Core Viewpoint - CoStar Group is committed to prioritizing profitable growth and enhancing long-term value for shareholders, responding to feedback from major shareholders, including Third Point, by implementing a series of strategic initiatives aimed at improving profitability and transparency [2][3]. Strategic Initiatives - The Board has recommended a plan to accelerate profitability for Homes.com, invest in core platforms, return capital to shareholders, align executive compensation with shareholder interests, and enhance investor transparency [3][5]. - A Capital Allocation Committee has been formed to review the company's capital structure and investment priorities, including significant investments in major brands like CoStar and Apartments.com [5]. - The company plans to moderate investment in Homes.com, reducing net investment by $300 million in 2026 and over $100 million annually thereafter, aiming for breakeven profitability by the end of 2029 [5][6]. Financial Performance and Projections - CoStar Group expects revenue of $3.8 billion in 2026, an 18% increase from 2025, with adjusted EBITDA projected to rise 83% to $770 million, achieving a margin of 20% compared to 13% in 2025 [8]. - The company anticipates entering a new phase of accelerated, profitable growth, with a long-term goal of achieving adjusted EBITDA of $2.3 billion and a margin of 35% by 2030 [9]. Market Position and Growth - Homes.com is showing strong momentum, with a 337% increase in subscribers since Q1 2024, and is expected to scale rapidly while lowering capital intensity [6]. - The company has a proven track record of successful acquisitions, having acquired over 40 businesses for approximately $7.3 billion, generating internal rates of return (IRRs) between 17% and 39% [7]. Shareholder Returns - CoStar Group has delivered approximately 290% total shareholder returns over the last 10 years, significantly outperforming the median of its real estate marketplace peers [14]. - The company is accelerating its $500 million share repurchase program initiated in 2025 and has authorized a new $1.5 billion repurchase program in January 2026 [5].