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AppFolio
(NASDAQ:APPF)
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Rating:80Outperform
Price Target:
$250.00
▲(12.08% Upside)
Action:Reiterated
Date:10/23/26
Overall score is driven primarily by strong financial performance (profitability inflection, excellent free-cash-flow conversion, and very low leverage) and supportive earnings-call updates (raised revenue and margin guidance). Technicals are positive but somewhat capped by near-term overbought signals, while valuation remains the main constraint due to a high P/E and no dividend yield support.
Positive Factors
Strong Revenue and Customer Growth
Double-digit revenue growth alongside expanding units and customers indicates continued platform adoption and market penetration. A larger installed base can support future subscription, transaction, and service revenue while creating a durable foundation for cross-selling premium products.
Negative Factors
Slower Existing-Customer Unit Expansion
Slower unit additions from existing customers may constrain growth from the installed base and reduce the near-term contribution of usage-linked revenue. If this persists, AppFolio may depend more heavily on new-customer wins, upgrades, and added services to sustain overall expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue and Customer Growth
Double-digit revenue growth alongside expanding units and customers indicates continued platform adoption and market penetration. A larger installed base can support future subscription, transaction, and service revenue while creating a durable foundation for cross-selling premium products.
Read all positive factors
AppFolio Key Performance Indicators (KPIs)
Any
Revenue by Category
Breaks revenue into subscription fees, transaction or services income, and other streams to show how much of sales is predictable versus variable. A larger subscription share implies steadier, higher-margin cash flow; growing transaction/services revenue can lift short-term top-line but tends to be more cyclical and lower margin. Shifts between categories reveal changes in business quality, scalability, and management’s focus on growth versus profitability.
Breaks revenue into subscription fees, transaction or services income, and other streams to show how much of sales is predictable versus variable. A larger subscription share implies steadier, higher-margin cash flow; growing transaction/services revenue can lift short-term top-line but tends to be more cyclical and lower margin. Shifts between categories reveal changes in business quality, scalability, and management’s focus on growth versus profitability.
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The Fly
The FlyAppFolio (APPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.46B
Dividend YieldN/A
Average Volume (3M)360.84K
Price to Earnings (P/E)44.2
Beta (1Y)0.35
Revenue Growth19.96%
EPS Growth-15.24%
CountryUS
Employees1,702
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)4.77
Shares Outstanding24,087,366
10 Day Avg. Volume449,216
30 Day Avg. Volume360,840
Financial Highlights & Ratios
PEG Ratio-1.95
Price to Book (P/B)15.44
Price to Sales (P/S)8.81
P/FCF Ratio35.06
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue6.31
Enterprise Value/Gross Profit9.96
Enterprise Value/Ebitda29.69
Forecast
1Y Price Target
$252.33Price Target Upside13.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)6.9
Revenue Forecast (FY)$1.12B
AppFolio Business Overview & Revenue Model
Company Description
AppFolio, Inc., together with its subsidiaries, provides cloud-based platform for the real estate industry in the United States. The company provides a cloud-based platform that assist with accounting, reporting, marketing, leasing, maintenance, w...
How the Company Makes Money
AppFolio primarily makes money by selling subscriptions to its cloud software platform and by earning fees from transactions and value-added services used by customers on that platform. Revenue is generally generated through: (1) Subscription reve...
AppFolio Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 01, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by 19% revenue growth, expanding GAAP and non-GAAP operating margins, 8% unit growth, healthy customer retention, strong cash generation, product and AI adoption, industry recognition, and raised full-year revenue and margin guidance. The main challenges were slower unit expansion among existing customers, higher sales and marketing expense tied to deliberate investment, offsets from payments mix and data-center capacity, and the expected non-recurrence of prior-year stack partnership revenue.Positive Updates
Strong Third-Quarter Revenue Growth
Third-quarter revenue reached $296 million, up 19% year over year from $249 million in Q3 2025.
