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.
William Shane Trigg, Chief Executive Officer of AppFolio(APPF -4.16%), sold 2,057 shares of Class A common stock on Aug. 14, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$421,685Post-transaction value$14.4 millionShares sold (directly held)2,057Post-transaction shares (directly held)70,772Transaction value based on SEC Form 4 weighted average sale price ($205); post-transaction value based on Aug. 14, 2026, market close ($204.21).
Company snapshotFinancials: The company reported trailing-twelve-month revenue of $1 billion and net income of $157.5 million.Market Position: AppFolio maintains a market capitalization of $7.5 billion and employs 1,702 full-time staff as of the latest reporting.AppFolio, together with its subsidiaries, provides a cloud-based platform for the real estate industry in the United States. The cloud-based platform assists with accounting, reporting, marketing, leasing, maintenance, workflow automation, and communication services.
Key questionsWas this a discretionary decision to reduce exposure?
The transaction was executed under a Rule 10b5-1 trading plan adopted in August 2025, indicating that the timing and volume of the sale were determined well in advance of the execution date.How significant is the CEO's remaining stake?
Trigg continues to hold 70,772 shares directly, which accounts for the vast majority of his reported beneficial ownership in the company.What is the current equity performance context?
The sale occurred while the stock was priced at $205, and the company recorded a 23% one-year total loss as of the Aug. 14, 2026, transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$204.21Market Capitalization$7.5 billionRevenue (TTM)$1 billionNet Income (TTM)$157.5 millionCompany SnapshotAppFolio provides cloud-based software platforms designed specifically for the real estate industry, offering integrated solutions for property management, accounting, reporting, marketing, leasing, maintenance, workflow automation, and communication services.The company generates revenue through subscription-based software-as-a-service (SaaS) offerings, delivering recurring revenue streams from property management firms that rely on its cloud platforms for operational efficiency and business management.AppFolio primarily serves small to mid-sized property management companies in the United States, positioning itself as a critical operational platform for real estate professionals managing residential and commercial properties.AppFolio is a leading cloud-based software provider to the real estate industry, with a market capitalization of $7.5 billion and TTM revenue of $1 billion. The company has established a strong competitive position through its integrated platform approach, which consolidates multiple operational functions into a single system of record for property managers. With 1,702 employees and a focus on recurring subscription revenue, AppFolio demonstrates the scalability and profitability typical of mature SaaS businesses, as evidenced by its TTM net income of $157.5 million.
Premium Feature
Moneyball Superscore
75/100
Today's Change
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-4.16
%) $
-9.29
Current Price
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214.28
What this transaction means for investorsAs of this writing, over the past 12 months, the AppFolio stock price has struggled. It's down 24.7%, while the S&P 500 is up 19% over the same period. That's why, when hearing that an executive is selling shares, shareholders may start to hear alarm bells. But given the context of the sale, despite the declining stock price, this still is a routine sale rather than something shareholders should be overly worried about. For example, this was already part of an established trading plan from August 2025, and although Trigg sold 2,057 shares, he still holds 70,772 shares. That demonstrates continued alignment with the company's future success.
Speaking of that future success, investors seem to be skittish about software stocks like AppFolio because of the rise of artificial intelligence (AI). The fear is that AI can just replicate the functions software companies offer, cutting into their businesses. Some of that may be reflected in analyst price targets. While 91% of the 12 analysts who cover the stock rate it as a buy, the median one-year price target from that group is just $232.50. From a price of $214.28, that reflects a potential gain of just 8.5%.
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.
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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.
Premium Feature
Moneyball Superscore
75/100
Today's Change
(
-0.00
%) $
-0.01
Current Price
$
224.26
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.
After reaching an important support level, AppFolio, Inc. (APPF - Free Report) could be a good stock pick from a technical perspective. APPF recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Over the past four weeks, APPF has gained 22.2%. The company currently sits at a #2 (Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout.
Looking at APPF's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 3 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on APPF for more gains in the near future.
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.
SANTA BARBARA, Calif., Aug. 26, 2026 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, announced that PURE HomeRiver Property Management has renewed its commitment to AppFolio, establishing it as PURE HomeRiver's single platform of choice.
Formed through the merger of PURE Property Management and HomeRiver Group, PURE HomeRiver now operates in 35 states. The company has run on AppFolio since 2020 and upgraded to AppFolio Plus in 2022 as its portfolio and footprint expanded. The renewal aims to consolidate the 40,000+ properties PURE HomeRiver manages today onto a single platform, with capacity to support the company's anticipated growth to 60,000.
“We’ve been dedicated to unifying operations and standardizing processes to create simplified resident, owner, and manager experiences that deliver results,” said Joseph Polverari, Co-founder and CEO of PURE HomeRiver. “In building our technology stack to support that scale, AppFolio was the only clear option for the phase we’re in. One source of truth clarifies the path to performance across every market we’re in today, and in the future.”
“PURE HomeRiver has grown through the same discipline we see in the strongest operators: one platform, one source of truth, so performance doesn’t slow down as the portfolio expands,” said Marcy Campbell, Chief Revenue Officer at AppFolio. “As they scale toward managing 60,000 properties, AppFolio is the constant. That’s the kind of partnership we’re building with operators at every stage of growth.”
As real estate operators consolidate their technology stacks to drive greater impact across their portfolio, more are choosing AppFolio as the platform they build on for the long term, freeing their teams to focus on the outcomes that matter most to residents, owners, and investors.
About PURE HomeRiver Property Management
PURE HomeRiver is the nation’s largest third-party property management company for single-family rental (SFR) properties. Formed through the merger of PURE Property Management and HomeRiver Group, the company manages more than 40,000 properties across 35+ states. Led by a team of experienced industry leaders and seasoned technology innovators, PURE HomeRiver combines national scale with local expertise and proprietary AI-native technology to balance investor success with resident satisfaction, creating simplified experiences that deliver results. Learn more at www.purehomeriver.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.
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.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about AppFolio (APPF - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
AppFolio currently has an average brokerage recommendation (ABR) of 1.10, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.10 approximates between Strong Buy and Buy.
Of the 10 recommendations that derive the current ABR, nine are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 90% and 10% of all recommendations.
Brokerage Recommendation Trends for APPF
Check price target & stock forecast for AppFolio here>>>
The ABR suggests buying AppFolio, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is APPF a Good Investment?Looking at the earnings estimate revisions for AppFolio, the Zacks Consensus Estimate for the current year has increased 2.5% over the past month to $6.9.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for AppFolio. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for AppFolio may serve as a useful guide for investors.
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.
William Shane Trigg, the chief executive officer of AppFolio, Inc. (APPF +0.12%), disposed of 3,718 shares of Class A Common Stock on August 10, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$742,000Shares sold3,718Post-transaction shares (directly held)72,829Post-transaction value$14.5 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 trade?
The sale was non-discretionary and executed specifically to cover tax withholding obligations arising from the vesting of multiple equity awards, which does not reflect the insider's individual market view.What is the scope of the underlying vesting event?
The transaction was triggered by the vesting of performance-based restricted stock units (PSUs) from 2024 and 2025 grant cycles, alongside various time-based restricted stock units (RSUs) granted between 2023 and 2026.How much equity does the CEO retain in the company?
Trigg continues to hold 72,829 shares of Class A Common Stock directly, representing a market value of $14.79 million as of the August 11 market close.How has the stock performed leading up to this vesting?
As of the August 10 transaction date, AppFolio shares had realized a one-year decline of about 30%.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 solutions for the real estate industry, offering integrated platforms that enable property management companies to streamline accounting, reporting, marketing, leasing, maintenance, workflow automation, and communication services.The company operates a subscription-based SaaS business model, generating recurring revenue from property management firms and real estate professionals who rely on its cloud platforms for core operational and administrative functions.AppFolio primarily serves small to mid-sized property management companies and real estate operators in the United States seeking comprehensive, cloud-native solutions to enhance operational efficiency and reduce administrative overhead.AppFolio is a leading cloud-based software provider serving the real estate industry with a market capitalization of $7.3 billion and TTM revenue of $1.0 billion. The company has established a strong competitive position through its integrated platform approach, which consolidates multiple critical functions--from accounting and reporting to marketing and workflow automation--into a unified system of record for property management professionals. AppFolio demonstrates operational efficiency and profitability while maintaining a strategic focus on expanding its addressable market within the fragmented real estate technology sector.
What this transaction means for investorsOn its own, Trigg's sale isn't worth much attention. It covered taxes on vesting stock, and he still holds nearly 73,000 shares worth around $15 million, which seems very fair for a CEO.
What's happening at AppFolio, on the other hand, is certainly worth the attention of long-term investors. The company announced last month it just crossed $1 billion in trailing revenue for the first time, growing the latest quarter 19% to $281 million while widening its margins, and it raised full-year guidance. AI is increasingly being leveraged within the product, with the firm's automated leasing assistant having now handled more than 10,000 leads, lifting applications 30%; plus, its maintenance tool now clears a quarter of work orders on its own. In the earnings release, Trigg said operators are "embracing AI that works because it knows their business."
