Track market-moving stories before they get noisy

On May 27, 2026, Cactus Inc (WHD) shares fell 3.4% to a current price of $60.64. This decline comes as the stock has seen a 52-week range of $33.20 to $64.30, r

A month has gone by since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cactus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Cactus Q1 Earnings Beat Estimates, Revenues Rise Y/YCactus, Inc. reported adjusted earnings of 70 cents per share in the first quarter of 2026, down 4.1% from the year-ago level of 73 cents but ahead of the Zacks Consensus Estimate of 65 cents by 7.7%.

Quarterly revenues rose 38.5% year over year to $388.35 million and topped the consensus mark of $380.81 million by 2%. Remaining performance obligations ended the quarter at $537.5 million, led by international Pressure Control work tied to the newly added Cactus International business.

The better-than-expected quarterly results can be attributed to higher revenues in the Pressure Control segment, aided by the acquisition of Cactus International. However, several transaction-related and acquisition-accounting charges partly offset the gains.

Pressure Control Benefits From Cactus International DealThe quarter marked the first period to include results from Cactus International, following the Jan. 1 closing of the majority-interest acquisition. Management stated that Pressure Control revenues stayed resilient even as the conflict in the Middle East created shipment delays and operational friction.

Pressure Control revenues totaled $300.2 million for the quarter, higher than $190.3 million in the year-ago quarter and above our estimate of $300 million. Segment operating income totaled $38.6 million, down from $54.3 million in the prior-year quarter, reflecting the impact of purchase price accounting, including an inventory step-up and intangible value amortization.

Adjusted segment EBITDA for Pressure Control was $71.8 million, higher than $64.8 million in the prior-year quarter. Our estimate for the same was pinned at $74.9 million. Adjusted segment EBITDA margin was 23.9%.

Spoolable Technologies Segment Holds UpManagement highlighted that the Spoolable Technologies segment recorded non-U.S. revenues in the quarter, with strength cited in the Middle East and Latin America, alongside better-than-expected domestic activity. The segment witnessed stronger-than-typical seasonal demand and continued international order growth.

Spoolable Technologies' revenues were $89.9 million, lower than $92.6 million in the year-ago quarter and above our estimate of $83.7 million. The segment's operating income totaled $23.6 million, slightly lower than $23.9 million in the prior-year quarter.

Adjusted segment EBITDA totaled $32.9 million, translating to a 36.6% margin, as improved operating leverage helped offset higher input costs. This is comparable to adjusted segment EBITDA of $33.5 million, with a 36.2% margin in the year-ago period. On the call, management also pointed to a recent increase in polyethylene pricing as a cost item that the team expects to address through mitigation and recovery actions.

WHD’s Adjusted Profit Hit by Purchase AccountingWhile the acquisition expanded Cactus’ footprint, it also weighed on reported profitability comparisons due to non-cash items tied to purchase accounting. Operating income for the quarter totaled $49.5 million compared with $68.6 million in the first quarter of 2025. The company posted adjusted net income of $56.2 million, even as the income statement reflected several transaction-related and acquisition-accounting charges.

Adjusted EBITDA was $100.1 million, and key add-backs included $10.4 million of inventory step-up expenses, $5.8 million of transaction-related expenses and $7 million of stock-based compensation. Management emphasized that these adjustments are intended to improve comparability as integration work progresses.

Strong Cash Flow and Dividend Payout Cactus generated $128.3 million of cash flow from operations during the quarter, reflecting solid underlying cash conversion even as working-capital timing was influenced by acquisition-related restructuring steps. The company ended March with $291.6 million in cash and cash equivalents, including $97.8 million retained to finalize certain restructuring activities connected to Cactus International.

Capital allocation remained shareholder-friendly. The company paid a quarterly dividend of 14 cents per share, with cash outflows of $11.7 million, including related distributions. Net capital expenditures were $9 million, and the company repurchased $7.9 million of shares during the quarter while maintaining no bank debt outstanding.

Q2 Outlook Shift With Conflict EffectsFor the second quarter, management expects Pressure Control revenues to be approximately flat. Stronger sentiment and activity in the domestic market are expected to be offset by the full-quarter impact of the Middle East conflict on the Cactus International joint venture. Pressure Control adjusted EBITDA margins are guided to 22-24%, excluding stock-based compensation and inventory write-up amortization tied to purchase accounting.

Spoolable Technologies’ revenues are expected to grow at a mid-single-digit pace, driven primarily by higher North American activity, with adjusted EBITDA margins guided to 36-38%. On costs and planning items, management cited a 19% expected effective tax rate, second-quarter depreciation and amortization of roughly $37 million and reiterated full-year 2026 net capital expenditures of $40-$50 million.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.

VGM ScoresCurrently, Cactus has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerCactus belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, ConocoPhillips (COP - Free Report) , has gained 3.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

ConocoPhillips reported revenues of $16.05 billion in the last reported quarter, representing a year-over-year change of -6.1%. EPS of $1.89 for the same period compares with $2.09 a year ago.

For the current quarter, ConocoPhillips is expected to post earnings of $2.72 per share, indicating a change of +91.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +18% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for ConocoPhillips. Also, the stock has a VGM Score of B.

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.

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.

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)       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 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.

SANTA BARBARA, Calif., April 24, 2026 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, today released its 2026 Renter Preferences Report. With 55% of property managers citing vacancy as their top threat, AppFolio’s 2026 Renter Preferences Report finds the modern resident experience, driven by convenience and property manager responsiveness, is now table stakes for maintaining occupancy and driving performance.

As rent growth slows, resident satisfaction is increasingly important for sustaining occupancy, increasing retention, and delivering consistent performance. The report shows that satisfied residents are 72% more likely to renew and 34% less likely to plan a move.

Establishing Resident Trust Starts on Day One
AppFolio’s research identifies the resident move-in as a key opportunity for property managers to improve the resident experience at a critical moment. Residents satisfied with their move-in are 31% more likely to plan to renew their lease, making a friction-free move-in a strong predictor of long-term resident retention.

To capitalize on this opportunity, leading property managers are prioritizing services that take the pain out of moving, along with clear, transparent pricing. By automating essential move-in steps like insurance verification and utility setup, property managers remove day-one friction, creating a better resident experience.

