AppFolio (NASDAQ:APPF – Get Free Report) released its earnings results on Thursday. The software maker reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.79 by $0.03, FiscalAI reports. AppFolio had a return on equity of 34.70% and a net margin of 15.62%. The business had revenue of $295.69 million for the quarter, compared to analyst estimates of $294.46 million. During the same quarter last year, the firm posted $1.31 earnings per share. The business’s revenue was up 18.5% compared to the same quarter last year.
Here are the key takeaways from AppFolio’s conference call:
- Q3 revenue rose 19% year over year to $296 million, while GAAP operating margin increased to 19.4% and non-GAAP operating margin reached 27.3%.
- Units on platform grew 8% to 9.8 million, customers increased 6% to 23,121, and value-added services revenue climbed 21%, led by risk mitigation, screening, payments, and newer AI-enabled offerings.
- AppFolio raised full-year 2026 revenue guidance to $1.122 billion-$1.127 billion, implying 18.3% midpoint growth, and increased its non-GAAP operating margin outlook to 26.5%-27.5%.
- Management said unit expansion among existing customers is pacing slower than last year and expects that trend to continue into the fourth quarter, although new customer acquisition and retention remain healthy.
- The company generated $97 million in operating cash flow, ended the quarter with $307 million in cash and current investments, and reported continued efficiency gains from scale and AI despite increased sales and marketing investment.
AppFolio Stock Performance
APPF traded down $6.71 during trading on Friday, hitting $210.62. 615,704 shares of the stock were exchanged, compared to its average volume of 388,850. The firm has a 50 day simple moving average of $212.29 and a 200 day simple moving average of $182.98. The firm has a market cap of $7.46 billion, a price-to-earnings ratio of 44.43 and a beta of 0.89. AppFolio has a 1 year low of $142.56 and a 1 year high of $265.02.
AppFolio News Roundup
Here are the key news stories impacting AppFolio this week:
- Positive Sentiment: AppFolio reported third-quarter 2026 revenue of $295.7 million, up 19% year over year, while adjusted earnings of $1.82 per share exceeded analyst estimates of approximately $1.78-$1.79. AppFolio Third-Quarter 2026 Financial Results
- Positive Sentiment: The company raised its full-year 2026 outlook, anticipating revenue of $1.122 billion to $1.127 billion and a non-GAAP operating margin of 26.5% to 27.5%, signaling continued growth and operating leverage. AppFolio Raises 2026 Outlook
- Positive Sentiment: UBS increased its price target for APPF to $240 from $220, although it retained a Neutral rating. UBS Adjusts AppFolio Price Target
- Neutral Sentiment: Wall Street analysts now collectively rate AppFolio “Moderate Buy,” suggesting constructive sentiment but not a unanimous bullish view. AppFolio Receives Moderate Buy Rating
- Negative Sentiment: Despite the earnings beat and stronger outlook, the stock is trading near its 50-day average at a relatively elevated earnings multiple, leaving it vulnerable to profit-taking if investors expected a larger forecast increase.
- Negative Sentiment: Broader risk-off trading, including an AI-related market selloff and weakness in major technology stocks, is adding pressure to software shares such as AppFolio. Market Selloff and AI Meltdown
Insider Buying and Selling at AppFolio
In other AppFolio news, major shareholder Maurice Duca sold 2,656 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $221.85, for a total value of $589,233.60. Following the completion of the sale, the insider directly owned 8,000 shares in the company, valued at approximately $1,774,800. This represents a 24.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Timothy Eaton sold 373 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $202.61, for a total value of $75,573.53. Following the transaction, the chief financial officer directly owned 16,714 shares in the company, valued at $3,386,423.54. The trade was a 2.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 141,817 shares of company stock valued at $27,942,484 over the last quarter. Company insiders own 1.57% of the company’s stock.
Wall Street Analysts Forecast Growth
A number of research firms have recently commented on APPF. KeyCorp restated an “overweight” rating on shares of AppFolio in a report on Wednesday, October 14th. Keefe, Bruyette & Woods raised their price target on shares of AppFolio from $233.00 to $255.00 and gave the stock an “outperform” rating in a research note on Wednesday. Zacks Research lowered shares of AppFolio from a “strong-buy” rating to a “hold” rating in a report on Wednesday, September 23rd. DA Davidson boosted their price objective on shares of AppFolio from $240.00 to $250.00 and gave the company a “buy” rating in a research report on Friday. Finally, Wall Street Zen cut shares of AppFolio from a “buy” rating to a “hold” rating in a research report on Sunday, July 26th. Nine equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, AppFolio currently has a consensus rating of “Moderate Buy” and an average price target of $250.00.
Get Our Latest Stock Report on AppFolio
AppFolio Company Profile
AppFolio, Inc is a cloud-based software company that provides technology solutions for the real estate industry. Its platform is designed primarily for property management businesses, helping them manage accounting, leasing, maintenance, communications, payments, reporting and other operational activities through a centralized system.
The company’s products serve a range of property managers, including those overseeing residential, commercial, community association, student housing and senior living properties.
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