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AppFolio
(NASDAQ:APPF)
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Rating:74Outperform
Price Target:
$223.00
▼(-0.02% Downside)
Action:Reiterated
Date:09/14/26
The score is led by strong financial performance (profitability inflection, very strong free cash flow, and low leverage) and reinforced by a positive earnings call with raised revenue and margin guidance. The main offsets are a mixed near-term technical picture and a relatively expensive valuation (P/E ~47), with some fundamental watch-outs around slowing TTM revenue growth and gross-margin data consistency.
Positive Factors
Cash Generation
Strong recent cash conversion shows that reported earnings are translating into funding capacity rather than remaining tied up in the business. Operating cash flow and free cash flow are closely aligned, supporting investment, resilience, and flexible capital allocation over the next several quarters.
Negative Factors
Slower Existing-Customer Expansion
Moderating unit expansion among existing customers could reduce one of the platform’s established growth engines and constrain expansion revenue from subscriptions and related services. Even with healthy acquisition and retention, slower customer portfolio growth may temper revenue momentum over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Strong recent cash conversion shows that reported earnings are translating into funding capacity rather than remaining tied up in the business. Operating cash flow and free cash flow are closely aligned, supporting investment, resilience, and flexible capital allocation over the next several quarters.
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.
Data provided by:
The Fly
The FlyAppFolio (APPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.51B
Dividend YieldN/A
Average Volume (3M)310.26K
Price to Earnings (P/E)48.1
Beta (1Y)0.33
Revenue Growth20.66%
EPS Growth-21.24%
CountryUS
Employees1,702
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)4.41
Shares Outstanding24,087,366
10 Day Avg. Volume401,553
30 Day Avg. Volume310,260
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 Cap0.73
Enterprise Value/Revenue5.28
Enterprise Value/Gross Profit8.38
Enterprise Value/Ebitda26.32
Forecast
1Y Price Target
$237.63Price Target Upside6.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
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.Positive Updates
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.
Negative Updates
Higher Cost of Revenue Percentage
Cost of revenue, exclusive of depreciation and amortization, increased to 36% of revenue from 35% a year ago. AppFolio said operating efficiencies were offset by its payments product mix and incremental data center capacity needed to support rising customer usage of AI capabilities.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
For 2026, AppFolio raised full year revenue guidance to a range of $1.117 billion to $1.127 billion, lifting the midpoint growth rate to 18.0%, fueled by premium tier adoption, growth in new business units and increasing adoption of products and services, including agentic AI performers and resident services. The outlook assumes a more moderate pace of unit expansion among existing customers, while new customer acquisition and retention remain healthy; subscription services and value-added services revenue seasonality are expected to be broadly consistent with 2025, other revenue can vary throughout the year, and 2025 included onetime revenue from a Stack partnership in the fourth quarter. Non-GAAP operating margin guidance was raised to a range of 26.5% to 28.0% compared to 24.7% in 2025; cost of revenue, exclusive of depreciation and amortization, is expected to be relatively flat as a percentage of revenue compared to 2025, operating expenses as a percentage of revenue are expected to decline modestly, and diluted weighted average shares outstanding are anticipated to be approximately 36 million for the full year.AppFolio Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 950.82M | 794.20M | 620.45M | 471.88M | 359.37M |
| Gross Profit | 656.19M | 582.83M | 492.59M | 382.37M | 280.06M | 215.43M |
| EBITDA | 208.97M | 185.98M | 171.90M | 36.63M | -30.41M | 33.97M |
| Net Income | 157.53M | 140.92M | 204.07M | 2.70M | -68.12M | 1.03M |
Balance Sheet | ||||||
| Total Assets | 648.37M | 722.27M | 626.68M | 408.89M | 381.22M | 408.02M |
| Cash, Cash Equivalents and Short-Term Investments | 221.69M | 251.47M | 278.50M | 211.71M | 160.07M | 122.45M |
| Total Debt | 35.77M | 71.45M | 41.75M | 44.74M | 53.59M | 57.61M |
| Total Liabilities | 122.23M | 179.69M | 107.39M | 111.58M | 115.67M | 110.64M |
| Stockholders Equity | 526.14M | 542.58M | 519.29M | 297.31M | 265.55M | 297.38M |
Cash Flow | ||||||
| Free Cash Flow | 269.08M | 238.95M | 186.14M | 46.42M | 18.82M | 2.67M |
| Operating Cash Flow | 272.90M | 242.10M | 188.16M | 60.28M | 25.36M | 35.39M |
| Investing Cash Flow | 32.71M | 10.24M | -151.76M | -55.58M | -6.47M | -110.46M |
| Financing Cash Flow | -161.68M | -187.89M | -43.40M | -25.96M | -6.16M | -7.35M |
AppFolio Technical Analysis
Positive
223.05
Price Trends
210.52
Positive
189.73
Positive
184.16
Positive
Market Momentum
-0.42
Negative
55.30
Neutral
73.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPF, the sentiment is Positive. The current price of 223.05 is above the 20-day moving average (MA) of 203.62, above the 50-day MA of 210.52, and above the 200-day MA of 184.16, indicating a bullish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 73.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $7.51B | 48.10 | 30.92% | ― | 20.66% | -21.24% | |
73 Outperform | $8.66B | -218.65 | -3.13% | ― | 15.41% | 73.03% | |
65 Neutral | $7.23B | -54.73 | -8.33% | ― | 22.90% | 61.40% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.66B | 50.70 | 4.74% | ― | -6.77% | ― | |
58 Neutral | $3.89B | -397.21 | -0.30% | ― | 13.03% | -150.40% | |
55 Neutral | $218.44M | -11.35 | -8.50% | 2.88% | -2.78% | 72.47% |
* Technology Sector Average
APPF
AppFolio
212.13
-28.25
-11.75%
BILL
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45.60
-6.92
-13.18%
SMRT
SmartRent
1.14
-0.27
-19.15%
PCOR
Procore Technologies
56.98
-15.40
-21.28%
EVCM
EverCommerce
9.41
-1.78
-15.91%
TTAN
ServiceTitan, Inc. Class A
74.98
-18.52
-19.81%
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.