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AppFolio (APPF - Free Report) came out with quarterly earnings of $1.82 per share, beating the Zacks Consensus Estimate of $1.78 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.25%. A quarter ago, it was expected that this property management software maker would post earnings of $1.67 per share when it actually produced earnings of $1.71, delivering a surprise of +2.4%.

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

AppFolio, which belongs to the Zacks Internet - Software industry, posted revenues of $295.69 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.47%. This compares to year-ago revenues of $249.35 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

AppFolio shares have lost about 6.6% since the beginning of the year versus the S&P 500's gain of 13.3%.

What's Next for AppFolio?While AppFolio has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for AppFolio was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.81 on $286.96 million in revenues for the coming quarter and $6.90 on $1.12 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Unity Software Inc. (U - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on November 5.

This company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +70%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Unity Software Inc.'s revenues are expected to be $564.84 million, up 20% from the year-ago quarter.

AppFolio NASDAQ: APPF reported third-quarter 2026 revenue of $296 million, up 19% from $249 million a year earlier, as the real estate software provider added customers and units on its platform and expanded adoption of value-added services.

GAAP operating income rose 64% year over year to $57 million, representing 19.4% of revenue, compared with $35 million, or 14.1% of revenue, in the prior-year quarter. Non-GAAP operating income increased 38% to $81 million, or 27.3% of revenue, from $59 million, or 23.5% of revenue, in the third quarter of 2025.

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Chairman and CEO Shane Trigg said the company’s results reflected “strong, consistent performance,” while highlighting its annual FUTURE industry event, which hosted 2,500 real estate operators and innovators. The event focused on the company’s real estate performance management strategy, which combines a unified system of record, AI-enabled workflows and tools intended to help customers grow their businesses.

Revenue Growth and Customer Metrics Subscription services revenue increased 14% to $62 million, driven by new customer wins, growth in units under management and customer upgrades to premium tiers, Chief Financial Officer Tim Eaton said. Value-added services revenue climbed 21% to $232 million, led by FolioGuard risk-mitigation services, FolioScreen offerings, online payments and growth in managed units.

AppFolio ended the quarter with approximately 9.8 million units on its platform, an 8% increase from 9.1 million a year earlier. Its customer count grew 6% to 23,121 from 21,759. Eaton said new-customer unit acquisition remained strong and retention was healthy and consistent with historical averages.

However, unit expansion among existing customers continued to grow at a slower pace than in the prior year, a trend the company had previously discussed during its second-quarter call.

Subscription services revenue: $62 million, up 14% year over year. Value-added services revenue: $232 million, up 21% year over year. Units on platform: 9.8 million, up 8% year over year. Customers: 23,121, up 6% year over year. Operating cash flow: $97 million. Cash equivalents and current investment securities: $307 million at quarter-end. AI, Banking and Platform Expansion Trigg outlined AppFolio’s continuing expansion of its AI suite, including Realm-X, Performers, Flows and a connector for Claude. He said the new Realm-X can retain context across conversations, use customer-provided documents and policies in a knowledge base, and build workflows and dashboards from prompts.

The company said beta customers using Resident Messenger Performer resolved more than 30% of conversations without escalation. Accounting Performer saved users an average of 17 hours per month, while Leasing Performer increased showings by as much as 35%, according to Trigg.

AppFolio also introduced Receptionist Performer at its FUTURE event. The product is designed to answer incoming calls, address basic questions and route other inquiries to the appropriate person or Performer. The company said its Claude connector is now available to all customers and is intended to keep actions taken by third-party models within AppFolio’s platform permissions and guardrails.

On the financial-services side, Trigg said the company is expanding Stack Banking partnerships with Enterprise Bank & Trust and Column. Through the Column relationship, bank data flows into AppFolio, with transactions matched as they arrive rather than only at month-end.

The AppFolio Stack Integration Marketplace now connects 5.6 million units across nearly 100 partners, the company said. Apartment List was among the newest partners, offering a pay-per-lease billing model aimed at attracting qualified renters.

Margins and Operating Expenses Eaton said third-quarter comparisons with the prior year were affected by two timing items. The third quarter of 2025 included an incremental year-to-date accrual for overachievement of the annual corporate bonus plan, which reduced prior-year margins. In addition, AppFolio’s FUTURE event occurred in the third quarter of 2026, compared with the fourth quarter in 2025.

Non-GAAP cost of revenue, excluding depreciation and amortization, was 35% of revenue, down from 36% a year earlier. Sales and marketing expense was 15% of revenue, up from 13%, reflecting higher advertising and promotion, the company’s larger FUTURE conference and additional sales capacity.

