AppFolio Inc. (APPF)
NASDAQ:APPF
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AppFolio
(NASDAQ:APPF)
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Rating:73Outperform
Price Target:
$175.00
▼(-2.63% Downside)
Action:UpgradedDate:01/31/26
The score is driven primarily by strong financial quality (cash flow strength and low leverage) and a positive earnings outlook with solid 2026 guidance. These are tempered by weak technical momentum (oversold and below key moving averages) and a relatively high valuation multiple that increases sensitivity to any growth or margin volatility.
Positive Factors
Cash generation strength
Sustained free cash flow growth and near parity with net income (FCF ≈ 0.99x net income) provide durable internal funding for R&D, product development, and strategic initiatives. Strong cash conversion reduces reliance on external financing and supports long-term investment optionality and capital allocation flexibility.
Negative Factors
Revenue volatility
A pronounced TTM revenue contraction signals meaningful growth cyclicality and execution risk. Durable forecasting and capital allocation become harder when top-line swings are large, potentially impacting hiring, R&D cadence, and confidence in multi-quarter growth targets if volatility persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Sustained free cash flow growth and near parity with net income (FCF ≈ 0.99x net income) provide durable internal funding for R&D, product development, and strategic initiatives. Strong cash conversion reduces reliance on external financing and supports long-term investment optionality and capital allocation flexibility.
Read all positive factors
AppFolio (APPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.57B
Dividend YieldN/A
Average Volume (3M)361.30K
Price to Earnings (P/E)59.5
Beta (1Y)0.61
Revenue Growth18.88%
EPS Growth54.44%
CountryUS
Employees1,634
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.39
Shares Outstanding24,334,816
10 Day Avg. Volume277,033
30 Day Avg. Volume361,300
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 Cap0.99
Enterprise Value/Revenue5.82
Enterprise Value/Gross Profit9.21
Enterprise Value/Ebitda30.67
Forecast
1Y Price Target
$257.83Price Target Upside43.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)6.44
Revenue Forecast (FY)$1.12B
AppFolio Business Overview & Revenue Model
Company Description
AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry. The company offers AppFolio Property Manager, a platform to leverage process automation, easy to use interface, and the opti...
How the Company Makes Money
AppFolio generates revenue primarily by selling subscriptions to its cloud software platforms, typically priced based on the customer’s portfolio/units under management and selected product modules, resulting in recurring SaaS revenue. In addition...
AppFolio Key Performance Indicators (KPIs)
AppFolio Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, accelerating unit additions, broad AI and premium-tier adoption, improved quarterly margins, and confident 2026 guidance — balanced against a modest full-year margin decline driven by a $15M incentive over-attainment, higher cost of revenue from payments and data center spend, and ongoing industry headwinds (rising costs and occupancy pressure). Overall the positives (revenue and unit momentum, product adoption, customer outcomes, and guidance) outweigh the negatives, though some margin and macro risks remain.Positive Updates
Strong Quarterly and Annual Revenue Growth
Q4 revenue of $248 million, up 22% year-over-year; full-year revenue of $951 million, up 20% year-over-year.
Negative Updates
Full-Year Non-GAAP Margin Slight Decline
Full-year non-GAAP operating margin was 24.7% versus 25.2% in 2024, a decline mainly driven by a $15 million (1.6% of revenue) over-attainment on the 2025 corporate incentive plan.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Annual Revenue Growth
Q4 revenue of $248 million, up 22% year-over-year; full-year revenue of $951 million, up 20% year-over-year.
Read all positive updates
Company Guidance
AppFolio guided 2026 annual revenue of $1.10–$1.12 billion (midpoint implying ~17% growth versus 2025), with non‑GAAP operating margin of 25.5%–27.5%, cost of revenue (ex‑D&A) expected roughly flat to 2025 (~36% of revenue), diluted weighted‑average shares of 36–37 million, and revenue seasonality “mostly consistent” with 2025; management said this outlook is driven by adoption of premium tiers, new business unit growth, and increased use of AI‑native performers and resident services.AppFolio Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
89
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 950.82M | 794.20M | 620.45M | 471.88M | 359.37M |
| Gross Profit | 582.83M | 492.59M | 382.37M | 280.06M | 215.43M |
| EBITDA | 183.76M | 169.87M | 29.59M | -36.06M | 22.17M |
| Net Income | 140.92M | 204.07M | 2.70M | -68.12M | 1.03M |
Balance Sheet | |||||
| Total Assets | 722.27M | 626.68M | 408.89M | 381.22M | 408.02M |
| Cash, Cash Equivalents and Short-Term Investments | 251.47M | 278.50M | 211.71M | 160.07M | 122.45M |
| Total Debt | 71.45M | 41.75M | 44.74M | 53.59M | 57.61M |
| Total Liabilities | 179.69M | 107.39M | 111.58M | 115.67M | 110.64M |
| Stockholders Equity | 542.58M | 519.29M | 297.31M | 265.55M | 297.38M |
Cash Flow | |||||
| Free Cash Flow | 238.95M | 186.14M | 46.42M | 18.82M | 2.67M |
| Operating Cash Flow | 242.10M | 188.16M | 60.28M | 25.36M | 35.39M |
| Investing Cash Flow | 10.24M | -151.76M | -55.58M | -6.47M | -110.46M |
| Financing Cash Flow | -187.89M | -43.40M | -25.96M | -6.16M | -7.35M |
AppFolio Technical Analysis
Negative
179.72
Price Trends
175.56
Negative
202.69
Negative
231.08
Negative
Market Momentum
-6.82
Negative
32.98
Neutral
46.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPF, the sentiment is Negative. The current price of 179.72 is above the 20-day moving average (MA) of 163.18, above the 50-day MA of 175.56, and below the 200-day MA of 231.08, indicating a bearish trend. The MACD of -6.82 indicates Negative momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 46.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APPF.
AppFolio Risk Analysis
AppFolio disclosed 47 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.57B | 59.45 | 28.77% | ― | 18.88% | 54.44% | |
71 Outperform | $6.96B | 25.92 | 60.07% | 0.16% | 17.00% | 120.21% | |
70 Outperform | $5.52B | 41.43 | 20.52% | ― | 13.30% | 2.80% | |
63 Neutral | $5.04B | 224.68 | -9.44% | ― | 16.98% | -265.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $3.48B | 77.74 | 31.15% | ― | 22.02% | -55.25% |
* Technology Sector Average
APPF
AppFolio
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AppFolio Corporate Events
Executive/Board Changes
AppFolio appoints Saori Casey to streamlined board
Positive
Jan 15, 2026
On January 12, 2026, AppFolio’s Board of Directors reduced its size from nine to seven members and elected Sonos Chief Financial Officer Saori Casey as a Class II director, effective February 12, 2026, to fill an existing vacancy and serve u...
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.