AppFolio (NASDAQ:APPF) Announces Earnings Results

AppFolio (NASDAQ:APPF) announced its quarterly earnings results on Thursday. The software maker reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.79 by $0.03, FiscalAI reports. The firm had revenue of $295.69 million for the quarter, compared to the consensus estimate of $294.46 million. AppFolio had a return on equity of 32.42% and a net margin of 15.13%.

Here are the key takeaways from AppFolio’s conference call:

• Q3 revenue rose 19% year over year to $296 million, while GAAP operating margin increased to 19.4% and non-GAAP operating margin reached 27.3%.
• Units on platform grew 8% to 9.8 million, customers increased 6% to 23,121, and value-added services revenue climbed 21%, led by risk mitigation, screening, payments, and newer AI-enabled offerings.
• AppFolio raised full-year 2026 revenue guidance to $1.122 billion-$1.127 billion, implying 18.3% midpoint growth, and increased its non-GAAP operating margin outlook to 26.5%-27.5%.
• Management said unit expansion among existing customers is pacing slower than last year and expects that trend to continue into the fourth quarter, although new customer acquisition and retention remain healthy.
• The company generated $97 million in operating cash flow, ended the quarter with $307 million in cash and current investments, and reported continued efficiency gains from scale and AI despite increased sales and marketing investment.

AppFolio Stock Performance

Shares of APPF stock traded up $0.13 during midday trading on Thursday, hitting $217.33. 1,041,032 shares of the company were exchanged, compared to its average volume of 385,441. AppFolio has a 52 week low of $142.56 and a 52 week high of $265.02. The firm has a market capitalization of $7.70 billion, a P/E ratio of 49.62 and a beta of 0.89. The firm’s 50 day moving average price is $211.90 and its two-hundred day moving average price is $182.36.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. Guggenheim initiated coverage on AppFolio in a research report on Wednesday, July 22nd. They issued a “buy” rating and a $232.00 price objective for the company. Zacks Research lowered AppFolio from a “strong-buy” rating to a “hold” rating in a report on Wednesday, September 23rd. DA Davidson set a $240.00 price target on AppFolio in a research note on Monday, September 28th. Keefe, Bruyette & Woods increased their price target on AppFolio from $233.00 to $255.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, Wall Street Zen downgraded AppFolio from a “buy” rating to a “hold” rating in a report on Sunday, July 26th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $245.38.

Insiders Place Their Bets

In other AppFolio news, major shareholder Maurice Duca sold 7,200 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $194.72, for a total value of $1,401,984.00. Following the transaction, the insider directly owned 24,224 shares of the company’s stock, valued at $4,716,897.28. This represents a 22.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 141,817 shares of company stock valued at $27,942,484. 1.57% of the stock is owned by corporate insiders.

AppFolio Company Profile

AppFolio, Inc is a cloud-based software company that provides technology solutions for the real estate industry. Its platform is designed primarily for property management businesses, helping them manage accounting, leasing, maintenance, communications, payments, reporting and other operational activities through a centralized system.

The company’s products serve a range of property managers, including those overseeing residential, commercial, community association, student housing and senior living properties.