CoStar lifts FY26 adjusted EBITDA view to $820M to $840M, to buy Vexcel for $730M

CoStar Group reported record Q3 revenue of $952 million, up 14%, with adjusted EBITDA of $229 million, double year over year. The company raised its full-year 2026 adjusted EBITDA guidance to $820 million to $840 million and guided Q4 adjusted EBITDA to $275 million to $295 million. CoStar also agreed to acquire Vexcel Group, an aerial imagery provider, for $730 million in cash, expected to close in Q1 2027. Vexcel generated more than $140 million in revenue over the last 12 months. The company identified at least $200 million in potential additional cost savings.