CoStar Q3 2026 slides: EBITDA doubles as bookings disappoint

CoStar Group reported its Q3 2026 financial results on October 27, revealing a stark contrast between improving profitability and declining sales momentum. The company's adjusted EBITDA doubled to $229 million, while new bookings fell short of expectations, causing shares to drop 7.84% in after-hours trading to $29.32. Despite beating earnings expectations with adjusted EPS of $0.38, investors focused on the company's low annualized net new bookings of $37 million, which was less than half of the $84 million from the previous quarter.

The company's two segments showed divergent growth, with Residential segment revenue increasing 23% year-over-year due to the Zonda acquisition. While the overall revenue reached $952 million, up 14% year-over-year, the Residential segment's higher growth rate was offset by the slower Commercial segment's 7% growth. CoStar's profitability transformation was evident when comparing GAAP net income to adjusted EBITDA, which reached a record $229 million, a 10 percentage-point improvement from the previous year.

The company raised its full-year 2026 guidance, expecting revenue between $3.75 billion and $3.77 billion, a 16% growth, and adjusted EBITDA of $820 million to $840 million, with a 22% margin.