CSGP — CoStar Group, Inc.

CSGP Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $897 million, a 23% increase year-over-year.
• Adjusted EBITDA: $132 million, doubling from Q1 2025 and exceeding guidance by $17 million.
• Net New Bookings: $67 million, up 20% year-over-year.
• Commercial Revenue: $472 million, up 15% year-over-year.
• Residential Revenue: $425 million, a 32% increase year-over-year.
• Adjusted EPS: $0.23, significantly higher than guidance.
• Contract Renewal Rate: 89%, with a 95% renewal rate for long-term subscribers.

2. Strategic Updates and Business Highlights

• Homes.com: Revenue grew 58% year-over-year to $26 million, with a significant increase in agent subscriptions and engagement metrics. The platform is now the fastest-growing residential portal in the U.S.
• CoStar Growth: Users increased by 22% year-over-year, with strong sales performance in both broker and tenant segments.
• International Expansion: CoStar U.K. revenue grew 25%, and CoStar Canada revenue increased by 22%. CoStar France is set to launch in Q2.
• Matterport Integration: Continued integration across platforms with strong engagement metrics; subscription revenue up 19% year-over-year.
• Debt Solutions: Strong performance with net new bookings up 26% year-over-year and crossing $100 million in revenue.

3. Forward Guidance and Outlook

• Q2 2026 Revenue Guidance: Expected between $922 million and $932 million, representing an 18% to 19% increase year-over-year.
• Full Year 2026 Revenue Guidance: Reaffirmed at $3.78 billion to $3.82 billion, with an adjusted EBITDA expectation of $780 million to $820 million.
• Adjusted EPS Guidance: Increased to a range of $1.32 to $1.39.

4. Bad News, Challenges, or Points of Concern

• Sales Productivity: Despite hiring a larger sales force, there are concerns about the productivity ramp, particularly for newer sales representatives at Homes.com, which still has a relatively junior team.
• Net Bookings Trends: This marks the third consecutive quarter of sequential decline in net bookings, raising questions about future revenue growth.
• Competitive Pressures: The competitive landscape remains challenging, particularly in the residential segment, with ongoing price sensitivity affecting ARPU.

5. Notable Q&A Insights

• Bookings Guidance: Management refrained from providing specific bookings guidance but emphasized confidence in the underlying productivity and growth potential.
• Pricing Strategy: Plans to raise subscription fees for new Homes.com customers were discussed, with management confident in the ability to balance user growth and pricing.
• Sales Force Deployment: Incremental sales resources will be focused on high-potential areas, particularly field sales for Homes.com and Apartments.com, with a strategic approach to hiring and productivity improvement.
• Matterport's Role: Matterport is seen as a key differentiator, enhancing user engagement and driving higher conversion rates across platforms.

This summary encapsulates the key aspects of CSGP's Q1 2026 earnings call, highlighting both the positive developments and the challenges faced by the company.