After announcing that it would be scaling back its investment in Homes.com this past January, CoStar Group appears to be thriving as of Q2 as it beefs up investments in other segments of its business, such as Apartments.com.
Andy Florance—CEO of CoStar—touted the success of the portal during the company’s earnings call yesterday, stating that Apartments.com “delivered more than 228 million highly engaged renter visits in the quarter, with traffic up 7% year-over-year in June,” (according to Google Analytics).
Florance also noted that leads from Apartments.com convert at “2.5 times the rate of the next closest competitor.”
“Apartments.com remains the most recognizable brand in apartment search with 66% unaided consumer awareness among apartment seekers,” Florance continued. “That’s 25 points ahead of our nearest competitor, according to Dynata.”
Homes.com has also become a large pipeline to Apartments.com, as Florance explained that Homes.com rentals “drove more than 11% of Apartments.com’s traffic, making Homes.com its largest single syndication partner.”
“Leads from Homes.com to Apartments.com increased 162% year-over-year,” he added. “By the end of ’26, we expect every tool that independent owners use on Apartments.com to also be available on Homes.com.”
Chief Financial Officer Chris Lown also called out that “June was the third best month in Apartment.com’s history on gross sales,” which he said demonstrates a “strong continued interest and desire to be part of the Apartments.com network, use the capability.”
“We face a competitive environment. We’ve shrunk down to basically two primary competitors,” he continued. “But even in light of that, we saw one of the best sales months in the company’s history. It gives us a lot of confidence in the road ahead.”
Diving into the company’s financials for Q2, CoStar reported a revenue of $925 million, up from Q1’s $897 million and up 18% year-over-year (from $781 million in Q2 2025). Commercial revenue totaled $481 million, up from $472 million in Q1 and up 7.8% year-over-year (from $446 million in Q2 2025). Residential real estate revenue—which the company expected to reach profitability this quarter—clocked in at $444 million, up from $425 million in Q1 and leaping up 33% year-over-year (from $335 million in Q2 2025).
As for other numbers, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $184 million, up from $132 million in Q1 and up a whopping 116% year-over-year (from $85 million in Q2 2025). Adjusted net income clocked in at $128 million, up from $94 million in Q1 and up 73% year-over-year (from $74 million in Q2 2025).
Despite pulling back focus from Homes.com, Florance did note that revenue for the portal grew 66% year-over-year to 28.5 million, and the subscriber base shot up 107% year-over-year to include over 36,000 agent subscribers.
“Subscribers paid to promote close to 305,000 active listings in Q2. That’s 9.3% of the 3.2 million homes for sale in the U.S.,” he continued. “We believe agent subscribers are earning an 11x return on investment based on the first year commission data we shared last quarter.”
Florance also took a moment to address the current legal issues in the space, noting that CoStar has “continued to grow despite competitive distortions in the multifamily rental marketplace.”
He specifically called out the lawsuit against Zillow from the FTC and multiple states for “allegedly entering an unlawful agreement that reduced competition in multifamily rental advertising,” as well as CoStar’s own lawsuit against ZIllow for copyright infringement of “tens of thousands” of images.
“While these cases are pending, together they raise a broader question: whether Zillow’s rental expansion was built through lawful competition or through shortcuts that regulators and rights holders are now challenging in court. Conduct that may result in significant setbacks for them,” Florance continued.
During the call, the company also noted that its acquisition of Zonda is expected to close in the second half of 2026. CoStar announced its $800 million acquisition of the new-home construction data provider back in May in order to expand its footprint in the homebuilding sector, as well as incorporate the platform’s B2B information, builder analytics solutions and consumer-facing new home marketplaces into the CoStar tech ecosystem.
Looking ahead, CoStar reaffirmed its previous expectations of $780 million to $820 million in adjusted EBITDA for the full year of 2026, and shared the expectation of an adjusted EBITDA of $190 million to $210 million for Q3 2026.
