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SANTA BARBARA, Calif., Oct. 22, 2026 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), a technology leader powering the future of the real estate industry, today announced its financial results for the third quarter ended September 30, 2026.

“Q3 reflects the strength and durability of our business, as new and existing customers continue to adopt our performance platform," said Shane Trigg, Chairman and CEO. "The promise of Real Estate Performance Management is helping create a future of winning with our customers, turning performance into a competitive advantage that compounds over time."

Financial Highlights for Third Quarter of 2026

Revenue grew 19% year-over-year to $296 million.Total units under management grew 8% year-over-year to 9.8 million.GAAP operating income grew 64% to $57 million, or 19.4% of revenue, compared to $35 million, or 14.1% of revenue in Q3 2025.Non-GAAP operating income grew 38% to $81 million, or 27.3% of revenue, compared to $59 million, or 23.5% of revenue in Q3 2025.Net cash provided by operating activities was $97 million, or 32.7% of revenue, compared to $86 million, or 34.5% of revenue in Q3 2025. Financial Outlook
Based on information available as of October 22, 2026, AppFolio's outlook for fiscal year 2026 follows:

Full year revenue range is increasing to $1.122 - $1.127 billion.Full year non-GAAP operating margin range as a percentage of revenue is now 26.5% - 27.5%.Diluted weighted average shares outstanding are expected to be approximately 36 million for the full year. Conference Call Information
As previously announced, the Company will host a conference call today, October 22, 2026, at 2:00 p.m. Pacific Time (PT), 5:00 p.m. Eastern Time (ET), to discuss the Company’s third quarter financial results. A live webcast of the call will be available at: https://edge.media-server.com/mmc/p/jcjgqabv. To access the call by phone, please go to the following link: https://register-conf.media-server.com/register/BI59a3520d44444834b693d21914243efb, and you will be provided with dial-in details. A replay of the webcast will also be available for a limited time on AppFolio’s Investor Relations website at https://ir.appfolioinc.com/news-events/events.

The Company also provides announcements regarding its financial results and other matters, including SEC filings, investor events, and press releases, on its Investor Relations website at https://ir.appfolioinc.com/, as a means of disclosing material nonpublic information and for complying with AppFolio's disclosure obligations under Regulation FD.

About AppFolio
AppFolio is a technology leader powering the future of the real estate industry. Our innovative platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit ir.appfolioinc.com.

Investor Relations Contact:
Lori Barker
[email protected] 

Use of Non-GAAP Financial Measures
Reconciliations of current and historical non-GAAP financial measures to AppFolio’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables entitled “Statement Regarding the Use of Non-GAAP Financial Measures.”

AppFolio is unable, at this time, to provide GAAP equivalent guidance measures on a forward-looking basis for non-GAAP operating margin because certain items that impact this measure are uncertain, out of our control, or cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements that are not statements of historical fact contained in this press release, and can be identified by words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “future’” “predicts, “projects,” “target,” “seeks,” “contemplates,” “should,” “will,” “would” or similar expressions and the negatives of those expressions. In particular, forward-looking statements contained in this press release relate to future operating results and financial position, including the Company's fiscal year 2026 financial outlook, anticipated future expenses and investments, the Company's business opportunities, the impact of the Company's strategic actions and initiatives, the potential benefits and effect of AI and its impact on the Company’s plans, objectives, expectations and capabilities.

Forward-looking statements represent AppFolio's current beliefs and expectations based on information currently available and speak only as of the date the statement is made. Forward-looking statements are subject to numerous known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements include those risks, uncertainties and other factors described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 5, 2026, as such risk factors may be updated from time to time in our subsequent filings with the SEC, and the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recently filed Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as well as in the Company's other filings with the SEC. You should read this press release with the understanding that the Company's actual future results may be materially different from the results expressed or implied by these forward-looking statements.

