CoStar Group is kicking off 2026 by providing investors and analysts with a look at its plans for the new year.
In a release on Wednesday, the firm provided an update on financial and corporate governance initiatives for 2026, much of which is the result of a “robust review” of the company by the Capital Allocation Committee, which was established in April 2025 amid a leadership shake up undertaken at the behest of activist hedge fund investors D.E. Shaw & Co. and Third Point Investors Ltd.
While the update paints a fairly rosy picture for the firm as a whole in 2026, with estimated 18% year-over-year revenue growth to between $3.78 and $3.82 billion and a net income of $175 million to $215 million for the year, things aren’t looking quite as strong for CoStar’s Homes.com.
Although Homes.com has recorded a 337% increase in subscribers since Q1 2024, according to CoStar, the firm said it does not expect Homes.com to attain positive adjusted EBITDA until 2030.
“Ultimately, CoStar Group expects Homes.com to be a strong contributor to Adjusted EBITDA and stockholder value,” the release states.
CoStar will implement “proven playbook”
To attain this projection, CoStar said it is “implementing its proven playbook to continue to scale Homes.com and drive profitability.” As part of this playbook, CoStar said it intends to reduce net investment, revenue less directly attributable and allocated costs in Homes.com, by more than $300 million in 2026, down from $850 million in 2025.
Beyond 2026, CoStar said it expects to continue to reduce net investment in Homes.com by $100+ million annually until 2030.
According to CoStar, this plan will enable Homes.com to deliver “revenue in excess of expenses exiting 2029, supported by subscriber acquisition, in-depth advertising, builder partnerships, the Company’s Boost program and continued reduction in expenses.”
“Building on our strong foundation, we continue to expand and evolve our platforms and increase the efficiency of our business model to accelerate profitability while growing the top-line,” Andy Florance, the CEO and founder of CoStar Group, said in a statement. “Homes.com is an important part of our ecosystem; we now have a clear path to accelerate top-line growth and drive profitability. Through the deployment of our scalable AI platform and our disciplined capital allocation approach, we are well positioned to build on our strong trajectory and drive enhanced stockholder value.”
In addition to these projections, CoStar also announced a new $1.5 billion repurchase of common stock, a move it said was recommended by the Capital Allocation Committee. This latest authorization follows CoStar’s accelerated completion of its $500 million share repurchase program in 2025. The firm said that it is continuing to fund its organic growth primarily through capital generated from its businesses.
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