Still, even while AppFolio is executing well and turning AI into measurable results for property managers, the firm's shares have fallen anyway, which says the market was pricing in loftier expectations. That said, the stock has surged some 30% since lows earlier this year, and if the firm keeps executing, the turnaround could have more room to run.
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.
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.
Elizabeth Erin Barat, the chief people officer of AppFolio, Inc. (APPF +0.12%), disposed of 1,244 shares of Class A Common Stock on August 10, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$248,228Shares sold1,244Post-transaction shares (directly held)20,301Post-transaction value$4.05 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 questionsWhat were the mechanics behind this disposal?
The transaction was non-discretionary and performed to cover minimum tax withholding obligations associated with the vesting of seven distinct grants of performance-based and time-based restricted stock units.How does this affect the insider's remaining equity position?
Following this transaction, the insider retains 20,301 shares held directly, representing a roughly 0.06% ownership interest in the company.What is the recent performance context for the stock?
Shares of AppFolio were priced at $203.02 as of the August 11 market close, while the stock has generated a one-year return of -30% as of the August 10 transaction date.What was the scope of the underlying vesting event?
The withholding was tied to the vesting of awards originally granted between April 2023 and January 2026 under the company's 2015 and 2025 equity incentive plans.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 solutions for the real estate industry, offering integrated platforms that enable property management companies to streamline accounting, reporting, marketing, leasing, maintenance, workflow automation, and communication services.The company operates a subscription-based SaaS business model, generating recurring revenue from property management firms and real estate professionals who rely on its cloud platforms for core operational and administrative functions.AppFolio primarily serves small to mid-sized property management companies and real estate operators in the United States seeking comprehensive, cloud-native solutions to enhance operational efficiency and reduce administrative overhead.AppFolio is a leading cloud-based software provider serving the real estate industry with a market capitalization of $7.3 billion and TTM revenue of $1.0 billion. The company has established a strong competitive position through its integrated platform approach, which consolidates multiple critical functions--from accounting and reporting to marketing and workflow automation--into a unified system of record for property management professionals. AppFolio demonstrates operational efficiency and profitability while maintaining a strategic focus on expanding its addressable market within the fragmented real estate technology sector.
What this transaction means for investorsBarat's withholding is routine, and she's one of several AppFolio executives whose stock vested on the same August day, so the filings say more about a shared grant calendar than anyone's read on the shares. As chief people officer, though, she sits near a question the company's AI push keeps raising.
AppFolio's growth increasingly runs on artificial intelligence: Its tools now handle thousands of leasing leads and process a quarter of maintenance requests without human involvement, and last month it crossed $1 billion in trailing revenue while growing 19%. Building and running that kind of product takes scarce engineering talent, which is where the people function Barat leads meets the strategy, since a company automating its customers' work still has to hire aggressively to build the automation. Chairman and CEO Shane Trigg said operators are "embracing AI that works because it knows their business."
The talent question lies beneath growth. AppFolio is winning by turning AI into real results for property managers, and sustaining that means competing for the engineers who build it, an expense and a recruiting challenge that rises right alongside the revenue. Yes, the stock is still down sharply over the past year, but the market has been brutal to software stocks this year, and AppFolio shares have actually been minting a turnaround since lows earlier this year, and if the firm keeps executing as it has, the recent resurgence could prove to have room to run.
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.
Maurice J. Duca, an insider at AppFolio, Inc. (APPF +0.12%), disposed of 14,707 shares of Class A Common Stock on August 12 and August 13, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold14,707Shares sold (directly held)7,000Shares sold (indirectly held)7,707Transaction value$2.9 millionPost-transaction shares (directly held)38,662Post-transaction shares (indirectly held)84,849Post-transaction value$25.19 millionTransaction value based on SEC Form 4 weighted average sale price ($197.28); post-transaction value based on the August 13 market close ($203.97).
Key questionsWhat was the stated mechanism for this equity disposition?
The sales were conducted pursuant to a Rule 10b5-1 trading plan adopted by Duca on March 13. This regulatory framework allows insiders to establish automated trading schedules to fulfill liquidity needs without regard to subsequent knowledge of material non-public information.What is the current distribution of the insider's remaining beneficial ownership?
Following these transactions, the insider maintains a direct position of 38,662 shares. The remaining 84,849 shares are held indirectly through two entities: a family trust holding 17,317 shares and a pension trust, where the insider serves as sole trustee, holding 67,532 shares.How does the transaction price compare to recent market performance?
The shares were sold at weighted average prices ranging from $193.95 to $206.52. As of the August 13 market close, AppFolio has recorded a one-year return of -24%, while the company continues to operate as a cloud-based platform provider for the real estate industry with TTM revenue of $1.0 billion.What is the scale of the insider's remaining influence at the company?
The combined direct and indirect holdings represent approximately 0.35% of the outstanding equity. This position is concentrated in the Technology sector, specifically within the software application industry, where the Santa Barbara-based firm employs roughly 1,700 individuals.Company OverviewMetricValueShare Price (as of market close 2026-08-13)$203.97Market 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 solutions for property management, accounting, reporting, marketing, leasing, maintenance, workflow automation, and communication services.The company generates recurring revenue through subscription-based software-as-a-service (SaaS) offerings, with its primary revenue model centered on licensing fees from property management companies and real estate professionals utilizing its cloud platforms.AppFolio's primary customer base consists of small to mid-sized property management companies, real estate investors, and property managers in the United States seeking comprehensive cloud-based operational and financial management solutions.AppFolio operates as a leading provider of cloud-based software solutions for the real estate industry, with a market capitalization of $7.3 billion and TTM revenues of $1.0 billion. The company has established a strong competitive position through its integrated platform approach, combining accounting, property management, and communication functionalities to address the comprehensive operational needs of property managers and real estate professionals.
What this transaction means for investorsDuca has been selling AppFolio steadily for weeks, and this filing is just the latest installment. Going back to late July, he has parted with stock in small batches almost every few days, all of it running on autopilot through a trading plan he set in March. As a longtime holder of close to 500,000 shares across direct holdings, as well as personal, family, and pension trusts, he is spreading sales out rather than heading for the door, which is what a large investor diversifying a concentrated position tends to look like.
The company he's trimming has been performing well. AppFolio reported last month that it crossed $1 billion in trailing revenue for the first time, growing 19% in the quarter while raising its full-year guidance, with AI features driving much of the momentum. On the earnings call, Chairman and CEO Shane Trigg framed the strategy around what customers are really after, saying "consolidation isn't the end game" but rather a way of "removing blockers to what customers actually want: real performance."
Ultimately, a big holder methodically reducing a stake on a preset schedule is a weak signal at most, and it says far less about AppFolio's prospects than the steady growth underneath does. Yes, the stock is still down sharply over the past year, but there are signs of a turnaround that could have legs, and that's what long-term investors should stay focused on.
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.
The AppFolio Performance Platform runs on AWS, providing the technical foundation for its AI-native architecture and Realm, its AI suite The AppFolio Performance Platform runs on AWS, providing the technical foundation for its AI-native architecture and Realm, its AI suite
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.
AppFolio (APPF - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, APPF crossed above the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
APPF could be on the verge of another rally after moving 8.9% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
Once investors consider APPF's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 4 higher, and the consensus estimate has increased as well.
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.
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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.
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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.
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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.
Investors might want to bet on AppFolio (APPF - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for AppFolio basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For AppFolio, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for AppFolioThis property management software maker is expected to earn $6.90 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for AppFolio. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of AppFolio to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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.
AppFolio (APPF - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, APPF crossed above 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.
Like other SMAs, 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.
APPF has rallied 11.2% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests APPF could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account APPF's positive earnings estimate revisions. There have been 4 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting APPF on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
Shares of AppFolio (APPF - Free Report) have gained 11.2% over the past four weeks to close the last trading session at $178.27, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $223.78 indicates a potential upside of 25.5%.
The mean estimate comprises nine short-term price targets with a standard deviation of $26.88. While the lowest estimate of $173.00 indicates a 3% decline from the current price level, the most optimistic analyst expects the stock to surge 45.9% to reach $260.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in APPF. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why APPF Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 2.5%, as four estimates have moved higher compared to no negative revision.
Moreover, APPF currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much APPF could gain, the direction of price movement it implies does appear to be a good guide.
Arrowstreet Capital Limited Partnership lifted its holdings in shares of AppFolio, Inc. (NASDAQ:APPF – Free Report) by 6.5% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 384,529 shares of the software maker’s stock after acquiring an additional 23,428 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 1.09% of AppFolio worth $60,686,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also bought and sold shares of the company. Royal Bank of Canada increased its position in AppFolio by 22.6% during the 1st quarter. Royal Bank of Canada now owns 45,452 shares of the software maker’s stock worth $9,993,000 after buying an additional 8,367 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in AppFolio by 23.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 384 shares of the software maker’s stock valued at $84,000 after acquiring an additional 73 shares during the last quarter. Millennium Management LLC increased its stake in shares of AppFolio by 237.7% in the 1st quarter. Millennium Management LLC now owns 18,055 shares of the software maker’s stock valued at $3,970,000 after purchasing an additional 12,709 shares during the last quarter. Jones Financial Companies Lllp raised its stake in AppFolio by 164.8% during the first quarter. Jones Financial Companies Lllp now owns 654 shares of the software maker’s stock worth $144,000 after acquiring an additional 407 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in AppFolio by 322.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 66,777 shares of the software maker’s stock valued at $14,684,000 after purchasing an additional 50,970 shares during the last quarter. Institutional investors and hedge funds own 85.19% of the company’s stock.
