CoStar Group faces investor skepticism as revenue growth slows to 18.44% and net new bookings drop 26%, despite management's efforts to pivot toward higher margins through restructuring.
CoStar's revenue growth decelerated for two straight quarters and net new bookings fell 26% YoY, while management cut full-year revenue guidance, raising concerns despite adjusted EBITDA beat.
CoStar Group (CSGP) reported an 18.44% revenue growth in Q2 2026, marking a second straight quarter of deceleration from its Q4 2025 peak. While management raised adjusted EBITDA guidance by $30 million, net new bookings fell 26% year-over-year, prompting investor scrutiny over whether the slowdown is a strategic trade-off for margins or a sign of underlying demand softness.
Management attributed the guidance cut to three strategic actions: restructuring the Ten-X business, reducing the Homes.com inside sales force, and maintaining pricing at Apartments.com despite competitor discounting.