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# AppFolio Raises 2026 Revenue Outlook To $1.122 Billion-$1.127 Billion As Operating Profit Jumps 64%
- URL: https://www.bullished.co/appfolio-raises-2026-revenue-outlook-to-1-122-billion-1-127-billion-as-operating-profit-1de5a074/
- Published: 2026-10-22T20:10:55.000Z
- Updated: 2026-10-22T20:10:55.000Z
- Description: The property-software maker's third-quarter operating income outgrew its 19% revenue gain, and adjusted margin guidance moved up.
- Author: Matteo Parrino
- Tags: Earnings, APPF, Industry: Technology

AppFolio, which makes cloud software that property managers use to run accounting, leasing and maintenance, [grew third-quarter revenue 19% to $296 million](https://www.sec.gov/Archives/edgar/data/0001433195/000143319526000062/appf-20261022.htm?ref=bullished.co) while operating income under standard accounting rose 64%, the company said Thursday. It also raised its full-year revenue forecast.

## Profit outran sales

Standard-accounting operating income climbed to $57 million, or 19.4% of revenue, from $35 million, or 14.1%, a year earlier, according to the [earnings release](https://www.sec.gov/Archives/edgar/data/0001433195/000143319526000062/appfq32026exhibit991.htm?ref=bullished.co). Net income was $45,978 thousand, or $1.29 per diluted share, against $0.93 a year ago.

On an adjusted basis, which strips out stock-based pay, amortization of capitalized stock pay and purchased intangibles, and the related tax effect, operating income grew 38% to $81 million. That was 27.3% of revenue, up from 23.5%.

Total units under management rose 8% to 9.8 million. Operating cash flow was $97 million, or 32.7% of revenue, compared with $86 million, or 34.5%, in the third quarter of 2025.

CEO Shane Trigg, who is also chairman, said the quarter "reflects the strength and durability of our business."

## Where the revenue comes from

Value Added Services, which include payment collection, tenant screening and renters insurance, brought in $231.9 million of the quarter's revenue, up from $192.1 million a year earlier. Subscription Services contributed $61.5 million, up from $53.8 million.

As of December 31, 2025, AppFolio had 22,096 property management customers and 1,702 employees.

## A higher bar for the year

AppFolio now expects 2026 revenue of $1.122 billion to $1.127 billion and an adjusted operating margin of 26.5% to 27.5%. It also expects about 36 million diluted weighted average shares for the year.

In the first nine months, the company spent $129.2 million repurchasing its stock. It ended September with $258.5 million in cash and equivalents, up from $107.0 million at the end of 2025.

Shares closed at $217.33 on Thursday, up 0.06%, before the results were released. Management holds its call at 5:00 p.m. ET Thursday.

Nine-month operating cash flow reached $218.7 million, up from $177.1 million a year earlier.

### Sources

- [8-K Filing — APPFOLIO INC (APPF)](https://www.sec.gov/Archives/edgar/data/0001433195/000143319526000062/appf-20261022.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit appfq32026exhibit991.htm — APPFOLIO INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001433195/000143319526000062/appfq32026exhibit991.htm?ref=bullished.co) — SEC EDGAR
- [AppFolio (APPF) Dips More Than Broader Market: What You Should Know](https://finance.yahoo.com/markets/stocks/articles/appfolio-appf-dips-more-broader-211505435.html?ref=bullished.co) — Yahoo Finance