SANTA BARBARA, Calif., July 23, 2026 (GLOBE NEWSWIRE) — AppFolio, I c. (NASDAQ: APPF) (“AppFolio” o the “Compa y”), a tech ology leade powe i g the futu e of the eal estate i dust y, today a ou ced its fi a cial esults fo the seco d qua te e ded Ju e 30, 2026.
“Ou Q2 esults co ti ue to eflect ou mome tum with ew a d existi g custome s,” said Sha e T igg, Chai ma a d CEO. “Fo the fi st time, we’ve c ossed $1 billio i eve ue o a t aili g twelve-mo th basis, a milesto e we believe eflects the success custome s a e havi g by adopti g ou p oducts a d se vices. The ope ato s o ou platfo m a e emb aci g AI that wo ks because it k ows thei busi ess a d d ives eal pe fo ma ce outcomes. That is what Real Estate Pe fo ma ce Ma ageme t delive s.”
- Reve ue g ew 19% yea -ove -yea to $281 millio .
- Total u its u de ma ageme t g ew 8% yea -ove -yea to 9.6 millio .
- GAAP ope ati g i come g ew 31% to $53 millio , o 18.8% of eve ue, compa ed to $41 millio , o 17.2% of eve ue i Q2 2025.
- No -GAAP ope ati g i come g ew 24% to $76 millio , o 27.1% of eve ue, compa ed to $62 millio , o 26.2% of eve ue i Q2 2025.
- Net cash p ovided by ope ati g activities was $88 millio , o 31.2% of eve ue, compa ed to $53 millio , o 22.3% of eve ue i Q2 2025.
- Full yea eve ue a ge is i c easi g to $1.117 – $1.127 billio .
- Full yea o -GAAP ope ati g ma gi a ge as a pe ce tage of eve ue is i c easi g to 26.5% – 28.0%.
- Diluted weighted ave age sha es outsta di g a e expected to be app oximately 36 millio fo the full yea .
The Compa y also p ovides a ou ceme ts ega di g its fi a cial esults a d othe matte s, i cludi g SEC fili gs, i vesto eve ts, a d p ess eleases, o its I vesto Relatio s website at https://i .appfolioi c.com/, as a mea s of disclosi g mate ial o public i fo matio a d fo complyi g with AppFolio’s disclosu e obligatio s u de Regulatio FD.
I vesto Relatio s Co tact:Lo i Ba ke i @appfolio.com
AppFolio is u able, at this time, to p ovide GAAP equivale t guida ce measu es o a fo wa d-looki g basis fo o -GAAP ope ati g ma gi because ce tai items that impact this measu e a e u ce tai , out of ou co t ol, o ca ot be easo ably p edicted, such as cha ges elated to stock-based compe satio expe se. The effect of these excluded items may be sig ifica t.
Fo wa d-looki g stateme ts ep ese t AppFolio’s cu e t beliefs a d expectatio s based o i fo matio cu e tly available a d speak o ly as of the date the stateme t is made. Fo wa d-looki g stateme ts a e subject to ume ous k ow a d u k ow isks, u ce tai ties a d othe facto s that may cause the Compa y’s actual esults, pe fo ma ce o achieveme ts to be mate ially diffe e t f om a y futu e esults, pe fo ma ce o achieveme ts exp essed o implied by the fo wa d-looki g stateme ts. The isks, u ce tai ties a d othe facto s that may cause the Compa y’s actual esults, pe fo ma ce o achieveme ts to mate ially diffe f om those exp essed o implied by these fo wa d-looki g stateme ts i clude those isks, u ce tai ties a d othe facto s desc ibed i the sectio e titled “Risk Facto s” i the Compa y’s A ual Repo t o Fo m 10-K fo the fiscal yea e ded Decembe 31, 2025, which was filed with the SEC o Feb ua y 5, 2026, as such isk facto s may be updated f om time to time i ou subseque t fili gs with the SEC, a d the sectio e titled “Ma ageme t’s Discussio a d A alysis of Fi a cial Co ditio a d Results of Ope atio s” i the Compa y’s most ece tly filed A ual Repo t o Fo m 10-K o Qua te ly Repo t o Fo m 10-Q, as well as i the Compa y’s othe fili gs with the SEC. You should ead this p ess elease with the u de sta di g that the Compa y’s actual futu e esults may be mate ially diffe e t f om the esults exp essed o implied by these fo wa d-looki g stateme ts.
