benchmarking, lease abstraction, Apartments.com, and Homes.com, and said AI is already helping lower costs while improving engagement.

Zonda deal: CoStar is still waiting on regulatory approval for its Zonda acquisition and expects to close it in the second half of 2026, with no impact included in current guidance.