Slides
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Third Quarter 2026 Highlights
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This investor presentation includes “forward-looking statements” . Potential factors that may cause actual results to differ materially from those projected in these forward-looking statements are described in CoStar Group’s periodic filings with the Securities and Exchange Commission (“SEC”), such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, including the “Risk Factors” sections of those documents. These filings can be accessed via the SEC’s website at www.sec.gov. All forward-looking statements reflect information available to CoStar Group as of the date of this presentation, and CoStar Group undertakes no obligation to update or revise any forward-looking statements unless required by applicable law. Forward-Looking Statements
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Third Quarter 2026 Highlights • Third quarter revenue of $952 million increased 14% year-over-year, marking the 62nd consecutive quarter of double-digit revenue growth • Commercial segment revenue of $492 million and Residential segment revenue of $460 million • Commercial segment Adjusted EBITDA of $180 million, and Residential segment Adjusted EBITDA of $49 million • Net income of $74 million and Adjusted EBITDA of $229 million • Net new bookings were $37 million
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Third Quarter and YTD 2026 Results Third Quarter YTD Revenue $952 million 14% year-over-year growth $2.774 billion 18% year-over-year growth Net Income $74 million $132 million Adjusted EBITDA $229 million 24% margin $545 million 20% margin Adjusted Net Income / Adjusted EPS $153 million $0.38 per diluted share $375 million $0.92 per diluted share
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Third Quarter and YTD 2026 Results Third Quarter YTD Commercial Revenue $492 million 7% year-over-year growth $1.445 billion 10% year-over-year growth Commercial Adjusted EBITDA $180 million $513 million Residential Revenue $460 million 23% year-over-year growth $1.329 billion 29% year-over-year growth Residential Adjusted EBITDA $49 million $32 million
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2026 Fourth Quarter and Full Y ear Outlook Fourth Quarter Full Year Revenue $976 million to $996 million 9% to 11% YoY growth $3.75 billion to $3.77 billion 16% YoY growth Net Income $95 million to $109 million $226 million to $241 million Adjusted EBITDA $275 million to $295 million 28% to 30% margin $820 million to $840 million 22% margin Adjusted Net Income Adjusted EPS $183 million to $198 million $0.46 to $0.50 per share $558 million to $573 million $1.38 to $1.41 per share
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2026 Fourth Quarter and Full Y ear Outlook – Segments Fourth Quarter Full Year Commercial Revenue $490 million to $500 million 4% to 6% YoY growth $1.935 billion to $1.945 billion 8% to 9% YoY growth Residential Revenue $486 million to $496 million 13% to 16% YoY growth $1.815 billion to $1.825 billion 24% to 25% YoY growth Commercial Adjusted EBITDA $177 million to $187 million 36% to 37% margin $690 million to $700 million 36% margin Residential Adjusted EBITDA $98 million to $108 million 20% to 22% margin $130 million to $140 million 7% to 8% margin
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Appendix
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Non-GAAP Financial Measures For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this presentation and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report filed with the SEC at www.sec.gov. EBITDA is our net income (loss) before interest income or expense, net; other income or expense, net; income taxes; depreciation; and amortization. We typically disclose EBITDA on a consolidated and on an operating segment basis in our earnings releases, investor conference calls, and filings with the SEC. Adjusted EBITDA is different from EBITDA because we further adjust EBITDA for stock-based compensation expense; acquisition- and integration-related costs; restructuring and related costs, including certain advisory fees; and settlements and impairments incurred outside our ordinary course of business, including judgments and related recoveries thereon. Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue for the period. Adjusted Net Income represents our net income (loss) adjusted for stock-based compensation expense; acquisition- and integration-related costs, including gains or losses on equity investments acquired in prospective targets and related to deal-contingent financial instruments; restructuring costs; settlement and impairment costs incurred outside our ordinary course of business, including judgments and related, non-recurring interest and recoveries thereon; and amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2026, we are assuming a 26% tax rate to approximate our statutory corporate tax rate, excluding the impact of discrete items, to determine Adjusted Net Income for each quarterly period, year-to-date period, and annual period. Adjusted EPS represents Adjusted Net Income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP earnings per diluted share. For periods with GAAP net losses and Adjusted Net Income, the weighted average outstanding shares used to calculate Adjusted EPS includes potentially dilutive securities that were excluded from the calculation of GAAP earnings per share as the effect was anti-dilutive.
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Reconciliations of Net Income to Adjusted Net Income and EPS to Adjusted EPS - Unaudited
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Reconciliation of Net Income to Adjusted EBITDA - Unaudited
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Results of Segments and Guidance Ranges - Unaudited
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Use of Operating Metrics and Other Definitions Operating Metrics CoStar Group reviews a number of operating metrics to evaluate its business, measure performance, identify trends, formulate business plans and make strategic decisions. This presentation includes Net new bookings. Going forward, CoStar Group expects to use these operating metrics on a periodic basis to evaluate and provide investors with insight into the performance of the Company’s subscription-based services. Net new bookings is calculated based on the annualized amount of change in the Company's sales bookings resulting from new subscription-based contracts, changes to existing subscription-based contracts, and cancellations of subscription-based contracts for the period reported. Net new bookings is calculated on all subscription-based contracts without regard to contract term. Information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of the Company's revenue over time.