The Compa y u de takes o obligatio to update a y fo wa d-looki g stateme ts made i this p ess elease to eflect eve ts o ci cumsta ces afte the date of this p ess elease o to eflect ew i fo matio o the occu e ce of u a ticipated eve ts, except as equi ed by law.
| Cu e t assets | Cash a d cash equivale ts | $ | 217,401 | $ | 106,967 | I vestme t secu ities—cu e t | 4,284 | 144,256 | Accou ts eceivable, et | 50,442 | 36,873 | P epaid expe ses a d othe cu e t assets | 53,058 | 65,218 | 325,185 | 353,314 | P ope ty a d equipme t, et | 21,464 | 23,228 | Ope ati g lease ight-of-use assets | 14,798 | 15,924 | Capitalized softwa e developme t costs, et | 11,444 | 11,324 | Goodwill | 96,410 | 96,410 | I ta gible assets, et | 33,711 | 38,826 | Defe ed i come taxes | 42,819 | 58,823 | Lo g-te m i vestme ts | 87,668 | 77,033 | Othe lo g-te m assets | 14,872 | 14,085 | $ | 648,371 | $ | 688,967 | Cu e t liabilities | Accou ts payable | $ | 4,776 | $ | 4,123 | Acc ued employee expe ses | 30,010 | 59,774 | Acc ued expe ses | 26,990 | 20,829 | Othe cu e t liabilities | 23,106 | 22,121 | 84,882 | 106,847 | Ope ati g lease liabilities | 30,660 | 33,287 | Othe liabilities | 6,687 | 6,254 | 122,229 | 146,388 | Stockholde s’ equity | 526,142 | 542,579 | $ | 648,371 | $ | 688,967 |
| Reve ue(1) | $ | 281,124 | $ | 235,575 | $ | 543,338 | $ | 453,277 | Costs a d ope ati g expe ses: | Cost of eve ue (exclusive of dep eciatio a d amo tizatio )(2) | 102,595 | 83,827 | 197,570 | 163,325 | Sales a d ma keti g(2) | 43,944 | 36,776 | 81,445 | 67,833 | Resea ch a d p oduct developme t(2) | 50,997 | 46,674 | 100,626 | 90,432 | Ge e al a d admi ist ative(2) | 25,626 | 21,936 | 49,967 | 45,287 | Dep eciatio a d amo tizatio | 4,985 | 5,850 | 10,005 | 12,105 | Total costs a d ope ati g expe ses | 228,147 | 195,063 | 439,613 | 378,982 | I come f om ope atio s | 52,977 | 40,512 | 103,725 | 74,295 | Othe (loss) i come, et | (1 | ) | (11 | ) | 568 | 45 | I te est i come, et | 1,435 | 1,466 | 3,219 | 4,419 | I come befo e p ovisio fo i come taxes | 54,411 | 41,967 | 107,512 | 78,759 | P ovisio fo i come taxes | 12,867 | 5,987 | 23,544 | 11,396 | Net i come | $ | 41,544 | $ | 35,980 | $ | 83,968 | $ | 67,363 | Net i come pe commo sha e: | Basic | $ | 1.17 | $ | 1.00 | $ | 2.36 | $ | 1.87 | Diluted | $ | 1.17 | $ | 0.99 | $ | 2.36 | $ | 1.85 | Weighted ave age commo sha es outsta di g | Basic | 35,391 | 35,922 | 35,544 | 36,111 | Diluted | 35,461 | 36,204 | 35,635 | 36,425 |
(1) The followi g table p ese ts ou eve ue catego ies:
