AppFolio (NASDAQ:APPF – Get Free Report) released its quarterly earnings data on Thursday. The software maker reported $1.71 earnings per share for the quarter, topping analysts’ consensus estimates of $1.69 by $0.02, FiscalAI reports. AppFolio had a net margin of 15.27% and a return on equity of 32.35%. The company had revenue of $281.12 million for the quarter, compared to analysts’ expectations of $277.35 million. During the same quarter last year, the company earned $1.38 earnings per share. The firm’s revenue for the quarter was up 19.3% on a year-over-year basis.
Here are the key takeaways from AppFolio’s conference call:
- AppFolio posted strong Q2 results with revenue of $281 million, up 19% year over year, and crossed $1 billion in trailing 12-month revenue for the first time. Management also highlighted 9.6 million units on platform, up 8% from a year ago.
- Profitability improved, with GAAP operating income at 18.8% of revenue and non-GAAP operating margin at 27.1%. The company also generated $88 million in operating cash flow.
- Premium-tier and AI product adoption is gaining traction, with nearly one in three units now on a premium tier. Management said customers are increasingly using Realm-X Flows and agentic products like Leasing Performer, Maintenance Performer, and the new Accounting Performer.
- Customer value metrics are improving, including faster leasing decisions, more fraud detection, and higher automation in maintenance and onboarding. The company said Screen Trusted Renter caught 69% more fraudulent applications, and some customers reported meaningful occupancy and application gains after upgrading.
- AppFolio raised full-year guidance for 2026 revenue to $1.117 billion-$1.127 billion and increased non-GAAP operating margin guidance to 26.5%-28.0%. Management cited premium adoption, new unit growth, and expanding AI-enabled services as key drivers.
AppFolio Price Performance
APPF stock traded up $1.74 during midday trading on Thursday, hitting $163.95. The stock had a trading volume of 937,508 shares, compared to its average volume of 387,915. The company’s 50-day moving average price is $164.22 and its 200 day moving average price is $174.44. The firm has a market cap of $5.80 billion, a PE ratio of 39.04 and a beta of 0.79. AppFolio has a 12-month low of $142.56 and a 12-month high of $326.04.
Insider Activity at AppFolio
Institutional Trading of AppFolio
A number of institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. boosted its position in AppFolio by 48.8% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 192 shares of the software maker’s stock valued at $53,000 after buying an additional 63 shares during the last quarter. Advisory Services Network LLC acquired a new position in shares of AppFolio in the third quarter worth about $55,000. Employees Retirement System of Texas acquired a new position in shares of AppFolio in the third quarter worth about $58,000. Harvest Fund Management Co. Ltd purchased a new position in AppFolio in the third quarter valued at about $69,000. Finally, Kestra Advisory Services LLC purchased a new position in AppFolio in the fourth quarter valued at about $72,000. 85.19% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes
A number of analysts recently issued reports on APPF shares. Piper Sandler decreased their target price on AppFolio from $245.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, April 24th. Weiss Ratings downgraded shares of AppFolio from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, June 11th. Wall Street Zen upgraded AppFolio from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. KeyCorp reissued an “overweight” rating on shares of AppFolio in a report on Monday, July 6th. Finally, Benchmark upped their price objective on AppFolio from $222.00 to $226.00 and gave the stock a “buy” rating in a report on Friday, April 24th. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $249.75.
Read Our Latest Stock Analysis on AppFolio
About AppFolio
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.
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