Vulcan Value Partners sold its entire position in CoStar Group during the first quarter of 2026. The investment firm attributed the divestment to poor capital allocation.
Vulcan noted that CoStar’s core businesses remain dominant and produce significant free cash flow. However, the company no longer meets the firm's specific investment criteria.
Management reallocated the capital into discounted companies with stronger leadership teams. This public exit highlights growing institutional concerns regarding CoStar’s strategic financial decisions.