The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
   September 30,
2026 December 31,
2025Assets    Current assets    Cash and cash equivalents $258,536 $106,967Investment securities—current  48,740  144,256Accounts receivable, net  52,535  36,873Prepaid expenses and other current assets  47,561  65,218Total current assets  407,372  353,314Property and equipment, net  20,316  23,228Operating lease right-of-use assets  14,227  15,924Capitalized software development costs, net  11,122  11,324Goodwill  96,410  96,410Intangible assets, net  31,153  38,826Deferred income taxes  32,210  58,823Long-term investments  87,668  77,033Other long-term assets  15,193  14,085Total assets $715,671 $688,967Liabilities and Stockholders’ Equity     Current liabilities    Accounts payable $5,656 $4,123Accrued employee expenses  43,071  59,774Accrued expenses  28,679  20,829Other current liabilities  24,476  22,121Total current liabilities  101,882  106,847Operating lease liabilities  24,876  33,287Other liabilities  6,399  6,254Total liabilities  133,157  146,388Stockholders’ equity  582,514  542,579Total liabilities and stockholders’ equity $715,671 $688,967 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)         Three Months Ended
September 30, Nine Months Ended
September 30,  2026   2025   2026  2025Revenue(1)$295,691  $249,353  $839,029 $702,630Costs and operating expenses:       Cost of revenue (exclusive of depreciation and amortization)(2) 105,580   91,476   303,150  254,801Sales and marketing(2) 48,623   35,912   130,068  103,745Research and product development(2) 53,128   54,037   153,754  144,469General and administrative(2) 25,953   27,446   75,920  72,733Depreciation and amortization 4,996   5,436   15,001  17,541Total costs and operating expenses 238,280   214,307   677,893  593,289Income from operations 57,411   35,046   161,136  109,341Other (loss) income, net (1)  (4)  567  41Interest income, net 2,204   1,690   5,423  6,109Income before provision for income taxes 59,614   36,732   167,126  115,491Provision for income taxes 13,636   3,086   37,180  14,482Net income$45,978  $33,646  $129,946 $101,009Net income per common share:       Basic$1.30  $0.94  $3.66 $2.80Diluted$1.29  $0.93  $3.65 $2.78Weighted average common shares outstanding       Basic 35,436   35,889   35,507  36,036Diluted 35,578   36,259   35,616  36,368 (1) The following table presents our revenue categories:

 Three Months Ended
September 30, Nine Months Ended
September 30,  2026  2025  2026  2025Subscription Services$61,525 $53,752 $179,547 $155,738Value Added Services 231,948  192,092  652,778  536,943Other 2,218  3,509  6,704  9,949Total revenue$295,691 $249,353 $839,029 $702,630 (2) Includes stock-based compensation expense as follows:

