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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.

Investor Relations Contact:
Lori Barker
[email protected]

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

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

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

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

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

CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
  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 (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.

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.

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.

Investor Contact:
Lori Barker
[email protected]

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.

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.

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.

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 >>>> .

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, Inc. (APPF) Q1 2026 Earnings Call Prepared Remarks Transcript

AppFolio (APPF +1.18%) stock closed out Friday's trading with a double-digit gain on strong quarterly results. The company's share price gained 11.2% in the session and had been up as much as 15.4% earlier in trading.

AppFolio published its Q1 results after the market closed yesterday and reported sales and earnings for the period that beat Wall Street's expectations. While the stock saw a strong pop today, its share price is still down roughly 27% year to date.

Image source: Getty Images.

AppFolio breezed by Wall Street's Q1 targets AppFolio's non-GAAP (adjusted) earnings per share of $1.61 in the first quarter beat the average analyst estimate by $0.14 per share. Meanwhile, sales of $262.2 million for the period were up roughly 20% year over year and beat the average Wall Street target by roughly $4.1 million. The business posted strong growth in the quarter, and the real-estate specialist closed out the period with 9.5 million units under management -- up 8% annually.

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What's next for AppFolio? For the full-year period, AppFolio is guiding for sales to come in between $1.11 billion and $1.125 billion -- good for growth of roughly 17.5% at the midpoint of the guidance range. The new forecast represented an upgrade from the previous guidance for sales between $1.1 billion and $1.2 billion. The increased sales forecast doesn't look dramatic, but the boosted sales outlook and stronger-than-expected margins last quarter suggest a strengthening earnings picture.

Keith Noonan 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.

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.

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

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

AppFolio (APPF - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it 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.

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 101.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 24.1% this year, crushing the industry average, which calls for EPS growth of 22.7%.

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 1.61, which means that the company gets $1.61 in sales for each dollar in assets. Comparing this to the industry average of 0.59, 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 17.5% this year versus the industry average of 9.3%.

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.

The current-year earnings estimates for AppFolio have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.8% over the past month.

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

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

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

On May 13, 2026, AppFolio Inc (APPF) shares fell 3.1% to a current price of $150.50. The stock has experienced significant volatility, with a 52-week range betw

AppFolio (APPF - Free Report) closed the most recent trading day at $167.51, moving +2.36% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 2.65%. On the other hand, the Dow registered a loss of 1.35%, and the technology-centric Nasdaq decreased by 4.18%.

The property management software maker's stock has dropped by 3.85% in the past month, falling short of the Computer and Technology sector's gain of 10.37% and the S&P 500's gain of 5.47%.

The upcoming earnings release of AppFolio will be of great interest to investors. The company's upcoming EPS is projected at $1.67, signifying a 21.01% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $277.64 million, up 17.86% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.75 per share and revenue of $1.12 billion, indicating changes of +27.6% and +17.47%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for AppFolio. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AppFolio is currently a Zacks Rank #3 (Hold).

Looking at its valuation, AppFolio is holding a Forward P/E ratio of 24.24. This indicates a premium in contrast to its industry's Forward P/E of 18.84.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Key Takeaways APPF generates revenues from subscriptions and usage-based services tied to platform activity.AppFolio grew 2025 revenues 20% as payments, screening and insurance-related services gained traction. APPF reported 9.5M units managed in Q1 2026, with AI adoption expanding across workflows. AppFolio, Inc. (APPF - Free Report) operates a cloud-based software platform built specifically for property managers. At its core, the company's business model is straightforward: provide a mission-critical operating system for managing residential and commercial properties, then monetize the transactions, workflows and services that run through that platform.

Over the past few years, AppFolio has evolved from a traditional property management software provider into an AI-native platform. Management's vision is to combine its system of record, system of action and system of growth into one unified experience. As more workflows become automated through AI, customers are increasingly relying on AppFolio not only to manage properties but also to improve business performance. This deeper platform engagement creates opportunities for premium-tier upgrades, higher product attachment and greater revenue per unit managed.

AppFolio's Platform and Customer BaseAppFolio serves property managers across single-family, multifamily, affordable housing, student housing, commercial properties and community associations. The platform helps customers manage day-to-day operations, including leasing, accounting, maintenance, resident communications and compliance.

Beyond core property management software, AppFolio also offers services such as tenant screening, online payments, renters insurance programs and resident onboarding tools. These services allow customers to manage much of the resident lifecycle from a single platform.

Usage tends to be highest in residential property management because residential operators handle a large number of recurring interactions, including lease applications, rent collection, maintenance requests, move-ins and move-outs. These frequent transactions create more opportunities for customers to use AppFolio's value-added products and services.

Management increasingly positions the platform as a real estate performance platform rather than simply property management software. The goal is to help customers improve resident satisfaction, retention, operational efficiency and property performance through automation and data-driven workflows.