Research and development expense declined to 15% of revenue from 18%, while general and administrative expense fell to 6% of revenue from 8%. Eaton attributed those declines to the prior-year bonus accrual, operational efficiency and productivity gains from AI tools and systems.

AppFolio exited the quarter with 1,744 employees, up 2% from the prior-year period. The company said it continued to scale revenue ahead of headcount.

Raised 2026 Outlook AppFolio raised its full-year 2026 revenue guidance to a range of $1.122 billion to $1.127 billion, implying midpoint growth of 18.3%. The company now expects full-year non-GAAP operating margin of 26.5% to 27.5%, compared with 24.7% in 2025.

For the fourth quarter, Eaton said AppFolio expects new-customer acquisition and retention to remain healthy. Existing-customer unit expansion is expected to remain below the pace of the prior-year fourth quarter and be comparable with the third quarter.

The company plans to continue investing in sales and marketing, including additional sales capacity, industry events and targeted go-to-market programs. Despite those investments, AppFolio expects full-year operating expenses as a percentage of revenue to decline modestly as it scales and applies AI across internal operations.

About AppFolio (NASDAQ:APPF)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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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.

First Citizens Bank & Trust Co. lowered its position in AppFolio, Inc. (NASDAQ:APPF – Free Report) by 63.3% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 3,378 shares of the software maker’s stock after selling 5,825 shares during the quarter. First Citizens Bank & Trust Co.’s holdings in AppFolio were worth $677,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently made changes to their positions in APPF. Riverbridge Partners LLC bought a new position in shares of AppFolio in the first quarter worth $13,906,000. SG Americas Securities LLC increased its holdings in shares of AppFolio by 666.2% during the first quarter. SG Americas Securities LLC now owns 25,185 shares of the software maker’s stock valued at $3,975,000 after purchasing an additional 21,898 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of AppFolio during the second quarter valued at about $3,004,000. Public Employees Retirement System of Ohio bought a new stake in shares of AppFolio during the second quarter valued at about $1,043,000. Finally, Royal Bank of Canada raised its stake in shares of AppFolio by 19.6% during the first quarter. Royal Bank of Canada now owns 52,466 shares of the software maker’s stock valued at $8,280,000 after purchasing an additional 8,582 shares in the last quarter. Institutional investors and hedge funds own 85.19% of the company’s stock.

Insider Activity at AppFolio In other news, major shareholder Maurice Duca sold 7,200 shares of AppFolio stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $181.72, for a total value of $1,308,384.00. Following the transaction, the insider directly owned 34,198 shares of the company’s stock, valued at $6,214,460.56. This trade represents a 17.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 143,817 shares of company stock valued at $28,302,484 in the last ninety days. Company insiders own 1.57% of the company’s stock.

AppFolio Price Performance APPF stock opened at $212.13 on Friday. The firm has a market cap of $7.51 billion, a PE ratio of 48.43 and a beta of 0.89. AppFolio, Inc. has a 12 month low of $142.56 and a 12 month high of $265.02. The firm has a 50 day simple moving average of $210.83 and a 200 day simple moving average of $180.89. AppFolio (NASDAQ:APPF – Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The software maker reported $1.71 earnings per share for the quarter, topping the consensus estimate of $1.69 by $0.02. The business had revenue of $281.12 million during the quarter, compared to analyst estimates of $277.35 million. AppFolio had a return on equity of 32.42% and a net margin of 15.13%. The company’s revenue was up 19.3% compared to the same quarter last year. During the same period last year, the company posted $1.38 EPS. As a group, sell-side analysts expect that AppFolio, Inc. will post 5.18 earnings per share for the current year.

Wall Street Analysts Forecast Growth Several equities analysts have commented on APPF shares. Wall Street Zen cut shares of AppFolio from a “buy” rating to a “hold” rating in a research note on Sunday, July 26th. Zacks Research lowered shares of AppFolio from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 23rd. Guggenheim assumed coverage on shares of AppFolio in a research note on Wednesday, July 22nd. They issued a “buy” rating and a $232.00 price target for the company. Weiss Ratings upgraded shares of AppFolio from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Finally, DA Davidson set a $240.00 price objective on shares of AppFolio in a research note on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, AppFolio has a consensus rating of “Moderate Buy” and an average price target of $249.75.

Read Our Latest Report on AppFolio

About AppFolio (Free Report)

AppFolio, Inc (NASDAQ:APPF) develops cloud-based software and technology solutions for the real estate industry. Its platform is designed primarily for property managers and real estate businesses, helping them manage operations, accounting, leasing, maintenance, communication, payments and other property-related workflows from a centralized system.