 Three Months Ended
September 30, Nine Months Ended
September 30,  2026  2025  2026  2025Costs and operating expenses:       Cost of revenue (exclusive of depreciation and amortization)$1,315 $1,241 $3,649 $3,947Sales and marketing 3,586  3,443  10,559  9,336Research and product development 8,839  9,076  25,639  24,182General and administrative 6,860  7,033  19,213  17,998Total stock-based compensation expense$20,600 $20,793 $59,060 $55,463 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands) Three Months Ended
September 30, Nine Months Ended
September 30,  2026   2025   2026   2025 Cash from operating activities       Net income$45,978  $33,646  $129,946  $101,009 Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization 4,996   5,436   15,001   17,541 Amortization of operating lease right-of-use assets 572   517   1,698   1,525 Gain on lease termination and modification (1,547)  —   (1,547)  — Amortization of costs capitalized to obtain revenue contracts, net 3,428   2,768   9,896   8,187 Deferred income taxes 10,609   30,303   26,613   17,118 Stock-based compensation, including as amortized 20,600   20,793   59,060   55,463 Other 3   (233)  (520)  (1,281)Changes in operating assets and liabilities:       Accounts receivable (2,094)  (1,803)  (16,012)  (10,000)Prepaid expenses and other assets 160   (4,251)  (9,933)  (15,677)Accounts payable 881   894   1,534   1,746 Operating lease liabilities (4,941)  (1,075)  (7,325)  (3,177)Accrued expenses and other liabilities 18,121   (988)  10,257   4,661 Net cash provided by operating activities 96,766   86,007   218,668   177,115 Cash from investing activities       Purchases of available-for-sale investments (46,195)  (102,541)  (92,135)  (166,575)Proceeds from sales of available-for-sale investments —   —   140,154   202,662 Proceeds from maturities of available-for-sale investments 1,810   32,800   47,400   76,620 Purchases of property and equipment (14)  (1,336)  (242)  (1,841)Proceeds from sale of property and equipment 75   —   75   — Capitalization of software development costs (983)  (936)  (3,537)  (2,414)Purchases of long-term investments —   —   (10,000)  (75,000)Cash paid in business acquisition, net of cash acquired —   —   —   (906)Net cash (used in) provided by investing activities (45,307)  (72,013)  81,715   32,546 Cash from financing activities       Proceeds from stock option exercises and the issuance of common stock under the Employee Stock Purchase Plan 1,084   953   2,082   1,081 Tax withholding for net share settlement (7,228)  (12,332)  (21,706)  (31,430)Purchase of common stock (4,180)  —   (129,190)  (145,723)Net cash used in financing activities (10,324)  (11,379)  (148,814)  (176,072)Net increase in cash, cash equivalents and restricted cash 41,135   2,615   151,569   33,589 Cash, cash equivalents and restricted cash       Beginning of period 217,651   73,728   107,217   42,754 End of period$258,786  $76,343  $258,786  $76,343    RECONCILIATION FROM GAAP TO NON-GAAP RESULTS
(UNAUDITED)
(in thousands, except per share data)
         Three Months Ended
September 30, Nine Months Ended
September 30,    2026   2025   2026   2025 Costs and operating expenses:      GAAP cost of revenue (exclusive of depreciation and amortization)$105,580  $91,476  $303,150  $254,801   Stock-based compensation expense (1,315)  (1,241)  (3,649)  (3,947) Non-GAAP cost of revenue (exclusive of depreciation and amortization)$104,265  $90,235  $299,501  $250,854  GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue 36%  37%  36%  36% Non-GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue 35%  36%  36%  36%           GAAP sales and marketing$48,623  $35,912  $130,068  $103,745   Stock-based compensation expense (3,586)  (3,443)  (10,559)  (9,336) Non-GAAP sales and marketing$45,037  $32,469  $119,509  $94,409  GAAP sales and marketing as a percentage of revenue 16%  14%  16%  15% Non-GAAP sales and marketing as a percentage of revenue 15%  13%  14%  13%           GAAP research and product development$53,128  $54,037  $153,754  $144,469   Stock-based compensation expense (8,839)  (9,076)  (25,639)  (24,182) Non-GAAP research and product development$44,289  $44,961  $128,115  $120,287  GAAP research and product development as a percentage of revenue 18%  22%  18%  21% Non-GAAP research and product development as a percentage of revenue 15%  18%  15%  17%           GAAP general and administrative$25,953  $27,446  $75,920  $72,733   Stock-based compensation expense (6,860)  (7,033)  (19,213)  (17,998) Non-GAAP general and administrative$19,093  $20,413  $56,707  $54,735  GAAP general and administrative as a percentage of revenue 9%  11%  9%  10% Non-GAAP general and administrative as a percentage of revenue 6%  8%  7%  8%           GAAP depreciation and amortization$4,996  $5,436  $15,001  $17,541   Amortization of stock-based compensation capitalized in software development costs (153)  (241)  (634)  (723)  Amortization of purchased intangibles (2,558)  (2,558)  (7,673)  (7,673) Non-GAAP depreciation and amortization$2,285  $2,637  $6,694  $9,145  GAAP depreciation and amortization as a percentage of revenue 2%  2%  2%  2% Non-GAAP depreciation and amortization as a percentage of revenue 1%  1%  1%  1%    Three Months Ended
September 30, Nine Months Ended
September 30,    2026   2025   2026   2025 Income from operations:        GAAP income from operations$57,411  $35,046  $161,136  $109,341   Stock-based compensation expense 20,600   20,793   59,060   55,463   Amortization of stock-based compensation capitalized in software development costs 153   241   634   723   Amortization of purchased intangibles 2,558   2,558   7,673   7,673  Non-GAAP income from operations$80,722  $58,638  $228,503  $173,200           Operating margin:         GAAP operating margin 19.4%  14.1%  19.2%  15.6%  Stock-based compensation expense as a percentage of revenue 7.0   8.3   7.0   7.9   Amortization of stock-based compensation capitalized in software development costs as a percentage of revenue —   0.1   0.1   0.1   Amortization of purchased intangibles as a percentage of revenue 0.9   1.0   0.9   1.1  Non-GAAP operating margin 27.3%  23.5%  27.2%  24.7%          Net income (loss):        GAAP net income$45,978  $33,646  $129,946  $101,009   Stock-based compensation expense 20,600   20,793   59,060   55,463   Amortization of stock-based compensation capitalized in software development costs 153   241   634   723   Amortization of purchased intangibles 2,558   2,558   7,673   7,673   Income tax effect of adjustments (4,608)  (9,582)  (14,408)  (23,182) Non-GAAP net income$64,681  $47,656  $182,905  $141,686           Net income per share, basic:        GAAP net income per share, basic$1.30  $0.94  $3.66  $2.80   Non-GAAP adjustments to net income 0.53   0.39   1.49   1.13  Non-GAAP net income per share, basic$1.83  $1.33  $5.15  $3.93           Net income per share, diluted:        GAAP net income per share, diluted$1.29  $0.93  $3.65  $2.78   Non-GAAP adjustments to net income 0.53   0.38   1.49   1.12  Non-GAAP net income per share, diluted$1.82  $1.31  $5.14  $3.90            Weighted-average shares used in GAAP and non-GAAP per share calculation         Basic 35,436   35,889   35,507   36,036   Diluted 35,578   36,259   35,616   36,368  Statement Regarding the Use of Non-GAAP Financial Measures

