CoStar cuts annual forecast amid uncertain property market

CoStar

28/07/2026 23:10

July 28 (Reuters) - CoStar Group CSGP.O on Tuesday cut its annual revenue forecast, pivoting to a cost-cutting strategy to mitigate an uncertain commercial property market. 
The company's shares were down 13.3% in extended trading.  
CoStar, the owner of online marketplaces like Homes.com and Apartments.com, is known for its extensive commercial real-estate databases and subscription-driven analytics which is used by real estate agents and customers.
The company now sees full-year revenue between $3.72 billion to $3.76 billion, down from its previous forecast of between $3.78 billion and $3.82 billion. 
CoStar held operating cost growth to 2% in the quarter and also trimmed its projected expense baseline by about $100 million compared to its initial guidance.
The recovery in the real-estate market has been slow from post-pandemic hybrid work trends and the weight of higher borrowing costs, which has hit the demand for CoStar's core data and analytics suite.
CoStar also expects third-quarter revenue in the range of $935 million to $945 million, which is below analysts' average estimate of $967.7 million, according to data compiled by LSEG.
The adjusted profit per share is expected between 31 cents and 34 cents for the third quarter, also below estimates of 38 cents per share.
The firm's aggressive expansion into residential marketplaces has turned out to be expensive and according to analysts, is likely to pressure margins for years.
Revenue for the second quarter came in at $925 million, slightly below estimates of $928.75 million.
Quarterly adjusted profit stood at 32 cents per share, above expectations of 29 cents per share.
The company reported net new bookings of $69 million for the quarter ended June 30, a 3% jump from the first quarter.

 (Reporting by Arunesh Sinha; Editing by Shailesh Kuber)
 ((Arunesh.Sinha@thomsonreuters.com;))