| Subsc iptio Se vices | $ | 59,800 | $ | 52,473 | $ | 118,022 | $ | 101,986 | Value Added Se vices | 219,467 | 180,145 | 420,830 | 344,851 | Othe | 1,857 | 2,957 | 4,486 | 6,440 | Total eve ue | $ | 281,124 | $ | 235,575 | $ | 543,338 | $ | 453,277 |
(2) I cludes stock-based compe satio expe se as follows:
| Costs a d ope ati g expe ses: | Cost of eve ue (exclusive of dep eciatio a d amo tizatio ) | $ | 1,246 | $ | 1,419 | $ | 2,334 | $ | 2,706 | Sales a d ma keti g | 3,633 | 3,045 | 6,973 | 5,893 | Resea ch a d p oduct developme t | 8,918 | 8,176 | 16,800 | 15,107 | Ge e al a d admi ist ative | 6,674 | 5,659 | 12,353 | 10,964 | Total stock-based compe satio expe se | $ | 20,471 | $ | 18,299 | $ | 38,460 | $ | 34,670 |
| Net i come | $ | 41,544 | $ | 35,980 | $ | 83,968 | $ | 67,363 | Adjustme ts to eco cile et i come to et cash p ovided by ope ati g activities: | Dep eciatio a d amo tizatio | 4,985 | 5,850 | 10,005 | 12,105 | Amo tizatio of ope ati g lease ight-of-use assets | 566 | 507 | 1,126 | 1,008 | Amo tizatio of costs capitalized to obtai eve ue co t acts, et | 3,300 | 2,699 | 6,468 | 5,419 | Defe ed i come taxes | 7,976 | (7,644 | ) | 16,004 | (13,185 | ) | Stock-based compe satio , i cludi g as amo tized | 20,471 | 18,299 | 38,460 | 34,670 | Othe | — | (131 | ) | (523 | ) | (1,048 | ) | Cha ges i ope ati g assets a d liabilities: | Accou ts eceivable | (6,475 | ) | (5,081 | ) | (13,918 | ) | (8,197 | ) | P epaid expe ses a d othe assets | (1,887 | ) | (5,966 | ) | (10,093 | ) | (11,426 | ) | Accou ts payable | 1,035 | (1,694 | ) | 653 | 852 | Ope ati g lease liabilities | (1,204 | ) | (1,051 | ) | (2,384 | ) | (2,102 | ) | Acc ued expe ses a d othe liabilities | 17,293 | 10,875 | (7,864 | ) | 5,649 | Net cash p ovided by ope ati g activities | 87,604 | 52,643 | 121,902 | 91,108 | Pu chases of available-fo -sale i vestme ts | (3,277 | ) | (1,732 | ) | (45,940 | ) | (64,034 | ) | P oceeds f om sales of available-fo -sale i vestme ts | — | 99,944 | 140,154 | 202,662 | P oceeds f om matu ities of available-fo -sale i vestme ts | 3,230 | 1,670 | 45,590 | 43,820 | Pu chases of p ope ty a d equipme t | 3 | (275 | ) | (228 | ) | (505 | ) | Capitalizatio of softwa e developme t costs | (1,250 | ) | (842 | ) | (2,554 | ) | (1,478 | ) | Pu chases of lo g-te m i vestme ts | (10,000 | ) | (75,000 | ) | (10,000 | ) | (75,000 | ) | Cash paid i busi ess acquisitio , et of cash acqui ed | — | — | — | (906 | ) | Net cash (used i ) p ovided by i vesti g activities | (11,294 | ) | 23,765 | 127,022 | 104,559 | P oceeds f om stock optio exe cises a d the issua ce of commo stock u de the Employee Stock