Convenience Is No Longer a Differentiator, It’s Expected
Property managers can more effectively attract new residents by prioritizing valuable services that offer convenience and financial value. Demand for these services is high; 78% of residents say they are an important consideration when evaluating a new home, and 79% are willing to pay for offerings that provide convenience and financial empowerment, yet only 33% can rely on their property managers for access.

When residents do have access to these services, the impact is clear. Residents with financial services score 14% higher on the Cantril Ladder for life satisfaction, and 97% of those with group-rate internet report saving money and improving their financial health.

Turning Maintenance Excellence into Resident Advocacy
While move-in sets the tone, maintenance sustains the relationship. The report highlights that maintenance satisfaction is a critical lever for property performance: residents who are happy with their repairs are 81% more likely to renew and three times more likely to recommend their property manager. By leveraging automation and agentic AI to manage everything from intake to vendor coordination, leading operators are removing the friction from the maintenance process and accelerating the speed of repairs.

Driving Better Outcomes Through a Unified Experience
AppFolio empowers property managers to evolve from managing isolated tasks to driving performance across the entire real estate ecosystem, unifying workflows to unlock long-term value for every stakeholder. By integrating resident services directly into its Performance Platform, AppFolio helps teams deliver seamless experiences that today’s renters expect.

“Property management has always been about more than providing space. Today,it’s about delivering the right experience and value to residents,” said Stacy Holden, Vice President, Industry Principal at AppFolio. “There is a clear divide between managers who are maintaining operations and those achieving real performance. By leveraging a unified Performance Platform to deliver the digital-first services residents expect, leading operators are turning resident satisfaction into a predictable driver of retention.”

Download the 2026 Renter Preferences Report to see the full findings and actionable recommendations.

*The Cantril Ladder is a long-standing measurement of life satisfaction used by the polling firm Gallup. It assesses how people evaluate their lives, with 0 representing the lowest point and 10 the highest.

Survey Methodology
AppFolio commissioned a survey of 3,002 U.S. renters ages 18 and up from January 26, 2026 to February 4, 2026.

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

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

AppFolio (APPF - Free Report) closed the last trading session at $169.75, gaining 8.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $235.57 indicates a 38.8% upside potential.

The average comprises seven short-term price targets ranging from a low of $200.00 to a high of $300.00, with a standard deviation of $33.31. While the lowest estimate indicates an increase of 17.8% from the current price level, the most optimistic estimate points to a 76.7% upside. More than the range, one should 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.

Here's Why There Could be Plenty of Upside Left in APPFAnalysts' 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 to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 2.8%.

Moreover, APPF currently has a Zacks Rank #2 (Buy), which means it is in the top 20% 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.

From a technical perspective, AppFolio (APPF - Free Report) is looking like an interesting pick, as it just reached a key level of support. APPF recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.

Shares of APPF have been moving higher over the past four weeks, up 6.4%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that APPF could be poised for a continued surge.

Looking at APPF's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 4 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on APPF for more gains in the near future.

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?

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>>>

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.

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.

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.

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.

Key Takeaways APPF shares are down 28.3% YTD as investors focus more on execution than momentum.AppFolio grew Q1 revenue 20%, helped by AI tools, premium upgrades and value-added services.APPF targets continued revenue-per-unit growth while maintaining margins and cash generation. AppFolio, Inc. (APPF - Free Report) has spent much of 2026 under pressure, with the stock giving back a significant portion of the gains it delivered over the last few years. The pullback has shifted investor attention away from momentum and toward fundamentals. At current levels, the debate is less about how fast the stock can rise and more about whether the company can continue executing on the operating model that has supported its premium valuation.

For investors evaluating the stock today, the key question is straightforward: Can AppFolio continue increasing revenue per unit through AI-driven workflow adoption, premium-tier upgrades and usage-based services while maintaining margin expansion and healthy cash generation?

APPF's Setup After the DrawdownAPPF shares have declined 28.3% year to date and 23.4% over the past 12 months. While the selloff has reduced valuation pressure, it has also raised expectations around execution.

APPF One-Year Price Return Performance
Image Source: Zacks Investment Research

Unlike earlier stages of growth when customer and unit additions were the primary focus, AppFolio's growth story is increasingly tied to monetization. The company is generating more revenue from existing customers through premium-tier upgrades, AI-powered workflow tools, resident services and transaction-based offerings.

As a result, investors are now watching less for explosive footprint expansion and more for evidence that customers are adopting higher-value products. The market is effectively betting that AppFolio's AI-native platform, growing resident-services ecosystem and usage-based revenue streams can continue driving revenue growth even as customer and unit growth remain in the high-single-digit range.

AppFolio's recent results suggest this strategy is working, but sustaining that momentum will remain critical for the stock.

AppFolio's Price Target and What It ImpliesAPPF’s 6-to-12-month price target stands at $172, based on a forward 12-month sales multiple of 5.08x, slightly above the stock's current trading multiple of 4.84x. While that does not imply dramatic upside from current levels, it does suggest confidence that AppFolio can continue executing against its growth and profitability objectives.

To justify that valuation, investors will likely want to see continued momentum in several areas. These include premium-tier upgrades to Plus and Max plans, deeper adoption of Realm-X AI solutions, higher attachment of Resident Onboarding Lift and sustained growth in payments, screening and risk-mitigation services.

In other words, the valuation assumes AppFolio can continue turning customer activity into higher revenue per unit while maintaining the operating discipline that has supported recent margin expansion.

APPF's Relative Valuation Versus Software PeersAPPF currently trades at approximately 4.84x forward 12-month sales.

That compares with 3.79x for the Zacks Internet Software industry, 6.91x for the broader Computer & Technology sector and 5.21x for the S&P 500.

APPF Forward 12-Month Price-To-Sales (P/S) Ratio
Image Source: Zacks Investment Research

AppFolio trades above its immediate software peer group but below many higher-growth software names. This suggests investors recognize the company's attractive business model and expanding profitability but remain cautious about some of the risks embedded in the story.

Those concerns primarily center around the company's payments-heavy revenue mix, the impact of AI infrastructure investments on margins and the increasing dependence on product attachment and upselling rather than accelerating customer growth.

The stock is no longer being valued as a pure high-growth software name. Instead, investors appear to be assigning value to AppFolio's ability to monetize transactions and workflows at scale while continuing to improve profitability over time.

AppFolio's Growth and Profitability SignalsThe company's latest results reinforced the strength of the underlying business.

