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Data from Apartments.com shows that U.S. rents fell to an average of $1,749 in October. This is the second straight month of declines after nearly a year of rising or steady prices.
While the drop is small, it matters because CoStar makes money by charging apartment managers to list their buildings. If rents continue to slip, those managers may have less room in their budgets for premium advertising, though they often spend more on marketing when they are struggling to fill empty units.
Source: Business Wire
CoStar data shows that vacancy rates for the highest-quality offices in London have fallen to just 2.1 percent. Because there is so little top-tier space available, more than 40 percent of demand has shifted to "4-star" offices, which are high-quality but not the absolute newest or most expensive buildings. This trend helps keep CoStar's data services essential for brokers and landlords who need to track where tenants are moving as the best buildings fill up.
Source: Business Wire
After CoStar Group reported its October results, we raised our expectations for profit and total sales for the year. We have added the company's new $350 million cost-cutting program and its aggressive spending on share buybacks to what we track. We also adjusted our projections to show the residential segment reaching sustained profitability three years sooner than our previous model suggested.
SEC filing on 2026-10-27: 8-K, 8-K filing: entered a material agreement; reported results; Regulation FD disclosure.
What the filing says (its own text, every fact in the card must come from here, and NAME the specific person, role and date it gives): csgp-20261027 0001057352 false 0001057352 2026-10-27 2026-10-27 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 27, 2026 COSTAR GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 0-24531 52-2091509 (State or other jurisdiction of incorporation or organization) (Commission File Number) (I.R.S. Employer Identification No.) 1201 Wilson Blvd. Arlington, VA 22209 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: ( 202 ) 346-6500 Not Applicable (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock ($0.01 par value) CSGP Nasdaq Global Select Market Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 ( 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( 240.12b-2 of this chapter). Emerging Growth Company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o Item 1.01 Entry into Material Definitive Agreement. On October 27, 2026, CoStar Group, Inc. ("CoStar Group" or the "Company"), through its wholly owned subsidiaries, CoStar Realty Information, Inc., a Delaware corporation and Velocity Merger Sub, Inc, a Delaware corporation, entered into an Agreement and Plan of Merger (the "Merger Agreement") with Vexcel Group, Inc. a Delaware corporation (together with its subsidiaries, "Vexcel"), and Fortis Advisors LLC, a Delaware limited liability company, solely in its capacity as the stockholder representative, to acquire Vexcel, a leading provider of comprehensive aerial imagery and geospatial data programs, for $730 million in cash, subject to customary working capital and other post-closing adjustments (the "Transaction"). Consummation of the Transaction is subject to certain customary conditions, including, among others: expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and certain other foreign regulatory laws, the absence of any government, order, decree, ruling, injunction, or law prohibiting or making illegal the consummation of the Transaction. Each party's obligation to consummate the Transaction is subject to certain other conditions, including the accuracy of the representations and warranties of the other party and compliance in all material respects by the other party with its obligations under the Merger Agreement, and CoStar Group's obligation to consummate the Transaction is subject to the absence of a material adverse effect related to Vexcel. Consummation of the Transaction is not subject to approval by the stockholders of CoStar Group or to any financing condition. The Merger Agreement contains certain termination provisions for CoStar Group and Vexcel, including the right of either party to terminate the Merger Agreement if the Transaction is not consummated by July 27, 2027 (subject to extension in certain specified circumstances), or if any governmental authority shall have issued an order, decree or ruling or taken any other action permanently enjoining, restraining or otherwise prohibiting the Transaction, and such order, decree or ruling shall have become final and nonappealable. The representations, warranties and covenants of each party set forth in the Merger Agreement have been made only for the purposes of, and were and are solely for the benefit of the parties to, the Merger Agreement, and may be subject to limitations agreed upon by the contracting parties. Accordingly, the representations and warranties may not describe the actual state of affairs at the date they were made or at any other time, and investors should not rely on them as statements of fact. In addition, such representations and warranties will not survive consummation of the Transaction and were made only as of the date of the Merger Agreement or such other date as is specified in the Merger Agreement. The foregoing summary of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference. Item 2.02 Results of Operations and Financial Condition. On October 27, 2026, the Company announced its financial and operating results for the quarter ended September 30, 2026. The full text of the press release (the "Earnings Release") issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in this Item 2.02 and the Earnings Press Release shall be considered "furnished" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), nor shall
Source: 8-K filing
CoStar reached a deal on October 27 to acquire Vexcel Group, a company that operates a large fleet of aircraft to capture high-resolution images of buildings and land. The deal is valued at $730 million and will be paid for with cash on hand.
This move adds more proprietary data to CoStar's platforms, allowing it to offer more detailed property views and AI-derived information like roof conditions or square footage. While the price is significant, CoStar has a long history of buying specialized data firms to make its marketplaces harder for rivals to replicate. The deal is expected to close by July 2027, pending regulatory approval.
Source: Business Wire
Management has beat its own profit targets for eight straight quarters, showing they set a conservative bar and have a tight grip on their costs.
| Expectation | |
|---|---|
| EPS | $0.47 |
| Revenue | $988M |
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