Pu chase Pla | — | 117 | 998 | 128 | Tax withholdi g fo et sha e settleme t | (6,321 | ) | (10,020 | ) | (14,478 | ) | (19,098 | ) | Pu chase of commo stock | — | (49,960 | ) | (125,010 | ) | (145,723 | ) | Net cash used i fi a ci g activities | (6,321 | ) | (59,863 | ) | (138,490 | ) | (164,693 | ) | Net i c ease i cash, cash equivale ts a d est icted cash | 69,989 | 16,545 | 110,434 | 30,974 | Begi i g of pe iod | 147,662 | 57,183 | 107,217 | 42,754 | E d of pe iod | $ | 217,651 | $ | 73,728 | $ | 217,651 | $ | 73,728 |
| GAAP cost of eve ue (exclusive of dep eciatio a d amo tizatio ) | $ | 102,595 | $ | 83,827 | $ | 197,570 | $ | 163,325 | Stock-based compe satio expe se | (1,246 | ) | (1,419 | ) | (2,334 | ) | (2,706 | ) | No -GAAP cost of eve ue (exclusive of dep eciatio a d amo tizatio ) | $ | 101,349 | $ | 82,408 | $ | 195,236 | $ | 160,619 | GAAP cost of eve ue (exclusive of dep eciatio a d amo tizatio ) as a pe ce tage of eve ue | 36 | % | 36 | % | 36 | % | 36 | % | No -GAAP cost of eve ue (exclusive of dep eciatio a d amo tizatio ) as a pe ce tage of eve ue | 36 | % | 35 | % | 36 | % | 35 | % | GAAP sales a d ma keti g | $ | 43,944 | $ | 36,776 | $ | 81,445 | $ | 67,833 | Stock-based compe satio expe se | (3,633 | ) | (3,045 | ) | (6,973 | ) | (5,893 | ) | No -GAAP sales a d ma keti g | $ | 40,311 | $ | 33,731 | $ | 74,472 | $ | 61,940 | GAAP sales a d ma keti g as a pe ce tage of eve ue | 16 | % | 16 | % | 15 | % | 15 | % | No -GAAP sales a d ma keti g as a pe ce tage of eve ue | 14 | % | 14 | % | 14 | % | 14 | % | GAAP esea ch a d p oduct developme t | $ | 50,997 | $ | 46,674 | $ | 100,626 | $ | 90,432 | Stock-based compe satio expe se | (8,918 | ) | (8,176 | ) | (16,800 | ) | (15,107 | ) | No -GAAP esea ch a d p oduct developme t | $ | 42,079 | $ | 38,498 | $ | 83,826 | $ | 75,325 | GAAP esea ch a d p oduct developme t as a pe ce tage of eve ue | 18 | % | 20 | % | 19 | % | 20 | % | No -GAAP esea ch a d p oduct developme t as a pe ce tage of eve ue | 15 | % | 16 | % | 15 | % | 17 | % | GAAP ge e al a d admi ist ative | $ | 25,626 | $ | 21,936 | $ | 49,967 | $ | 45,287 | Stock-based compe satio expe se | (6,674 | ) | (5,659 | ) | (12,353 | ) | (10,964 | ) | No -GAAP ge e al a d admi ist ative | $ | 18,952 | $ | 16,277 | $ | 37,614 | $ | 34,323 | GAAP ge e al a d admi ist ative as a pe ce tage of eve ue | 9 | % | 9 | % | 9 | % | 10 | % | No -GAAP ge e al a d admi ist ative as a pe ce tage of eve ue | 7 | % | 7 | % | 7 | % | 8 | % | GAAP dep eciatio a d amo tizatio | $ | 4,985 | $ | 5,850 | $ | 10,005 | $ | 12,105 | Amo tizatio of