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CoStar Group Turns Residential Profitable For The First Time As Revenue Surges 33%!

The CoStar Group reported strong financial performance in the second quarter of 2026, with revenue increasing 18% year-over-year to $925 million and adjusted EBITDA more than doubling to $184 million, marking the second highest quarterly level in company history. This represents an 18% revenue growth and a 900 basis point increase in adjusted EBITDA margin to 20%. The company’s commercial real estate segment generated $481 million in revenue, up 8% year-over-year, delivering $172 million in adjusted EBITDA with a 36% margin, while the residential segment saw revenue growth of 33% to $444 million and achieved positive adjusted EBITDA in this quarter for the first time with $12 million. Net new bookings for the quarter were $69 million, a 3% increase from the previous quarter. The commercial business showed resilience with CoStar’s core platform revenue up 9% and subscriber counts rising 19%.