AppFolio (APPF)
NASDAQ:APPF
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AppFolio
(NASDAQ:APPF)
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Rating:76Outperform
Price Target:
$172.00
▲(9.93% Upside)
Action:UpgradedDate:04/24/26
The score is driven primarily by strong financial performance (profitability, low leverage, and robust free cash flow) and an upbeat earnings call with raised revenue and margin guidance. These positives are partially offset by weak technicals (price below key moving averages with negative MACD) and a relatively high P/E with no dividend support.
Positive Factors
Multi-year recurring revenue scale-up
AppFolio has grown recurring subscription revenue substantially over multiple years, moving from $359M in 2021 to ~ $995M TTM. This durable SaaS revenue base supports predictable cash flows, economies of scale in R&D and GTM, and creates a structural foundation for sustainable growth and reinvestment over the next several quarters.
Negative Factors
Revenue growth slowdown and margin variability
A sharp deceleration in revenue growth and notable gross margin decline indicate structural headwinds or mix shifts that could pressure operating leverage. If slower unit expansion or lower-margin mix persists, sustaining prior margin profiles and meeting higher guidance targets will be harder, raising execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year recurring revenue scale-up
AppFolio has grown recurring subscription revenue substantially over multiple years, moving from $359M in 2021 to ~ $995M TTM. This durable SaaS revenue base supports predictable cash flows, economies of scale in R&D and GTM, and creates a structural foundation for sustainable growth and reinvestment over the next several quarters.
Read all positive factors
AppFolio (APPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.91B
Dividend YieldN/A
Average Volume (3M)347.41K
Price to Earnings (P/E)33.2
Beta (1Y)0.49
Revenue Growth20.72%
EPS Growth-21.76%
CountryUS
Employees1,634
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.61
Shares Outstanding24,028,908
10 Day Avg. Volume282,213
30 Day Avg. Volume347,411
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 Cap0.98
Enterprise Value/Revenue5.85
Enterprise Value/Gross Profit9.24
Enterprise Value/Ebitda29.67
Forecast
1Y Price Target
$232.25Price Target Upside48.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)6.56
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:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents strong top-line growth, accelerating profitability, robust AI adoption, and raised full-year guidance — indicating solid operational and financial momentum. Key challenges include cost pressures related to payments mix and increased data center spend to support AI, and reliance on value-added services and premium-tier adoption to sustain revenue and margin expansion. Overall, the positives (revenue growth, margin improvement, high AI/product adoption, and raised guidance) materially outweigh the risks described.Positive Updates
Strong Revenue Growth
Q1 revenue of $262 million, up 20% year-over-year (from $218M in Q1 2025), reflecting continued strength in new business wins and expanded product adoption.
Negative Updates
Cost Pressure from Payments Mix and Data Center Spend
Cost of revenue (exclusive of depreciation and amortization) remained flat at 36% of revenue; management cited offsetting factors including payments product mix and additional data center spending to support growing AI usage, which could continue to pressure gross margins if usage trends change.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 revenue of $262 million, up 20% year-over-year (from $218M in Q1 2025), reflecting continued strength in new business wins and expanded product adoption.
Read all positive updates
Company Guidance
AppFolio raised its 2026 financial guidance to revenue of $1.11 billion to $1.125 billion (implying ~17.5% growth at the midpoint), expects non‑GAAP operating margin of 26%–28% (vs. 24.7% in 2025), sees cost of revenue excluding D&A roughly flat as a percent of revenue, anticipates modest declines in operating expenses as a percent of revenue despite continued hiring, expects 2026 revenue seasonality to be mostly consistent with 2025, projects diluted weighted‑average shares of approximately 36 million for the year, and has $125 million remaining on its share repurchase program (after deploying $125 million in Q1 to buy 702,500 shares and repurchasing nearly 1.4 million shares in 2025–2026 to date); management said these priorities are intended to grow operating cash flow, manage dilution, and drive durable customer performance.AppFolio Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 995.33M | 950.82M | 794.20M | 620.45M | 471.88M | 359.37M |
| Gross Profit | 629.41M | 582.83M | 492.59M | 382.37M | 280.06M | 215.43M |
| EBITDA | 196.10M | 183.76M | 169.87M | 29.59M | -36.06M | 22.17M |
| Net Income | 151.96M | 140.92M | 204.07M | 2.70M | -68.12M | 1.03M |
Balance Sheet | ||||||
| Total Assets | 580.56M | 722.27M | 626.68M | 408.89M | 381.22M | 408.02M |
| Cash, Cash Equivalents and Short-Term Investments | 151.65M | 251.47M | 278.50M | 211.71M | 160.07M | 122.45M |
| Total Debt | 36.98M | 71.45M | 41.75M | 44.74M | 53.59M | 57.61M |
| Total Liabilities | 110.33M | 179.69M | 107.39M | 111.58M | 115.67M | 110.64M |
| Stockholders Equity | 470.23M | 542.58M | 519.29M | 297.31M | 265.55M | 297.38M |
Cash Flow | ||||||
| Free Cash Flow | 233.85M | 238.95M | 186.14M | 46.42M | 18.82M | 2.67M |
| Operating Cash Flow | 237.94M | 242.10M | 188.16M | 60.28M | 25.36M | 35.39M |
| Investing Cash Flow | 67.77M | 10.24M | -151.76M | -55.58M | -6.47M | -110.46M |
| Financing Cash Flow | -215.22M | -187.89M | -43.40M | -25.96M | -6.16M | -7.35M |
AppFolio Technical Analysis
Neutral
156.47
Price Trends
168.80
Negative
196.71
Negative
228.32
Negative
Market Momentum
-5.64
Negative
44.78
Neutral
60.87
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 156.47 is above the 20-day moving average (MA) of 155.93, below the 50-day MA of 168.80, and below the 200-day MA of 228.32, indicating a neutral trend. The MACD of -5.64 indicates Negative momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 60.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.91B | 33.20 | 30.90% | ― | 20.72% | -21.76% | |
70 Outperform | $5.68B | 41.43 | 20.52% | ― | 12.08% | 9.49% | |
69 Neutral | $6.11B | 54.82 | 50.21% | 0.16% | 3.50% | 75.14% | |
65 Neutral | $4.35B | 48.48 | 35.35% | ― | 18.89% | -7.44% | |
63 Neutral | $4.81B | 224.68 | -9.44% | ― | 17.29% | 38.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
APPF
AppFolio
173.10
-38.96
-18.37%
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PEGA
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PCTY
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109.60
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-41.49%
ESTC
Elastic
48.61
-34.31
-41.38%
AppFolio Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
AppFolio Enhances CEO Shane Trigg’s Compensation Agreement
Positive
Apr 10, 2026
On April 9, 2026, AppFolio, Inc. entered into a Second Amended and Restated Employment Agreement with President and CEO Shane Trigg, establishing at-will employment and raising his compensation package to include a minimum $570,000 annual base sal...
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.