AppFolio (APPF) AI Stock Analysis

• Market Cap: $9.94B
• Dividend Yield: N/A
• Average Volume (3M): 370.09K
• Price to Earnings (P/E): 50.1
• Beta (1Y): 0.62
• Revenue Growth: 19.47%
• EPS Growth: 61.10%
• Country: US
• Employees: 1,634
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.38
• Shares Outstanding: 22,871,704
• 10 Day Avg. Volume: 266,973
• 30 Day Avg. Volume: 370,092
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 9.56
• Enterprise Value/Gross Profit: 15.10
• Enterprise Value/Ebitda: 49.43
• 1Y Price Target: $326.00
• Price Target Upside: 19.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 79 Outperform
• Price Target: $308.00 ▲(12.60% Upside)

AppFolio's strong financial performance and positive earnings call are the primary drivers of its high score. While technical indicators show positive momentum, the high valuation tempers the overall score. The company's strategic initiatives and growth potential are promising, but operational efficiency challenges remain.

Positive Factors

Financial Performance

AppFolio reported second-quarter results that were ahead of analyst estimates on both revenue and profit.

Revenue Growth

Management raised its revenue guidance for the year.

Negative Factors

CFO Transition

AppFolio has not yet announced a replacement for previous CFO Fay Sien Goon, although management said it is making good progress in recruiting its next CFO.

Customer Acquisition

AppFolio’s implied new customer size stepped down this quarter, which management attributes to the adverse macro environment impacting unit expansion.

AppFolio Business Overview & Revenue Model

Company Description

AppFolio, Inc. (APPF) is a technology company that provides cloud-based software solutions for the real estate industry, focusing on property management and legal practice management. The company serves property managers, real estate owners, and legal professionals with its comprehensive platform that includes features for accounting, marketing, leasing, and tenant communication. AppFolio aims to streamline operations, enhance productivity, and improve the overall experience for both property managers and tenants.

How the Company Makes Money

AppFolio generates revenue primarily through subscription fees for its software services. The company offers its platform on a Software as a Service (SaaS) model, charging clients a monthly subscription based on the number of units managed or the number of users accessing the platform. Key revenue streams include property management software, which is targeted at residential and commercial property managers, and legal practice management software, catering to law firms. Additionally, AppFolio earns revenue through transactional fees related to payment processing and other ancillary services, such as tenant screening and marketing. The company has established significant partnerships with various service providers to enhance its offerings and drive customer engagement, contributing to its overall earnings.

AppFolio Financial Statement Overview

Summary

AppFolio shows strong financial performance with significant revenue growth and improved profitability. The balance sheet is stable with low leverage, and cash flow management is efficient, supporting future growth.

Income Statement

AppFolio has demonstrated strong revenue growth with a 38.00% increase from 2023 to 2024 and 9.00% from 2024 to TTM (Trailing-Twelve-Months). Gross profit margin remains high at 63.32% TTM. The net profit margin improved significantly from negative in previous years to 23.54% TTM, indicating enhanced profitability. However, EBIT and EBITDA margins show slight fluctuation, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.08 TTM, indicating low leverage. ROE has improved substantially to 44.58% TTM, driven by increased net income. The equity ratio remains strong at 80.31% TTM. While the balance sheet shows solid stability, the decrease in stockholders' equity from 2024 to TTM warrants attention.

Cash Flow

AppFolio's free cash flow grew by 257.04% from 2022 to 2023, and the operating cash flow to net income ratio is robust at 0.91 TTM. The free cash flow to net income ratio is 0.90 TTM, demonstrating efficient cash generation relative to net income. Despite strong cash flow metrics, fluctuations in capital expenditures need monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	862.67M	794.20M	620.45M	471.88M	359.37M	310.06M
Gross Profit	546.19M	492.59M	382.37M	280.06M	215.43M	191.03M
EBITDA	166.87M	169.87M	29.95M	-38.36M	20.35M	17.39M
Net Income	203.10M	204.07M	2.70M	-68.12M	1.03M	158.40M
Balance Sheet
Total Assets	567.40M	626.68M	408.89M	381.22M	408.02M	389.48M
Cash, Cash Equivalents and Short-Term Investments	127.57M	278.25M	211.71M	160.07M	122.45M	168.52M
Total Debt	39.65M	41.75M	44.74M	53.59M	55.73M	40.15M
Total Liabilities	111.76M	107.39M	111.58M	115.67M	110.64M	103.56M
Stockholders Equity	455.65M	519.29M	297.31M	265.55M	297.38M	285.92M
Cash Flow
Free Cash Flow	182.80M	186.14M	51.24M	4.14M	2.67M	3.22M
Operating Cash Flow	185.44M	188.16M	60.28M	25.36M	35.39M	48.30M
Investing Cash Flow	13.87M	-151.76M	-55.58M	-6.47M	-110.46M	146.51M
Financing Cash Flow	-185.47M	-43.40M	-25.96M	-6.16M	-7.35M	-70.36M

AppFolio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 273.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 273.54 is below the 20-day moving average (MA) of 278.31, above the 50-day MA of 261.46, and above the 200-day MA of 237.40, indicating a neutral trend. The MACD of 2.62 indicates Positive momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 76.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APPF.

AppFolio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APPF	79 Outperform	$9.94B	50.06	49.11%	―	19.47%	61.10%
DAY	76 Outperform	$11.01B	229.81	1.89%	―	13.46%	2.06%
CVLT	75 Outperform	$8.30B	104.03	25.08%	―	21.62%	-53.99%
PCTY	75 Outperform	$9.89B	44.62	20.04%	―	13.74%	10.99%
PEGA	71 Outperform	$9.27B	46.45	41.55%	0.14%	12.47%	65.19%
ESTC	70 Outperform	$8.98B	192.75	-9.65%	―	17.42%	-228.98%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%

AppFolio Corporate Events

AppFolio Board Members Resign to Avoid Conflicts

On August 7, 2025, three directors, Timothy Bliss, Alex Wolf, and Robert Donald Casey III, resigned from AppFolio‘s Board of Directors to avoid potential conflicts of interest with a new professional opportunity. Their departure was not due to any disagreements with AppFolio’s operations or policies, but rather to maintain transparency as they become significant shareholders in a company that is a customer of AppFolio.

AppFolio Appoints Tim Eaton as New CFO

On July 31, 2025, AppFolio announced its financial results for the second quarter of 2025, highlighting a 19% year-over-year revenue growth to $236 million, driven by the adoption of its AI-native platform. The company also appointed Tim Eaton as its Chief Financial Officer, effective July 30, 2025, signaling a strategic move to strengthen its financial leadership.

AppFolio Holds 2025 Annual Stockholders Meeting

AppFolio, Inc. held its 2025 Annual Meeting of Stockholders on June 13, 2025, where several key proposals were voted upon. The meeting saw the election of three Class I directors, the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm, approval of executive compensation, and a decision to hold annual advisory votes on executive compensation.