Co siste cy Co ti ues with 19% Reve ue G owth a d Expa di g P ofitability
SANTA BARBARA, Calif., Oct. 22, 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 thi d qua te e ded Septembe 30, 2026.
“Q3 eflects the st e gth a d du ability of ou busi ess, as ew a d existi g custome s co ti ue to adopt ou pe fo ma ce platfo m,” said Sha e T igg, Chai ma a d CEO. “The p omise of Real Estate Pe fo ma ce Ma ageme t is helpi g c eate a futu e of wi i g with ou custome s, tu i g pe fo ma ce i to a competitive adva tage that compou ds ove time.”
- Reve ue g ew 19% yea -ove -yea to $296 millio .
- Total u its u de ma ageme t g ew 8% yea -ove -yea to 9.8 millio .
- GAAP ope ati g i come g ew 64% to $57 millio , o 19.4% of eve ue, compa ed to $35 millio , o 14.1% of eve ue i Q3 2025.
- No -GAAP ope ati g i come g ew 38% to $81 millio , o 27.3% of eve ue, compa ed to $59 millio , o 23.5% of eve ue i Q3 2025.
- Net cash p ovided by ope ati g activities was $97 millio , o 32.7% of eve ue, compa ed to $86 millio , o 34.5% of eve ue i Q3 2025.
- Full yea eve ue a ge is i c easi g to $1.122 – $1.127 billio .
- Full yea o -GAAP ope ati g ma gi a ge as a pe ce tage of eve ue is ow 26.5% – 27.5%.
- 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 | $ | 258,536 | $ | 106,967 | I vestme t secu ities—cu e t | 48,740 | 144,256 | Accou ts eceivable, et | 52,535 | 36,873 | P epaid expe ses a d othe cu e t assets | 47,561 | 65,218 | 407,372 | 353,314 | P ope ty a d equipme t, et | 20,316 | 23,228 | Ope ati g lease ight-of-use assets | 14,227 | 15,924 | Capitalized softwa e developme t costs, et | 11,122 | 11,324 | Goodwill | 96,410 | 96,410 | I ta gible assets, et | 31,153 | 38,826 | Defe ed i come taxes | 32,210 | 58,823 | Lo g-te m i vestme ts | 87,668 | 77,033 | Othe lo g-te m assets | 15,193 | 14,085 | $ | 715,671 | $ | 688,967 | Cu e t liabilities | Accou ts payable | $ | 5,656 | $ | 4,123 | Acc ued employee expe ses | 43,071 | 59,774 | Acc ued expe ses | 28,679 | 20,829 | Othe cu e t liabilities | 24,476 | 22,121 | 101,882 | 106,847 | Ope ati g lease liabilities | 24,876 | 33,287 | Othe liabilities | 6,399 | 6,254 | 133,157 | 146,388 | Stockholde s’ equity | 582,514 | 542,579 | $ | 715,671 | $ | 688,967 |
| Reve ue(1) | $ | 295,691 | $ | 249,353 | $ | 839,029 | $ | 702,630 | Costs a d ope ati g expe ses: | Cost of eve ue (exclusive of dep eciatio a d amo tizatio )(2) | 105,580 | 91,476 | 303,150 | 254,801 | Sales a d ma keti g(2) | 48,623 | 35,912 | 130,068 | 103,745 | Resea ch a d p oduct developme t(2) | 53,128 | 54,037 | 153,754 | 144,469 | Ge e al a d admi ist ative(2) | 25,953 | 27,446 | 75,920 | 72,733 | Dep eciatio a d amo tizatio | 4,996 | 5,436 | 15,001 | 17,541 | Total costs a d ope ati g expe ses | 238,280 | 214,307 | 677,893 | 593,289 | I come f om ope atio s | 57,411 | 35,046 | 161,136 | 109,341 | Othe (loss) i come, et | (1 | ) | (4 | ) | 567 | 41 | I te est i come, et | 2,204 | 1,690 | 5,423 | 6,109 | I come befo e p ovisio fo i come taxes | 59,614 | 36,732 | 167,126 | 115,491 | P ovisio fo i come taxes | 13,636 | 3,086 | 37,180 | 14,482 | Net i come | $ | 45,978 | $ | 33,646 | $ | 129,946 | $ | 101,009 | Net i come pe commo sha e: | Basic | $ | 1.30 | $ | 0.94 | $ | 3.66 | $ | 2.80 | Diluted | $ | 1.29 | $ | 0.93 | $ | 3.65 | $ | 2.78 | Weighted ave age commo sha es outsta di g | Basic | 35,436 | 35,889 | 35,507 | 36,036 | Diluted | 35,578 | 36,259 | 35,616 | 36,368 |
(1) The followi g table p ese ts ou eve ue catego ies:
| Subsc iptio Se vices | $ | 61,525 | $ | 53,752 | $ | 179,547 | $ | 155,738 | Value Added Se vices | 231,948 | 192,092 | 652,778 | 536,943 | Othe | 2,218 | 3,509 | 6,704 | 9,949 | Total eve ue | $ | 295,691 | $ | 249,353 | $ | 839,029 | $ | 702,630 |
