AppFolio Raises 2026 Revenue Outlook To $1.122 Billion-$1.127 Billion As Operating Profit Jumps 64%
The property-software maker's third-quarter operating income outgrew its 19% revenue gain, and adjusted margin guidance moved up.
AppFolio, which makes cloud software that property managers use to run accounting, leasing and maintenance, grew third-quarter revenue 19% to $296 million 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. 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) — SEC EDGAR
- Exhibit appfq32026exhibit991.htm — APPFOLIO INC 8-K exhibit — SEC EDGAR
- AppFolio (APPF) Dips More Than Broader Market: What You Should Know — Yahoo Finance