The company’s offerings include AppFolio Property Manager and related services for residential, commercial and community association properties.

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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.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends AppFolio (APPF - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this property management software maker is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for AppFolio is 190.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 30.4% this year, crushing the industry average, which calls for EPS growth of 26.9%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, AppFolio has an S/TA ratio of 1.63, which means that the company gets $1.63 in sales for each dollar in assets. Comparing this to the industry average of 0.6, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And AppFolio is well positioned from a sales growth perspective too. The company's sales are expected to grow 18.2% this year versus the industry average of 8%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for AppFolio have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.

Bottom LineAppFolio has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that AppFolio is a potential outperformer and a solid choice for growth investors.

UBS downgraded AppFolio (Nasdaq: APPF), the property management software provider, to 'neutral' from 'buy', saying a recovery of about 40% from June lows leaves the shares reflecting slower growth.

The bank raised its price target to $220 from $200, based on 18.5 times calendar 2028 enterprise value to free cash flow (company value divided by cash generated), up from 16 times.

UBS cut its financial year 2027 revenue growth forecast to 16% from 17%, below the Street consensus of 17.5%, because of slower unit growth.

Checks with about 15 customers and industry data point to interest rates, financing constraints and a slowing multifamily construction cycle, prompting UBS to cut its unit growth estimate to 4% from 6%.

Mixed demand for premium Plus and Max tiers points to slower average revenue per unit growth, with UBS lowering its forecast to 5.5% from 6.3%, reducing subscription revenue growth to 11% from 13%.

Value-added services, such as payments and screening, remain the main growth support, and UBS kept its financial year 2027 growth forecast for them at about 17.5%.

Customers called the company's artificial intelligence (AI) products promising but early, and praised its open API strategy, while greater adoption could prompt upgrades because more complex API access is reserved for higher-priced plans.

Customers showed little appetite for replacing their property management system with in-house AI tools.

At about 21 times calendar 2027 enterprise value to free cash flow, the shares trade at a premium to vertical software peers, which UBS considers warranted by faster growth.

The bank sees risk and reward as more balanced, with less room for further gains.

AppFolio (APPF - Free Report) ended the recent trading session at $204.24, demonstrating a +1.86% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.2%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.

The property management software maker's stock has dropped by 10.59% in the past month, falling short of the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.

Market participants will be closely following the financial results of AppFolio in its upcoming release. The company's upcoming EPS is projected at $1.78, signifying a 35.88% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue 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.

It's also important for investors to be aware of any recent modifications to analyst estimates for AppFolio. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AppFolio presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, AppFolio is holding a Forward P/E ratio of 29.02. This expresses a premium compared to the average Forward P/E of 19.07 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

T Stamp (NASDAQ:IDAI – Get Free Report) and AppFolio (NASDAQ:APPF – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability This table compares T Stamp and AppFolio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets T Stamp -272.78% -137.70% -84.06% AppFolio 15.13% 32.42% 25.82% Valuation and Earnings This table compares T Stamp and AppFolio”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio T Stamp $3.14 million 5.51 -$8.32 million ($2.01) -1.53 AppFolio $950.82 million 7.62 $140.92 million $4.38 46.67 AppFolio has higher revenue and earnings than T Stamp. T Stamp is trading at a lower price-to-earnings ratio than AppFolio, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk T Stamp has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, AppFolio has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership 16.3% of T Stamp shares are owned by institutional investors. Comparatively, 85.2% of AppFolio shares are owned by institutional investors. 4.5% of T Stamp shares are owned by company insiders. Comparatively, 1.6% of AppFolio shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations This is a summary of recent ratings for T Stamp and AppFolio, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score T Stamp 0 1 0 0 2.00 AppFolio 0 1 9 2 3.08 AppFolio has a consensus target price of $246.62, suggesting a potential upside of 20.64%. Given AppFolio’s stronger consensus rating and higher probable upside, analysts clearly believe AppFolio is more favorable than T Stamp.

Summary AppFolio beats T Stamp on 14 of the 15 factors compared between the two stocks.

