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EarningsQ3 2026 Earnings Report
APPF Q3 2026 EPS Results
Actual EPS$1.82
Consensus EPS$1.79
Beat/MissBeat by +$0.03
One Year Ago EPS$1.31
APPF Q3 2026 Revenue Results
Actual Revenue$295.69M
Expected Revenue$294.46M
Beat/MissBeat by +$1.23M
YoY Revenue Growth+18.58%
Earnings Announcement Details
QuarterQ3 2026
Date10/22/2026
TimeAfter Close
Conference CallThursday, October 22, 2026
APPF Upcoming Earnings
AppFolio's next earnings date is estimated for March 1, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
APPF Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
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.Company Guidance
Strong Third-Quarter Revenue Growth
Third-quarter revenue reached $296 million, up 19% year over year from $249 million in Q3 2025.
Improved Operating Profitability
GAAP operating income grew 64% year over year to $57 million, or 19.4% of revenue, compared with $35 million, or 14.1%, in Q3 2025. Non-GAAP operating income grew 38% to $81 million, or 27.3% of revenue, compared with $59 million, or 23.5%, a year ago.
Subscription and Value-Added Services Growth
Subscription services revenue grew 14% year over year to $62 million, driven by new customer wins, unit growth, and premium-tier upgrades. Value-added services revenue grew 21% to $232 million, led by FolioGuard mitigation services, FolioScreen, and online payments, with increasing contributions from resident onboarding lift, resident concierge move-in services, and Realm-X Performers.
Expansion of Units and Customer Base
Units managed grew 8% year over year to approximately 9.8 million from 9.1 million. Customers increased 6% to 23.1 thousand from 21.8 thousand. New customer unit acquisition remained strong, while retention was healthy and consistent with historical averages.
Continued Product Adoption and Premium-Tier Upgrades
New and renewing customers continued to commit to multiyear agreements, extending the contracted base of subscription-services revenue. Customers also continued upgrading to premium tiers and adopting value-added services.
Successful Future Industry Event
AppFolio hosted 2.5 thousand real estate operators and innovators at Future across 4 days, with 130 sessions, 19 expert-led performance labs, and its largest Explore floor to date. More than 60 customers participated as speakers.
Customer Transformation at PURE HomeRiver
PURE HomeRiver, which manages nearly 14 thousand units and 106 separate tax entities, moved from paper checks, paper work orders, scanned applications, and fax machines to AppFolio. Less than a year later, 85% of receivables were paid online, leasing operated digitally from application to signature, and 53% of maintenance requests were resolved without creating a work order.
Expanded Entity Accounting and Banking Integrations
AppFolio expanded entity accounting capabilities for multi-entity operators and brought corporate, portfolio, and credit-card accounting into the same data model. Through partnerships with Enterprise Bank and Trust and Column, bank data flows directly into AppFolio and transactions are matched automatically as they come in.
AI Platform and Performer Adoption
Realm-X now remembers context across conversations, uses customer knowledge bases, and builds custom workflows and dashboards from prompts. Beta customers reported that Resident Messenger Performer resolved over 30% of conversations without escalation, Accounting Performer saved an average of 17 hours per month, and Leasing Performer boosted showings up to 35%.
Leasing Performer Customer Results
TR Lawing Realty, a portfolio of more than 750 units, averaged nearly 45 leases per month after moving from a standalone tool to Leasing Performer, with a leasing pipeline described as the largest it has ever been.
Expansion of AI and Automation Offerings
AppFolio unveiled Receptionist Performer to answer incoming calls, handle simple questions, and route other requests to the appropriate performer or person. Connector for Claude became available to every customer, operating within AppFolio-defined permissions and guardrails.
Resident and Owner Workflow Enhancements
Resident onboarding lift continued to support move-in services including renters insurance, group-rate internet, and other essential services in one flow. Certified funds from Move In lets residents pay move-in costs digitally with guaranteed funds. Redesigned owner packets provide stronger data visualization and cash-flow reporting.
HomeRiver Group Standardization on AppFolio
HomeRiver Group brought 8 thousand units across 25 locations under one corporate entity and standardized on AppFolio after finding that properties running on AppFolio performed better and at a lower cost than its fragmented legacy setup. A portfolio of nearly 6 thousand units went live last quarter, with the remainder in migration.
Growing Partner Ecosystem
The AppFolio stack integration marketplace connected 5.6 million units across nearly 100 partners. Apartment List joined as a partner with a pay-per-lease billing model intended to attract qualified renters through AI matching.
Industry Recognition
AppFolio ranked No. 1 on the G2 Grid for 5 consecutive quarters. In G2's fall 2026 rankings, based on more than 28 thousand reports, AppFolio ranked No. 5 among companies by G2 score.
Workplace and Growth Recognition
AppFolio was named to Fortune's 2026 Best Workplaces in Technology list and Fortune's 2026 Future 21 list.
Scale Benefits and Operating Efficiency
Non-GAAP cost of revenue excluding depreciation and amortization declined to 35% of revenue from 36% a year ago. R&D declined to 15% of revenue from 18%, and G&A declined to 6% from 8%, reflecting scale, lower personnel costs, and continued operational efficiency.
Strong Cash Generation and Balance Sheet
AppFolio generated $97 million in operating cash flow during the quarter and ended the period with $307 million in cash, cash equivalents, and investment securities. The company stated that it will continue investing in the business while maintaining an opportunistic share-repurchase program.
Raised Full-Year Revenue Guidance
Full-year 2026 revenue guidance was raised to $1.122 billion to $1.127 billion, lifting the midpoint growth rate to 18.3%.
Higher Full-Year Margin Guidance
Full-year non-GAAP operating margin guidance was raised to 26.5% to 27.5%, compared with 24.7% in 2025.
Investment in Sales and Marketing
AppFolio is accelerating sales and marketing investment, including additional sales capacity, the Future conference, other industry events, and targeted go-to-market programs. The company expects full-year operating expenses as a percentage of revenue to decline modestly as revenue scales and AI is applied across internal operations.
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