AppFolio Inc. (APPF)
NASDAQ:APPF
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AppFolio
(NASDAQ:APPF)
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Rating:78Outperform
Price Target:
$184.00
▲(17.59% Upside)
Action:Reiterated
Date:06/16/26
The score is driven primarily by strong financial performance (profitability, cash generation, and low leverage) and a constructive earnings outlook with raised guidance and margin expansion. Offsetting factors are only neutral technicals (still below longer-term moving averages) and a relatively high P/E with no dividend support.
Positive Factors
Strong cash generation
AppFolio converts earnings into cash effectively: FCF roughly matches net income and operating cash covers earnings multiple times. That cash generation supports buybacks, reinvestment, and gives balance sheet flexibility to fund product development or weather cyclical slowdowns without relying on external financing.
Negative Factors
Revenue growth deceleration
Trailing growth slowed meaningfully from prior double-digit expansion to near single digits, signaling potential market saturation or slower new-account momentum. Prolonged deceleration would make it harder to realize modeled margin gains and puts pressure on returns that rely on continued unit or ARPU expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
AppFolio converts earnings into cash effectively: FCF roughly matches net income and operating cash covers earnings multiple times. That cash generation supports buybacks, reinvestment, and gives balance sheet flexibility to fund product development or weather cyclical slowdowns without relying on external financing.
Read all positive factors
AppFolio Key Performance Indicators (KPIs)
AppFolio (APPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.36B
Dividend YieldN/A
Average Volume (3M)382.96K
Price to Earnings (P/E)35.6
Beta (1Y)0.43
Revenue Growth20.72%
EPS Growth-21.76%
CountryUS
Employees1,634
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)4.24
Shares Outstanding24,028,908
10 Day Avg. Volume408,024
30 Day Avg. Volume382,964
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 Cap0.97
Enterprise Value/Revenue5.24
Enterprise Value/Gross Profit8.29
Enterprise Value/Ebitda26.10
Forecast
1Y Price Target
$223.00Price Target Upside42.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)6.81
Revenue Forecast (FY)$1.12B
AppFolio Business Overview & Revenue Model
Company Description
AppFolio, Inc., along with its affiliated companies, specializes in delivering cloud-based business management platforms tailored for the real estate sector. The company's core offerings include AppFolio Property Manager, a robust platform designe...
How the Company Makes Money
AppFolio primarily makes money by selling subscription access to its cloud software platforms to property managers and real estate operators, typically priced based on usage factors such as the number of units/doors managed and the specific produc...
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 | 199.90M | 183.76M | 169.87M | 36.63M | -30.41M | 35.78M |
| 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
Negative
156.47
Price Trends
161.21
Negative
168.39
Negative
206.02
Negative
Market Momentum
-2.19
Positive
40.27
Neutral
13.82
Positive
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 156.47 is below the 20-day moving average (MA) of 163.24, below the 50-day MA of 161.21, and below the 200-day MA of 206.02, indicating a bearish trend. The MACD of -2.19 indicates Positive momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 13.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.41B | 21.26 | 22.36% | ― | 11.31% | 16.71% | |
79 Outperform | $6.13B | 16.72 | 37.43% | ― | 17.26% | ― | |
78 Outperform | $5.36B | 35.59 | 30.90% | ― | 20.72% | -21.76% | |
73 Outperform | $5.03B | 14.91 | 50.21% | 0.16% | 3.50% | 75.14% | |
68 Neutral | $5.36B | 79.22 | 35.35% | ― | 18.89% | -7.44% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
APPF
AppFolio
151.50
-77.03
-33.71%
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PEGA
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PCTY
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101.06
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ESTC
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58.97
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AppFolio Corporate Events
Executive/Board ChangesShareholder Meetings
AppFolio Shareholders Back Board, Auditor and Executive Pay
Positive
Jun 15, 2026
AppFolio, Inc. held its 2026 Annual Meeting of Stockholders on June 12, 2026, with 20,842,533 Class A shares and 11,235,106 Class B shares present or represented by proxy, reflecting the company’s dual-class share structure where Class B sha...
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.