COSTAR GROUP, INC. is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: CoStar Group (CSGP) returned to profitability in Q1 FY2026 with revenue surging 22.5% YoY to $897M and operating income turning positive at $3M, while the company deployed $505M in share buybacks, sharply reducing its cash balance.
Drawn from management commentary in the Q1 2026 10-Q:
Revenue grew 22.5% YoY from $732M to $897M in Q1 FY2026, reflecting continued momentum in CoStar's commercial real estate information and marketplace platforms. This double-digit growth rate demonstrates sustained demand for the company's subscription-based data and analytics services.
Operating income turned positive at $3M compared to a loss of -$43M in the prior-year period, representing a $46M improvement. This marks a significant inflection point as the company's revenue scale begins to cover its heavy investment in sales, marketing, and product development.
Gross margin declined modestly from 79.1% to 78.1% YoY, as cost of revenue grew faster (28.1%) than revenue (22.5%). This slight compression likely reflects increased infrastructure, data, and content costs associated with scaling the business.
Revenue
$897M
++22.54% YoY
EPS (Basic)
$0.01
++125.00% YoY
Gross Margin
78.1%
-0.95% YoY
Operating Income
$3M
++106.98% YoY
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