AppFolio (APPF) AI Stock Analysis

• Market Cap: $8.31B
• Dividend Yield: N/A
• Average Volume (3M): 264.99K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 0.71
• Revenue Growth: 18.88%
• EPS Growth: 54.44%
• Country: US
• Employees: 1,634
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.31
• Shares Outstanding: 23,073,193
• 10 Day Avg. Volume: 195,701
• 30 Day Avg. Volume: 264,986
• PEG Ratio: <0.01
• Price to Book (P/B): 17.22
• Price to Sales (P/S): 11.26
• P/FCF Ratio: 48.05
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 10.85
• Enterprise Value/Gross Profit: 17.25
• Enterprise Value/Ebitda: 60.68
• 1Y Price Target: $313.40
• Price Target Upside: 32.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.14
• Revenue Forecast (FY): $948.87M

• Rating: 71 Outperform
• Price Target: $252.00 ▲(6.59% Upside)

AppFolio's strong financial performance and promising earnings call guidance are key strengths, supporting a solid overall score. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The absence of a dividend yield further impacts the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth of 21% YoY indicates robust market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash generation ability ensures financial flexibility, enabling investment in growth opportunities and resilience against economic downturns.

Customer Base Expansion

Expansion in customer base and units managed enhances revenue stability and market presence, driving sustainable long-term growth.

Negative Factors

Decreased Operating Margin

Declining operating margins may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

Increased Costs

Rising costs, particularly in revenue generation, could pressure margins and necessitate efficiency improvements to maintain profitability.

Higher Operational Expenses

Increased operational expenses can strain financial resources and may require strategic adjustments to sustain long-term growth.

AppFolio Business Overview & Revenue Model

Company Description

AppFolio (APPF) is a technology company that provides cloud-based software solutions primarily for property management and legal practice management sectors. Founded in 2006, AppFolio offers a comprehensive suite of products designed to streamline operations for property managers and law firms, enabling them to manage their workflows, engage with clients, and enhance overall productivity. The company's flagship products include AppFolio Property Manager, which caters to residential and commercial property management, and MyCase, a legal practice management software.

How the Company Makes Money

AppFolio generates revenue primarily through subscription fees for its software services. The company operates on a Software as a Service (SaaS) model, charging monthly or annual fees based on the number of units managed in the case of property management or the number of users for its legal software. Key revenue streams include tenant screening, payment processing, and marketing services, which complement its core offerings and contribute additional income. AppFolio has also established partnerships with various service providers to enhance its product capabilities, which can lead to increased customer retention and acquisition, further boosting its earnings.

AppFolio Financial Statement Overview

Summary

AppFolio exhibits robust financial health with strong revenue growth, profitability, and cash flow generation. The company maintains a low leverage profile, enhancing financial stability. While operational efficiency could be improved, the overall financial position is solid, supporting future growth prospects.

Income Statement

AppFolio has demonstrated strong revenue growth with a 5.06% increase in TTM, supported by a healthy gross profit margin of 62.89%. The net profit margin of 22.48% indicates solid profitability. However, the EBIT margin of 11.19% suggests room for improvement in operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.07, reflecting prudent financial leverage. Return on equity is impressive at 42.10%, indicating effective use of equity capital. The equity ratio of 77.89% highlights a strong equity base relative to total assets.

Cash Flow

AppFolio's free cash flow growth of 15.78% is a positive indicator of cash generation capabilities. The operating cash flow to net income ratio of 2.13 suggests efficient cash conversion. The free cash flow to net income ratio of 0.99 indicates that nearly all net income is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	906.29M	794.20M	620.45M	471.88M	359.37M	310.06M
Gross Profit	569.97M	492.59M	382.37M	280.06M	215.43M	191.03M
EBITDA	162.07M	169.87M	29.59M	-36.06M	22.17M	229.17M
Net Income	203.74M	204.07M	2.70M	-68.12M	1.03M	158.40M
Balance Sheet
Total Assets	640.47M	626.68M	408.89M	381.22M	408.02M	389.48M
Cash, Cash Equivalents and Short-Term Investments	200.40M	278.50M	211.71M	160.07M	122.45M	168.52M
Total Debt	39.25M	41.75M	44.74M	53.59M	57.61M	41.99M
Total Liabilities	141.60M	107.39M	111.58M	115.67M	110.64M	103.56M
Stockholders Equity	498.87M	519.29M	297.31M	265.55M	297.38M	285.92M
Cash Flow
Free Cash Flow	210.71M	186.14M	46.42M	18.82M	2.67M	3.22M
Operating Cash Flow	213.68M	188.16M	60.28M	25.36M	35.39M	48.30M
Investing Cash Flow	-11.72M	-151.76M	-55.58M	-6.47M	-110.46M	146.51M
Financing Cash Flow	-188.29M	-43.40M	-25.96M	-6.16M	-7.35M	-70.36M

AppFolio Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 236.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPF, the sentiment is Neutral. The current price of 236.43 is below the 20-day moving average (MA) of 237.77, below the 50-day MA of 243.25, and below the 200-day MA of 239.30, indicating a bearish trend. The MACD of -4.78 indicates Negative momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APPF.

