CoStar forecasts quarterly revenue below estimates on uncertain commercial outlook

CoStar

28/04/2026 21:43

April 28 (Reuters) - CoStar Group CSGP.O forecast second-quarter revenue below Wall Street estimates on Tuesday, taking a cautious stance due to the continued uncertainty in the commercial property market, sending shares down more than 3% in extended trading.

The commercial real-estate market has been slow to recover from the impact of higher borrowing costs and post-pandemic hybrid work trends, dampening transaction volumes and weighing on demand for CoStar's core data and analytics suite.

CoStar, known for its extensive commercial real‑estate databases and subscription‑driven analytics, has been expanding its Homes.com marketplace to capture more consumer traffic. It also owns Apartments.com.

The company sees second-quarter revenue in the range of $922 million to $932 million, the midpoint of which is below analysts' average estimate of $931 million, according to data compiled by LSEG.

CoStar expects adjusted earnings per share between 27 cents and 30 cents for the second quarter, compared to an estimate of 27 cents per share.

Revenue for the first quarter, ended March 31, came in at $897 million, in line with estimates.

Quarterly adjusted profit stood at 23 cents per share, above expectations of 18 cents per share.

CoStar reaffirmed its annual revenue forecast.

Billionaire investor Daniel Loeb's hedge fund Third Point will not pursue a proxy fight at CoStar and sold its entire stake in the company, Reuters had exclusively reported earlier this month.

(Reporting by Juby Babu in Mexico City; Editing by Jonathan Ananda)

((Juby.Babu@thomsonreuters.com;))