About T Stamp (Get Free Report)

T Stamp Inc. develops and markets identity authentication software solutions for government and enterprise partners, and peer-to-peer markets worldwide. It develops proprietary artificial intelligence-powered solutions, researching and leveraging machine learning, artificial intelligence, biometric science, cryptography, and data mining to deliver insightful identity and trust predictions that identify and defend against fraudulent identity attacks, protect sensitive user information, and extend the reach of digital services through global accessibility. It uses the Irreversibly Transformed Identity Token technology combined with a data architecture that can use one or multiple sources of biometric or other identifying data. The company also offers solutions for privacy and data protection, biometric multi-factor authentication, document validation, identity verification, geolocation, duplicate detection, age estimation, and biometric capture, as well as crypto security and compliance, and trusted message. It serves banking/fintech; humanitarian and development services; cryptocurrency and digital assets; biometrically secured email and digital communication; KYC/AML compliance; government and law enforcement; P2P transactions, social media, and sharing economy; and real estate, travel, and healthcare industries. T Stamp Inc. was incorporated in 2016 and is headquartered in Atlanta, Georgia.

About AppFolio (Get Free Report)

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions. The company also provides value-added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.

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SANTA BARBARA, Calif., Sept. 24, 2026 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ: APPF), the technology leader powering the future of the real estate industry, today named Column N.A., Member FDIC, a nationally chartered bank built for modern fiduciaries, as its featured banking partner, an exclusive designation.

Through the partnership, AppFolio customers will gain access to new financial capabilities built for property management within the AppFolio Performance Platform — available only through Column. Full details will be announced at FUTURE: The Real Estate Conference by AppFolio, Sept. 28-Oct. 1, in San Diego.

Property managers are increasingly financial partners to their owners, expected to deliver faster access to funds, timely visibility, strong controls, and detailed reporting. Yet property management and banking systems have remained disconnected, leaving finance teams to bridge the gap through manual reconciliation and fragmented payment workflows. By bringing AppFolio’s trusted real estate data, accounting intelligence, and AI-powered workflows together with Column’s advanced bank core, ledger, and payments technology, the companies are laying the foundation for intelligent financial operations.

“Property managers run their business in one system while their money sits in another, and every gap between the two gets closed by someone on a finance team, by hand, after the fact. Column built its own core and ledger, so the bank can connect straight into the platform rather than sit behind it. When the bank and the books share the same data, operators act on what's happening today instead of reconstructing last month. That's the standard we're setting for financial operations on the AppFolio Performance Platform,” said Adam Feinstein, senior vice president of product at AppFolio.

Column built and operates its own core banking platform, ledger, and Federal Reserve connections. The bank processes more than $4.5 trillion in transaction volume annually and provides banking infrastructure to companies including Mercury, Ramp, and Wise. Its dedicated property management banking team pairs real estate trust accounts with relationship managers and customer engineers who understand property management workflows and compliance requirements.

“Column was built so banking can move at the speed of technology. AppFolio’s AI-native Performance Platform turns trusted real estate data into intelligent action; Column brings the regulated accounts, ledger, and payment infrastructure that extend that action into the movement of money. Together, we’re creating a future where owner payments move faster, books stay current, and finance teams can focus their expertise on owners, strategy, and growth,” said George Cheng, GM and Head of Vertical Banking at Column.

“AppFolio has been a trusted technology partner as MAXX Property Management has grown, and this integration with Column brings our banking and property operations into a more connected process. It gives our accounting team cleaner information and greater confidence in the numbers, so we can scale while keeping operations smooth for our team. That’s the kind of real performance we’re building toward,” said Corey Bohner, principal broker and owner of MAXX Property Management.

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.

About Column

Column N.A., Member FDIC, is a nationally chartered bank built from the ground up for businesses with complex fiduciary responsibilities, from fintech platforms moving money at scale to property managers safeguarding client funds. Founded by Plaid co-founder William Hockey, Column built its own core, ledger, and technology stack without legacy banking middleware. Today, Column processes more than $4.5 trillion in annual transaction volume and provides banking infrastructure to companies including Brex, Ramp, Rippling, Wise, Mercury, and Flex. Column’s dedicated property management banking team brings that same infrastructure to trust-account management, owner disbursements, reconciliation, and real-time financial operations. Learn more at column.com/property-management.

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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ea6f163e-5c79-42be-ade1-f27a4ced21a2

In the latest trading session, AppFolio (APPF - Free Report) closed at $214.85, marking a -2.22% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.17% for the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 0.4%.

The property management software maker's stock has climbed by 0.4% in the past month, exceeding the Computer and Technology sector's gain of 0.37% and the S&P 500's loss of 1.29%.

Analysts and investors alike will be keeping a close eye on the performance of AppFolio in its upcoming earnings disclosure. The company is expected to report EPS of $1.78, up 35.88% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $294.05 million, indicating a 17.92% upward movement from the same quarter last year.

APPF's full-year Zacks Consensus Estimates are calling for earnings of $6.91 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +30.62% and +18.32%, respectively.

Investors should also note any recent changes to analyst estimates for AppFolio. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.21% upward. AppFolio currently has a Zacks Rank of #2 (Buy).

