"Although Homes.com has recorded a 337% increase in subscribers since Q1 2024, according to CoStar, the firm said it does not expect Homes.com to attain positive adjusted EBITDA until 2030. As part of this playbook, CoStar said it intends to reduce net investment, revenue less directly attributable and allocated costs in Homes.com, by more than $300 million in 2026, down from $850 million in 2025. Beyond 2026, CoStar said it expects to continue to reduce net investment in Homes.com by $100+ million annually until 2030."
"Building on our strong foundation, we continue to expand and evolve our platforms and increase the efficiency of our business model to accelerate profitability while growing the top-line, Andy Florance, the CEO and founder of CoStar Group, said in a statement. Homes.com is an important part of our ecosystem; we now have a clear path to accelerate top-line growth and drive profitability."
CoStar Group projects 18% year-over-year revenue growth in 2026 to $3.78–$3.82 billion and net income of $175–$215 million. Homes.com has achieved a 337% increase in subscribers since Q1 2024 but is not expected to attain positive adjusted EBITDA until 2030. CoStar plans to reduce Homes.com net investment and directly attributable and allocated costs by more than $300 million in 2026, down from $850 million in 2025, and to cut net investment by over $100 million annually thereafter through 2030. The plan aims for Homes.com to exit 2029 with revenue exceeding expenses, driven by subscribers, advertising, builder partnerships, the Boost program, scalable AI deployment, and disciplined capital allocation to enhance stockholder value.
Read at www.housingwire.com
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