AppFolio's Two-Part Revenue EngineAppFolio generates revenue through two primary categories: Subscription Services and Value-Added Services.

Subscription Services provide access to the company's cloud platform and various software modules. These recurring fees create a stable revenue foundation and make AppFolio the customer's primary system of record.

Value-Added Services are usage-based offerings tied directly to operational activity on the platform. These include electronic payments, tenant screening, risk mitigation products, resident onboarding services and AI-powered workflow solutions.

This structure creates a powerful software-plus-services model. As customers process more payments, run more screenings, onboard more residents and automate more workflows through AppFolio, revenue grows alongside customer activity.

The model benefits from two growth drivers. First, AppFolio can add more customers and units under management. Second, it can increase monetization of existing customers through greater adoption of value-added products and premium features. This second lever has become increasingly important as the company expands its AI and resident-services offerings.

APPF's Subscription Plans and Upsell PathAppFolio primarily sells its platform through three subscription tiers: Core, Plus and Max.

The company's strategy is to first establish itself as the customer's central operating system and then expand adoption of higher-value products over time. As customers become more dependent on AppFolio for leasing, accounting, maintenance, communications and resident services, the switching costs increase and the opportunity for upselling grows.

Management noted that premium-tier upgrades remain an important contributor to subscription revenue growth. Customers upgrading to Plus and Max gain access to advanced capabilities, including Realm-X workflow automation tools, expanded integrations and broader property management functionality.

The company is also seeing growing adoption of mixed-portfolio capabilities, which support customers managing different property types such as affordable housing and student housing within the same platform.

Because all workflows operate inside a unified platform, AppFolio can continuously introduce additional products and services without requiring customers to adopt separate systems. This creates a natural expansion path that supports long-term retention and revenue growth.

AppFolio's Usage-Based FlywheelA major part of AppFolio's growth story comes from its usage-based services.

The company's largest value-added offerings include online payments, tenant screening, FolioGuard risk mitigation services, Resident Onboarding Lift and AI-powered Realm-X Performers. These products are embedded directly into everyday property management activities, making them highly recurring and difficult to replace.

As transaction volumes increase, AppFolio captures additional revenue without needing to acquire new customers. This creates a flywheel effect where greater platform usage leads to higher monetization.

The financial results illustrate this trend clearly. Total revenue increased 20% year over year to $950.8 million in 2025, driven by stronger adoption of electronic payments, tenant screening and insurance-related services, along with growth in units under management.

The momentum continued in first-quarter 2026. Revenue increased 20% year over year to $262 million, with Value-Added Services growing 22% and Subscription Services growing 18%. Management highlighted increasing contributions from Resident Onboarding Lift and Realm-X Performers, showing that newer products are becoming meaningful revenue drivers alongside traditional payment and screening services.

APPF's Key Operating MetricsAPPF’s key operating metrics include customer count and units under management.

These metrics represent the foundation of AppFolio's revenue opportunity because every additional unit creates potential demand for subscriptions, payments, screening services, resident onboarding and AI-driven automation.

As of Dec. 31, 2025, AppFolio served 22,096 property management customers. By the end of first-quarter 2026, the customer count had increased to 22,520 while units under management reached 9.5 million.

Management noted that first-quarter 2026 represented the strongest first quarter for residential new-business unit acquisition in company history. In the first quarter of 2026, customer growth was 7% year over year and units under management increased 8% year over year.

While footprint growth remains healthy, management increasingly views monetization expansion as the larger opportunity. The company continues to drive growth through premium-tier upgrades, AI adoption, resident services and greater use of value-added offerings. As a result, revenue per unit is becoming a more important growth driver alongside customer acquisition.

AppFolio's AI-Native Workflow ExpansionArtificial intelligence has become a central component of AppFolio's strategy.

Rather than offering AI as a standalone feature, the company is embedding AI directly into leasing, maintenance, resident communications and operational workflows. Management believes this approach allows customers to automate work instead of simply generating insights.

The company's Realm-X suite includes AI-powered Performers that act as digital workflow agents. These tools can handle leasing inquiries, maintenance requests and resident communications with minimal human intervention. Adoption trends have been strong. Management disclosed that more than 99% of customers now use some form of AI-enabled functionality. AI actions increased sevenfold year over year, while Performer adoption grew nearly 500% quarter over quarter.

Maintenance Performer highlights the value proposition. The solution can respond to maintenance requests within seconds, troubleshoot issues, create work orders and follow up with vendors automatically. Leasing Performer is also showing measurable results, with one customer reporting a 20% improvement in inquiry-to-showing conversion rates after deployment.

Management believes AppFolio's advantage comes from combining AI capabilities with a unified system of record and action. Because AI agents operate directly on customer data and workflows inside the platform, they can automate tasks more accurately and reliably than standalone third-party solutions.

As AI adoption expands, AppFolio expects stronger customer retention, higher premium-tier adoption and greater attachment of value-added services, supporting long-term revenue growth.