First-quarter 2026 revenues increased 20% year over year to $262 million. Subscription Services revenue rose 18% to $58.2 million, while Value-Added Services revenue grew 22% to $201.4 million.

The growth drivers remain consistent. Higher usage of electronic payments, tenant screening, FolioGuard risk mitigation products and resident services contributed meaningfully to results. At the same time, premium-tier upgrades and AI-powered solutions such as Realm-X Performers are becoming larger contributors to revenue growth.

Profitability also continued to improve. Non-GAAP operating margin expanded to 27.3% in the first quarter of 2026, up from 24.3% in the prior-year period. Research and development expenses and general and administrative expenses both declined as a percentage of revenue, demonstrating the benefits of scale and improving operational efficiency.

Management has also highlighted that AI is helping accelerate internal product development, allowing engineering teams to build and deploy new capabilities more efficiently. This is creating operating leverage beyond what investors would typically expect from a growing software company.

That said, margin expansion is not without challenges. Cost of revenues stood at roughly 36% of revenues and is expected to stay relatively stable throughout 2026. The company's rapidly growing payments business carries higher third-party processing costs, while increasing AI adoption requires additional data-center and infrastructure spending. The result is a business that continues to expand margins, but likely at a measured pace rather than through dramatic gross-margin improvement.

APPF's Near-Term Rating and Style ProfileAPPF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also holds a VGM Score of B, supported by a Growth Score of A and Momentum Score of B, while its Value Score sits at D.

These ratings tell an important story.

Growth-oriented investors may find the company attractive because of its ability to drive higher revenue per unit through AI adoption, premium subscriptions and expanding value-added services.

Investors focused on valuation may be more cautious. The D Value score reflects a business that still trades at a premium relative to many software peers and therefore requires continued execution to justify its multiple.

Momentum investors face a more balanced picture. The recent share-price decline has reduced enthusiasm around the stock, but operating performance remains strong enough to support future recovery if execution continues.

AppFolio's Bull Case DriversThe bullish thesis centers on AppFolio's increasing role as the operating system for property managers.

AI adoption remains one of the strongest indicators supporting that view. Management disclosed that more than 99% of customers now use some form of AI-powered functionality. AI actions increased sevenfold year over year, while Performer adoption climbed nearly 500% quarter over quarter.

Those numbers suggest AI is becoming embedded in everyday workflows rather than remaining a niche feature.

The company is also benefiting from strong attachment rates for resident services and workflow automation products. Resident Onboarding Lift, Realm-X Leasing Performer and Maintenance Performer are helping customers automate tasks, improve resident experiences and increase operational efficiency.

Meanwhile, AppFolio continues to generate operating leverage. Management raised its 2026 non-GAAP operating margin outlook to 26%-28%, reflecting confidence in the company's ability to balance growth investments with profitability.

Capital allocation remains another positive. During the first quarter, AppFolio repurchased approximately $125 million of stock and still has $125 million remaining under its authorization. Combined with a debt-free balance sheet, this provides additional flexibility to support shareholder value.

APPF's Key Risks That Can Break the ThesisDespite the strong operating performance, several risks remain.

The biggest challenge is the company's revenue mix. Value-Added Services, particularly payments, continue to grow faster than subscription revenue. While this supports overall revenue growth, payments carry higher third-party costs, limiting the amount of gross-margin expansion investors might otherwise expect.

Cash conversion is another area to monitor. During the first quarter, operating cash flow was impacted by working-capital movements and higher accounts receivable balances. At the same time, AI-related infrastructure spending continues to increase.

While management views these investments as necessary to support future growth, they can create volatility in cash generation from quarter to quarter.

Finally, customer growth and unit growth remain relatively modest. Units under management grew 8% year over year and customer growth was 7%. This means the company's growth increasingly depends on premium-tier upgrades, AI adoption and greater use of value-added services.

If attachment rates slow or customers become more selective about adopting new products, revenue growth could moderate from the high-teens and low-twenties range seen recently.

AppFolio's Practical Decision FrameworkFor investors evaluating APPF today, the investment case can be simplified into four key operating metrics. First, watch product attachment and upsell trends. Continued adoption of Plus and Max plans, Realm-X Performers and Resident Onboarding Lift will be critical for sustaining revenue-per-unit growth.

Second, monitor cost-of-revenue trends. Investors will want confirmation that payment-processing costs and AI infrastructure investments remain manageable as a percentage of revenue. Third, focus on operating margins. Maintaining non-GAAP operating margins near the guided 26%-28% range would reinforce confidence in the company's ability to scale profitably.

Finally, watch cash generation. A return to stronger cash conversion after first-quarter working-capital pressures would strengthen the overall investment thesis.

At current levels, AppFolio appears less like a momentum story and more like an execution story. The company's AI-native platform, expanding value-added services and improving profitability provide a compelling long-term foundation. However, the stock's future performance will likely depend on management's ability to keep increasing monetization per customer while preserving margins and cash flow.

For investors comfortable with that balance of opportunity and risk, APPF remains a high-quality vertical software company worth watching closely as its AI-driven growth strategy continues to unfold.

For context, investors looking across software platforms may also track names like Paycom Software Inc. (PAYC - Free Report) , which is a provider of cloud-based human capital management software as a service solution for integrated software for both employee records and talent management processes. BILL Holdings, Inc. (BILL - Free Report) , which positions itself as a financial operations platform automating back-office workflows. Atlassian (TEAM - Free Report) is another reference point in workflow software, with collaboration and project tools like Confluence and Jira aimed at embedding into daily work.

Key Takeaways APPF reported more than 99% customer adoption of AI-enabled features in Q1 2026.AppFolio's Realm-X agents automate leasing, maintenance and resident workflows with minimal input.APPF is using AI to drive premium upgrades, higher monetization and improving operating margins. AppFolio, Inc. (APPF - Free Report) is moving beyond AI-powered chat tools and into something potentially more valuable, such as focusing on AI agents that can execute work inside property management workflows. While many software companies are still experimenting with generative AI features, AppFolio is embedding automation directly into leasing, maintenance and resident operations.

The company's early adoption metrics suggest AI is no longer a niche feature inside the platform. Instead, it is becoming a core part of how customers operate their businesses. That distinction matters because AppFolio's long-term growth model depends on increasing engagement within its platform. If AI encourages customers to automate more workflows, process more transactions and adopt additional products, it can support higher revenue per unit, stronger retention and greater operating leverage over time.