In terms of valuation, AppFolio is currently trading at a Forward P/E ratio of 31.8. This indicates a premium in contrast to its industry's Forward P/E of 20.16.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

After reaching an important support level, AppFolio (APPF - Free Report) could be a good stock pick from a technical perspective. APPF surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Shares of APPF have been moving higher over the past four weeks, up 13.2%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that APPF could be poised for a continued surge.

The bullish case solidifies once investors consider APPF's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.

Investors may want to watch APPF for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: AppFolio (APPF - Free Report) Santa Barbara, CA-based AppFolio provides a cloud-based platform for the real estate industry, serving property managers across single-family, multifamily, affordable, commercial, student housing and community associations. The software supports daily operations and transactions, including resident screening, digital payments and insurance-related risk mitigation, central to leasing and property management workflows.

APPF is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. APPF has a Momentum Style Score of B, and shares are up 1.5% over the past four weeks.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.16 to $6.91 per share. APPF boasts an average earnings surprise of +4.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, APPF should be on investors' short list.

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.

Maurice J. Duca, an insider at AppFolio (APPF +0.00%), sold 15,800 shares of Class A common stock on Aug. 14, 2026, and Aug. 17, 2026, according to a SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$3.2 millionShares sold15,800Shares sold (directly held)7,000Shares sold (indirectly held)8,800Post-transaction shares101,000Post-transaction shares (directly held)31,662Post-transaction shares (indirectly held)69,356Post-transaction value$19.8 millionTransaction value based on SEC Form 4 weighted average sale price ($200.11); post-transaction value based on Aug. 17, 2026, market close ($195.97).

Key questionsWhat was the context of the disposition?
The sales were executed through a Rule 10b5-1 trading plan that Duca adopted on March 13, 2026, which allows insiders to set a prearranged schedule for trading stock to avoid concerns about nonpublic information.How does this impact the insider's equity position?
Following the disposal of 15,800 shares, the insider retains approximately 101,000 shares of Class A common stock, with the remaining position valued at approximately $19.8 million as of the Aug. 17, 2026, market close.What is the current breakdown of ownership?
Equity is distributed between direct holdings of 31,662 shares and indirect holdings of 69,356 shares held through a Family Trust and a pension trust for which the reporting person serves as sole trustee.How has the stock performed leading up to this transaction?
AppFolio shares declined 26% over the one-year period ending on the Aug. 17, 2026, transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$195.97Market Capitalization$8.1 billionRevenue (TTM)$1 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 SaaS offerings, including AppFolio Property Manager Core and other specialized modules that serve as systems of record for small to mid-sized property management firms.AppFolio's primary customers are small to mid-sized property management companies in the United States seeking to digitize and streamline their operational workflows and financial management processes.AppFolio is a market-leading provider of cloud-based software solutions for the real estate property management vertical, with a $8.1 billion market capitalization and $1 billion in TTM revenue. The company leverages a recurring subscription model to drive predictable revenue streams while maintaining strong profitability, with TTM net income of $157.5 million. AppFolio's competitive advantage derives from its integrated platform approach, which consolidates multiple operational functions into a single system of record, reducing customer switching costs and driving high retention rates within its target market.

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What this transaction means for investorsThere were many sales in this transaction, occurring over several days. On the surface, it may seem like a warning sign that Duca sold so many direct and indirect shares, but this wasn't a spur-of-the-moment decision. This was already part of a trading plan established in March. On top of that, Duca still holds a significant number of shares, both directly and indirectly, to support continued alignment with the company's success. This is a notable transaction, but it also doesn't appear to be one shareholders should be overly worried about, as it appears more routine than anything else.

The stock price is trying to regain some footing in 2026, but it is still down 1.6% as of this writing. In comparison, the S&P 500 is up 12.6% during the same period. AppFolio did show some progress in its 2026 second-quarter earnings report, reporting that revenue grew 19% from the prior-year period to $281 million. It also boosted its 2026 full-year revenue range between $1.11 billion and $1.12 billion. Part of what may be weighing on shares is the fear that artificial intelligence (AI) could reduce the need for services from companies like AppFolio. There have been several sell-offs this year in software stocks due to AI, so more choppy trading may be ahead for shareholders.

Jack Delaney 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.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

AppFolio (APPF - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this property management software maker is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for AppFolio is 190.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 30.6% this year, crushing the industry average, which calls for EPS growth of 26.8%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, AppFolio has an S/TA ratio of 1.63, which means that the company gets $1.63 in sales for each dollar in assets. Comparing this to the industry average of 0.61, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And AppFolio is well positioned from a sales growth perspective too. The company's sales are expected to grow 18.3% this year versus the industry average of 8.3%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for AppFolio. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.

