...April 8, 2026 This report does not constitute a rating action. CoStar Group is positioned for significant EBITDA expansion in 2026 as it pulls back on Homes.com spending. Having completed the initial national brand launch for the Homes.com marketplace, management is now pivoting toward profitability, with a goal of achieving run-rate Homes.com profitability by the end of 2029. For 2026, guidance indicates a $300 million net investment reduction for the platform, which will drive a significant recovery in consolidated margins compared to the peak spending years of 2024 and 2025. Coupled with healthy organic growth in Apartments.com and commercial products, we expect S&P Global Ratings-adjusted EBITDA to grow to about $750 million this year. Despite heavy investment in Homes.com over the last few years, we believe return on investment (ROI) prospects are uncertain. Even with a solid track record of ROI on historical product launches, the expectation that Homes.com will likely be unprofitable...