In many ways, Realm-X is becoming a key test of whether AI can evolve from a productivity tool into a meaningful revenue and monetization driver for vertical software platforms.

APPF's AI Adoption Signals Are Getting Hard to IgnoreThe strongest evidence supporting AppFolio's AI strategy is the pace of adoption across its customer base

In the first quarter of 2026, management disclosed that more than 99% of customers now use some form of AI-enabled functionality. For a software platform serving more than 22,000 property management customers, that level of penetration suggests AI capabilities are becoming embedded in everyday operations rather than remaining optional add-ons.

Usage intensity is also accelerating rapidly. During the first quarter of 2026, AI actions increased sevenfold year over year, indicating customers are relying on automation far more frequently than they were a year ago.

The adoption curve is even more pronounced for AppFolio's agentic offerings. Management reported nearly 500% quarter-over-quarter growth in Performer adoption, highlighting how quickly customers are moving from AI-assisted workflows to AI-executed workflows.

For investors, these metrics matter because software adoption often precedes monetization. The more deeply AI becomes integrated into customer workflows, the more opportunities Appfolio has to drive premium-tier upgrades, expand product attachment and increase revenues generated from each customer relationship.

APPF's Realm-X and the Rise of AI AgentsAppFolio's Realm-X platform is built around the idea of agentic AI.

Unlike traditional software tools that provide recommendations or insights, agentic systems are designed to take action. They can perform tasks, execute workflows and complete operational processes with limited human involvement.

Inside AppFolio's platform, Realm-X Performers function as digital workers embedded directly into property management operations. These agents operate across leasing, maintenance and resident communication workflows, helping property managers automate repetitive tasks that traditionally consumed employee time.

Maintenance Performer offers one of the clearest examples. Management noted that more than half of maintenance requests are submitted outside normal business hours. Realm-X Maintenance Performer can respond within seconds, troubleshoot issues, determine next steps, create work orders and even follow up with vendors automatically.

Leasing Performer is generating measurable business outcomes as well. One AppFolio customer reported a 20% improvement in inquiry-to-showing conversion rates after deploying the solution, while the AI agent handled a majority of completed showings.

These examples illustrate why AppFolio believes AI can become a meaningful competitive advantage. Rather than simply helping customers work faster, Realm-X is helping them automate entire operational processes.

Why Embedded AI Can Strengthen APPF's Platform Lock-InOne of the most important aspects of AppFolio's strategy is where the AI sits.

Realm-X operates inside AppFolio's system of record and system of action. Because the AI agents work directly on real-time operational data and transaction workflows, they can automate tasks without requiring customers to move information between multiple systems.

This creates a significant advantage over standalone AI tools.

As customers increasingly rely on AppFolio's AI agents to handle leasing inquiries, maintenance requests, resident communication and operational coordination, the platform becomes more deeply embedded within daily operations. The software is no longer just a place to store information. It becomes the environment where work gets executed.

That dynamic can increase switching costs over time. Customers that build their processes around AppFolio's workflows may become less willing to replace the platform because doing so would require rebuilding not only their data infrastructure but also their operational automation layer.

For a subscription software company, that kind of workflow integration can support stronger retention and expansion over the long term.

APPF's Monetization Opportunity From AI AdoptionThe business significance of Realm-X ultimately comes down to monetization.

AppFolio's customer count and units under management continue to grow steadily, but growth remains in the high-single-digit range. Customer growth reached 7% year over year in the first quarter of 2026, while units under management increased 8%. As a result, future growth increasingly depends on generating more revenue from existing customers.

AI adoption supports that strategy in several ways. First, customers adopting Realm-X capabilities are more likely to upgrade into higher-value Plus and Max subscription tiers. Second, AI adoption encourages broader use of value-added services and resident-facing products. Third, automation can increase transaction activity occurring within the AppFolio ecosystem.

Management has already highlighted premium-tier upgrades, Resident Onboarding Lift and Performer adoption as growing contributors to monetization. As customers automate more leasing, maintenance and resident workflows, AppFolio has more opportunities to expand revenue per unit even without dramatic increases in customer acquisition.

This monetization depth is becoming increasingly important to the investment thesis as the company matures.

AppFolio's Operating Leverage Story Gets a Boost From AIThe benefits of AI are not limited to customer-facing products.

AppFolio is also using AI internally to improve software development and operational efficiency. Management has discussed how AI-native engineering is accelerating product creation by helping teams design, build, test and deploy new features faster.

The impact is beginning to appear in financial results.

During the first quarter of 2026, non-GAAP operating margin expanded to 27.3%, up from 24.3% in the prior-year period.

At the same time, research and development expenses and general and administrative expenses each declined by 100 basis points as a percentage of revenues. These improvements suggest AppFolio is beginning to capture efficiency gains as it scales.

Management reinforced this trend by raising its 2026 non-GAAP operating margin outlook to a range of 26%-28%. If AppFolio can continue improving productivity internally while increasing adoption of high-value AI products externally, AI could become a driver of both revenue growth and profitability expansion.

APPF's Hidden Trade-Off: AI Infrastructure Costs and Revenue MixThe story is not entirely one-sided. While AI is creating opportunities, it is also introducing new costs.

Management noted that operational efficiencies during the first quarter were partially offset by additional data-center spending needed to support growing AI usage. At the same time, AppFolio continues to generate a large portion of revenue from value-added services such as payments, screening and risk mitigation products.

These businesses grow quickly but carry higher third-party costs than subscription software revenue. As a result, cost of revenues remained approximately 36% of sales during the first quarter and is expected to stay relatively stable throughout 2026.

Cash flow can also experience short-term pressure. During the quarter, operating cash flow was affected by working-capital movements and higher accounts receivable balances, while AI-related infrastructure investments increased spending requirements.

For investors, this means the long-term AI opportunity remains attractive, but the path to margin expansion will likely depend on maintaining expense discipline and carefully managing infrastructure investments.

What Investors Should Watch in the Next Earnings ReportThe next few quarters should be evaluated through a handful of checkpoints to see whether AI adoption continues translating into measurable business outcomes. The most important metric may be continued growth in Realm-X adoption and AI activity levels. Strong engagement would reinforce the view that customers are integrating AI deeper into their operations.

Investors should also watch for signs that AI products are contributing to premium-tier upgrades, resident-service attachment and overall revenue-per-unit expansion.