Bottom LineAppFolio has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions AppFolio well for outperformance, so growth investors may want to bet on it.

AppFolio's annual conference delivers the strategies that separate market leaders from the rest.

SANTA BARBARA, Calif., Aug. 20, 2026 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, today unveiled the official programming and speaker lineup for FUTURE 2026: The Real Estate Conference by AppFolio. Taking place September 28 - October 1, 2026 at the Manchester Grand Hyatt in San Diego, the annual event brings together real estate operators and innovators to master the strategy, skills, and platform driving the next era of real estate performance.

The Property Performance Gap in real estate is real and widening. Benchmark data from ProfitCoach reveals that property managers in the top quartile are more than twice as profitable as the rest of the industry — yet the average operator still spends two-thirds of their time on reactive, routine work. FUTURE 2026 is where the operators committed to closing that gap come together to learn how to put Real Estate Performance Management (RPM) into practice and explore the platform that makes it possible.

FUTURE 2026 will feature mainstage visionaries, industry experts, and executive leaders, including a special evening performance by four-time GRAMMY Award winner and global music legend Lenny Kravitz. Dr. Maya Shankar, acclaimed cognitive scientist, former White House Senior Policy Advisor, and host of A Slight Change of Plans, and Andre Agassi, Grand Slam champion, author, and philanthropist, will deliver the opening and closing keynotes. Mainstage presentations will also feature AppFolio Chairman and CEO Shane Trigg, Chief Marketing Officer Lisa Horner, Chief Technology Officer Matthew Baird, Chief Product Officer Kyle Triplett, and Vice President & Industry Principal Stacy Holden, among others.

In addition to the mainstage programming, attendees will have the opportunity to explore over 40 expert-led sessions, interactive workshops, and hands-on implementation sessions covering critical topics such as practical AI application, high-performance operating models, and resident engagement. The roster of speakers includes:

Real estate economists and researchers sharing market trends and forecasts: featuring Brad Hargreaves, Founder and Editor-in-Chief at Thesis Driven; Jay Parsons, Rental Housing Economist; Daniel Craig, Chief Strategy Officer at ProfitCoach; James Scott, Director of the Real Estate Transformation Lab at MIT; Rob Filley, Co-Head of U.S. Market Analytics at Green Street; and Chris Porter, Senior Vice President at John Burns Research and Consulting.Practitioners and advisors delivering management frameworks and operational strategies: with Dom Beveridge, Principal at 20for20; Puneet Singh, Managing Partner at PKS Law Group; Josh Holtzman, EOS Implementer and Author; and Deb Newell, PhD-ABD, Founder at Real-Time Consulting Services.Forward-thinking operators sharing real-world wins: with practical perspectives from over 50 confirmed property management leaders, including Moses Kagan, Co-Founder and Partner at Adaptive Realty, Donna Smith, President of Real Estate Management at Enclave, JC Castillo, President and CEO at Velo Residential, and Tony Julianelle, CEO and Partner at Atlas Real Estate.
“Real estate is changing, and the operators pulling ahead aren’t waiting to see how it plays out. They’re already delivering a whole new level of performance for their residents, investors, teams, and communities,” said Lisa Horner, Chief Marketing Officer at AppFolio. “That’s RPM. It’s where our industry is headed and at FUTURE, you’ll learn it firsthand from operators who have transformed their businesses.”

Attendees at FUTURE 2026 can expect to:

Evolve Their Operating Model: Gain practical, step-by-step strategies to move beyond manual task execution and focus on the high-impact outcomes that drive long-term business value.Experience Agentic AI in Action: Go hands-on with AppFolio Realm-X Performers in lab-style workshops and leave with AI agents already implemented in your business — independently handling complex workflows and freeing your team for strategic, relationship-driven growth.Unify Their Operational Stack: Discover how AppFolio's performance platform — extended through AppFolio Stack partners and agent-to-agent connectors, starting with Anthropic’s Claude — closes the Property Performance Gap, eliminates data silos, improves security and governance, and gives operators the clarity and control to act on what matters most.Leave Ready to Perform: Walk away from expert-led implementation workshops — included with registration — with AppFolio already configured and ready to deliver outcomes from day one. Now in its third year, the conference will also host the FUTUREist Awards, spotlighting trailblazing real estate professionals who are making a lasting difference through community impact, innovative leadership, and expanding access to housing. This year’s shortlisted honorees are:

FUTUREist in Community: Ascend Real Estate and Property Management; Focus Property Management; PJ Morgan Real EstateFUTUREist in Housing: AGB Real Estate; Integrated Asset Management; West Indianapolis Development Corp.FUTUREist in Leadership: Artcraft Management; Dean Callan & Company Property Management Services, Inc.; Red Door Management LLC.
Winners will be celebrated live during a special mainstage presentation.