Insider Buying and Selling In other AppFolio news, CFO Timothy Mathias Eaton sold 2,585 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $160.07, for a total transaction of $413,780.95. Following the completion of the sale, the chief financial officer owned 18,036 shares of the company’s stock, valued at $2,887,022.52. This represents a 12.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Evan Pickering sold 660 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $155.25, for a total transaction of $102,465.00. Following the sale, the general counsel owned 6,555 shares of the company’s stock, valued at approximately $1,017,663.75. This represents a 9.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 30,657 shares of company stock worth $5,310,740 over the last 90 days. Insiders own 1.57% of the company’s stock.
AppFolio Price Performance Shares of NASDAQ:APPF opened at $168.74 on Tuesday. AppFolio, Inc. has a one year low of $142.56 and a one year high of $326.04. The company’s fifty day moving average price is $164.98 and its 200-day moving average price is $173.02. The firm has a market capitalization of $5.97 billion, a price-to-earnings ratio of 38.53 and a beta of 0.79.
AppFolio (NASDAQ:APPF – Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The software maker reported $1.71 earnings per share for the quarter, beating analysts’ consensus estimates of $1.69 by $0.02. The business had revenue of $281.12 million for the quarter, compared to the consensus estimate of $277.35 million. AppFolio had a return on equity of 32.42% and a net margin of 15.13%.The company’s revenue for the quarter was up 19.3% on a year-over-year basis. During the same quarter last year, the business posted $1.38 earnings per share. As a group, equities research analysts expect that AppFolio, Inc. will post 5.04 EPS for the current year.
Wall Street Analysts Forecast Growth APPF has been the subject of several recent research reports. DA Davidson set a $225.00 price target on AppFolio in a research note on Friday. Guggenheim initiated coverage on AppFolio in a research note on Wednesday, July 22nd. They issued a “buy” rating and a $232.00 price objective for the company. UBS Group set a $210.00 target price on shares of AppFolio in a research report on Friday, April 24th. Piper Sandler dropped their price objective on AppFolio from $245.00 to $210.00 and set an “overweight” rating on the stock in a research note on Friday, April 24th. Finally, Benchmark upped their target price on AppFolio from $222.00 to $226.00 and gave the company a “buy” rating in a report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, AppFolio currently has an average rating of “Buy” and a consensus price target of $243.50.
Check Out Our Latest Stock Report on APPF
About AppFolio (Free Report)
AppFolio, Inc is a Santa Barbara–based provider of cloud-based software solutions for the property management and legal industries. Founded in 2006 by former software executives, the company went public on the NASDAQ under the symbol APPF in 2015. Its original offering, AppFolio Property Manager, automates accounting, marketing, leasing, and maintenance functions for residential, commercial, student housing, and community association managers.
In 2019, AppFolio expanded its portfolio with the acquisition of MyCase, a web-based legal practice management platform for small to mid-size law firms.
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Ashe Capital Management LP trimmed its stake in AppFolio, Inc. (NASDAQ:APPF – Free Report) by 2.8% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,047,915 shares of the software maker’s stock after selling 30,000 shares during the period. AppFolio makes up 20.7% of Ashe Capital Management LP’s investment portfolio, making the stock its 2nd largest holding. Ashe Capital Management LP owned about 2.96% of AppFolio worth $165,382,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in APPF. Principal Financial Group Inc. boosted its stake in shares of AppFolio by 20.9% during the first quarter. Principal Financial Group Inc. now owns 1,505,882 shares of the software maker’s stock worth $237,665,000 after buying an additional 259,933 shares during the period. Greenstone Partners & Co. LLC acquired a new position in AppFolio in the 4th quarter valued at about $43,647,000. Millennium Management LLC increased its position in AppFolio by 158.6% in the 4th quarter. Millennium Management LLC now owns 281,495 shares of the software maker’s stock valued at $65,490,000 after acquiring an additional 172,627 shares during the period. Caledonia Private Investments Pty Ltd raised its stake in AppFolio by 45.9% during the 4th quarter. Caledonia Private Investments Pty Ltd now owns 332,635 shares of the software maker’s stock valued at $77,388,000 after acquiring an additional 104,609 shares during the last quarter. Finally, Vanguard Group Inc. raised its stake in AppFolio by 4.1% during the 4th quarter. Vanguard Group Inc. now owns 2,560,460 shares of the software maker’s stock valued at $595,691,000 after acquiring an additional 101,466 shares during the last quarter. Hedge funds and other institutional investors own 85.19% of the company’s stock.
Insider Activity at AppFolio In other AppFolio news, insider Elizabeth Erin Barat sold 1,978 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $158.12, for a total value of $312,761.36. Following the completion of the transaction, the insider directly owned 21,545 shares of the company’s stock, valued at approximately $3,406,695.40. This trade represents a 8.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Evan Pickering sold 660 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $155.25, for a total transaction of $102,465.00. Following the completion of the transaction, the general counsel directly owned 6,555 shares of the company’s stock, valued at approximately $1,017,663.75. This trade represents a 9.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 30,657 shares of company stock valued at $5,310,740 in the last ninety days. Company insiders own 1.57% of the company’s stock.
Analysts Set New Price Targets Several brokerages have weighed in on APPF. DA Davidson set a $225.00 target price on AppFolio in a research note on Friday. Benchmark upped their price target on AppFolio from $222.00 to $226.00 and gave the stock a “buy” rating in a research note on Friday, April 24th. Guggenheim started coverage on AppFolio in a report on Wednesday. They set a “buy” rating and a $232.00 price target for the company. KeyCorp reiterated an “overweight” rating on shares of AppFolio in a research report on Monday, July 6th. Finally, Wall Street Zen cut shares of AppFolio from a “buy” rating to a “hold” rating in a research note on Sunday. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Buy” and an average target price of $243.50.
Get Our Latest Analysis on AppFolio
AppFolio Stock Performance NASDAQ:APPF opened at $165.05 on Friday. AppFolio, Inc. has a 1 year low of $142.56 and a 1 year high of $326.04. The stock has a fifty day moving average price of $164.76 and a two-hundred day moving average price of $173.91. The stock has a market capitalization of $5.84 billion, a price-to-earnings ratio of 37.68 and a beta of 0.79.
AppFolio (NASDAQ:APPF – Get Free Report) last issued its earnings results on Thursday, July 23rd. The software maker reported $1.71 EPS for the quarter, topping the consensus estimate of $1.69 by $0.02. AppFolio had a net margin of 15.13% and a return on equity of 32.77%. The company had revenue of $281.12 million for the quarter, compared to analyst estimates of $277.35 million. During the same period in the previous year, the firm earned $1.38 EPS. The business’s revenue was up 19.3% on a year-over-year basis. On average, analysts predict that AppFolio, Inc. will post 5.04 EPS for the current year.
AppFolio News Summary Here are the key news stories impacting AppFolio this week:
Positive Sentiment: AppFolio delivered Q2 earnings of $1.71 per share, topping estimates, while revenue rose 19.3% year over year to $281.1 million, also ahead of forecasts. AppFolio’s Q2 Earnings Beat Estimates, Revenues Rise Y/Y Positive Sentiment: The company lifted its full-year 2026 outlook, which suggests management sees momentum continuing beyond the latest quarter. AppFolio, Inc. Announces Second Quarter 2026 Financial Results Positive Sentiment: Guggenheim upgraded AppFolio to strong-buy, adding to bullish sentiment around the stock after the earnings release. Zacks.com Positive Sentiment: Management highlighted premium-tier adoption and Value Added Services as key growth drivers, which could support higher recurring revenue and better monetization over time. AppFolio (APPF) Beats Q2 Earnings and Revenue Estimates AppFolio Profile (Free Report)
AppFolio, Inc is a Santa Barbara–based provider of cloud-based software solutions for the property management and legal industries. Founded in 2006 by former software executives, the company went public on the NASDAQ under the symbol APPF in 2015. Its original offering, AppFolio Property Manager, automates accounting, marketing, leasing, and maintenance functions for residential, commercial, student housing, and community association managers.
In 2019, AppFolio expanded its portfolio with the acquisition of MyCase, a web-based legal practice management platform for small to mid-size law firms.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of APPF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Key Takeaways AppFolio beat Q2 earnings and revenue estimates as Value Added Services and premium tiers grew.APPF raised 2026 revenue and non-GAAP operating margin guidance after a strong second quarter.AppFolio expanded premium-tier adoption, boosted cash flow and grew units under management to 9.6 million. AppFolio, Inc. (APPF - Free Report) reported second-quarter 2026 non-GAAP earnings of $1.71 per share, which increased 23.9% year over year. The bottom line surpassed the Zacks Consensus Estimate of $1.67 by 2.4%.