On the profitability side, the focus will remain on operating margins and cost-of-revenue trends. Investors will want confirmation that AI infrastructure spending and payment-processing costs are not eroding the benefits of scale.

Finally, stronger cash conversion would help demonstrate that first-quarter working-capital pressures were temporary rather than structural.

Investor TakeawayAppFolio's Realm-X platform offers an early look at what AI may ultimately become inside vertical software markets: not just a productivity enhancement, but a workflow execution engine.

The company's adoption metrics suggest customers are increasingly comfortable allowing AI agents to perform meaningful work across leasing, maintenance and resident operations. That trend supports AppFolio's broader strategy of increasing product attachment, strengthening customer retention and expanding revenue per unit.

The opportunity is significant because Realm-X sits at the intersection of automation, monetization and platform lock-in. If adoption continues to accelerate, AI could become one of AppFolio's most important long-term growth drivers.

The key challenge for this Zacks Rank #3 (Hold) company will be balancing that growth with infrastructure spending, payment-related costs and cash-flow discipline. For now, however, the early data points suggest AppFolio is successfully turning AI from a product feature into a business model enhancer—a distinction that could become increasingly important as software companies compete to prove real economic returns from AI investments.

For context, investors looking across software platforms may also track names like Paycom Software Inc. (PAYC - Free Report) , BILL Holdings, Inc. (BILL - Free Report) and Atlassian (TEAM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AppFolio (APPF - Free Report) closed at $159.78 in the latest trading session, marking a -5.07% move from the prior day. This change lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 2.54%.

The stock of property management software maker has risen by 11.82% in the past month, leading the Computer and Technology sector's loss of 3.11% and the S&P 500's loss of 1.63%.

The investment community will be paying close attention to the earnings performance of AppFolio in its upcoming release. In that report, analysts expect AppFolio to post earnings of $1.67 per share. This would mark year-over-year growth of 21.01%. Meanwhile, our latest consensus estimate is calling for revenue of $277.64 million, up 17.86% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.75 per share and a revenue of $1.12 billion, indicating changes of +27.6% and +17.47%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for AppFolio. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% 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).

Investors should also note AppFolio's current valuation metrics, including its Forward P/E ratio of 24.94. Its industry sports an average Forward P/E of 18.59, so one might conclude that AppFolio is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 35% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Posted by Defense World Staff on Apr 2nd, 2026

Pegasystems (NASDAQ:PEGA – Get Free Report) and Progress Software (NASDAQ:PRGS – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Profitability This table compares Pegasystems and Progress Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Pegasystems 22.54% 38.86% 18.27% Progress Software 8.61% 43.67% 8.60% Analyst Recommendations This is a summary of recent ratings and recommmendations for Pegasystems and Progress Software, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Pegasystems 0 2 9 1 2.92 Progress Software 1 1 5 0 2.57 Pegasystems currently has a consensus target price of $67.60, suggesting a potential upside of 59.85%. Progress Software has a consensus target price of $52.50, suggesting a potential upside of 109.25%. Given Progress Software’s higher probable upside, analysts clearly believe Progress Software is more favorable than Pegasystems.

Earnings & Valuation This table compares Pegasystems and Progress Software”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Pegasystems $1.75 billion 4.09 $393.44 million $2.13 19.85 Progress Software $977.83 million 1.08 $73.13 million $1.95 12.87 Pegasystems has higher revenue and earnings than Progress Software. Progress Software is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership 46.9% of Pegasystems shares are held by institutional investors. 49.7% of Pegasystems shares are held by insiders. Comparatively, 3.4% of Progress Software shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk Pegasystems has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Progress Software has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Summary Pegasystems beats Progress Software on 13 of the 15 factors compared between the two stocks.

About Pegasystems (Get Free Report)

Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, an intelligent automation software for increasing efficiency of clients’ processes and workflows. It also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client’s business, such as customer types, lines of business, geographies, etc.; Pega Express Methodology and low code that connects enterprise data and systems to customer experience channels; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.

About Progress Software (Get Free Report)

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers. It also provides MOVEit, a managed file transfer software for managing and controlling the movement of sensitive files and securing them both at-rest and in-transit; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data and SaaS data sources; WhatsUp Gold, a network infrastructure monitoring software providing complete visibility of all network devices, servers, virtual machines, and cloud and wireless environments to find and fix network problems; Flowmon, a network security and visibility product with automated response across hybrid cloud ecosystems; Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules; MarkLogic, a data agility platform to connect data and metadata; and Semaphore, a Semantic AI platform. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications; and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.

Receive News & Ratings for Pegasystems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pegasystems and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEComparing Indaptus Therapeutics (NASDAQ:INDP) & Aldeyra Therapeutics (NASDAQ:ALDX)

NEXT HEADLINE »Sunbelt Rentals Holdings, Inc. Common Stock (NYSE:SUNB) Upgraded at Zacks Research

Have you evaluated the performance of Progress Software's (PRGS - Free Report) international operations for the quarter ending February 2026? Given the extensive global presence of this business software maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Upon examining PRGS' recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter amounted to $247.8 million, showing rise of 4.1%. We will now explore the breakdown of PRGS' overseas revenue to assess the impact of its international operations.

Trends in PRGS' Revenue from International MarketsLatin America accounted for 2.2% of the company's total revenue during the quarter, translating to $5.53 million. Revenues from this region represented a surprise of +3.29%, with Wall Street analysts collectively expecting $5.35 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $5.54 million (2.2%) and $5.05 million (2.1%) to the total revenue, respectively.

Europe, Middle East and Africa generated $78.38 million in revenues for the company in the last quarter, constituting 31.6% of the total. This represented a surprise of +11.81% compared to the $70.1 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $72.59 million (28.7%), and in the year-ago quarter, it contributed $66.94 million (28.1%) to the total revenue.

Of the total revenue, $11.2 million came from Asia Pacific during the last fiscal quarter, accounting for 4.5%. This represented a surprise of -28.13% as analysts had expected the region to contribute $15.59 million to the total revenue. In comparison, the region contributed $16.15 million, or 6.4%, and $11.37 million, or 4.8%, to total revenue in the previous and year-ago quarters, respectively.

International Revenue PredictionsWall Street analysts expect Progress Software to report $241.7 million in total revenue for the current fiscal quarter, indicating an increase of 1.8% from the year-ago quarter. Latin America, Europe, Middle East and Africa and Asia Pacific are expected to contribute 2.2% (translating to $5.23 million), 28.3% ($68.46 million), and 6.3% ($15.23 million) to the total revenue, respectively.