stock-based compe satio capitalized i softwa e developme t costs | (241 | ) | (241 | ) | (482 | ) | (482 | ) | Amo tizatio of pu chased i ta gibles | (2,558 | ) | (2,558 | ) | (5,115 | ) | (5,115 | ) | No -GAAP dep eciatio a d amo tizatio | $ | 2,186 | $ | 3,051 | $ | 4,408 | $ | 6,508 | GAAP dep eciatio a d amo tizatio as a pe ce tage of eve ue | 2 | % | 2 | % | 2 | % | 3 | % | No -GAAP dep eciatio a d amo tizatio as a pe ce tage of eve ue | 1 | % | 1 | % | 1 | % | 1 | % |
| GAAP i come f om ope atio s | $ | 52,977 | $ | 40,512 | $ | 103,725 | $ | 74,295 | Stock-based compe satio expe se | 20,471 | 18,299 | 38,460 | 34,670 | Amo tizatio of stock-based compe satio capitalized i softwa e developme t costs | 241 | 241 | 482 | 482 | Amo tizatio of pu chased i ta gibles | 2,558 | 2,558 | 5,115 | 5,115 | No -GAAP i come f om ope atio s | $ | 76,247 | $ | 61,610 | $ | 147,782 | $ | 114,562 | GAAP ope ati g ma gi | 18.8 | % | 17.2 | % | 19.1 | % | 16.4 | % | Stock-based compe satio expe se as a pe ce tage of eve ue | 7.3 | 7.8 | 7.1 | 7.7 | Amo tizatio of stock-based compe satio capitalized i softwa e developme t costs as a pe ce tage of eve ue | 0.1 | 0.1 | 0.1 | 0.1 | Amo tizatio of pu chased i ta gibles as a pe ce tage of eve ue | 0.9 | 1.1 | 0.9 | 1.1 | No -GAAP ope ati g ma gi | 27.1 | % | 26.2 | % | 27.2 | % | 25.3 | % | GAAP et i come | $ | 41,544 | $ | 35,980 | $ | 83,968 | $ | 67,363 | Stock-based compe satio expe se | 20,471 | 18,299 | 38,460 | 34,670 | Amo tizatio of stock-based compe satio capitalized i softwa e developme t costs | 241 | 241 | 482 | 482 | Amo tizatio of pu chased i ta gibles | 2,558 | 2,558 | 5,115 | 5,115 | I come tax effect of adjustme ts | (4,223 | ) | (7,257 | ) | (9,801 | ) | (13,599 | ) | No -GAAP et i come | $ | 60,591 | $ | 49,821 | $ | 118,224 | $ | 94,031 | GAAP et i come pe sha e, basic | $ | 1.17 | $ | 1.00 | $ | 2.36 | $ | 1.87 | No -GAAP adjustme ts to et i come | 0.54 | 0.39 | 0.97 | 0.73 | No -GAAP et i come pe sha e, basic | $ | 1.71 | $ | 1.39 | $ | 3.33 | $ | 2.60 | GAAP et i come pe sha e, diluted | $ | 1.17 | $ | 0.99 | $ | 2.36 | $ | 1.85 | No -GAAP adjustme ts to et i come | 0.54 | 0.39 | 0.96 | 0.73 | No -GAAP et i come pe sha e, diluted | $ | 1.71 | $ | 1.38 | $ | 3.32 | $ | 2.58 | Weighted-ave age sha es used i GAAP a d o -GAAP pe sha e calculatio | Basic | 35,391 | 35,922 | 35,544 | 36,111 | Diluted | 35,461 | 36,204 | 35,635 | 36,425 |
We use the followi g o -GAAP fi a cial measu es i additio to, a d ot as a substitute fo , o supe io to, fi a cial measu es calculated i acco da ce with GAAP.
