ARLINGTON, Virginia, August 24, 2026, 07:28 EDT — CoStar shares advanced following the company’s $800 million deal to purchase Zonda, with the acquisition pricing growth at 20.5 times EBITDA.
- CoStar gained approximately 3.3% to $33.33 in early indications for Monday’s premarket session.
- The $800 million acquisition of Zonda gives the target a valuation of about 4.7 times its sales and 20.5 times its adjusted EBITDA.
- Zonda brings in $170 million in yearly revenue and over 3,000 customers in the homebuilding sector.
- The consensus analyst target of $37.10 suggests a potential upside of roughly 11% from the premarket price.
Shares of CoStar Group, Inc. NASDAQ:CSGP advanced roughly 3.3% ahead of Monday’s session. The stock hovered close to $33.33 in early trading, with volume described as higher than normal. Market participants assessed the company’s finalized $800 million acquisition of Zonda.
The recovery is significant as CoStar acquired Zonda at a premium. Zonda reported 2025 revenue of approximately $170 million. With an adjusted EBITDA margin of 23%, this equates to about $39 million in annual adjusted EBITDA.
The acquisition values the company at close to 4.7 times its revenue. This represents roughly 20.5 times adjusted EBITDA. To justify this multiple, CoStar will need to deliver on growth and cross-selling opportunities.
Premarket recovers following turbulent week
| Market measure | Price or move | Time |
|---|---|---|
| Premarket Monday | $33.33, up roughly 3.32% | Aug. 24, 07:28 EDT |
| Friday closing value | $32.26, unchanged | Aug. 21, 16:00 EDT |
| Lowest close in five sessions | $31.35 | Aug. 17 |
| Highest close in five sessions | $33.73 | Aug. 19 |
| 52-week span | $25.89–$91.89 | To Aug. 21 |
Zonda offers a subscription service tailored to homebuilders, developers and lenders, with a client base exceeding 3,000. Its NewHomeSource and Livabl marketplaces expand access directly to consumers.
CoStar CEO Andy Florance described Zonda as “an exceptional business” that centers on vital homebuilding data. The company anticipates the acquisition will increase adjusted earnings in its first complete year. CoStar closing announcement
CoStar’s purchase price
| Deal metric | Reported or calculated figure | Investor reading |
|---|---|---|
| Cash purchase price | $800 million | Roughly 6.1% of CoStar’s market cap as of Friday |
| Zonda 2025 revenue | About $170 million | Equivalent to 4.8% of CoStar’s latest reported revenue |
| Zonda adjusted EBITDA margin | 23% | Profitable before deal closure |
| Implied adjusted EBITDA | About $39.1 million | Derived from revenue and margin |
| Price-to-revenue multiple | 4.7× | Sustained subscription gains needed |
| Price-to-adjusted-EBITDA multiple | 20.5× | Returns rely on successful cross-selling |
The target is modest compared to CoStar’s trailing revenue of $3.56 billion. However, it holds greater significance within the residential sector. Zonda’s sales represent almost 10% of the segment’s annualized revenue for the second quarter.
CoStar’s residential division has achieved adjusted profitability. Second-quarter revenue climbed 33% to $444 million. Additional profitable subscriptions could strengthen this upward shift.
Operational comparison
| Business measure | Latest figure | Growth or margin |
|---|---|---|
| CoStar Q2 revenue | $925 million | 18% rise year on year |
| CoStar Q2 adjusted EBITDA | $184 million | Up 116%; margin at 19.9% |
| CoStar Q2 net income | $55 million | Increased from $6 million |
| Residential Q2 revenue | $444 million | 33% higher year over year |
| Zonda 2025 revenue | $170 million | Adjusted EBITDA margin of 23% |
Sales execution remains the bigger challenge. CoStar now forecasts 2026 revenue between $3.715 billion and $3.755 billion. Zonda needs to deliver growth while avoiding renewed worries about acquisition costs.
The integration route is straightforward. CoStar’s analytics can be merged with builder data from Zonda. Envision visualization tools are also compatible with Matterport’s spatial technology.
Analyst views
| Firm or measure | Recommendation | Price target | Implied move from $33.33 |
|---|---|---|---|
| JPMorgan | Overweight | $52 | +56.0% |
| BTIG | Buy | $42 | +26.0% |
| Citizens | Market Outperform | $35 | +5.0% |
| Citigroup | Neutral | $33 | -1.0% |
| Wolfe Research | Outperform | $32 | -4.0% |
| 21-analyst consensus | Buy | $37.10 average | +11.3% |
The spread is still large, ranging from $25 to $53. This difference highlights contrasting perspectives regarding Homes.com spending, potential revenue growth, and returns in the residential marketplace.
Risks: Integration expenses could surpass projections. Elevated mortgage rates may dampen demand from builders. If cross-selling progresses slowly, CoStar may end up paying a premium multiple for modest growth.
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