For the full year, the company is projected to achieve a total revenue of $992.23 million, which signifies a rise of 1.5% from the last year. The share of this revenue from various regions is expected to be: Latin America at 2.2% ($21.62 million), Europe, Middle East and Africa at 28.6% ($283.27 million), and Asia Pacific at 6.4% ($63.02 million).

Wrapping UpThe dependency of Progress Software on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

At the moment, Progress Software has a Zacks Rank #2 (Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Reviewing Progress Software's Recent Stock Price TrendsThe stock has witnessed a decline of 34.8% over the past month versus the Zacks S&P 500 composite's a decrease of 3.3%. In the same interval, the Zacks Computer and Technology sector, to which Progress Software belongs, has registered a decrease of 2.5%. Over the past three months, the company's shares saw a decrease of 39.2%, while the S&P 500 declined by 3.7%. In comparison, the sector experienced a decline of 6.3% during this timeframe.

New office at Embassy Tech Village reinforces the company’s long-term
commitment to India’s tech talent with a focus on AI-led innovation

BURLINGTON, Mass., April 14, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced the relocation and expansion of its Bengaluru office, marking a milestone in the growth of its India Global Capability Center (GCC). The move reflects the increasing strategic importance of India in Progress’ global AI innovation, talent and growth plans and underscores the company’s long-term investment in scaling high-impact engineering, product development, sales, customer success, marketing and operations teams.

Located at Embassy Tech Village, one of Bengaluru’s premier technology hubs, the facility is purpose-built to enhance collaboration, accelerate AI-led innovation and support the company’s future expansion within the region’s thriving technology ecosystem.

“India is a critical pillar of Progress’ global growth and innovation strategy,” said Yogesh Gupta, CEO, Progress Software. “Our expanded Bengaluru office underscores our confidence in India’s deep technology talent and our commitment to building a world-class global capability center that plays a central role in advancing our AI-powered product portfolio. This investment enables our teams to collaborate more closely, innovate faster and deliver greater value to customers worldwide.”

Progress’ India operations have grown steadily in scale and scope, with offices in Bengaluru, Hyderabad and New Delhi driving innovation across AI, data platform, digital experience and infrastructure management. Alongside its product and engineering teams, Progress has built a strong and growing base of customer‑facing talent in India that plays a critical role in the company’s global success. Today, nearly 25% of Progress’ India workforce supports global sales, customer support, customer success and marketing functions, serving customers worldwide. All these teams play an essential role in Progress’ mission to power responsible AI-driven experiences and modern digital infrastructure for businesses around the world.

The expanded office strengthens Progress’ presence within Bengaluru’s globally recognized technology ecosystem. As part of its commitment to the region, Progress is also partnering with The Bodhi Tree Foundation, an organization creating meaningful social impact by connecting philanthropists, NGOs, social innovators and beneficiaries. This initiative includes a donation of electric wheelchairs to support those in need and reflects Progress’ ongoing contribution to advancing the communities in which it operates.

About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes rely on Progress for the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com. 

Progress is a trademark or registered trademark of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and other countries. Any other trademarks contained herein are the property of their respective owners.   

Press Contact:
Kim Baker
Progress Software
+1-800-477-6473
[email protected]

Report showcases a people‑first culture, measurable global community impact and continued advancements toward long‑term sustainability goals that contributed to multiple Best Workplace honors

BURLINGTON, Mass., April 21, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced the release of its 2025 Corporate Social Responsibility (CSR) report. The annual report highlights the company’s dedication to cultivating a people-first workplace, supporting charitable initiatives and advancing sustainability efforts. These commitments have also contributed to recent workplace recognitions including The Boston Globe’s Top Places to Work, the Great Place To Work certification in India and the Employer Branding Awards in Bulgaria. View the full report.

“We are incredibly proud of what our teams accomplished in 2025 as we worked to create meaningful, lasting impact for our global communities and our planet,” said Yogesh Gupta, CEO, Progress Software. “This CSR report reflects both our progress and ongoing commitment to responsible, sustainable practices across our business. We remain steadfast in our mission to lead with purpose and deliver positive change for the world around us.”

Key highlights from the 2025 CSR report include:

Our People: Engagement, Growth and Wellbeing

Professional development and AI enablement: Progress expanded opportunities for employee development, including the extension of its popular Exploring Leadership program to two cohorts per year, record participation in its mentorship program, enhancements to the LEAD management curriculum and widespread adoption of AI‑powered tools—now leveraged by more than 90% of employees—to strengthen productivity and innovation.Empowering an inclusive and respectful culture: Seven Employee Resource Groups (ERGs) hosted a wide range of programs that encouraged the global Progress team to share perspectives, build community and foster a culture grounded in openness and continuous learning.Employee wellbeing: The company delivered more than 40 wellbeing initiatives, including the Move More Challenge, a financial education series and the Make Healthy Gains wellness challenge, reinforcing its commitment to supporting employees’ physical, mental and financial health.
Our Global Community: Driving Meaningful Change

Community impact: Progress and its employees supported more than 290 charities worldwide and contributed 674 volunteer hours to causes centered on STEM education, youth and sustainable communities.STEM and AI education support: Progress continued its global scholarship program, sponsored student robotics teams and hosted hands‑on STEM experiences. These efforts aim to close opportunity gaps and prepare future talent with the skills needed for an AI-enabled world. Our Planet: Advancing Sustainability Efforts

Earth Team initiatives: Progress’ employee-led Earth Team boosted sustainability awareness through composting workshops, clothing drives and hands-on environmental activities.Advancing our environmental stewardship: The company strengthened the foundation of its long-term sustainability strategy by engaging sustainability experts to guide the next phase of its environmental and social responsibility roadmap. Progress operates with a people‑first mindset rooted in courage, teamwork and accountability—empowering employees to take initiative, collaborate openly and deliver meaningful outcomes. The company fosters a flexible, supportive workplace that prioritizes professional development and helps employees feel valued, trusted and accountable for their impact. With teams across North America, Europe, Latin America and Asia Pacific, Progress amplifies its global reach by encouraging employees to give back to their local communities. Together, these efforts help employees grow their skills, strengthen connections and advance Progress’ culture of innovation and customer success.

