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CoStar Group: Can Homes.com, AI Search, & Brokerage Expansion Create the Next Real Estate Advertising Giant?

CoStar Group reported a strong start to 2026 with revenue growth accelerating across both its commercial and residential businesses, while adjusted EBITDA more than doubled year-over-year due to operating leverage, AI-driven efficiency initiatives, and tighter expense management. The company continued to benefit from broad-based momentum in Apartments.com, Homes.com, LoopNet, international operations, and Matterport integration, while also reaffirming its long-term revenue growth and earnings expansion targets. Residential revenue growth remained particularly strong, supported by accelerating Homes.com subscriber additions, higher engagement metrics, and improving monetization trends. Management emphasized that Homes.com subscribers are demonstrating measurable increases in commission income after joining the platform, supporting the company’s confidence in raising pricing for new customers and expanding field sales investments. Commercial real estate operations also showed resilience despite broader market uncertainty. CoStar’s core commercial business generated double-digit growth supported by higher broker and tenant sales activity, increasing international adoption, and continued strength in debt solutions.