AppFolio (NASDAQ:APPF) Releases Earnings Results, Misses Expectations By $0.08 EPS

AppFolio (NASDAQ:APPF) released its quarterly earnings data on Thursday. The software maker reported $1.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.22 by ($0.08), Zacks reports. AppFolio had a return on equity of 25.97% and a net margin of 22.48%.

Here are the key takeaways from AppFolio’s conference call:

• AppFolio reported strong results with Q4 revenue of $248M (+22% YoY) and full-year revenue of $951M (+20% YoY)$1.1–$1.12B with non-GAAP operating margin of 25.5%–27.5%.
• Platform adoption accelerated as units under management rose to 9.4 million (≈+8% YoY) from 22,096 customers, adding over 500,000 units in H2 2025 and with Plus/Max premium tiers exceeding 25% adoption.
• Management emphasized its AI-native strategy—including Realm‑X Performers, Realm‑X Flows, and partner integrations (e.g., Genesis, Second Nature)—claiming rapid customer adoption (98% using one or more AI capabilities) and positioning AppFolio as a unifying platform for property managers.
• Cost dynamics were mixed—cost of revenue rose to 36% due to payments mix, data center spend for AI, and a $15M bonus over‑attainment that reduced full‑year non‑GAAP margin to 24.7% (26.3% excluding the bonus); headcount increased 4% to 1,702 as investments continue.

AppFolio Stock Performance

NASDAQ APPF traded down $10.90 during trading on Thursday, reaching $207.10. The company’s stock had a trading volume of 635,852 shares, compared to its average volume of 327,121. The firm has a market cap of $7.44 billion, a price-to-earnings ratio of 37.18 and a beta of 0.78. AppFolio has a twelve month low of $190.24 and a twelve month high of $326.04. The business’s fifty day moving average price is $228.14 and its 200-day moving average price is $250.17.

Wall Street Analyst Weigh In

APPF has been the subject of a number of recent analyst reports. UBS Group initiated coverage on AppFolio in a report on Friday, December 12th. They set a “buy” rating and a $285.00 price target for the company. Weiss Ratings cut AppFolio from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, January 16th. Wells Fargo & Company reaffirmed a “buy” rating on shares of AppFolio in a report on Thursday, January 15th. KeyCorp reissued an “overweight” rating on shares of AppFolio in a report on Tuesday, December 16th. Finally, Keefe, Bruyette & Woods upgraded shares of AppFolio from a “market perform” rating to an “outperform” rating and set a $311.00 price objective for the company in a research report on Friday, October 24th. Eight research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $306.00.

Insider Transactions at AppFolio

In other news, CFO Timothy Mathias Eaton sold 517 shares of the company’s stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $228.34, for a total transaction of $118,051.78. Following the completion of the sale, the chief financial officer owned 10,104 shares in the company, valued at $2,307,147.36. This represents a 4.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO William Shane Trigg sold 3,947 shares of AppFolio stock in a transaction on Monday, November 17th. The shares were sold at an average price of $240.45, for a total transaction of $949,056.15. Following the completion of the transaction, the chief executive officer owned 51,530 shares in the company, valued at approximately $12,390,388.50. This trade represents a 7.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 8,745 shares of company stock worth $2,097,550 over the last 90 days. 4.68% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Invesco Ltd. lifted its position in AppFolio by 26.1% in the third quarter. Invesco Ltd. now owns 395,651 shares of the software maker’s stock valued at $109,065,000 after purchasing an additional 81,778 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of AppFolio by 8.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 317,413 shares of the software maker’s stock worth $87,498,000 after buying an additional 24,642 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of AppFolio by 4.7% in the 3rd quarter. Dimensional Fund Advisors LP now owns 278,561 shares of the software maker’s stock valued at $76,796,000 after buying an additional 12,521 shares during the period. Northern Trust Corp boosted its stake in shares of AppFolio by 28.6% in the third quarter. Northern Trust Corp now owns 245,927 shares of the software maker’s stock valued at $67,792,000 after buying an additional 54,668 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in AppFolio by 38.2% during the third quarter. Bank of America Corp DE now owns 194,125 shares of the software maker’s stock worth $53,512,000 after acquiring an additional 53,620 shares during the period. 85.19% of the stock is currently owned by institutional investors and hedge funds.

Key AppFolio News

Here are the key news stories impacting AppFolio this week:

• Positive Sentiment: Q4 results showed strong operating profitability (net margin ~22.5% and ROE ~26%), supporting the company’s long-term unit economics and cash-generation story. AppFolio, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Analyst coverage remains largely bullish with a median price target materially above current levels, indicating upside expectations over the medium term. Is AppFolio One of the Best Stocks to Buy For Investment?
• Neutral Sentiment: Market previews and analyst notes highlighted the quarter in advance and discussed key metrics investors should watch, useful context but unlikely to move price by itself. Insights Ahead: AppFolio’s Quarterly Earnings
• Negative Sentiment: Reported EPS of $1.14 missed the consensus of $1.22, which traders treated as a near-term earnings disappointment and amplified selling. Press Release / Earnings Details
• Negative Sentiment: Management’s 2026 revenue guidance was viewed as underwhelming relative to expectations; several outlets cite this as the main reason shares slipped despite strong quarter metrics. AppFolio shares slip over 4% as 2026 revenue guidance disappoints
• Negative Sentiment: Call/transcript coverage notes the EPS miss and the market reaction — the conference call amplified concerns and coincided with the intraday drop. Earnings call transcript: AppFolio Q4 misses EPS, stock drops

AppFolio Company Profile

AppFolio, Inc is a Santa Barbara–based provider of cloud-based software solutions for the property management and legal industries. Founded in 2006 by former software executives, the company went public on the NASDAQ under the symbol APPF in 2015. Its original offering, AppFolio Property Manager, automates accounting, marketing, leasing, and maintenance functions for residential, commercial, student housing, and community association managers.

In 2019, AppFolio expanded its portfolio with the acquisition of MyCase, a web-based legal practice management platform for small to mid-size law firms.