For more information about Progress’ CSR initiatives and to access the 2025 CSR report, visit the Progress for Tomorrow webpage. To explore career opportunities, visit the Progress Career webpage.

About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes get a trusted provider in Progress, with the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.  

Progress and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings. All rights in any other trademarks contained herein are reserved by their respective owners and their inclusion does not imply an endorsement, affiliation or sponsorship as between Progress and the respective owners.

Press Contacts:           
Kim Baker
Progress
+1-800-477-6473    
[email protected]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Progress Software (PRGS - Free Report) . PRGS is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors should also recognize that PRGS has a P/B ratio of 4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.66. Over the past year, PRGS's P/B has been as high as 7.05 and as low as 3.95, with a median of 5.89.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRGS has a P/S ratio of 1.29. This compares to its industry's average P/S of 3.76.

Finally, investors will want to recognize that PRGS has a P/CF ratio of 9.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.46. PRGS's P/CF has been as high as 18.02 and as low as 9.74, with a median of 14.83, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Progress Software is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PRGS feels like a great value stock at the moment.

On May 01, 2026, Progress Software Corp (PRGS) shares rose 4.0% today, closing at $28.95. The stock has experienced significant volatility over the past year, w

MarketBeat Instant News Alerts Trending News All MarketBeat Instant News Alerts Sort By

Time Frame

Alert Type

Keywords

Page 1 of 324

Get 30 Days of MarketBeat All Access for Free

Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools.

Start Your 30-Day Trial

Sign in to your free account to enjoy these benefits

In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer.

State of Accounting 2026 finds accountants embracing AI and automation—yet disconnected systems and inefficient processes continue to limit productivity and consistent client experiences

BURLINGTON, Mass., May 12, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced the release of its State of Accounting 2026 report. The nationwide survey of U.S.-based accounting professionals, conducted by Regina Corso Consulting, shows a profession moving fast on AI and automation—while tool sprawl, fragmented systems and inefficient workflows continue to slow firms down and strain the client experience. The full report is available here.

Even with ongoing operational challenges, enthusiasm for the profession remains high. Nearly all accountants (98%) say they love their work—citing problem-solving, career stability and meaningful client impact as top motivators. But efficiency gaps persist: three-quarters (75%) say their workflows involve too many steps, and 57% report they can do their jobs effectively—but not efficiently—highlighting the disconnect between the work accountants want to do and what today’s systems enable.

“Accountants are committed to delivering exceptional client experiences and outcomes, but too much of their time is still consumed by manual processes, disconnected tools and operational friction,” said Loren Jarrett, EVP and GM, Digital Experience at Progress Software. “The State of Accounting 2026 report makes it clear that accounting firms are in need of secure and governed AI-powered technology that removes friction in their daily tasks and enables accountants to focus on higher-value client work and strategic advisory.”

Key Findings from the State of Accounting 2026 Report

Client experience is the top priority—yet hard to deliver consistently: Client experience ranks as the number one priority for individual accountants (97%) and their firms (98%). Yet only half say it’s easy to deliver that experience consistently, largely due to operational inefficiencies.AI is already mainstream—and accelerating: Today, 84% of accountants use AI for tasks such as document summarization, workflow routing and validation, security enhancement and client advisory support. Concerns about data privacy, bias and governance continue to shape how firms scale responsibly.Technology is essential, but too often fragmented: Nearly all respondents (98%) say they need technology that streamlines processes and improves efficiency. Still, 61% say they’re slowed by switching between too many tools, and 65% report a lack of automation for routine accounting tasks.Automation is trusted but underused: While 97% believe automation enhances the client experience, only 24% say a large portion of their work is automated. Integration challenges, security concerns, budget constraints and leadership resistance remain key barriers.Secure document exchange remains a major friction point: 61% of accountants say document exchanges aren’t secure enough, reinforcing the need to protect sensitive data without sacrificing productivity or collaboration. “The big opportunity for businesses right now is the use of AI,” said Darren Forish, Shareholder, Tax Division, LBMC. “Find a way to incorporate it into your business and make sure you can grow with it. Clients are seeing that and wanting to try out that company because they’re forward looking.”

To overcome these barriers, firms are prioritizing tool consolidation, streamlined collaboration and embedded automation and security. Solutions like Progress® ShareFile® help simplify client onboarding, reduce tool sprawl and securely manage document-heavy workflows—so teams can work faster, better safeguard sensitive information and deliver more consistent client experiences without adding complexity.

About the Survey
The State of Accounting 2026 report is based on a nationwide survey of 311 U.S.-based accounting professionals across accounting, tax, audit and bookkeeping firms, as well as in-house roles at organizations of varying sizes. The research explores job satisfaction, efficiency, client experience priorities, technology adoption, automation, AI usage and security challenges shaping the future of accounting.

To further explore the findings from the State of Accounting 2026 report, Progress will host a webinar on May 21, featuring insights from industry experts. Click here to register.

About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes get a trusted provider in Progress, with the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.

Progress and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings. All rights in any other trademarks contained herein are reserved by their respective owners and their inclusion does not imply an endorsement, affiliation or sponsorship as between Progress and the respective owners.

Press Contact:
Kim Baker
Progress Software
+1-800-477-6473
[email protected]

Investors looking for stocks in the Computer - Software sector might want to consider either Progress Software (PRGS) or Synopsys (SNPS). But which of these two stocks offers value investors a better bang for their buck right now?

Progressive (PGR - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this insurer have returned +0.5%, compared to the Zacks S&P 500 composite's +9.5% change. During this period, the Zacks Insurance - Property and Casualty industry, which Progressive falls in, has lost 1.7%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Progressive is expected to post earnings of $3.82 per share, indicating a change of -21.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.8% over the last 30 days.

The consensus earnings estimate of $16.38 for the current fiscal year indicates a year-over-year change of -10.3%. This estimate has changed -0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $16.45 indicates a change of +0.4% from what Progressive is expected to report a year ago. Over the past month, the estimate has changed -0.2%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Progressive is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Progressive, the consensus sales estimate for the current quarter of $22.81 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $92.37 billion and $99.41 billion estimates indicate +6.2% and +7.6% changes, respectively.

Last Reported Results and Surprise HistoryProgressive reported revenues of $22.31 billion in the last reported quarter, representing a year-over-year change of +8.2%. EPS of $4.96 for the same period compares with $4.65 a year ago.

