AppFolio (NASDAQ:APPF) Announces Earnings Results

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

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 Up 0.1%

APPF traded up $0.13 during trading on Thursday, reaching $217.33. 1,041,032 shares of the company’s stock were exchanged, compared to its average volume of 385,441. AppFolio has a fifty-two week low of $142.56 and a fifty-two week high of $265.02. The business has a 50 day moving average price of $211.90 and a 200 day moving average price of $182.36. The company has a market capitalization of $7.70 billion, a P/E ratio of 49.62 and a beta of 0.89.

Insider Buying and Selling at AppFolio

In other news, CFO Timothy Eaton sold 373 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $202.61, for a total value of $75,573.53. Following the completion of the transaction, the chief financial officer owned 16,714 shares in the company, valued at approximately $3,386,423.54. This represents a 2.18% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Maurice Duca sold 2,656 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $221.85, for a total transaction of $589,233.60. Following the transaction, the insider directly owned 8,000 shares of the company’s stock, valued at $1,774,800. The trade was a 24.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 141,817 shares of company stock worth $27,942,484 in the last three months. Insiders own 1.57% of the company’s stock.

Wall Street Analyst Weigh In

APPF has been the subject of a number of research analyst reports. Zacks Research lowered shares of AppFolio from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 23rd. Guggenheim began coverage on AppFolio in a research report on Wednesday, July 22nd. They set a “buy” rating and a $232.00 target price on the stock. KeyCorp restated an “overweight” rating on shares of AppFolio in a research note on Wednesday, October 14th. Keefe, Bruyette & Woods upped their price target on AppFolio from $233.00 to $255.00 and gave the company an “outperform” rating in a report on Wednesday. Finally, Weiss Ratings raised AppFolio from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. 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 MarketBeat.com, AppFolio currently has a consensus rating of “Moderate Buy” and an average target price of $245.38.

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.