To learn more about the agenda, view the full speaker lineup, or register for FUTURE 2026, visit futureconference.com.

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.

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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2707a213-749a-4786-91bc-1c4bcf3da076

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: AppFolio (APPF - Free Report) Santa Barbara, CA-based AppFolio provides a cloud-based platform for the real estate industry, serving property managers across single-family, multifamily, affordable, commercial, student housing and community associations. The software supports daily operations and transactions, including resident screening, digital payments and insurance-related risk mitigation, central to leasing and property management workflows.

APPF is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. APPF has a Momentum Style Score of B, and shares are up 9.4% over the past four weeks.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.15 to $6.90 per share. APPF boasts an average earnings surprise of +4.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, APPF should be on investors' short list.

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.

Evan Pickering, general counsel of AppFolio, Inc. (APPF +0.12%), sold 661 shares of Class A Common Stock on August 5, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold661Transaction value$132,524Post-transaction shares (directly held)5,894Post-transaction value$1.14 millionTransaction value based on SEC Form 4 weighted average sale price ($200.49); post-transaction value based on the August 5 market close ($193.00).

Key questionsWhat is the regulatory context of this sale?
The transaction was automated under a Rule 10b5-1 plan, which was adopted by Pickering on March 13. These plans allow corporate insiders to schedule share sales in advance to satisfy personal financial goals while operating within SEC guidelines for avoiding material non-public information.How does this move impact the insider's total position?
Following this sale, Pickering retains direct ownership of 5,894 shares. This remaining stake represents just about 0.02% of the company's outstanding equity and is valued at $1.14 million based on the market close as of the transaction date.What has been the recent trajectory of the stock?
As of the August 5 transaction date, shares were priced at $193.00, reflecting a one-year return of -30% as of that date. The stock was priced at $194.11 as of the August 6 market close.What are the core fundamentals of the business?
AppFolio is a technology firm that provides a cloud-based platform for the real estate industry, offering services for accounting, reporting, marketing, and workflow automation. Based in Santa Barbara, the company has a market capitalization of $7.1 billion and reported trailing twelve-month revenue of $1.0 billion as of August 7.Company OverviewMetricValueShare Price (as of market close 2026-08-06)$194.11Market Capitalization$7.1 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 SaaS offerings, including AppFolio Property Manager Core and other specialized modules that serve as systems of record for small to mid-sized property management firms.AppFolio primarily serves small and mid-market property management companies in the United States, targeting operators seeking to modernize their operations through cloud-based technology solutions.AppFolio operates as a leading cloud software provider for the real estate vertical, with a market capitalization of $7.1 billion and TTM revenue of $1.0 billion. The company's subscription-based business model provides recurring revenue streams while maintaining strong profitability, with TTM net income of $157.5 million. AppFolio's competitive advantage derives from its integrated platform approach, which consolidates multiple operational functions into a single system of record, reducing implementation complexity and increasing customer switching costs.

What this transaction means for investorsUnlike a batch of AppFolio executives whose stock vested for taxes on August 10, Pickering actually sold shares here (through a plan set back in March). He also kept about 5,900 shares, which is substantially more than the roughly 660 shares that went out the door.

He sold into a stock that has struggled even as the business has been growing well. AppFolio grew second-quarter revenue 19% to $281 million last quarter, crossing $1 billion in trailing revenue for the first time and raising its full-year guidance. Growth has been fueled by AI that's being built into the product, with roughly a third of units now on the premium tiers that carry those features. Chairman and CEO Shane Trigg said operators are "embracing AI that works because it knows their business."

The valuation, however, has undoubtedly still been under pressure. AppFolio still trades at a rich multiple even after the stock's slide, which is likely why strong results have not lifted it, since the market had already priced in years of the growth AppFolio is now delivering, leaving little room for the numbers to surprise. And that's only exacerbated by recent scrutiny over software stocks. Still, AppFolio shares have been rallying since earlier this year, and long-term investors should keep an eye on continued execution, which could help fuel the strong momentum that appears to be building.