Compared to the Zacks Consensus Estimate of $22.03 billion, the reported revenues represent a surprise of +1.27%. The EPS surprise was +2.48%.

Over the last four quarters, Progressive surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Progressive is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Progressive. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

On May 12, 2026, we delve into the DCF analysis for Progressive Corp (PGR), a company that has seen a significant decline in its stock price over the past year.

Enveric Biosciences (NASDAQ: ENVB) (“Enveric” or the “Company”), a biotechnology company advancing next-generation neuroplastogenic small molecules to

Favourable trends seen in stability of disability and clinically meaningful improvements in fatigue.
BOSTON, May 19, 2026 (GLOBE NEWSWIRE) -- Tiziana Life Sciences, Ltd. (Nasdaq: TLSA) ("Tiziana"), a biotechnology company developing its lead candidate, intranasal foralumab, a fully human, anti-CD3 monoclonal antibody, announces updated clinical data from its ongoing Expanded Access ("EA") Program evaluating intranasal foralumab in 14 patients with non-active Secondary Progressive Multiple Sclerosis (na-SPMS). The data, updated from March 2025 to as of March 2026, demonstrate that intranasal foralumab continues to be extremely well tolerated over extended treatment durations. Patients showed encouraging trends in stabilization of disability as measured by the Expanded Disability Status Scale (EDSS) and meaningful improvements in fatigue as measured by the Modified Fatigue Impact Scale (MFIS).

Study Highlights:

Safety: Foralumab was well tolerated with no new safety signals identified.EDSS Stabilization: We observed a favorable trend toward disease stabilization (i.e., reduced Confirmed Disability Progression (CDP)).Fatigue Improvement: 64% of patients achieved a clinically meaningful improvement of ≥4 points in their MFIS score.
Figure 1. Foralumab Expanded Access Program vs. HERCULES Reference Arms

The graph titled "Foralumab Expanded Access Program vs Hercules Reference Arms" compares the cumulative incidence of disability progression events in the foralumab EA cohort against the placebo and tolebrutinib arms from the Phase 3 HERCULES non-relapsing SPMS trial (DOI: 10.1056/NEJMoa2415988). The foralumab line shows only a single event, indicating strong stabilization in the majority of treated patients. An "event" is defined per the Sanofi NEJM publication as a sustained increase in EDSS of ≥1.0 point if baseline EDSS <5.0, or ≥0.5 points if baseline EDSS ≥5.0.

Figure 2. Modified Fatigue Impact Scale (MFIS) Score

The graph titled "Modified Fatigue Impact Scale (MFIS) Score" shows 9 out of 14 participants (64%) achieved a clinically meaningful improvement of ≥4 points on the MFIS, consistent with criteria established by Rooney et al. (DOI: 10.1016/j.msard.2019.07.028).

Due to the small sample size in the Expanded Access Program, foralumab data shown in Figs 1 and 2 are not statistically significant and represent a trend analysis only.

Dr. Howard L. Weiner, Director of the Ann Romney Center for Neurologic Diseases at Brigham and Women’s Hospital, and Chair of the Scientific Advisory Board of Tiziana Life Sciences, commented: "These longer-term results from the Expanded Access SPMS Program continue to support the potential of intranasal foralumab as a novel, immunomodulatory therapy for patients with non-active SPMS. The excellent tolerability profile combined with trends toward disability stabilization and fatigue improvement is highly encouraging and warrants further investigation."

Ivor Elrifi, CEO of Tiziana Life Sciences, added: "We are pleased with the continued positive safety and clinical trend data from our Expanded Access Program. Intranasal foralumab's unique mechanism, which reduces neuroinflammation, positions it as a potential new treatment paradigm for progressive forms of multiple sclerosis where treatment options remain limited. We look forward to advancing this program to approval."

About Foralumab

Foralumab, a fully human anti-CD3 monoclonal antibody, is a biologic candidate that has been shown to stimulate T regulatory cells when dosed intranasally. Currently, 14 patients with Non-Active Secondary Progressive Multiple Sclerosis (na-SPMS) have been dosed in an open-label intermediate sized Expanded Access (EA) Program (NCT06802328) with either an improvement or stability of disease seen within 6 months in all patients. In addition, intranasal foralumab is currently being studied in a Phase 2a, randomized, double-blind, placebo-controlled, multicenter, dose-ranging trial in patients with non-active secondary progressive multiple sclerosis (NCT06292923).

Foralumab is the only fully human anti-CD3 monoclonal antibody (mAb) currently in clinical development. Immunomodulation by intranasal foralumab represents a novel avenue for the treatment of neuroinflammatory and neurodegenerative human diseases.[1],[2],[3]

About Tiziana Life Sciences

Tiziana is a clinical-stage biopharmaceutical company developing breakthrough therapies using transformational drug delivery technologies to enable alternative routes of immunotherapy. Tiziana’s innovative nasal approach has the potential to provide an improvement in efficacy as well as safety and tolerability compared to intravenous (IV) delivery. Tiziana’s lead candidate, intranasal foralumab, which is the only fully human anti-CD3 mAb currently in clinical development, has demonstrated a favorable safety profile and clinical response in patients in studies to date. Tiziana’s technology for alternative routes of immunotherapy has been patented with several applications pending and is expected to allow for broad pipeline applications.

For more information about Tiziana and its innovative pipeline of therapies, please visit www.tizianalifesciences.com.

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Tiziana's current expectations, estimates, and projections about its industry, its beliefs, and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Tiziana's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Tiziana cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of Tiziana only as of the date of this announcement. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors described more fully in the section entitled ‘Risk Factors’ in Tiziana’s Annual Report on Form 20-F for the year ended December 31, 2025, and other periodic reports filed with the Securities and Exchange Commission. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. Tiziana will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

For further inquiries:

Tiziana Life Sciences Ltd
Paul Spencer, Business Development, and Investor Relations
+44 (0) 207 495 2379
email: [email protected]

[1] https://www.pnas.org/doi/10.1073/pnas.2220272120
[2] https://www.pnas.org/doi/10.1073/pnas.2309221120
[3] https://www.neurology.org/doi/10.1212/NXI.0000000000200543

Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4621ceef-fd52-40d4-a109-6de0710304f4
https://www.globenewswire.com/NewsRoom/AttachmentNg/3b687349-d6bc-43e7-b04d-d2091c1100f3