We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Non-GAAP presentation of income from operations, costs and operating expenses, operating margin, net income, and net income per share. These measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, amortization of stock-based compensation capitalized in software development costs, amortization of purchased intangibles, and the related income tax effect of these adjustments, as applicable and described below. Non-GAAP operating margin is calculated as non-GAAP operating income from operations as a percentage of revenue. We use each of these non-GAAP financial measures internally to assess and compare operating results across reporting periods, for internal budgeting and forecasting purposes, and to evaluate our financial performance. We believe these non-GAAP financial measures also provide useful supplemental information to investors and facilitate the analysis of our operating results and comparison of operating results across reporting periods.

In particular, we believe these non-GAAP financial measures are useful to investors and others in assessing our operating performance due to the following factors:

Stock-based compensation expense and amortization of stock-based compensation capitalized in software development costs. We utilize stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of our stockholders while ensuring long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period. Amortization of purchased intangibles. We view amortization of purchased intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period. Income tax effects of adjustments. We utilize a fixed long-term projected tax rate in our computation of non-GAAP income tax effects to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a financial projection that excludes the direct impact of other non-GAAP adjustments. The projected rate, which we have determined to be 22% and 21% for 2026 and 2025, respectively, considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. We periodically re-evaluate this tax rate, as necessary, for significant events, based on relevant tax law changes, and material changes in the forecasted geographic earnings mix. Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and can exclude expenses that may have a material impact on our reported financial results. As such, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the tables above. We encourage investors to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

The market expects AppFolio (APPF - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 22. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis property management software maker is expected to post quarterly earnings of $1.77 per share in its upcoming report, which represents a year-over-year change of +35.1%.

Revenues are expected to be $293.84 million, up 17.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for AppFolio?For AppFolio, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.71%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that AppFolio will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that AppFolio would post earnings of $1.67 per share when it actually produced earnings of $1.71, delivering a surprise of +2.40%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

AppFolio doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Thousands of real estate operators at FUTURE are winning the next era of property management with Real Estate Performance Management. The new Realm-X extends that advantage — handling multi-step work, remembering business context, and building custom workflows and dashboards from a prompt, across all plans.