Revenues rose 19.3% to $281 million and beat the consensus mark of $277 million by 1.5%. Growth reflected strength in Value Added Services, premium-tier adoption and new customer wins. Units under management increased 8% to 9.6 million.
APPF's Q2 Revenue Mix StrengthensSubscription Services revenues increased 14% year over year to $59.8 million. Management attributed the gain to new customer additions, growth in units under management and continued upgrades to the Plus and Max premium tiers.
Value Added Services revenues advanced 21.8% to $219.5 million, led by FolioGuard risk mitigation services, FolioScreen offerings and online payments. Resident Onboarding Lift, Move-In Services through LiveEasy and Realm-X Performers also contributed a growing share. Other revenues declined 37.2% to $1.9 million.
AppFolio Expands Platform AdoptionAppFolio ended the quarter with 22,751 customers, up 6% from 21,403 a year earlier. Nearly one in three units was on a premium tier compared with approximately one in four previously, indicating deeper adoption of the company’s Plus and Max offerings.
The company expanded Realm-X Flows, its workflow orchestration layer, to five times the number of triggers and more than 1,000 conditional routing options. Among customers using Flows, runs grew at a triple-digit rate across lead nurturing, rental applications, move-ins, delinquency and renewals.
Leasing Performer was involved in roughly half of completed showings for customers that deployed it. Bluestone’s use of the product handled more than 10,000 leads, 55% of which arrived after hours, while delivering an average response time of less than nine seconds.
APPF Widens Operating MarginsNon-GAAP operating income grew 23.8% year over year to $76.2 million. The non-GAAP operating margin expanded 90 basis points to 27.1%, reflecting operating leverage as revenues grew faster than several expense categories.
GAAP operating income increased 30.8% to $53 million, while the corresponding margin improved 160 basis points to 18.8%. GAAP net income rose 15.5% to $41.5 million.
Non-GAAP cost of revenues, excluding depreciation and amortization, was 36% of revenues, up from 35%. Operating efficiencies were offset by the payments product mix and incremental data-center capacity supporting increased customer use of AI capabilities.
Research and development declined to 15% of revenues from 16%, aided by productivity gains from AI tools. Sales and marketing and general and administrative expenses remained at 14% and 7% of revenues, respectively. The workforce grew 3% to 1,732 employees.
AppFolio's Cash Flow and Balance SheetOperating cash flow totaled $87.6 million, up 66.4% from $52.6 million in the year-ago quarter. The measure represented 31.2% of revenues compared with 22.3% a year earlier, highlighting stronger cash conversion alongside profit growth.
APPF ended June with $217.4 million in cash and cash equivalents and $4.3 million in current investment securities. The company had no borrowings under its $150 million revolving credit facility and remained in compliance with its covenants.
The company did not repurchase shares during the second quarter after spending $125 million on buybacks in the first quarter. Management said its capital-allocation priorities remain focused on business investment, with repurchases conducted opportunistically.
APPF Raises 2026 OutlookAppFolio raised its 2026 revenue guidance to $1.117-$1.127 billion. The midpoint implies 18% growth, supported by premium-tier adoption, new business units and increased use of offerings, including agentic AI Performers and resident services. The Zacks Consensus Estimates for AppFolio’s revenues are pegged at $1.12 billion, implying a year-over-year increase of 17.5%.
The outlook assumes a more moderate pace of unit expansion among existing customers, while new customer acquisition and retention remain healthy. Management expects Subscription Services and Value Added Services seasonality to be broadly consistent with 2025.
The company also lifted its non-GAAP operating margin outlook to 26.5-28%. Management expects cost of revenues, excluding depreciation and amortization, to remain relatively flat as a percentage of revenues compared with 2025. Diluted weighted-average shares are projected at approximately 36 million.
The Zacks Consensus Estimate for AppFolio’s earnings in 2026 is pegged at $6.75, implying a year-over-year increase of 28%.
Zacks Rank and Stocks to ConsiderCurrently, TXN carries a Zacks Rank #3 (Hold).
Some better top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Applied Materials (AMAT - Free Report) and Cisco Systems (CSCO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Analog Devices have rallied 69.6% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, down by a penny over the past seven days, indicating an increase of 59.4% year over year.
Shares of Applied Materials have skyrocketed 196.2% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by a penny over the past seven days, indicating a rise of 28.9% year over year.
Cisco Systems shares have surged 63.6% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, indicating an increase of 12.3% year over year.
SANTA BARBARA, Calif., July 23, 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 second quarter ended June 30, 2026.
"Our Q2 results continue to reflect our momentum with new and existing customers," said Shane Trigg, Chairman and CEO. "For the first time, we've crossed $1 billion in revenue on a trailing twelve-month basis, a milestone we believe reflects the success customers are having by adopting our products and services. The operators on our platform are embracing AI that works because it knows their business and drives real performance outcomes. That is what Real Estate Performance Management delivers."
Financial Highlights for Second Quarter of 2026
Revenue grew 19% year-over-year to $281 million.Total units under management grew 8% year-over-year to 9.6 million.GAAP operating income grew 31% to $53 million, or 18.8% of revenue, compared to $41 million, or 17.2% of revenue in Q2 2025.Non-GAAP operating income grew 24% to $76 million, or 27.1% of revenue, compared to $62 million, or 26.2% of revenue in Q2 2025.Net cash provided by operating activities was $88 million, or 31.2% of revenue, compared to $53 million, or 22.3% of revenue in Q2 2025. Financial Outlook
Based on information available as of July 23, 2026, AppFolio's outlook for fiscal year 2026 follows:
Full year revenue range is increasing to $1.117 - $1.127 billion.Full year non-GAAP operating margin range as a percentage of revenue is increasing to 26.5% - 28.0%.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, July 23, 2026, at 2:00 p.m. Pacific Time (PT), 5:00 p.m. Eastern Time (ET), to discuss the Company’s second quarter financial results. A live webcast of the call will be available at: https://edge.media-server.com/mmc/p/iuf6q6wf/. To access the call by phone, please go to the following link: https://register-conf.media-server.com/register/BIf2eada34bb9140a98f952424c8f0d5f1, 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.
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)
June 30,
2026 December 31,
2025Assets Current assets Cash and cash equivalents $217,401 $106,967Investment securities—current 4,284 144,256Accounts receivable, net 50,442 36,873Prepaid expenses and other current assets 53,058 65,218Total current assets 325,185 353,314Property and equipment, net 21,464 23,228Operating lease right-of-use assets 14,798 15,924Capitalized software development costs, net 11,444 11,324Goodwill 96,410 96,410Intangible assets, net 33,711 38,826Deferred income taxes 42,819 58,823Long-term investments 87,668 77,033Other long-term assets 14,872 14,085Total assets $648,371 $688,967Liabilities and Stockholders’ Equity Current liabilities Accounts payable $4,776 $4,123Accrued employee expenses 30,010 59,774Accrued expenses 26,990 20,829Other current liabilities 23,106 22,121Total current liabilities 84,882 106,847Operating lease liabilities 30,660 33,287Other liabilities 6,687 6,254Total liabilities 122,229 146,388Stockholders’ equity 526,142 542,579Total liabilities and stockholders’ equity $648,371 $688,967 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025Revenue(1)$281,124 $235,575 $543,338 $453,277Costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization)(2) 102,595 83,827 197,570 163,325Sales and marketing(2) 43,944 36,776 81,445 67,833Research and product development(2) 50,997 46,674 100,626 90,432General and administrative(2) 25,626 21,936 49,967 45,287Depreciation and amortization 4,985 5,850 10,005 12,105Total costs and operating expenses 228,147 195,063 439,613 378,982Income from operations 52,977 40,512 103,725 74,295Other (loss) income, net (1) (11) 568 45Interest income, net 1,435 1,466 3,219 4,419Income before provision for income taxes 54,411 41,967 107,512 78,759Provision for income taxes 12,867 5,987 23,544 11,396Net income$41,544 $35,980 $83,968 $67,363Net income per common share: Basic$1.17 $1.00 $2.36 $1.87Diluted$1.17 $0.99 $2.36 $1.85Weighted average common shares outstanding Basic 35,391 35,922 35,544 36,111Diluted 35,461 36,204 35,635 36,425
(1) The following table presents our revenue categories:
Three Months Ended
June 30, Six Months Ended
June 30, 2026
2025
2026
2025
Subscription Services$59,800 $52,473 $118,022 $101,986Value Added Services 219,467 180,145 420,830 344,851Other 1,857 2,957 4,486 6,440Total revenue$281,124 $235,575 $543,338 $453,277
(2) Includes stock-based compensation expense as follows:
Three Months Ended
June 30, Six Months Ended
June 30, 2026
2025
2026
2025
Costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization)$1,246 $1,419 $2,334 $2,706Sales and marketing 3,633 3,045 6,973 5,893Research and product development 8,918 8,176 16,800 15,107General and administrative 6,674 5,659 12,353 10,964Total stock-based compensation expense$20,471 $18,299 $38,460 $34,670 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands) Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 Cash from operating activities Net income$41,544 $35,980 $83,968 $67,363 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,985 5,850 10,005 12,105 Amortization of operating lease right-of-use assets 566 507 1,126 1,008 Amortization of costs capitalized to obtain revenue contracts, net 3,300 2,699 6,468 5,419 Deferred income taxes 7,976 (7,644) 16,004 (13,185)Stock-based compensation, including as amortized 20,471 18,299 38,460 34,670 Other — (131) (523) (1,048)Changes in operating assets and liabilities: Accounts receivable (6,475) (5,081) (13,918) (8,197)Prepaid expenses and other assets (1,887) (5,966) (10,093) (11,426)Accounts payable 1,035 (1,694) 653 852 Operating lease liabilities (1,204) (1,051) (2,384) (2,102)Accrued expenses and other liabilities 17,293 10,875 (7,864) 5,649 Net cash provided by operating activities 87,604 52,643 121,902 91,108 Cash from investing activities Purchases of available-for-sale investments (3,277) (1,732) (45,940) (64,034)Proceeds from sales of available-for-sale investments — 99,944 140,154 202,662 Proceeds from maturities of available-for-sale investments 3,230 1,670 45,590 43,820 Purchases of property and equipment 3 (275) (228) (505)Capitalization of software development costs (1,250) (842) (2,554) (1,478)Purchases of long-term investments (10,000) (75,000) (10,000) (75,000)Cash paid in business acquisition, net of cash acquired — — — (906)Net cash (used in) provided by investing activities (11,294) 23,765 127,022 104,559 Cash from financing activities Proceeds from stock option exercises and the issuance of common stock under the Employee Stock Purchase Plan — 117 998 128 Tax withholding for net share settlement (6,321) (10,020) (14,478) (19,098)Purchase of common stock — (49,960) (125,010) (145,723)Net cash used in financing activities (6,321) (59,863) (138,490) (164,693)Net increase in cash, cash equivalents and restricted cash 69,989 16,545 110,434 30,974 Cash, cash equivalents and restricted cash Beginning of period 147,662 57,183 107,217 42,754 End of period$217,651 $73,728 $217,651 $73,728 RECONCILIATION FROM GAAP TO NON-GAAP RESULTS
(UNAUDITED)
(in thousands, except per share data)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 Costs and operating expenses: GAAP cost of revenue (exclusive of depreciation and amortization)$102,595 $83,827 $197,570 $163,325 Stock-based compensation expense (1,246) (1,419) (2,334) (2,706) Non-GAAP cost of revenue (exclusive of depreciation and amortization)$101,349 $82,408 $195,236 $160,619 GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue 36% 36% 36% 36% Non-GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue 36% 35% 36% 35% GAAP sales and marketing$43,944 $36,776 $81,445 $67,833 Stock-based compensation expense (3,633) (3,045) (6,973) (5,893) Non-GAAP sales and marketing$40,311 $33,731 $74,472 $61,940 GAAP sales and marketing as a percentage of revenue 16% 16% 15% 15% Non-GAAP sales and marketing as a percentage of revenue 14% 14% 14% 14% GAAP research and product development$50,997 $46,674 $100,626 $90,432 Stock-based compensation expense (8,918) (8,176) (16,800) (15,107) Non-GAAP research and product development$42,079 $38,498 $83,826 $75,325 GAAP research and product development as a percentage of revenue 18% 20% 19% 20% Non-GAAP research and product development as a percentage of revenue 15% 16% 15% 17% GAAP general and administrative$25,626 $21,936 $49,967 $45,287 Stock-based compensation expense (6,674) (5,659) (12,353) (10,964) Non-GAAP general and administrative$18,952 $16,277 $37,614 $34,323 GAAP general and administrative as a percentage of revenue 9% 9% 9% 10% Non-GAAP general and administrative as a percentage of revenue 7% 7% 7% 8% GAAP depreciation and amortization$4,985 $5,850 $10,005 $12,105 Amortization of stock-based compensation capitalized in software development costs (241) (241) (482) (482) Amortization of purchased intangibles (2,558) (2,558) (5,115) (5,115) Non-GAAP depreciation and amortization$2,186 $3,051 $4,408 $6,508 GAAP depreciation and amortization as a percentage of revenue 2% 2% 2% 3% Non-GAAP depreciation and amortization as a percentage of revenue 1% 1% 1% 1% Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 Income from operations: GAAP income from operations$52,977 $40,512 $103,725 $74,295 Stock-based compensation expense 20,471 18,299 38,460 34,670 Amortization of stock-based compensation capitalized in software development costs 241 241 482 482 Amortization of purchased intangibles 2,558 2,558 5,115 5,115 Non-GAAP income from operations$76,247 $61,610 $147,782 $114,562 Operating margin: GAAP operating margin 18.8% 17.2% 19.1% 16.4% Stock-based compensation expense as a percentage of revenue 7.3 7.8 7.1 7.7 Amortization of stock-based compensation capitalized in software development costs as a percentage of revenue 0.1 0.1 0.1 0.1 Amortization of purchased intangibles as a percentage of revenue 0.9 1.1 0.9 1.1 Non-GAAP operating margin 27.1% 26.2% 27.2% 25.3% Net income (loss): GAAP net income$41,544 $35,980 $83,968 $67,363 Stock-based compensation expense 20,471 18,299 38,460 34,670 Amortization of stock-based compensation capitalized in software development costs 241 241 482 482 Amortization of purchased intangibles 2,558 2,558 5,115 5,115 Income tax effect of adjustments (4,223) (7,257) (9,801) (13,599) Non-GAAP net income$60,591 $49,821 $118,224 $94,031 Net income per share, basic: GAAP net income per share, basic$1.17 $1.00 $2.36 $1.87 Non-GAAP adjustments to net income 0.54 0.39 0.97 0.73 Non-GAAP net income per share, basic$1.71 $1.39 $3.33 $2.60 Net income per share, diluted: GAAP net income per share, diluted$1.17 $0.99 $2.36 $1.85 Non-GAAP adjustments to net income 0.54 0.39 0.96 0.73 Non-GAAP net income per share, diluted$1.71 $1.38 $3.32 $2.58 Weighted-average shares used in GAAP and non-GAAP per share calculation Basic 35,391 35,922 35,544 36,111 Diluted 35,461 36,204 35,635 36,425
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.
AppFolio (APPF - Free Report) reported $281.12 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 19.3%. EPS of $1.71 for the same period compares to $1.38 a year ago.
The reported revenue represents a surprise of +1.5% over the Zacks Consensus Estimate of $276.98 million. With the consensus EPS estimate being $1.67, the EPS surprise was +2.4%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how AppFolio performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Units Under Management: 9.6 million versus 9.65 million estimated by two analysts on average.Revenue- Value Added Services: $219.47 million versus the two-analyst average estimate of $213.62 million. The reported number represents a year-over-year change of +21.8%.Revenue- Other: $1.86 million compared to the $2.62 million average estimate based on two analysts. The reported number represents a change of -37.2% year over year.View all Key Company Metrics for AppFolio here>>>
Shares of AppFolio have returned +9% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
AppFolio NASDAQ: APPF reported strong second-quarter 2026 results, with management highlighting continued revenue growth, expanding margins, increased platform adoption and growing customer interest in artificial intelligence-powered real estate operations.
The property management software company said revenue rose 19% year over year to $281 million, compared with $236 million in the second quarter of 2025. Chairman and CEO Shane Trigg said AppFolio also crossed $1 billion in trailing 12-month revenue for the first time.
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“This is an exciting time for our business and our industry,” Trigg said on the earnings call. “I want to start where it matters most, with the operators running and growing their businesses on AppFolio.”
GAAP operating income increased to $53 million, or 18.8% of revenue, up from $41 million, or 17.2% of revenue, a year earlier. Non-GAAP operating income rose 24% year over year to $76 million, or 27.1% of revenue, compared with $62 million, or 26.2% of revenue, in the prior-year period.
Revenue Growth Driven by Subscriptions, Value-Added Services CFO Tim Eaton said subscription services revenue grew 14% year over year to $60 million, driven by new customers, growth in units under management and upgrades to premium tiers. Nearly one in three units are now on a premium tier, up from approximately one in four, according to management.
Value-added services revenue increased 22% year over year to $219 million. Eaton said the growth was led by FolioGuard risk mitigation services, FolioScreen offerings and online payments, along with continued unit growth. He also pointed to newer offerings, including Resident Onboarding Lift, move-in services through LiveEasy and Realm-X Performers, AppFolio’s agentic AI products for leasing, maintenance and resident messaging.
AppFolio ended the quarter with approximately 9.6 million units on its platform, an 8% increase from 8.9 million a year earlier. The company’s customer count rose 6% to 22,751 from 21,403.
“New customer wins and new unit additions remained strong,” Eaton said. “Customer and unit retention continued to be healthy and consistent with historical averages.”
Management Emphasizes AI and Platform Consolidation Trigg said conversations at the NAA Apartmentalize conference underscored broad industry interest in AI, but he said customers were focused less on adding tools and more on reducing complexity across disconnected systems.
He cited AppFolio’s Property Management Benchmark Report, which found that 45% of property managers are actively planning to streamline their software solutions. Trigg said customers that moved to AppFolio reduced reliance on multiple disconnected systems, pointing to examples including RST & Associates, Advanced Management Company and Northpoint Asset Management.