(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 ) | $ | 1,315 | $ | 1,241 | $ | 3,649 | $ | 3,947 | Sales a d ma keti g | 3,586 | 3,443 | 10,559 | 9,336 | Resea ch a d p oduct developme t | 8,839 | 9,076 | 25,639 | 24,182 | Ge e al a d admi ist ative | 6,860 | 7,033 | 19,213 | 17,998 | Total stock-based compe satio expe se | $ | 20,600 | $ | 20,793 | $ | 59,060 | $ | 55,463 |
| Net i come | $ | 45,978 | $ | 33,646 | $ | 129,946 | $ | 101,009 | Adjustme ts to eco cile et i come to et cash p ovided by ope ati g activities: | Dep eciatio a d amo tizatio | 4,996 | 5,436 | 15,001 | 17,541 | Amo tizatio of ope ati g lease ight-of-use assets | 572 | 517 | 1,698 | 1,525 | Gai o lease te mi atio a d modificatio | (1,547 | ) | — | (1,547 | ) | — | Amo tizatio of costs capitalized to obtai eve ue co t acts, et | 3,428 | 2,768 | 9,896 | 8,187 | Defe ed i come taxes | 10,609 | 30,303 | 26,613 | 17,118 | Stock-based compe satio , i cludi g as amo tized | 20,600 | 20,793 | 59,060 | 55,463 | Othe | 3 | (233 | ) | (520 | ) | (1,281 | ) | Cha ges i ope ati g assets a d liabilities: | Accou ts eceivable | (2,094 | ) | (1,803 | ) | (16,012 | ) | (10,000 | ) | P epaid expe ses a d othe assets | 160 | (4,251 | ) | (9,933 | ) | (15,677 | ) | Accou ts payable | 881 | 894 | 1,534 | 1,746 | Ope ati g lease liabilities | (4,941 | ) | (1,075 | ) | (7,325 | ) | (3,177 | ) | Acc ued expe ses a d othe liabilities | 18,121 | (988 | ) | 10,257 | 4,661 | Net cash p ovided by ope ati g activities | 96,766 | 86,007 | 218,668 | 177,115 | Pu chases of available-fo -sale i vestme ts | (46,195 | ) | (102,541 | ) | (92,135 | ) | (166,575 | ) | P oceeds f om sales of available-fo -sale i vestme ts | — | — | 140,154 | 202,662 | P oceeds f om matu ities of available-fo -sale i vestme ts | 1,810 | 32,800 | 47,400 | 76,620 | Pu chases of p ope ty a d equipme t | (14 | ) | (1,336 | ) | (242 | ) | (1,841 | ) | P oceeds f om sale of p ope ty a d equipme t | 75 | — | 75 | — | Capitalizatio of softwa e developme t costs | (983 | ) | (936 | ) | (3,537 | ) | (2,414 | ) | Pu chases of lo g-te m i vestme ts | — | — | (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 | (45,307 | ) | (72,013 | ) | 81,715 | 32,546 | P oceeds f om stock optio exe cises a d the issua ce of commo stock u de the Employee Stock Pu chase Pla | 1,084 | 953 | 2,082 | 1,081 | Tax withholdi g fo et sha e settleme t | (7,228 | ) | (12,332 | ) | (21,706 | ) | (31,430 | ) | Pu chase of commo stock | (4,180 | ) | — | (129,190 | ) | (145,723 | ) | Net cash used i fi a ci g activities | (10,324 | ) | (11,379 | ) | (148,814 | ) | (176,072 | ) | Net i c ease i cash, cash equivale ts a d est icted cash | 41,135 | 2,615 | 151,569 | 33,589 | Begi i g of pe iod | 217,651 | 73,728 | 107,217 | 42,754 | E d of pe iod | $ | 258,786 | $ | 76,343 | $ | 258,786 | $ | 76,343 |
| GAAP cost of eve ue (exclusive of dep eciatio a d amo tizatio ) | $ | 105,580 | $ | 91,476 | $ | 303,150 | $ | 254,801 | Stock-based compe satio expe se | (1,315 | ) | (1,241 | ) | (3,649 | ) | (3,947 | ) | No -GAAP cost of eve ue (exclusive of dep eciatio a d amo tizatio ) | $ | 104,265 | $ | 90,235 | $ | 299,501 | $ | 250,854 | GAAP cost of eve ue (exclusive of dep eciatio a d amo tizatio ) as a pe ce tage of eve ue | 36 | % | 37 | % | 36 | % | 36 | % | No -GAAP cost of eve ue (exclusive of dep eciatio a d amo tizatio ) as a pe ce tage of eve ue | 35 | % | 36 | % | 36 | % | 36 | % | GAAP sales a d ma keti g | $ | 48,623 | $ | 35,912 | $ | 130,068 | $ | 103,745 | Stock-based compe satio expe se | (3,586 | ) | (3,443 | ) | (10,559 | ) | (9,336 | ) | No -GAAP sales a d ma keti g | $ | 45,037 | $ | 32,469 | $ | 119,509 | $ | 94,409 | GAAP sales a d ma keti g as a pe ce tage of eve ue | 16 | % | 14 | % | 16 | % | 15 | % | No -GAAP sales a d ma keti g as a pe ce tage of eve ue | 15 | % | 13 | % | 14 | % | 13 | % | GAAP esea ch a d p oduct developme t | $ | 53,128 | $ | 54,037 | $ | 153,754 | $ | 144,469 | Stock-based compe satio expe se | (8,839 | ) | (9,076 | ) | (25,639 | ) | (24,182 | ) | No -GAAP esea ch a d p oduct developme t | $ | 44,289 | $ | 44,961 | $ | 128,115 | $ | 120,287 | GAAP esea ch a d p oduct developme t as a pe ce tage of eve ue | 18 | % | 22 | % | 18 | % | 21 | % | No -GAAP esea ch a d p oduct developme t as a pe ce tage of eve ue | 15 | % | 18 | % | 15 | % | 17 | % | GAAP ge e al a d admi ist ative | $ | 25,953 | $ | 27,446 | $ | 75,920 | $ | 72,733 | Stock-based compe satio expe se | (6,860 | ) | (7,033 | ) | (19,213 | ) | (17,998 | ) | No -GAAP ge e al a d admi ist ative | $ | 19,093 | $ | 20,413 | $ | 56,707 | $ | 54,735 | GAAP ge e al a d admi ist ative as a pe ce tage of eve ue | 9 | % | 11 | % | 9 | % | 10 | % | No -GAAP ge e al a d admi ist ative as a pe ce tage of eve ue | 6 | % | 8 | % | 7 | % | 8 | % | GAAP dep eciatio a d amo tizatio | $ | 4,996 | $ | 5,436 | $ | 15,001 | $ | 17,541 | Amo tizatio of stock-based compe satio capitalized i softwa e developme t costs | (153 | ) | (241 | ) | (634 | ) | (723 | ) | Amo tizatio of pu chased i ta gibles | (2,558 | ) | (2,558 | ) | (7,673 | ) | (7,673 | ) | No -GAAP dep eciatio a d amo tizatio | $ | 2,285 | $ | 2,637 | $ | 6,694 | $ | 9,145 | GAAP dep eciatio a d amo tizatio as a pe ce tage of eve ue | 2 | % | 2 | % | 2 | % | 2 | % | 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 | $ | 57,411 | $ | 35,046 | $ | 161,136 | $ | 109,341 | Stock-based compe satio expe se | 20,600 | 20,793 | 59,060 | 55,463 | Amo tizatio of stock-based compe satio capitalized i softwa e developme t costs | 153 | 241 | 634 | 723 | Amo tizatio of pu chased i ta gibles | 2,558 | 2,558 | 7,673 | 7,673 | No -GAAP i come f om ope atio s | $ | 80,722 | $ | 58,638 | $ | 228,503 | $ | 173,200 | GAAP ope ati g ma gi | 19.4 | % | 14.1 | % | 19.2 | % | 15.6 | % | Stock-based compe satio expe se as a pe ce tage of eve ue | 7.0 | 8.3 | 7.0 | 7.9 | 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 | Amo tizatio of pu chased i ta gibles as a pe ce tage of eve ue | 0.9 | 1.0 | 0.9 | 1.1 | No -GAAP ope ati g ma gi | 27.3 | % | 23.5 | % | 27.2 | % | 24.7 | % | GAAP et i come | $ | 45,978 | $ | 33,646 | $ | 129,946 | $ | 101,009 | Stock-based compe satio expe se | 20,600 | 20,793 | 59,060 | 55,463 | Amo tizatio of stock-based compe satio capitalized i softwa e developme t costs | 153 | 241 | 634 | 723 | Amo tizatio of pu chased i ta gibles | 2,558 | 2,558 | 7,673 | 7,673 | I come tax effect of adjustme ts | (4,608 | ) | (9,582 | ) | (14,408 | ) | (23,182 | ) | No -GAAP et i come | $ | 64,681 | $ | 47,656 | $ | 182,905 | $ | 141,686 | GAAP et i come pe sha e, basic | $ | 1.30 | $ | 0.94 | $ | 3.66 | $ | 2.80 | No -GAAP adjustme ts to et i come | 0.53 | 0.39 | 1.49 | 1.13 | No -GAAP et i come pe sha e, basic | $ | 1.83 | $ | 1.33 | $ | 5.15 | $ | 3.93 | GAAP et i come pe sha e, diluted | $ | 1.29 | $ | 0.93 | $ | 3.65 | $ | 2.78 | No -GAAP adjustme ts to et i come | 0.53 | 0.38 | 1.49 | 1.12 | No -GAAP et i come pe sha e, diluted | $ | 1.82 | $ | 1.31 | $ | 5.14 | $ | 3.90 | Weighted-ave age sha es used i GAAP a d o -GAAP pe sha e calculatio | Basic | 35,436 | 35,889 | 35,507 | 36,036 | Diluted | 35,578 | 36,259 | 35,616 | 36,368 |
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.