SAN DIEGO, Sept. 29, 2026 (GLOBE NEWSWIRE) --  AppFolio (Nasdaq: APPF), the technology leader powering the future of the real estate industry, today announced new innovations at FUTURE: The Real Estate Conference by AppFolio, expanding AppFolio Realm-X and the AppFolio Performance Platform. The Performance Platform already holds each customer’s permissions, policies, workflows, and business context; the new Realm-X puts more of that context to work. The announcements advance the vision AppFolio has for Real Estate Performance Management (RPM), helping operators move beyond task efficiency to deliver outcomes for teams, residents, and investors.

The New Realm-X Handles Multi-Step Work, Remembers, and Builds From a Prompt

The new Realm-X stays through the whole ask, handling multi-step work, remembering the conversation, and building what’s described in the moment. Realm-X Flows and Realm-X Performers handle the processes a business has already defined; the new Realm-X handles what comes up in between. New capabilities put that power within reach of every team member:

Memory provides more personalization by remembering and understanding the user based on previous conversations.Knowledge Base gives Realm-X a repository of a customer’s documents and policies for additional context.Skills let a user create and share prompts, making them repeatable across teams. For example, when a leasing agent calls in sick, a manager can use a “reassign showings” Skill to redistribute tours to available team members, with user approval.Prompt-to-Flow and Prompt-to-Dashboard let a user describe the workflow or dashboard in plain language for Realm-X to build. Together, these capabilities make it easier for teams to build and scale repeatable ways of working. Realm-X AI actions completed on AppFolio are up sevenfold year-over-year — real work performed on operators’ behalf. The new Realm-X is available with all AppFolio plans, now including the Realm-X Connector for Anthropic’s Claude, first introduced in June 2026.

“We believe the most powerful technology in this industry should be available to every customer. The Performance Platform already knows how our customers’ businesses run, and the new Realm-X uses that knowledge. The result isn’t simply more efficiency. It’s better performance for teams, residents, and investors,” said Kyle Triplett, chief product officer at AppFolio.

A Connected System of Action, A Growing Suite of Performers

Realm-X and the Realm-X Performer suite work from the same platform, business context, and governance, rather than operating as disconnected agents sitting in different parts of a technology stack, and operate within the permissions and guardrails each customer sets, with human oversight. The goal is connected AI that gets more capable the more of it a business puts to work – and that’s showing up in what each Performer delivers.

Leasing Performer boosts showings by up to 35%, a third of them from after-hours leads.Maintenance Performer resolves one in four work orders directly with the resident.Resident Messenger Performer fully resolves over 30% of conversations on the spot, day or night.Accounting Performer beta customers report saving an average of 17 hours per month. Receptionist Performer is the newest example of this approach. It answers incoming calls, handles simple questions on the spot, and routes anything else to the right person or Performer — so every caller reaches someone who can help, at any hour. Receptionist Performer is customizable with a range of voice options available at launch.

Built In, Not Bolted On

The AppFolio Performance Platform gives customers an AI-native foundation to practice RPM: a system of record that connects their business, a system of action that does the work, and a system of growth that creates value across their ecosystem. One data model ties it together, giving customers the flexibility to work with their data where they work and build their business their way.

At FUTURE, AppFolio announced new capabilities that expand the platform across accounting and resident experience.

In accounting, AppFolio is expanding entity-based accounting, portfolio cash management, and credit card accounting. The Realm-X Accounting Performer, now available to customers, automates bill entry, financial close, and budgeting. Coming soon, it will add reconciliation, connecting bank data directly to the ledger through AppFolio's partnership with Column.In resident experience, AppFolio is extending the platform across the moments that matter most in a resident's journey. A new partnership with Snappt adds document fraud detection inside FolioScreen™ Trusted Renter, catching fraudulent income documents before an application is approved. Online Certified Funds at Move-In enables residents to pay move-in costs with guaranteed funds instead of a check or a trip to the bank. All of it now runs through FolioSpace™, AppFolio’s resident experience app, to which every resident has transitioned. Proof in Practice

Across the platform, customer performance is showing up in the numbers:

