CoStar Expands Property Data Through Vexcel Buy
The company's latest acquisition and growth in AI traffic are changing how households search for property listings.
Updated on Oct. 28, 2026 in Commercial
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CoStar reported $952 million in revenue for the third quarter of 2026, driven by growth in both commercial and residential sectors. The company also announced the acquisition of Vexcel to bolster its property data collection capabilities.
Why it matters
The company's expansion into data collection and property observation technology is aimed at increasing its presence in the real estate transaction market. These growth efforts influence how effectively residential and commercial properties reach prospective buyers and renters.
CoStar saw total revenue climb to $952 million in Q3 2026, representing 14% growth compared to the prior year. Commercial revenue reached $492 million while residential revenue totaled $460 million, supported by a 450% surge in Homes.com lead flow into Apartments.com.
The players
CoStar
A provider of real estate information, analytics, and online marketplaces that connect households to property listings.
Vexcel
A company that collects geospatial data from 45 countries using cameras and AI to support property observation.
Zonda
A real estate data firm acquired by CoStar to contribute an expected $60 million to financials by late 2026.
The details
CoStar is integrating AI-driven technology and camera data from Vexcel across 45 countries to enhance property observation. By utilizing tools like ChatGPT to direct traffic toward its transaction sites, the company aims to scale its lead generation services. These integrated digital tools serve to connect more property inventory directly with potential household buyers and tenants.
Timeline
CoStar recorded $952 million in revenue during Q3 2026.
The acquisition of Zonda was completed during Q3 2026.
Full-year 2026 adjusted EBITDA guidance was raised to a midpoint of $830 million.
CoStar targets an adjusted EBITDA of $1.25 billion by the end of 2028.
Money Landscape
CoStar's recent activity reflects a broader industry shift toward AI-enhanced property data and consolidated online marketplaces. This acquisition strategy follows the pattern set by the firm's ongoing integration of ChatGPT-driven site traffic to scale its residential and commercial reach.
Households searching for housing through CoStar's platforms may see changes in how listings and property insights are presented as AI data integration expands. Consider how shifts in site traffic and lead management might affect your ability to view and compare property options in your area.
The takeaway
The company's push to reach $1.25 billion in adjusted EBITDA by 2028 highlights an aggressive strategy to automate property observation and lead generation. Home buyers and renters should monitor how these platform updates affect the accuracy and range of property data available during their next search.
Further reading
For more insight into how property marketplaces are evolving, see Commercial.
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