Reviewed listing: NASDAQ:CSGP · Analysis dated Nov 03, 2026
How does the company make money?
CoStar sells real estate listings and access to data, analytics, software, and digital 3D models to real estate firms, brokers, and other customers. About 89 percent of third-quarter revenue came from subscriptions.
What supports the business?
In the third quarter of 2026, CoStar reported net income of 74 million USD, compared with a loss of 31 million USD in the year-earlier quarter. This is a clear improvement in the actual reported result.
What could improve?
If CoStar cuts costs and continues to grow its real estate listings and data businesses, profitability could improve. The company sees at least 200 million USD in additional potential savings, but has yet to put them into effect.
How is the stock price assessed?
This assessment refers to the analysis and its quoted price shown here. It is not a live quote or a personal recommendation to buy.
At the given share price of 31.82 USD, the stock seems conditionally reasonable: divided by the company's forecast for adjusted annual earnings per share, the price is about 23 times earnings. This forecast excludes, among other things, stock-based compensation, acquisition costs, and amortization of acquired assets, and is not reported profit.
What is the main risk?
CoStar's cash and cash equivalents fell from 1.733 billion USD at the end of 2025 to 500 million USD on September 30, 2026; some of the cash went toward acquisitions and share buybacks. Long-term debt stood at 994 million USD.
What is the overall assessment?
CoStar has shown a clear improvement in reported quarterly profit and higher cash flow from operations. At 31.82 USD, the stock seems conditionally reasonable, but the lower cash balance, debt, and excluded costs limit the opportunity.
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