AppFolio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APPF	71 Outperform	$8.31B	41.52	44.69%	―	18.88%	54.44%
PCTY	71 Outperform	$7.93B	36.51	20.42%	―	13.30%	2.80%
PEGA	69 Neutral	$9.31B	37.17	51.96%	0.16%	17.00%	120.21%
DAY	67 Neutral	$11.06B	―	-5.71%	―	11.73%	-376.77%
CVLT	62 Neutral	$5.35B	68.31	32.87%	―	22.02%	-55.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ESTC	61 Neutral	$7.49B	―	-12.84%	―	16.98%	-265.85%

AppFolio Corporate Events

AppFolio Inc. Earnings Call Highlights Growth and Challenges

The recent earnings call for AppFolio Inc. showcased a mixed sentiment, highlighting strong revenue growth and an expanding customer base, largely driven by innovative AI solutions and industry recognition. However, the company also faced challenges with a decrease in operating margin and increased operational and cost of revenue expenses.

AppFolio Highlights Future Strategy at Investor Meeting

AppFolio, Inc. hosted an investor meeting on November 18, 2025, where they discussed their vision and strategy for the future of real estate. The meeting highlighted their focus on differentiation through innovative solutions and efficient performance delivery. AppFolio reported significant growth in financial metrics, including a projected revenue of $948 million for 2025 and a notable increase in non-GAAP operating margin. The company emphasized its commitment to product development and customer value, showcasing the adoption of their premium tier and AI capabilities among customers.

The most recent analyst rating on (APPF) stock is a Buy with a $266.00 price target. To see the full list of analyst forecasts on AppFolio stock, see the APPF Stock Forecast page.

AppFolio Reports Strong Q3 2025 Revenue Growth

AppFolio, Inc. is a technology company specializing in innovative solutions for the real estate industry, aiming to enhance operational efficiency and foster community connections. In its third-quarter 2025 earnings report, AppFolio reported a significant 21% increase in revenue, reaching $249 million, driven by customer acquisition and the adoption of its AI-native Performance Platform. The company also saw a 7% growth in total units under management, now totaling 9.1 million. Despite a decrease in GAAP operating income to $35 million from $43 million in the previous year, non-GAAP operating income remained stable at $59 million. Net cash from operating activities improved significantly to $86 million, highlighting strong cash flow management. Looking ahead, AppFolio projects its full-year revenue to range between $945 million and $950 million, with a non-GAAP operating margin expected to be between 23.5% and 24.5%. The company’s strategic focus on AI-powered solutions and customer success positions it well for continued growth in the real estate technology sector.

AppFolio Announces Departure of Chief Trust Officer

AppFolio, Inc. announced its third-quarter 2025 financial results, highlighting a 21% year-over-year revenue growth to $249 million, driven by customer acquisition and the adoption of their Realm-X platform. The company also reported a 7% increase in total units under management, reaching 9.1 million, and noted a shift in operating income margins compared to the previous year. Additionally, the company announced the departure of Chief Trust Officer Matt Mazza, effective November 14, 2025, with his duties reassigned to ensure a smooth transition.

The most recent analyst rating on (APPF) stock is a Buy with a $266.00 price target. To see the full list of analyst forecasts on AppFolio stock, see the APPF Stock Forecast page.

AppFolio Secures $150 Million Credit Facility Agreement

On September 30, 2025, AppFolio, Inc. entered into a $150 million senior secured revolving credit facility agreement with PNC Bank, allowing for increased financial flexibility and potential expansion. This agreement, maturing in 2030, includes various financial covenants and conditions, impacting the company’s operational capabilities and financial strategy, with implications for stakeholders regarding leverage and growth opportunities.

The most recent analyst rating on (APPF) stock is a Hold with a $281.00 price target. To see the full list of analyst forecasts on AppFolio stock, see the APPF Stock Forecast page.