APPF's Competitive Position and Market DifferentiationAppFolio operates in a competitive market that includes both vertical real estate software providers and broader horizontal software vendors. Vertical competitors focus specifically on property management and real estate operations, while horizontal software providers offer general business management solutions that can be adapted for multiple industries.

AppFolio's primary differentiator is its integrated software-plus-services platform. Instead of serving only as a record-keeping system, the company increasingly acts as the operational hub through which customers manage transactions, automate workflows and engage residents.

Management frequently emphasizes its unified system of record, system of action and system of growth framework. By combining operational data, AI-powered automation and resident-facing services within a single platform, AppFolio increases customer reliance and raises switching costs over time.

The company also benefits from deep industry-specific expertise built across tens of thousands of property management customers. This domain knowledge enables AppFolio to develop workflow-specific automation and compliance capabilities that are difficult for broader software providers to replicate.

For context, some software peers in the broader Internet software space include BILL Holdings, Inc. (BILL - Free Report) , Paycom Software Inc. (PAYC - Free Report) and Atlassian (TEAM - Free Report) . BILL focuses on automating back-office financial workflows such as accounts payable and receivable, Atlassian provides collaboration and project management software and Paycom Software provides cloud-based human capital management software for both employee records and talent management processes.

AppFolio's distinction is that its entire platform is designed around the property management lifecycle, with a growing portion of revenue tied directly to the transactions, services and AI workflows that customers execute on the platform every day. As AI adoption accelerates and more workflows become embedded within AppFolio's ecosystem, the company's competitive advantage increasingly depends on platform depth, workflow automation and its ability to monetize activity occurring across the real estate lifecycle.

Currently, APPF carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SANTA BARBARA, Calif., June 09, 2026 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, today announced a milestone in Real Estate Performance Management: an agent-to-agent connector between its AppFolio Realm-X AI suite and Anthropic’s Claude. Property managers can now trigger and execute complex operational work in Claude, with every action governed by native domain logic, trusted accounting rules, and compliance guardrails.

Where most industry approaches simply produce query results by exposing API endpoints or surfacing raw data, AppFolio is exposing operational jobs – triggered from Claude, executed inside the Performance Platform. Realm-X and Claude operate agent-to-agent, collaborating to execute real work with and for customers. Realm-X natively understands the operational model of property management – the workflows, the rules, and the real-world stakes. Built on an architecture of native governance, authentication, and permissioning, every action initiated through the connector inherits AppFolio’s existing platform guardrails, ensuring that work is executed within the customer’s established workflows, while giving operators visibility and oversight.

“Our mission has always been to build the platform where real estate comes to do business, and we recognize that our customers are more than just consumers of our platform – they are builders of real businesses and thriving communities,” said Kyle Triplett, Chief Product Officer at AppFolio. “By bringing the power of Realm-X to Claude, we are giving those builders the access and capabilities to deliver unparalleled performance. Whether they are at their desk or mobile, they can work through Claude, and have the same trusted AppFolio Performance Platform with a unified system of action.”

“The next frontier of AI is moving beyond simple chat to sophisticated agents that can execute meaningful work within complex industries,” said Travis Bryant, Head of Americas Mid-Market at Anthropic. “By leveraging Claude’s high-reasoning capabilities and AppFolio’s deep real estate expertise, this connector demonstrates how AI can safely navigate professional workflows. We are excited to see AppFolio use our models to empower property managers with a secure, proactive system of action to deliver real performance outcomes to their customers.”

What Property Management Professionals Can Do

Portfolio Reporting: Combine AppFolio portfolio data with external market research through Claude to generate investor-ready performance summaries.Occupancy & Maintenance Oversight: Use Claude to analyze occupancy and maintenance performance metrics to identify operational bottlenecks. Realm-X surfaces actionable recommendations to protect retention and executes priority tasks to shorten resolution times.Leasing & Marketing Optimization: Direct Claude to review listing and leasing performance. Realm-X executes updates to marketing copy and listing details, re-syndicating immediately to improve lead conversion.Accounting & Financial Integrity: Maintain clean and current books by having Realm-X surface bank reconciliation exceptions and potential discrepancies. Work with Claude to generate adjustments needed to reconcile financials.Resident Satisfaction: Analyze the quality of resident interactions to understand strengths and areas for improvement. Draft policy updates with Claude and act on a better resident experience through Realm-X Resident Messenger Performer. “Realm-X has fundamentally transformed what AI can do in this industry,” said JC Castillo, President and CEO at Velo Residential, an AppFolio customer. “By connecting Realm-X to Claude, AppFolio opens up endless opportunities for us to get creative and maximize the performance of our portfolio. With the connector, Claude gets safe, real-time access to our business context, and the power to trigger action in the platform we run our business on.”

The Realm-X connector in Claude will make its debut at the National Apartment Association’s Apartmentalize conference, June 17-19.

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.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/de25604f-4b2e-4c09-a20f-f5c19c929246