Stratton Vantage Property Management: Nearly 40% of residents upgraded their move-in package through Resident Onboarding Lift in August 2026, paying about a third less than they'd pay for the same services on their own.Enclave Property Management: 57 Realm-X Flows have completed more than 25,000 workflows in the past 12 months.MultiFamily Property Group: After-hours leads are converting 42% more often — demand that used to go unanswered overnight is now revenue.
Eucalyptus Real Estate, a family-owned operator managing nearly 14,000 units and 106 separate tax entities across Oklahoma City, Wichita, and Topeka, previously ran its three cities independently — on paper checks, paper work orders, scanned applications, and fax machines. Since moving to the AppFolio Performance Platform less than a year ago, 85% of Eucalyptus’s receivables are now paid online, leasing runs digitally from application to signature, a single automated Flow delivers move-in disclosures consistently across every property, and 53% of maintenance requests now resolve without a work order ever being created.

“We didn’t move to AppFolio just to change tools. We moved to change how we run this business,” said Megan McGinnis, president of Eucalyptus. “Three cities now work the same way, on the same platform, with one source of truth. That’s what lets us grow with confidence instead of just growing.”

About AppFolio
AppFolio is the technology leader powering the future of the real estate industry. Our innovative performance platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit appfolio.com.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements that are not statements of historical fact contained in this press release, and can be identified by words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “future,” “predicts,” “projects,” “target,” “seeks,” “contemplates,” “should,” “will,” “would” or similar expressions and the negatives of those expressions. In particular, forward-looking statements contained in this press release include statements relating to the anticipated features, benefits, availability and timing of the new Realm-X , Realm-X Performers, and the new accounting and resident experience capabilities announced in this press release, including those offered through AppFolio’s relationships with Anthropic, Column and Snappt; the results customers may achieve using these capabilities; and AppFolio's plans, objectives and expectations for the AppFolio Performance Platform and Real Estate Performance Management.

Forward-looking statements represent AppFolio’s current beliefs and expectations based on information currently available and speak only as of the date the statement is made. Forward-looking statements are subject to numerous known and unknown risks, uncertainties and other factors that may cause AppFolio’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The risks, uncertainties and other factors that may cause actual results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements include AppFolio’s ability to successfully develop, launch and deliver the new Realm-X capabilities as and when anticipated; customer adoption of and satisfaction with these capabilities; the accuracy, reliability and performance of AI-enabled capabilities, including actions taken on customers’ behalf; the costs of making AI-enabled capabilities available across all AppFolio plans; AppFolio’s reliance on third parties, including Anthropic, Column and Snappt, and the continued performance and availability of their technology and services; the extent to which results reported by individual customers, including beta customers, are indicative of results other customers may achieve; evolving laws and regulations governing artificial intelligence, data privacy and security, tenant screening, fair housing, consumer protection and payments; and competition in the market for AI-enabled real estate technology as well as those risks, uncertainties and other factors described in the section entitled “Risk Factors” in AppFolio’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which was filed with the SEC on February 5, 2026, and the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in AppFolio’s most recently filed Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as well as in its other filings with the SEC. You should read this press release with the understanding that AppFolio’s actual future results may be materially different from the results expressed or implied by these forward-looking statements.

AppFolio undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

For more information, please contact:
AppFolio
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3f00ca82-5849-47d7-8e89-69654e016ecf

AppFolio (APPF - Free Report) closed at $214.28 in the latest trading session, marking a -4.16% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.

Heading into today, shares of the property management software maker had gained 15.18% over the past month, outpacing the Computer and Technology sector's gain of 2.81% and the S&P 500's gain of 2.08%.

The upcoming earnings release of AppFolio will be of great interest to investors. The company is predicted to post an EPS of $1.78, indicating a 35.88% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $294.05 million, up 17.92% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.91 per share and revenue of $1.12 billion. These totals would mark changes of +30.62% and +18.32%, respectively, from last year.

Any recent changes to analyst estimates for AppFolio should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.21% rise in the Zacks Consensus EPS estimate. AppFolio is currently sporting a Zacks Rank of #2 (Buy).