- No -GAAP p ese tatio of i come f om ope atio s, costs a d ope ati g expe ses, ope ati g ma gi , et i come, a d et i come pe sha e. These measu es exclude ce tai o -cash o o – ecu i g items, i cludi g stock-based compe satio expe se, amo tizatio of stock-based compe satio capitalized i softwa e developme t costs, amo tizatio of pu chased i ta gibles, a d the elated i come tax effect of these adjustme ts, as applicable a d desc ibed below. No -GAAP ope ati g ma gi is calculated as o -GAAP ope ati g i come f om ope atio s as a pe ce tage of eve ue.
We use each of these o -GAAP fi a cial measu es i te ally to assess a d compa e ope ati g esults ac oss epo ti g pe iods, fo i te al budgeti g a d fo ecasti g pu poses, a d to evaluate ou fi a cial pe fo ma ce. We believe these o -GAAP fi a cial measu es also p ovide useful suppleme tal i fo matio to i vesto s a d facilitate the a alysis of ou ope ati g esults a d compa iso of ope ati g esults ac oss epo ti g pe iods.
I pa ticula , we believe these o -GAAP fi a cial measu es a e useful to i vesto s a d othe s i assessi g ou ope ati g pe fo ma ce due to the followi g facto s:
- Stock-based compe satio expe se a d amo tizatio of stock-based compe satio capitalized i softwa e developme t costs. We utilize stock-based compe satio to att act a d etai employees. It is p i cipally aimed at alig i g thei i te ests with those of ou stockholde s while e su i g lo g-te m ete tio , athe tha to add ess ope atio al pe fo ma ce fo a y pa ticula pe iod. As a esult, stock-based compe satio expe ses va y fo easo s that a e ge e ally u elated to fi a cial a d ope atio al pe fo ma ce i a y pa ticula pe iod.
- Amo tizatio of pu chased i ta gibles. We view amo tizatio of pu chased i ta gible assets as items a isi g f om p e-acquisitio activities dete mi ed at the time of a acquisitio . While these i ta gible assets a e evaluated fo impai me t egula ly, amo tizatio of the cost of pu chased i ta gibles is a expe se that is ot typically affected by ope atio s du i g a y pa ticula pe iod.
- I come tax effects of adjustme ts. We utilize a fixed lo g-te m p ojected tax ate i ou computatio of o -GAAP i come tax effects to p ovide bette co siste cy ac oss i te im epo ti g pe iods. I p ojecti g this lo g-te m o -GAAP tax ate, we utilize a fi a cial p ojectio that excludes the di ect impact of othe o -GAAP adjustme ts. The p ojected ate, which we have dete mi ed to be 22% a d 21% fo 2026 a d 2025, espectively, co side s othe facto s such as ou cu e t ope ati g st uctu e, existi g tax positio s i va ious ju isdictio s, a d key legislatio i majo ju isdictio s whe e we ope ate. We pe iodically e-evaluate this tax ate, as ecessa y, fo sig ifica t eve ts, based o eleva t tax law cha ges, a d mate ial cha ges i the fo ecasted geog aphic ea i gs mix.
Ou o -GAAP fi a cial measu es may ot p ovide i fo matio that is di ectly compa able to that p ovided by othe compa ies i ou i dust y, as othe compa ies may calculate o -GAAP fi a cial esults diffe e tly. I additio , the e a e limitatio s i usi g o -GAAP fi a cial measu es because o -GAAP fi a cial measu es a e ot p epa ed i acco da ce with GAAP a d ca exclude expe ses that may have a mate ial impact o ou epo ted fi a cial esults. As such, o -GAAP fi a cial measu es should ot be co side ed i isolatio f om, o as a substitute fo , fi a cial i fo matio p epa ed i acco da ce with GAAP. A eco ciliatio of the histo ical o -GAAP fi a cial measu es to thei most di ectly compa able GAAP measu es has bee p ovided i the tables above. We e cou age i vesto s to eview the eco ciliatio of these histo ical o -GAAP fi a cial measu es to thei most di ectly compa able GAAP fi a cial measu es.