Negative Updates
Slower Existing-Customer Unit Expansion
Although existing customers continued to add units to the platform, unit expansion was pacing slower than last year. Management expects the pace of unit expansion among existing customers to remain below last year's fourth quarter and to be comparable to the third quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Revenue Growth
Third-quarter revenue reached $296 million, up 19% year over year from $249 million in Q3 2025.
Read all positive updates
Company Guidance
For 2026, AppFolio raised full year revenue guidance to a range of $1.122 billion to $1.127 billion, lifting the midpoint growth rate to 18.3%, and expects full year non GAAP operating margin of 26.5% to 27.5%, compared to 24.7% in 2025; diluted weighted average shares outstanding are expected to be approximately 36 million for the full year. For the fourth quarter, new customer acquisition and retention are expected to remain healthy, while the pace of unit expansion among existing customers is expected to stay below last year's fourth quarter and be comparable to the third quarter; subscription services and value added services seasonality are expected to be broadly consistent with 2025, other revenue can vary from quarter to quarter, and the fourth quarter of 25 included onetime revenue from a stack partnership that is not expected to recur. Full year operating expenses as a percentage of revenue are expected to decline modestly, while cost of revenue exclusive of depreciation and amortization is expected to be relatively flat as a percentage of revenue compared to 2025.AppFolio Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
92
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09B | 950.82M | 794.20M | 620.45M | 471.88M | 359.37M |
| Gross Profit | 688.42M | 582.83M | 492.59M | 382.37M | 280.06M | 215.43M |
| EBITDA | 230.89M | 185.98M | 171.90M | 36.63M | -30.41M | 33.97M |
| Net Income | 169.86M | 140.92M | 204.07M | 2.70M | -68.12M | 1.03M |
Balance Sheet | ||||||
| Total Assets | 715.67M | 722.27M | 626.68M | 408.89M | 381.22M | 408.02M |
| Cash, Cash Equivalents and Short-Term Investments | 307.28M | 251.47M | 278.50M | 211.71M | 160.07M | 122.45M |
| Total Debt | 24.88M | 71.45M | 41.75M | 44.74M | 53.59M | 57.61M |
| Total Liabilities | 133.16M | 179.69M | 107.39M | 111.58M | 115.67M | 110.64M |
| Stockholders Equity | 582.51M | 542.58M | 519.29M | 297.31M | 265.55M | 297.38M |
Cash Flow | ||||||
| Free Cash Flow | 281.12M | 238.95M | 186.14M | 46.42M | 18.82M | 2.67M |
| Operating Cash Flow | 283.66M | 242.10M | 188.16M | 60.28M | 25.36M | 35.39M |
| Investing Cash Flow | 59.41M | 10.24M | -151.76M | -55.58M | -6.47M | -110.46M |
| Financing Cash Flow | -160.63M | -187.89M | -43.40M | -25.96M | -6.16M | -7.35M |
AppFolio Technical Analysis
Neutral
223.05
Price Trends
212.09
Negative
192.16
Positive
183.78
Positive
Market Momentum
2.15
Negative
51.24
Neutral
56.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPF, the sentiment is Neutral. The current price of 223.05 is above the 20-day moving average (MA) of 205.92, above the 50-day MA of 212.09, and above the 200-day MA of 183.78, indicating a neutral trend. The MACD of 2.15 indicates Negative momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 56.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APPF.
AppFolio Risk Analysis
AppFolio disclosed 48 risk factors in its most recent earnings report. AppFolio reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AppFolio Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.46B | 44.16 | 32.03% | ― | 19.96% | -15.24% | |
75 Outperform | $8.40B | -63.55 | -8.33% | ― | 22.90% | 61.40% | |
73 Outperform | $9.57B | -241.75 | -3.13% | ― | 15.41% | 73.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.63B | 49.73 | 4.74% | ― | -6.77% | ― | |
58 Neutral | $4.32B | -441.64 | -0.30% | ― | 13.03% | -150.40% | |
55 Neutral | $237.60M | -12.35 | -8.50% | 2.88% | -2.78% | 72.47% |
* Technology Sector Average
APPF
AppFolio
210.62
-34.65
-14.13%
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EVCM
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9.23
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TTAN
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87.06
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-12.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.