“Consolidation isn’t the end game,” Trigg said. “It’s simply removing blockers to what customers actually want: real performance.”
AppFolio is positioning its strategy around what it calls real estate performance management, or RPM. Trigg described RPM as a combination of “an AI-native architecture with interconnected systems of record, action, and growth.”
The company highlighted continued development of Realm-X Flows, its workflow automation layer. Trigg said AppFolio expanded Flows during the quarter to include five times the triggers and more than 1,000 conditional options to route and filter workflows. Among customers that have adopted Flows, runs grew triple digits year over year across areas including lead nurture, rental applications, move-ins, delinquency and renewals.
Trigg also said Leasing Performer is involved in roughly half of all completed showings for customers that have deployed it, while Maintenance Performer responds to resident inquiries in seconds. AppFolio announced a new Accounting Performer at Apartmentalize, which the company said is intended to streamline bill entry, financial close processes and budgeting.
Customer Examples Highlight Adoption Management cited several customer examples to show how broader platform adoption is affecting operations. Trigg said PURE HomeRiver, which operates in 35 states and manages a 40,000-unit portfolio, renewed its commitment to AppFolio as its single platform of choice and anticipates growth to 60,000 units.
Trigg also discussed Stratton Vantage, a Phoenix-based operator managing 1,600 units, which implemented Resident Onboarding Lift earlier this year. According to Trigg, 100% of its leases have moved through the platform, and the company’s leasing team has reported recapturing nearly 20 hours a month.
Other examples included Yale Management Services, a 7,500-unit customer in Los Angeles that upgraded to AppFolio’s Max tier and achieved a 1.9 percentage point lift in occupancy over six months, and Bluestone, which manages 3,000 residential units in the Pacific Northwest. Trigg said Bluestone’s Leasing Performer handled more than 10,000 leads, with 55% arriving after hours and an average response time under nine seconds.
Costs, Cash Flow and Workforce Eaton said cost of revenue, excluding depreciation and amortization, was 36% of revenue, up from 35% a year earlier. He attributed the increase to payments product mix and incremental data center capacity to support rising customer usage of AI capabilities, partially offset by operating efficiencies.
Sales and marketing expense was 14% of revenue, consistent with the prior-year quarter. Research and development declined to 15% of revenue from 16%, while general and administrative expense remained at 7% of revenue.
AppFolio ended the quarter with 1,732 employees, up 3% year over year. The company generated $88 million in operating cash flow and ended the quarter with $222 million in cash equivalents and current investment securities.
“Our capital allocation approach remains unchanged,” Eaton said. “We prioritize investing in the business, and our share repurchase program remains opportunistic.”
AppFolio Raises 2026 Guidance AppFolio raised its full-year 2026 revenue outlook to a range of $1.117 billion to $1.127 billion, with the midpoint implying 18.0% growth. Eaton said the updated outlook is supported by premium tier adoption, growth in new business units and increasing adoption of products and services, including agentic AI performers and resident services.
The company also raised its non-GAAP operating margin guidance to a range of 26.5% to 28.0%, compared with 24.7% in 2025. AppFolio expects cost of revenue, excluding depreciation and amortization, to be relatively flat as a percentage of revenue compared with 2025.
Eaton said the company expects operating expenses as a percentage of revenue to decline modestly as AppFolio scales and uses AI to drive efficiency across internal operations. The company anticipates diluted weighted average shares outstanding of approximately 36 million for the full year.
“Our continued investment in AI and the resident experience is expanding the value customers receive from our platform,” Eaton said, adding that AppFolio remains focused on “durable revenue growth, margin expansion, and disciplined capital allocation.”
About AppFolio (NASDAQ:APPF)AppFolio, Inc is a Santa Barbara–based provider of cloud-based software solutions for the property management and legal industries. Founded in 2006 by former software executives, the company went public on the NASDAQ under the symbol APPF in 2015. Its original offering, AppFolio Property Manager, automates accounting, marketing, leasing, and maintenance functions for residential, commercial, student housing, and community association managers.
In 2019, AppFolio expanded its portfolio with the acquisition of MyCase, a web-based legal practice management platform for small to mid-size law firms.
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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AppFolio (APPF - Free Report) came out with quarterly earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.67 per share. This compares to earnings of $1.38 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.40%. A quarter ago, it was expected that this property management software maker would post earnings of $1.44 per share when it actually produced earnings of $1.61, delivering a surprise of +11.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
AppFolio, which belongs to the Zacks Internet - Software industry, posted revenues of $281.12 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.50%. This compares to year-ago revenues of $235.57 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 30.3% since the beginning of the year versus the S&P 500's gain of 9.6%.
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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $1.71 on $291.71 million in revenues for the coming quarter and $6.75 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 bottom 39% 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.
Quantum Computing Inc. (QUBT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Quantum Computing Inc.'s revenues are expected to be $4.7 million, up 7733.3% from the year-ago quarter.
SAN FRANCISCO--(BUSINESS WIRE)--Apartment List, a leading AI-powered rental platform, today announced a new integration bringing its pay-per-lease model to AppFolio. This integration makes Apartment List a performance-based leasing option in the AppFolio Stack™ Marketplace – property teams pay when a lease is signed, not for clicks or leads. The expanded partnership furthers Apartment List's mission to match renters with homes they love and helps property teams connect with higher-intent renters.
AppFolio (APPF - Free Report) ended the recent trading session at $179.90, demonstrating a +2.46% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.79%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.55%.
The property management software maker's stock has climbed by 8.91% in the past month, exceeding the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The investment community will be paying close attention to the earnings performance of AppFolio in its upcoming release. The company is slated to reveal its earnings on July 23, 2026. It is anticipated that the company will report an EPS of $1.67, marking a 21.01% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $276.98 million, up 17.58% from the prior-year quarter.
APPF's full-year Zacks Consensus Estimates are calling for earnings of $6.75 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +27.6% and +17.47%, respectively.
Investors should also note any recent changes to analyst estimates for AppFolio. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, AppFolio possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that AppFolio has a Forward P/E ratio of 26.01 right now. For comparison, its industry has an average Forward P/E of 19.66, which means AppFolio is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow APPF in the coming trading sessions, be sure to utilize Zacks.com.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SANTA BARBARA, Calif., July 09, 2026 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) today announced that it will report its second quarter 2026 financial results after the close of the U.S. financial markets on Thursday, July 23, 2026.
In conjunction with this announcement, AppFolio will host a conference call on Thursday, July 23, 2026, at 5:00 p.m. (Eastern Time), to discuss the company’s financial results and business outlook. A live webcast of the call will be available at https://edge.media-server.com/mmc/p/iuf6q6wf/. To access the call by phone, please go to the following link: https://register-conf.media-server.com/register/BIf2eada34bb9140a98f952424c8f0d5f1, 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, and you will be provided with dial-in details.
Disclosure Information
AppFolio uses and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor AppFolio’s Investor Relations website in addition to following AppFolio’s SEC filings, public conference calls, press releases, and webcasts.
About AppFolio
AppFolio is a 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 ir.appfolioinc.com.
AppFolio (APPF - Free Report) closed at $160.35 in the latest trading session, marking a +2.41% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The property management software maker's shares have seen a decrease of 12.68% over the last month, not keeping up with the Computer and Technology sector's loss of 4.61% and the S&P 500's loss of 1.82%.
Market participants will be closely following the financial results of AppFolio in its upcoming release. It is anticipated that the company will report an EPS of $1.67, marking a 21.01% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $276.98 million, indicating a 17.58% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.75 per share and revenue of $1.12 billion. These totals would mark changes of +27.6% and +17.47%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for AppFolio. These recent revisions tend to reflect the evolving nature of short-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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, AppFolio boasts a Zacks Rank of #3 (Hold).
Looking at valuation, AppFolio is presently trading at a Forward P/E ratio of 23.2. This denotes a premium relative to the industry average Forward P/E of 18.89.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
AppFolio (APPF - Free Report) closed the most recent trading day at $146.56, moving +1.51% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Shares of the property management software maker witnessed a loss of 12.46% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.98%, and the S&P 500's gain of 0.08%.
The upcoming earnings release of AppFolio will be of great interest to investors. On that day, AppFolio is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 21.01%. Simultaneously, our latest consensus estimate expects the revenue to be $276.98 million, showing a 17.58% escalation compared to the year-ago quarter.
APPF's full-year Zacks Consensus Estimates are calling for earnings of $6.75 per share and revenue of $1.12 billion. These results would represent year-over-year changes of +27.6% and +17.47%, respectively.
Investors should also note any recent changes to analyst estimates for AppFolio. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AppFolio currently has a Zacks Rank of #2 (Buy).
Digging into valuation, AppFolio currently has a Forward P/E ratio of 21.39. This expresses a premium compared to the average Forward P/E of 18 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow APPF in the coming trading sessions, be sure to utilize Zacks.com.