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.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends AppFolio (APPF - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this property management software maker a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for AppFolio is 190.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 30.4% this year, crushing the industry average, which calls for EPS growth of 25%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, AppFolio has an S/TA ratio of 1.63, which means that the company gets $1.63 in sales for each dollar in assets. Comparing this to the industry average of 0.62, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And AppFolio looks attractive from a sales growth perspective as well. The company's sales are expected to grow 18.2% this year versus the industry average of 8%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for AppFolio. The Zacks Consensus Estimate for the current year has surged 2.5% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made AppFolio a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions AppFolio well for outperformance, so growth investors may want to bet on it.

Evan Pickering, General Counsel of AppFolio, Inc. (APPF +4.52%), disposed of 727 shares of Class A Common Stock on Aug. 10 and Aug. 11, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$146,000Shares sold727Post-transaction shares (directly held)5,167Post-transaction value$1.02 millionTransaction value based on SEC Form 4 weighted average sale price ($200.25); post-transaction value based on Aug. 12, 2026 market close ($196.77).

Key questionsWhat was the nature of the disposition activity?
The transaction was divided between non-discretionary tax withholding and pre-planned sales. Following the vesting of multiple restricted stock units on Aug. 10, 2026, the company withheld 264 shares to satisfy tax liabilities. The remaining 463 shares were sold on the open market.How does the Rule 10b5-1 plan affect the transaction's signal?
The sale of 463 shares was executed under a Rule 10b5-1 trading plan adopted on March 13, 2026. These plans allow insiders to schedule trades in advance, which typically reduces the signal regarding an executive's outlook on current valuation or near-term performance.What is the executive's remaining exposure to the company?
Evan Pickering retains a direct equity stake of 5,167 shares of Class A Common Stock, representing an insider ownership interest of 0.0145%. The executive also holds derivative securities.What context does recent stock performance provide?
AppFolio shares were priced at $203.02 as of the Aug. 11, 2026, market close. This price level follows a period of volatility, with the stock delivering a -29% total return over the 12 months ending on the transaction date of Aug. 10, 2026.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 cloud-based software platforms designed specifically for the real estate industry, offering integrated property management solutions encompassing accounting, reporting, marketing, leasing, maintenance, workflow automation, and communication services.The company generates revenue through subscription-based SaaS models, licensing its proprietary cloud platforms to property management companies and real estate professionals who rely on these systems as their primary operational infrastructure.AppFolio primarily serves small- to mid-sized property management companies and real estate firms in the United States seeking comprehensive, cloud-native solutions to streamline their operations and improve efficiency.

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AppFolio is a leading provider of cloud-based software solutions for the real estate industry, with a market capitalization of $7.3 billion and TTM revenue of $1.0 billion. The company maintains a strong profitability profile with TTM net income of $157.5 million, demonstrating the scalability and efficiency of its subscription-based business model.

AppFolio's competitive advantage lies in its specialized focus on real estate workflows and its ability to provide integrated, end-to-end platform solutions that reduce operational complexity for property management professionals.

What this transaction means for investorsThis sale shouldn’t concern investors. Pickering sold under a pre-adopted trading plan and tax withholding obligations. Moreover, the sale was a small percentage of his total stake in the company’s stock.

Importantly, AppFolio’s business is growing. TTM revenue grew about 21% year over year to over $1 billion, while operating profit grew faster at a 30% increase to $182 million.

This performance reflects the adoption of artificial intelligence (AI)-driven workflows in property management. Customers are migrating to AppFolio’s platform to automate tasks and improve operating efficiency, making it a beneficiary of the AI boom.

Investors could view the stock’s recent pullback as a buying opportunity. Analysts still expect earnings to grow at an annualized rate of 14%, making the lower share price a better entry point.

John Ballard 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.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: AppFolio (APPF - Free Report) Santa Barbara, CA-based AppFolio provides a cloud-based platform for the real estate industry, serving property managers across single-family, multifamily, affordable, commercial, student housing and community associations. The software supports daily operations and transactions, including resident screening, digital payments and insurance-related risk mitigation, central to leasing and property management workflows.

APPF is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. APPF has a Momentum Style Score of A, and shares are up 3% over the past four weeks.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.15 to $6.90 per share. APPF boasts an average earnings surprise of +4.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, APPF should be on investors' short list.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

AppFolio (APPF - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this property management software maker a great growth pick right now.

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for AppFolio is 190.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 30.4% this year, crushing the industry average, which calls for EPS growth of 22.9%.

Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, AppFolio has an S/TA ratio of 1.63, which means that the company gets $1.63 in sales for each dollar in assets. Comparing this to the industry average of 0.61, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And AppFolio is well positioned from a sales growth perspective too. The company's sales are expected to grow 18.2% this year versus the industry average of 8.1%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for AppFolio have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.5% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made AppFolio a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that AppFolio is a potential outperformer and a solid choice for growth investors.