CoStar doubles adjusted EBITDA and agrees to buy Vexcel for $730 million

CoStar Group reported record third-quarter revenue of $952 million, up 14%, raised its profit outlook and agreed to buy aerial imagery company Vexcel for $730 million in cash, according to an 8-K filing.

The commercial real estate data and online marketplace company reported net income of $74 million, or $0.18 per diluted share. Adjusted earnings per share rose 65% to $0.38, and adjusted EBITDA doubled from a year earlier to $229 million. Net new bookings were $37 million.

Cost cuts and guidance

"Adjusted EBITDA doubled year-over-year and was considerably above the high end of our $190 million to $210 million guidance range," founder and Chief Executive Andy Florance said. The company said it has achieved about $150 million of cost savings so far and identified at least $200 million more to capture over the next 12 to 18 months.

CoStar raised its full-year adjusted EBITDA guidance to $820 million to $840 million, up $30 million at the midpoint from its July outlook, and expects full-year adjusted earnings of $1.38 to $1.41 per share. For the fourth quarter, it guided to adjusted earnings of $0.46 to $0.50 per share.

Vexcel deal

In the same 8-K, CoStar said it agreed to acquire Vexcel, a provider of aerial imagery and geospatial data programs, for $730 million in cash, subject to customary adjustments. The deal requires clearance under the Hart-Scott-Rodino antitrust law.

Why it matters

CoStar has invested heavily in its Homes.com residential marketplace in recent years. Doubling adjusted EBITDA and identifying further savings show it is now focused on earnings growth, while the Vexcel deal adds imagery data to its core property information business.

Sources

1. CoStar Group, Inc. Form 8-K (Items 1.01, 2.02) with third-quarter 2026 results and the Vexcel agreement, filed Oct. 27, 2026 (accession 0001057352-26-000078)

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