AppFolio (APPF) AI Stock Analysis

• Market Cap: $9.16B
• Dividend Yield: N/A
• Average Volume (3M): 326.93K
• Price to Earnings (P/E): 45.0
• Beta (1Y): 0.68
• 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: 392,416
• 30 Day Avg. Volume: 326,934
• 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: 1.07
• Enterprise Value/Revenue: 10.85
• Enterprise Value/Gross Profit: 17.25
• Enterprise Value/Ebitda: 60.68
• 1Y Price Target: $313.40
• Price Target Upside: 25.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.32
• Revenue Forecast (FY): $944.39M

• Rating: 75 Outperform
• Price Target: $286.00 ▲(14.24% Upside)

AppFolio's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

AI Adoption

High adoption of AI solutions suggests AppFolio's innovation aligns with industry trends, potentially driving future growth and competitive advantage.

Strategic Partnerships

Strategic partnerships expand service offerings and customer base, fostering long-term growth and market penetration.

Negative Factors

Operational Efficiency Challenges

Flat operational efficiency can limit profit margins and hinder the ability to scale effectively, impacting long-term profitability.

Headcount Growth

Rapid headcount growth without proportional revenue increase may strain resources and affect operational efficiency.

Stockholders' Equity Decrease

A decrease in stockholders' equity can signal financial instability, potentially affecting investor confidence and future funding.

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 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 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	211.65M	186.14M	51.24M	4.14M	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: Negative
• Last Price: 250.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 250.35 is above the 20-day moving average (MA) of 245.83, below the 50-day MA of 256.95, and above the 200-day MA of 239.04, indicating a neutral trend. The MACD of 0.70 indicates Negative momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 71.72 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
PEGA	76 Outperform	$10.15B	40.53	51.96%	0.15%	17.00%	120.21%
APPF	75 Outperform	$9.16B	45.00	44.69%	―	18.88%	54.44%
PCTY	71 Outperform	$8.05B	37.05	20.42%	―	13.30%	2.80%
DAY	71 Outperform	$10.98B	―	-5.71%	―	11.73%	-376.77%
ESTC	65 Neutral	$9.89B	―	-9.65%	―	17.42%	-228.98%
CVLT	62 Neutral	$5.63B	71.93	32.87%	―	22.02%	-55.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

AppFolio Corporate Events

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.

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.

The most recent analyst rating on (APPF) stock is a Buy with a $295.00 price target. To see the full list of analyst forecasts on AppFolio stock, see the APPF Stock Forecast page.