In the context of valuation, AppFolio is at present trading with a Forward P/E ratio of 32.35. This expresses a premium compared to the average Forward P/E of 21 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Timothy Mathias Eaton, the chief financial officer of AppFolio, Inc. (APPF +0.12%), disposed of 949 shares of Class A Common Stock on August 10, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$189,000Shares sold949Post-transaction common shares (directly held)17,087Post-transaction value$3.4 millionTransaction value based on SEC Form 4 weighted average sale price ($199.54); post-transaction value based on the August 10 market close ($199.54).

Key questionsWas this a discretionary market transaction?
The disposal was non-discretionary and occurred automatically to cover minimum tax obligations arising from the vesting of performance-based and time-based restricted stock units.What was the scope of the underlying vesting event?
The shares were withheld in connection with eight separate award tranches granted between March 2023 and January 2026 under the company's 2015 and 2025 Omnibus Incentive Plans.How substantial is the executive's remaining equity position?
Eaton maintains a direct holding of 17,087 shares with a market value of $3.41 million as of the August 10 market close.What is the recent performance context for the stock?
As of the August 10 transaction date, the company's shares had a one-year total return of -30%, while the stock was priced at $203.02 as of the August 11 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$203.02Market Capitalization$7.3 billionRevenue (TTM)$1.0 billionNet Income (TTM)$157.5 millionCompany SnapshotAppFolio provides a comprehensive cloud-based platform for the real estate industry, offering integrated solutions for accounting, reporting, marketing, leasing, maintenance, workflow automation, and communication services to property management companies.The company generates revenue through subscription-based software-as-a-service offerings, including AppFolio Property Manager Core and other specialized modules that serve as systems of record for small to mid-sized property management operations.AppFolio's primary customer base consists of small and mid-market property management companies in the United States seeking to streamline operations and improve efficiency through cloud-based technology solutions.AppFolio is a market-leading provider of cloud-based software solutions for the real estate industry, with a $7.3 billion market capitalization and $1.0 billion in TTM revenue. The company maintains a competitive advantage through its integrated platform approach, which consolidates multiple operational functions into a single system of record, reducing implementation complexity and increasing customer switching costs. With a net income of $157.5 million TTM, AppFolio demonstrates strong profitability and operational leverage in the software-as-a-service sector.

What this transaction means for investorsEaton's filing is a small tax withholding, which is the kind of filing that really says nothing about how the finance chief views the stock. The numbers he oversees as CFO, however, are where AppFolio's story gets interesting. The company reported last month that revenue grew 19% to $281 million while non-GAAP operating margin reached 27%, so this is a software business that is both growing near 20% and genuinely profitable, a combination the market often pays up for. Growth is coming from AI that's being increasingly woven into the product, which nearly a third of units now access through AppFolio's premium tiers. On the earnings call, Eaton pointed to margin discipline even as the company invests, though he flagged that added data-center capacity for AI usage is nudging costs higher.

That last point is the tension Eaton has to manage. AppFolio's AI features are winning customers and lifting revenue, but running them costs real money in compute, so the question underneath the strong margins is whether the company can keep expanding them while pouring more into the AI that drives the growth.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppFolio. The Motley Fool has a disclosure policy.

AppFolio (APPF - Free Report) closed the most recent trading day at $146.56, moving +1.51% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.

Shares of the property management software maker witnessed a loss of 12.46% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.98%, and the S&P 500's gain of 0.08%.

The upcoming earnings release of AppFolio will be of great interest to investors. On that day, AppFolio is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 21.01%. Simultaneously, our latest consensus estimate expects the revenue to be $276.98 million, showing a 17.58% escalation compared to the year-ago quarter.

APPF's full-year Zacks Consensus Estimates are calling for earnings of $6.75 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +27.6% and +17.47%, respectively.

Investors should also note any recent changes to analyst estimates for AppFolio. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AppFolio currently has a Zacks Rank of #2 (Buy).

Digging into valuation, AppFolio currently has a Forward P/E ratio of 21.39. This expresses a premium compared to the average Forward P/E of 18 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow APPF in the coming trading sessions, be sure to utilize Zacks.com.