In the latest close session, AppFolio (APPF - Free Report) was down 5.89% at $148.59. This move lagged the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Shares of the property management software maker have depreciated by 1.21% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.19%, and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of AppFolio in its forthcoming earnings report. The company's upcoming EPS is projected at $1.67, signifying a 21.01% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $276.98 million, reflecting a 17.58% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.75 per share and a revenue of $1.12 billion, signifying shifts of +27.6% and +17.47%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for AppFolio. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, AppFolio boasts a Zacks Rank of #3 (Hold).
In the context of valuation, AppFolio is at present trading with a Forward P/E ratio of 23.39. Its industry sports an average Forward P/E of 18.64, so one might conclude that AppFolio is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AppFolio (APPF - Free Report) .
AppFolio currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.33 approximates between Strong Buy and Buy.
Of the nine recommendations that derive the current ABR, seven are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 77.8% and 11.1% of all recommendations.
Brokerage Recommendation Trends for APPF
Check price target & stock forecast for AppFolio here>>>
While the ABR calls for buying AppFolio, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is APPF a Good Investment?Looking at the earnings estimate revisions for AppFolio, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.75.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AppFolio. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for AppFolio.
New Realm-X capabilities shift more of the portfolio’s operational work onto the platform
The new Claude connector makes its debut at Apartmentalize, June 17-19
SANTA BARBARA, Calif., June 16, 2026 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, today announced an expansion of the AppFolio Performance Platform, broadening its agentic capabilities across leasing, accounting, and resident operations and extending the real performance it already delivers for residents, owners, investors, and operators alike.
These innovations advance AppFolio’s vision for Real Estate Performance Management (RPM), where success is defined by the outcomes operators produce, not the tasks they automate. At the center is the Property Performance Gap: the distance between the outcomes operators want to achieve and what their current technology allows. Closing this gap requires an AI-native platform that unifies three interconnected systems of record, action, and growth into a single experience. The AppFolio Performance Platform runs leasing, maintenance, accounting, and resident operations on that foundation, so more of the portfolio’s work happens automatically and under the operator’s control.
AppFolio customers can now run complex workflows directly through Anthropic’s Claude, convert more leads around the clock, close the books faster, and move residents in with less friction, all within a single platform.
New innovations include:
Connect AppFolio directly to Anthropic’s Claude to trigger and execute complex workflows through a secure, native agent-to-agent integrationClose the books with less manual intervention using Realm-X Accounting Performer, which routes bills automatically and surfaces only the exceptions that need a human eyeConvert more leads, including after hours, with Realm-X Leasing Performer with multilingual voice, now fully available and built natively into AppFolioDelight residents from day one with Resident Concierge, a complimentary, white-glove utility setup service integrated natively into Resident OnboardingStreamline affordable housing applications with a mobile-friendly experience built for complex mixed-portfolio compliance According to AppFolio’s 2026 Property Manager Benchmark Survey, operators broadly adopting AI are establishing a distinct operational advantage, expecting 31% portfolio growth in 2026 compared to just 12% for the rest of the industry. AppFolio is built for that ambition, with AI-native architecture where intelligent workflows operate within daily property management rather than alongside it.
The System of Action: Realm-X Enhancements
Realm-X is AppFolio’s agentic AI layer, the system of action that executes complex workflows, surfaces the right exceptions, and operates continuously across leasing, accounting, and resident operations on governed, real-time data.
AppFolio is extending its leadership in agentic AI with a secure agent-to-agent connector between Realm-X and Anthropic’s Claude. Where most AI tools only surface data or answer questions, operators can use Claude to trigger and execute complex workflows under AppFolio’s native guardrails. Teams can delegate multi-step administrative tasks from any environment while maintaining accounting, financial, and compliance accuracy, with human supervision in place across agentic actions.
The newly announced Accounting Performer takes on the most time-consuming back-office work so teams can focus on the decisions that drive portfolio performance. It automatically imports and codes invoices, routes them to the right approvers, and continuously closes the books by detecting mismatches and surfacing resolutions. Its budgeting produces data-driven forecasts with transparent reasoning, and reforecasts easily as conditions change.
Already generally available for email and text, Leasing Performer has expanded its capabilities to include phone calls, providing rapid, multilingual responses to incoming inquiries 24/7. It answers complex questions, schedules tours, and helps renters find available units across all affiliated properties. Built natively into AppFolio rather than bolted on through a third-party integration, it operates with a real-time view of portfolio CRM data and calendars, eliminating lead-loss vulnerabilities for high-volume properties. Property managers using Leasing Performer are seeing a dramatic lift in leasing performance, including:
More than 35% increase in showings booked on averageCapture of up to 55% more after-hours demand that previously went unansweredShowings scheduled in an average of 2.5 minutes over the phone Resident Messenger Performer is also now generally available, providing an always-on support experience by handling inbound resident questions on demand based on the operator’s data, policies, and rules. Beta customers saw it resolve one-third of resident inquiries automatically, giving residents faster answers and teams more time for higher-value conversations.
The System of Growth: Resident Onboarding and Concierge
The system of growth is where AppFolio turns resident experience into long-term property performance. Satisfied residents renew, refer, and reduce the turnover costs that erode portfolio returns, making every move-in moment a performance decision. Yet property managers cite utility setup as their top move-in pain point, a first impression that puts that performance at risk before it starts. Resident Concierge removes that friction, offering incoming renters white-glove support to set up utilities, available at no cost directly within Resident Onboarding.
The System of Record: Affordable Housing Enhancements
The system of record is where AppFolio keeps every number, every relationship, and every transaction, and for affordable housing operators, that means compliance accuracy at every step. Affordable Housing leasing enhancements deliver a mobile-friendly application experience built to align with evolving HUD, LIHTC, and local program mandates. Operators can build tailored templates that dynamically ask the right questions based on each program’s compliance rules, whether LIHTC, Project-Based Section 8, or local programs. AppFolio groups household applications, carries demographic details directly into verification forms, and moves prospective renters from guest cards onto a centralized digital HUD waitlist.
“Real performance isn’t about doing the same things faster; it’s about building for distinct outcomes,” said Kyle Triplett, Chief Product Officer at AppFolio. “That requires a fundamentally different architecture. Our unified Performance Platform is designed from the ground up to run agentic capabilities directly on governed, real-time data. It’s how leading operators scale their portfolios with confidence and drive compounding success across their residents, investors, and teams.”
AppFolio is showcasing the Performance Platform at the National Apartment Association’s Apartmentalize conference, June 17-19. Attendees can visit booths #1635 and 1535 to see live product workflows alongside demonstrations of the new Claude connector.
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.
BOSTON--(BUSINESS WIRE)--Tour24 Inc., a leading self-guided touring platform for multifamily, today announced a new integration with AppFolio, the technology leader powering the future of the real estate industry. The integration connects Tour24's on-demand touring and AI-powered leasing support directly into the AppFolio Performance Platform, giving property managers a faster, more measurable path from tour to lease. Leasing demand doesn't follow office hours, increasing the need for property.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about AppFolio (APPF - Free Report) .
AppFolio currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.33 approximates between Strong Buy and Buy.
Of the nine recommendations that derive the current ABR, seven are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 77.8% and 11.1% of all recommendations.
Brokerage Recommendation Trends for APPF
Check price target & stock forecast for AppFolio here>>>
While the ABR calls for buying AppFolio, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is APPF a Good Investment?In terms of earnings estimate revisions for AppFolio, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.43.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AppFolio. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for AppFolio.
In its upcoming report, AppFolio (APPF - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.44 per share, reflecting an increase of 19% compared to the same period last year. Revenues are forecasted to be $258.04 million, representing a year-over-year increase of 18.5%.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some AppFolio metrics that Wall Street analysts commonly model and monitor.
Based on the collective assessment of analysts, 'Revenue- Other' should arrive at $3.23 million. The estimate points to a change of -7.4% from the year-ago quarter.
The consensus estimate for 'Revenue- Value Added Services' stands at $196.71 million. The estimate points to a change of +19.4% from the year-ago quarter.
Analysts expect 'Revenue- Core solutions' to come in at $57.91 million. The estimate points to a change of +17% from the year-ago quarter.
View all Key Company Metrics for AppFolio here>>>
AppFolio shares have witnessed a change of -5.8% in the past month, in contrast to the Zacks S&P 500 composite's +6.4% move. With a Zacks Rank #3 (Hold), APPF is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
SANTA BARBARA, Calif., April 23, 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 first quarter ended March 31, 2026.
"We are proud of our start to 2026 - our strategy is translating into strong financial outcomes and our momentum continues," said Shane Trigg, President and CEO. "We are putting AI to work across every dimension of our business, accelerating performance for our customers while driving greater efficiency across our own operations. Our ability to expand both customer value and financial performance continues to grow."
