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EarningsQ2 2026 Earnings Report
APPF Q2 2026 EPS Results
Actual EPS$1.71
Consensus EPS$1.69
Beat/MissBeat by +$0.02
One Year Ago EPS$1.38
APPF Q2 2026 Revenue Results
Actual Revenue$281.12M
Expected Revenue$277.35M
Beat/MissBeat by +$3.77M
YoY Revenue Growth+19.34%
Earnings Announcement Details
QuarterQ2 2026
Date07/23/2026
TimeAfter Close
Conference CallThursday, July 23, 2026
APPF Upcoming Earnings
AppFolio's next earnings date is estimated for October 22, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
APPF Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, featuring 19% revenue growth, first-time trailing 12-month revenue above $1 billion, higher operating margins, healthy customer and unit retention, growing premium-tier and AI adoption, strong operating cash flow, and raised full-year revenue and margin guidance. The main challenges were a higher cost-of-revenue percentage, modestly higher sequential sales and marketing expense as a percentage of revenue, and an expected moderation in unit expansion among existing customers.Company Guidance
Strong Second-Quarter Revenue Growth
Revenue reached $281 million in the second quarter, up 19% year-over-year from $236 million in Q2 2025. AppFolio also crossed $1 billion in trailing 12-month revenue for the first time.
Operating Margin Expansion
GAAP operating income grew 31% year-over-year to $53 million, or 18.8% of revenue, compared with $41 million, or 17.2%, a year ago. Non-GAAP operating income grew 24% to $76 million, or 27.1% of revenue, compared with $62 million, or 26.2%, in Q2 2025.
Subscription Services Growth
Subscription services revenue grew 14% year-over-year to $60 million from $52.5 million, driven by new customer wins, growth in units under management and continued upgrades to premium tiers.
Value-Added Services Growth
Value-added services revenue increased 22% year-over-year to $219 million, led by FolioGuard risk mitigation services, FolioScreen offerings and online payments, alongside continued growth in units under management.
Platform and Customer Base Expansion
Units managed reached approximately 9.6 million, up 8% from 8.9 million a year ago. Customers grew to 22,751, up 6% from 21,403. New customer wins and new unit additions remained strong, while customer and unit retention remained healthy and consistent with historical averages.
Premium Tier Adoption
Nearly 1 in 3 units are now on a premium tier, up from approximately 1 in 4 units, reflecting adoption of Plus and MAX and features including Realm-X Flows.
Realm-X Flows Expansion
Realm-X Flows expanded to 5x the prior number of triggers, with more than 1,000 conditional options for routing and filtering workflows. Among customers that adopted Flows, runs grew at triple-digit year-over-year rates across lead nurture, rental application, move-in, delinquency and renewal workflows.
AI Performer Adoption and Capabilities
Leasing Performer was involved in roughly half of all completed showings for customers that deployed it. Maintenance Performer responds to resident inquiries in seconds, while Resident Messenger Performer handles renewal communications and resident questions. AppFolio also announced Accounting Performer, designed to streamline bill entry, financial close processes and budgeting.
AI Governance and Ecosystem Connectivity
AppFolio Stack connects Realm-X to a certified network of partners and their agents, while the Realm-X Claude Connector enables agent-to-agent communication with Claude. AppFolio stated that agent actions operate within permissions, business context and governance defined in the platform.
FolioScreen and Resident Onboarding Results
Customers reported that FolioScreen Trusted Renter caught 69% more fraudulent applications than their previous solution and reached leasing decisions 5.7 days faster. Resident Onboarding Lift is gaining traction, including services such as renters insurance and group-rate Internet.
Resident Onboarding Lift Customer Example
Stratton Vantage, which manages 1,600 units, moved 100% of its leases through Resident Onboarding Lift after implementing it earlier this year. Its leasing team reported recapturing nearly 20 hours per month, and residents actively selected services through the platform.
Customer Consolidation and Expansion
PURE HomeRiver renewed its commitment to AppFolio as its single platform of choice while consolidating its current 40,000-unit portfolio and anticipating growth to 60,000 units. The company operates in 35 states.
Customer Performance Improvements
Yale Management Services upgraded to the MAX tier and paired leasing CRM and income and ID verification with Realm-X Lead Nurturing Flow, achieving a 1.9-percentage-point lift in occupancy over six months.
Bluestone Leasing and Maintenance Results
Bluestone's Leasing Performer handled more than 10,000 leads, with 55% arriving after hours and an average response time under 9 seconds. The company saw a 30%-plus lift in lease applications at initial rollout. Maintenance Performer handled 2,500 work orders since December 2025, 49% of them after hours, and deflected more than 1/4 through AI-led self-help.
Market Position and Customer Recognition
AppFolio was named the overall leader on the G2 Grid for the fourth consecutive quarter, with the recognition driven entirely by customer experience.
Operating Cash Flow and Balance Sheet
AppFolio generated $88 million in operating cash flow during the quarter and ended the period with $222 million in cash, cash equivalents and current investment securities.
Controlled Employee Growth and AI Productivity
The company exited the quarter with 1,732 employees, an increase of 3% from Q2 2025. AppFolio said its increasing use of AI tools and systems is improving innovation velocity and engineering productivity, particularly across resident experience and AI product capabilities.
Raised Full-Year Revenue Guidance
AppFolio raised 2026 full-year revenue guidance to $1.117 billion to $1.127 billion, lifting the midpoint growth rate to 18.0%. The outlook is fueled by premium tier adoption, new business units and increasing adoption of products and services, including agentic AI performers and resident services.
Raised Full-Year Margin Guidance
The company raised its 2026 non-GAAP operating margin guidance to 26.5% to 28.0%, compared with 24.7% in 2025. It expects operating expenses as a percentage of revenue to decline modestly as the business scales and uses AI to drive efficiency across internal operations.
Continued Investment in AI and Resident Experience
AppFolio stated that continued investment in AI and the resident experience is expanding the value customers receive from the platform. The company also plans to continue investing in the business, including selective hiring and sales capacity.
Upcoming Customer Education and Adoption Event
AppFolio's FUTURE annual industry event will take place September 28 through October 1 in San Diego, with an expanded education program open to all customers and half of the sessions dedicated to workshops and labs intended to accelerate platform adoption and drive real outcomes.
APPF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed