AppFolio (NASDAQ:APPF) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

AppFolio (NASDAQ:APPF) released its quarterly earnings results on Thursday. The software maker reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.79 by $0.03, FiscalAI reports. AppFolio had a return on equity of 32.42% and a net margin of 15.13%. The business had revenue of $295.69 million during the quarter, compared to the consensus estimate of $294.46 million.

Here are the key takeaways from AppFolio’s conference call:

• Q3 revenue rose 19% year over year to $296 million, while GAAP operating margin increased to 19.4% and non-GAAP operating margin reached 27.3%.
• Units on platform grew 8% to 9.8 million, customers increased 6% to 23,121, and value-added services revenue climbed 21%, led by risk mitigation, screening, payments, and newer AI-enabled offerings.
• AppFolio raised full-year 2026 revenue guidance to $1.122 billion-$1.127 billion, implying 18.3% midpoint growth, and increased its non-GAAP operating margin outlook to 26.5%-27.5%.
• Management said unit expansion among existing customers is pacing slower than last year and expects that trend to continue into the fourth quarter, although new customer acquisition and retention remain healthy.
• The company generated $97 million in operating cash flow, ended the quarter with $307 million in cash and current investments, and reported continued efficiency gains from scale and AI despite increased sales and marketing investment.

AppFolio Stock Performance

Shares of NASDAQ APPF traded up $0.13 during midday trading on Thursday, reaching $217.33. The company’s stock had a trading volume of 1,041,032 shares, compared to its average volume of 385,441. The company has a market cap of $7.70 billion, a P/E ratio of 49.62 and a beta of 0.89. The business’s 50 day moving average price is $211.90 and its two-hundred day moving average price is $182.36. AppFolio has a fifty-two week low of $142.56 and a fifty-two week high of $265.02.

Wall Street Analysts Forecast Growth

APPF has been the topic of several recent research reports. Keefe, Bruyette & Woods increased their price objective on AppFolio from $233.00 to $255.00 and gave the stock an “outperform” rating in a research report on Wednesday. Weiss Ratings raised shares of AppFolio from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Wall Street Zen downgraded shares of AppFolio from a “buy” rating to a “hold” rating in a research note on Sunday, July 26th. UBS Group downgraded shares of AppFolio from a “buy” rating to a “neutral” rating and set a $220.00 price target on the stock. in a research note on Wednesday, October 7th. Finally, KeyCorp reaffirmed an “overweight” rating on shares of AppFolio in a research report on Wednesday, October 14th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, AppFolio currently has a consensus rating of “Moderate Buy” and a consensus price target of $245.38.

Insider Buying and Selling

In other AppFolio news, CFO Timothy Eaton sold 373 shares of AppFolio stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $202.61, for a total value of $75,573.53. Following the completion of the transaction, the chief financial officer directly owned 16,714 shares of the company’s stock, valued at $3,386,423.54. The trade was a 2.18% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Maurice J. Duca sold 2,656 shares of AppFolio stock in a transaction on Friday, August 21st. The shares were sold at an average price of $221.85, for a total value of $589,233.60. Following the completion of the transaction, the insider directly owned 8,000 shares of the company’s stock, valued at $1,774,800. This represents a 24.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 141,817 shares of company stock worth $27,942,484 in the last three months. 1.57% of the stock is currently owned by company insiders.

About AppFolio

AppFolio, Inc is a cloud-based software company that provides technology solutions for the real estate industry. Its platform is designed primarily for property management businesses, helping them manage accounting, leasing, maintenance, communications, payments, reporting and other operational activities through a centralized system.

The company’s products serve a range of property managers, including those overseeing residential, commercial, community association, student housing and senior living properties.