Financial Highlights for First Quarter of 2026
Revenue grew 20% year-over-year to $262 million.Total units under management grew 8% year-over-year to 9.5 million.GAAP operating income grew 50% to $51 million, or 19.4% of revenue, compared to $34 million, or 15.5% of revenue in Q1 2025.Non-GAAP operating income grew 35% to $72 million, or 27.3% of revenue, compared to $53 million, or 24.3% of revenue in Q1 2025.Net cash provided by operating activities was $34 million, or 13.1% of revenue, compared to $38 million, or 17.7% of revenue in Q1 2025.Repurchased 703 thousand shares of the Company's Class A common stock for $125 million. Financial Outlook
Based on information available as of April 23, 2026, AppFolio's outlook for fiscal year 2026 follows:
Full year revenue range is increasing to $1.110 - $1.125 billion.Full year non-GAAP operating margin range as a percentage of revenue is increasing to 26.0% - 28.0%.Diluted weighted average shares outstanding are now expected to be approximately 36 million for the full year. Conference Call Information
As previously announced, the Company will host a conference call today, April 23, 2026, at 2:00 p.m. Pacific Time (PT), 5:00 p.m. Eastern Time (ET), to discuss the Company’s first quarter financial results. A live webcast of the call will be available at: https://edge.media-server.com/mmc/p/hja3su4g. To access the call by phone, please go to the following link: https://register-conf.media-server.com/register/BI3901a9bd63cb48c1a2cf4d7d4e1b8821, 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.
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) March 31,
2026 December 31,
2025Assets Current assets Cash and cash equivalents $147,412 $106,967Investment securities—current 4,241 144,256Accounts receivable, net 43,966 36,873Prepaid expenses and other current assets 59,323 65,218Total current assets 254,942 353,314Property and equipment, net 22,449 23,228Operating lease right-of-use assets 15,364 15,924Capitalized software development costs, net 11,416 11,324Goodwill 96,410 96,410Intangible assets, net 36,269 38,826Deferred income taxes 50,795 58,823Long-term investments 77,668 77,033Other long-term assets 15,247 14,085Total assets $580,560 $688,967Liabilities and Stockholders’ Equity Current liabilities Accounts payable $3,740 $4,123Accrued employee expenses 25,163 59,774Accrued expenses 21,436 20,829Other current liabilities 22,018 22,121Total current liabilities 72,357 106,847Operating lease liabilities 31,981 33,287Other liabilities 5,994 6,254Total liabilities 110,332 146,388Stockholders’ equity 470,228 542,579Total liabilities and stockholders’ equity $580,560 $688,967 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts) Three Months Ended
March 31, 2026
2025
Revenue(1)$262,214 $217,702Costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization)(2) 94,975 79,498Sales and marketing(2) 37,501 31,057Research and product development(2) 49,629 43,758General and administrative(2) 24,341 23,351Depreciation and amortization 5,020 6,255Total costs and operating expenses 211,466 183,919Income from operations 50,748 33,783Other income, net 569 56Interest income, net 1,784 2,953Income before provision for income taxes 53,101 36,792Provision for income taxes 10,677 5,409Net income$42,424 $31,383Net income per common share: Basic$1.19 $0.86Diluted$1.18 $0.86Weighted average common shares outstanding Basic 35,699 36,302Diluted 35,812 36,648 (1) The following table presents our revenue categories:
Three Months Ended
March 31, 2026
2025
Subscription Services$58,222 $49,513Value Added Services 201,363 164,706Other 2,629 3,483Total revenue$262,214 $217,702 (2) Includes stock-based compensation expense as follows:
Three Months Ended
March 31, 2026
2025
Costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization)$1,088 $1,287Sales and marketing 3,340 2,848Research and product development 7,882 6,931General and administrative 5,679 5,305Total stock-based compensation expense$17,989 $16,371 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands) Three Months Ended
March 31, 2026 2025 Cash from operating activities Net income$42,424 $31,383 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,020 6,255 Amortization of operating lease right-of-use assets 560 501 Amortization of costs capitalized to obtain revenue contracts, net 3,168 2,720 Deferred income taxes 8,028 (5,541)Stock-based compensation, including as amortized 17,989 16,371 Other (523) (917)Changes in operating assets and liabilities: Accounts receivable (7,443) (3,116)Prepaid expenses and other assets (8,206) (5,460)Accounts payable (382) 2,546 Operating lease liabilities (1,180) (1,051)Accrued expenses and other liabilities (25,157) (5,226)Net cash provided by operating activities 34,298 38,465 Cash from investing activities Purchases of available-for-sale investments (42,663) (62,302)Proceeds from sales of available-for-sale investments 140,154 102,718 Proceeds from maturities of available-for-sale investments 42,360 42,150 Purchases of property and equipment (231) (230)Capitalization of software development costs (1,304) (636)Cash paid in business acquisition, net of cash acquired — (906)Net cash (used in) provided by investing activities 138,316 80,794 Cash from financing activities Proceeds from stock option exercises and the issuance of common stock under the Employee Stock Purchase Plan 998 11 Tax withholding for net share settlement (8,157) (9,078)Purchase of common stock (125,010) (95,763)Net cash used in financing activities (132,169) (104,830)Net increase in cash, cash equivalents and restricted cash 40,445 14,429 Cash, cash equivalents and restricted cash Beginning of period 107,217 42,754 End of period$147,662 $57,183 RECONCILIATION FROM GAAP TO NON-GAAP RESULTS
(UNAUDITED)
(in thousands, except per share data) Three Months Ended
March 31, 2026 2025 Costs and operating expenses: GAAP cost of revenue (exclusive of depreciation and amortization)$94,975 $79,498 Stock-based compensation expense (1,088) (1,287) Non-GAAP cost of revenue (exclusive of depreciation and amortization)$93,887 $78,211 GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue 36% 37% Non-GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue 36% 36% GAAP sales and marketing$37,501 $31,057 Stock-based compensation expense (3,340) (2,848) Non-GAAP sales and marketing$34,161 $28,209 GAAP sales and marketing as a percentage of revenue 14% 14% Non-GAAP sales and marketing as a percentage of revenue 13% 13% GAAP research and product development$49,629 $43,758 Stock-based compensation expense (7,882) (6,931) Non-GAAP research and product development$41,747 $36,827 GAAP research and product development as a percentage of revenue 19% 20% Non-GAAP research and product development as a percentage of revenue 16% 17% GAAP general and administrative$24,341 $23,351 Stock-based compensation expense (5,679) (5,305) Non-GAAP general and administrative$18,662 $18,046 GAAP general and administrative as a percentage of revenue 9% 11% Non-GAAP general and administrative as a percentage of revenue 7% 8% GAAP depreciation and amortization$5,020 $6,255 Amortization of stock-based compensation capitalized in software development costs (241) (241) Amortization of purchased intangibles (2,558) (2,558) Non-GAAP depreciation and amortization$2,221 $3,456 GAAP depreciation and amortization as a percentage of revenue 2% 3% Non-GAAP depreciation and amortization as a percentage of revenue 1% 2% Three Months Ended
March 31, 2026 2025 Income from operations: GAAP income from operations$50,748 $33,783 Stock-based compensation expense 17,989 16,371 Amortization of stock-based compensation capitalized in software development costs 241 241 Amortization of purchased intangibles 2,558 2,558 Non-GAAP income from operations$71,536 $52,953 Operating margin: GAAP operating margin 19.4% 15.5% Stock-based compensation expense as a percentage of revenue 6.8 7.5 Amortization of stock-based compensation capitalized in software development costs as a percentage of revenue 0.1 0.1 Amortization of purchased intangibles as a percentage of revenue 1.0 1.2 Non-GAAP operating margin 27.3% 24.3% Net income (loss): GAAP net income$42,424 $31,383 Stock-based compensation expense 17,989 16,371 Amortization of stock-based compensation capitalized in software development costs 241 241 Amortization of purchased intangibles 2,558 2,558 Income tax effect of adjustments (5,579) (6,343) Non-GAAP net income$57,633 $44,210 Net income per share, basic: GAAP net income per share, basic$1.19 $0.86 Non-GAAP adjustments to net income 0.42 0.36 Non-GAAP net income per share, basic$1.61 $1.22 Net income per share, diluted: GAAP net income per share, diluted$1.18 $0.86 Non-GAAP adjustments to net income 0.43 0.35 Non-GAAP net income per share, diluted$1.61 $1.21 Weighted-average shares used in GAAP and non-GAAP per share calculation Basic 35,699 36,302 Diluted 35,812 36,648 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.
AppFolio (APPF - Free Report) came out with quarterly earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.44 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.81%. A quarter ago, it was expected that this property management software maker would post earnings of $1.22 per share when it actually produced earnings of $1.39, delivering a surprise of +13.93%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
AppFolio, which belongs to the Zacks Internet - Software industry, posted revenues of $262.21 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.62%. This compares to year-ago revenues of $217.7 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 31.9% since the beginning of the year versus the S&P 500's gain of 4.3%.
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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $1.64 on $276.81 million in revenues for the coming quarter and $6.43 on $1.11 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 37% 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, Bumble Inc. (BMBL - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.
This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of +130.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bumble Inc.'s revenues are expected to be $211.88 million, down 14.3% from the year-ago quarter.
AppFolio remains a buy after a strong Q1 beat-and-raise, signaling resilience amid broader software sector fears. APPF's pricing model, tied to unit expansion and value-added services, insulates it from per-seat SaaS risks. Secular tailwinds in rental demand and robust fundamentals—20%+ revenue growth, high 20s margins—place APPF in the Rule of 40 category.
