AppFolio (APPF) AI Stock Analysis

• Market Cap: $6.36B
• Dividend Yield: N/A
• Average Volume (3M): 434.74K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.65
• Revenue Growth: 18.88%
• EPS Growth: 54.44%
• Country: US
• Employees: 1,634
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.39
• Shares Outstanding: 24,334,816
• 10 Day Avg. Volume: 421,819
• 30 Day Avg. Volume: 434,736
• PEG Ratio: -1.95
• Price to Book (P/B): 15.44
• Price to Sales (P/S): 8.81
• P/FCF Ratio: 35.06
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 6.48
• Enterprise Value/Gross Profit: 10.26
• Enterprise Value/Ebitda: 34.18
• 1Y Price Target: $265.00
• Price Target Upside: 47.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $188.00 ▲(4.61% Upside)
• Action: Upgraded Date: 01/31/26
• Date: Action: Upgraded 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

Consistent and improving free cash flow that closely tracks net income indicates high-quality earnings and strong cash conversion. This durable cash generation supports ongoing product investment, AI infrastructure, and organic growth initiatives while reducing reliance on external financing during cycles.

Conservative balance sheet

Very low leverage and expanding equity provide strong financial flexibility. Low debt levels let management fund R&D, AI rollout, or targeted M&A without stressing cash flow, improving resilience to industry occupancy cycles and preserving strategic optionality over the medium term.

Guided durable growth & monetization

Management's guidance implies continued high-teens revenue growth with healthy operating margins, supported by premium‑tier and AI adoption. Durable monetization levers (premium tiers, value-added services, payments) increase ARPU per unit, supporting sustainable revenue and margin expansion even as growth normalizes.

Negative Factors

Recent revenue volatility

A marked TTM revenue decline highlights meaningful recent demand or timing volatility. Sharp top-line swings raise execution risk for consistent growth, complicate forecasting, and require sustained product and sales execution to restore stable multi-period revenue trends.

Margin sensitivity

Margins have proven sensitive to compensation outcomes and mix shifts (payments, data center spend). This implies non-GAAP profitability can swing materially with incentive payouts or cost-of-revenue dynamics, creating recurring earnings volatility that weakens margin durability absent tighter cost controls.

Industry headwinds & AI reliability

Persistent operator cost pressure and occupancy weakness constrain customers' budgets and could slow platform adoption. Additionally, an industry AI reliability gap risks slower conversion to paid AI tiers, delaying monetization of AI features and reducing the pace of durable revenue upside.

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 optimization of common workflows for property management companies, as well as completes and records critical transactions in the system and give its customers access to the data they need to run their business; AppFolio Property Manager Plus, which offers customizable workflows that allow customers to digitize their existing processes, performance insights, intelligent revenue management, and integrations through selected partners and dedicated strategic account managers; and AppFolio Investment Management, a solution that is designed to enable real estate investment management organizations to manage investor relationships through enhancing transparency and streamlining certain business processes. It also provides value added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.

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

Strong overall fundamentals supported by excellent cash generation (free cash flow growing and closely matching net income) and a conservatively levered balance sheet (very low debt-to-equity). Profitability improved materially versus earlier years, but the sharp TTM revenue contraction and some margin compression versus 2024 are meaningful risks.

Income Statement

Profitability has improved materially versus earlier years, with strong margins in 2024 and TTM (Trailing-Twelve-Months) (gross margin ~63%, net margin ~22% TTM). The business rebounded from losses in 2022 to solid operating and net income in 2023–2025. The key concern is growth volatility: after strong growth in 2023–2024, TTM (Trailing-Twelve-Months) revenue shows a sharp decline (-22.5%), alongside some margin compression versus 2024 (net margin ~25.7% in 2024 to ~22.5% TTM).

Balance Sheet

The balance sheet is conservatively levered with very low debt relative to equity (debt-to-equity ~0.08 TTM (Trailing-Twelve-Months), improved from ~0.19 in 2021–2022). Equity has expanded meaningfully since 2022, supporting financial flexibility. Returns on equity are exceptionally high in 2024 and TTM (Trailing-Twelve-Months), which is a strength, though it also reflects that profitability has swung significantly over the last few years (including a negative return in 2022), indicating some earnings cyclicality/variability.

Cash Flow

Cash generation is a major strength: operating cash flow and free cash flow are both strong and growing (free cash flow up ~13% TTM (Trailing-Twelve-Months)). Free cash flow is roughly in line with net income (about 0.99x in both 2024 and TTM (Trailing-Twelve-Months)), indicating earnings are well supported by cash. A watch item is that cash flow quality was weaker in 2021–2022, but the last two years show clear normalization and strength.

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

• Technical Analysis Sentiment: Negative
• Last Price: 179.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 179.72 is below the 20-day moving average (MA) of 189.45, below the 50-day MA of 212.96, and below the 200-day MA of 238.60, indicating a bearish trend. The MACD of -12.12 indicates Positive momentum. The RSI at 33.35 is Neutral, neither overbought nor oversold. The STOCH value of 38.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APPF.

AppFolio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APPF	73 Outperform	$6.36B	45.45	26.54%	―	18.88%	54.44%
PEGA	71 Outperform	$7.55B	20.95	57.32%	0.16%	17.00%	120.21%
PCTY	70 Outperform	$5.89B	25.46	20.99%	―	13.30%	2.80%
ESTC	65 Neutral	$6.43B	-60.07	-12.84%	―	16.98%	-265.85%
CVLT	64 Neutral	$4.01B	47.85	34.48%	―	22.02%	-55.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

AppFolio Corporate Events

AppFolio appoints Saori Casey to streamlined board

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 until the 2026 Annual Meeting of Shareholders. The Board determined that Casey is an independent director under Nasdaq and SEC rules, noted there were no special arrangements underlying her selection, confirmed she will receive the same compensation and equity awards as other non-employee directors, and stated it will enter into its standard indemnification agreement with her; her extensive financial and leadership experience at Sonos, Apple, Cisco, and on the board of Houzz is expected to bolster AppFolio’s board-level financial oversight and corporate governance capabilities.

The most recent analyst rating on (APPF) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on AppFolio stock, see the APPF Stock Forecast page.

AppFolio Announces Departure of Chief Trust Officer

AppFolio, Inc. announced the departure of its former Chief Trust Officer, Matt Mazza, on November 14, 2025. In connection with his departure, a Separation Agreement was finalized on November 19, 2025, which includes financial benefits and continued medical coverage for Mr. Mazza, contingent upon his compliance with certain agreements and covenants.

The most recent analyst rating on (APPF) stock is a Buy with a $252.00 price target. To see the full list of analyst forecasts on AppFolio stock, see the APPF Stock Forecast page.

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.