It has been a year since CoStar Group finalised its acquisition of Domain in August 2025, and the US-listed property data giant’s latest quarterly results show its Residential segment – which now includes the Australian portal – delivering positive Adjusted EBITDA for the first time.
CoStar Group, which owns Domain alongside Homes.com, Apartments.com and the UK’s OnTheMarket, reported total revenue of $925 million for the quarter ended June 30, 2026, up 18 per cent year-on-year.
Net income rose to $55 million, up from $6 million in the same period last year, while Adjusted EBITDA more than doubled to $184 million.
Andy Florance, Founder and Chief Executive Officer of CoStar Group, said the second quarter marked a turning point for the company.
“The second quarter marked a profitability inflection point for CoStar Group as Adjusted EBITDA more than doubled year-over-year to $184 million.
“We held operating cost growth to just 2%, and we delivered our 61st consecutive quarter of double-digit revenue growth,” Florance said.
Within those results, the Residential segment – which includes Domain – reported revenue of about $440–444 million for the quarter, up roughly 33 per cent year-on-year.
Segment Adjusted EBITDA came in at $12 million, compared with a $76 million loss in the same quarter last year – the first time the residential portfolio has been Adjusted EBITDA-positive.
“For the first time, our residential segment turned Adjusted EBITDA positive – a $41 million improvement over the first quarter – and we expect to deliver the highest full-year Adjusted EBITDA in our company’s history,” Florance said.
As part of the ongoing integration of Domain – a deal shareholders approved a year ago this week – CoStar’s cash flow statement also shows $26 million spent in the first half of 2026 on the “purchase of non-controlling interest,” relating to the remaining minority stakes tied to Domain’s historical ownership structure.
AI-driven product investment
Florance pointed to product investment as a key driver of growth across the group’s residential brands, highlighting the February launch of Homes.com AI and the introduction of Apartments.com AI in June.
According to CoStar, Apartments.com AI users completed more than half a million AI sessions within weeks of launch, with average session times of around 20 minutes – roughly 2.8 times longer than non-AI users – alongside a 224 per cent increase in 3D tour usage and a 256 per cent uplift in traffic-to-lead conversion.
“Our product roadmap extends these AI capabilities across CoStar, LoopNet, and our international businesses,”
Florance said, noting that the company has also entered the French market and launched CoStar Rent Benchmark, built from approximately four million AI-abstracted lease agreements.
Outlook and guidance
CoStar has affirmed its full-year Adjusted EBITDA guidance of $780 million to $820 million and revised its 2026 revenue guidance to a range of $3.715 billion to $3.755 billion, representing year-on-year growth of around 15 per cent at the midpoint.