AppFolio (NASDAQ:APPF) Posts Quarterly Earnings Results, Misses Estimates By $0.08 EPS

AppFolio (NASDAQ:APPF) issued its quarterly earnings data on Thursday. The software maker reported $1.14 EPS for the quarter, missing the consensus estimate of $1.22 by ($0.08), Zacks reports. AppFolio had a return on equity of 25.97% and a net margin of 22.48%.

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

• AppFolio reported strong results with Q4 revenue of $248M (+22% YoY) and full-year revenue of $951M (+20% YoY)$1.1–$1.12B with non-GAAP operating margin of 25.5%–27.5%.
• Platform adoption accelerated as units under management rose to 9.4 million (≈+8% YoY) from 22,096 customers, adding over 500,000 units in H2 2025 and with Plus/Max premium tiers exceeding 25% adoption.
• Management emphasized its AI-native strategy—including Realm‑X Performers, Realm‑X Flows, and partner integrations (e.g., Genesis, Second Nature)—claiming rapid customer adoption (98% using one or more AI capabilities) and positioning AppFolio as a unifying platform for property managers.
• Cost dynamics were mixed—cost of revenue rose to 36% due to payments mix, data center spend for AI, and a $15M bonus over‑attainment that reduced full‑year non‑GAAP margin to 24.7% (26.3% excluding the bonus); headcount increased 4% to 1,702 as investments continue.

AppFolio Trading Down 5.0%

NASDAQ APPF traded down $10.90 on Thursday, reaching $207.10. 635,852 shares of the company were exchanged, compared to its average volume of 327,121. The stock has a market capitalization of $7.44 billion, a P/E ratio of 37.18 and a beta of 0.78. The business’s fifty day moving average price is $228.14 and its 200 day moving average price is $250.17. AppFolio has a fifty-two week low of $190.24 and a fifty-two week high of $326.04.

Insiders Place Their Bets

In other AppFolio news, General Counsel Evan Pickering sold 334 shares of the firm’s stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $243.67, for a total value of $81,385.78. Following the completion of the transaction, the general counsel owned 2,969 shares of the company’s stock, valued at $723,456.23. This trade represents a 10.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO William Shane Trigg sold 3,947 shares of AppFolio stock in a transaction on Monday, November 17th. The stock was sold at an average price of $240.45, for a total transaction of $949,056.15. Following the sale, the chief executive officer directly owned 51,530 shares of the company’s stock, valued at approximately $12,390,388.50. This trade represents a 7.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 8,745 shares of company stock valued at $2,097,550 over the last quarter. 4.68% of the stock is owned by insiders.

Hedge Funds Weigh In On AppFolio

Hedge funds have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. raised its holdings in shares of AppFolio by 48.8% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 192 shares of the software maker’s stock worth $53,000 after acquiring an additional 63 shares in the last quarter. Advisory Services Network LLC acquired a new stake in AppFolio during the third quarter valued at approximately $55,000. Employees Retirement System of Texas acquired a new stake in shares of AppFolio during the 3rd quarter worth about $58,000. Harvest Fund Management Co. Ltd bought a new position in AppFolio in the 3rd quarter valued at $69,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of AppFolio by 23.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 384 shares of the software maker’s stock worth $84,000 after purchasing an additional 73 shares in the last quarter. Hedge funds and other institutional investors own 85.19% of the company’s stock.

Key Headlines Impacting AppFolio

Here are the key news stories impacting AppFolio this week:

• Positive Sentiment: Q4 results showed strong operating profitability (net margin ~22.5% and ROE ~26%), supporting the company’s long-term unit economics and cash-generation story. AppFolio, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Analyst coverage remains largely bullish with a median price target materially above current levels, indicating upside expectations over the medium term. Is AppFolio One of the Best Stocks to Buy For Investment?
• Neutral Sentiment: Market previews and analyst notes highlighted the quarter in advance and discussed key metrics investors should watch, useful context but unlikely to move price by itself. Insights Ahead: AppFolio’s Quarterly Earnings
• Negative Sentiment: Reported EPS of $1.14 missed the consensus of $1.22, which traders treated as a near-term earnings disappointment and amplified selling. Press Release / Earnings Details
• Negative Sentiment: Management’s 2026 revenue guidance was viewed as underwhelming relative to expectations; several outlets cite this as the main reason shares slipped despite strong quarter metrics. AppFolio shares slip over 4% as 2026 revenue guidance disappoints
• Negative Sentiment: Call/transcript coverage notes the EPS miss and the market reaction — the conference call amplified concerns and coincided with the intraday drop. Earnings call transcript: AppFolio Q4 misses EPS, stock drops

Wall Street Analyst Weigh In

Several research firms have issued reports on APPF. UBS Group started coverage on shares of AppFolio in a research note on Friday, December 12th. They set a “buy” rating and a $285.00 target price on the stock. Wells Fargo & Company reaffirmed a “buy” rating on shares of AppFolio in a report on Thursday, January 15th. DA Davidson reissued a “buy” rating and issued a $325.00 target price on shares of AppFolio in a report on Wednesday, November 19th. KeyCorp reaffirmed an “overweight” rating on shares of AppFolio in a research note on Tuesday, December 16th. Finally, Weiss Ratings lowered shares of AppFolio from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, January 16th. Eight analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, AppFolio presently has an average rating of “Moderate Buy” and an average price target of $306.00.

AppFolio Company Profile

AppFolio, Inc is a Santa Barbara–based provider of cloud-based software solutions for the property management and legal industries. Founded in 2006 by former software executives, the company went public on the NASDAQ under the symbol APPF in 2015. Its original offering, AppFolio Property Manager, automates accounting, marketing, leasing, and maintenance functions for residential, commercial, student housing, and community association managers.

In 2019, AppFolio expanded its portfolio with the acquisition of MyCase, a web-based legal practice management platform for small to mid-size law firms.