AppFolio, Inc. (APPF) Q3 2025 Earnings Call Prepared Remarks Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
0mins
Should l Buy APPF?
Source: SeekingAlpha
Revenue $249 million, growing 21% year-over-year. Growth attributed to winning new customers, growth in total units under management, and more customers choosing premium tiers.
Core Solutions Revenue $54 million, a 17% year-over-year increase. Driven by new customer acquisition, growth in units under management, and adoption of premium tiers.
Value-Added Services Revenue $192 million, a 22% year-over-year increase. Growth due to greater use of risk mitigation services, new screening offerings, online payments, and credit/debit card usage for rent payments.
Non-GAAP Operating Margin 23.5%, compared to 28.7% last year. Decrease due to an additional $13 million expense for annual corporate bonus plan overattainment and increased data center spend.
Cost of Revenue (exclusive of depreciation and amortization) 36% of revenue, compared to 34% last year. Increase due to higher credit card adoption, data center spend, and bonus plan overattainment.
Sales, Marketing, R&D, and G&A Expense 39% of revenue, compared to 35% last year. Increase reflects investments in innovation, sales capacity, and the addition of the LiveEasy business.
Employee Count 1,703 employees, a 10% increase from Q3 2024. Growth in most functional areas and addition of LiveEasy business.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy APPF?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on APPF
Wall Street analysts forecast APPF stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 175.930
Low
245.00
Averages
265.00
High
290.00
Current: 175.930
Low
245.00
Averages
265.00
High
290.00
About APPF
AppFolio, Inc. is a technology company focusing on the real estate industry. It provides a cloud-based platform on which its customers operate their businesses. It also provides key functionality related to critical transactions across the real estate lifecycle, including screening potential residents, sending and receiving payments, and providing insurance-related risk mitigation services. Its platform is AppFolio Realm, a suite of AI-powered tools that assist with leasing, maintenance, accounting, and other business-critical tasks. AppFolio Realm includes generative AI to answer questions, perform tasks and automate common workflows. The platform also includes Stack, its partner ecosystem that allows customers to connect its platform with specialized technology and services offered by third parties. Its platform is offered as a service and made available via three subscription plans: AppFolio Property Manager Core, AppFolio Property Manager Plus, and AppFolio Property Manager Max.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US Stocks Close Lower Amid Cautious Market Sentiment
- Stock Index Declines: The S&P 500 index fell by 0.43%, the Dow Jones Industrial Average dropped by 0.36%, and the Nasdaq 100 decreased by 1.28%, reflecting cautious investor sentiment following President Trump's nomination of Kevin Warsh as the new Fed Chair, which raised concerns about future monetary policy.
- Producer Prices Rise: The US December Producer Price Index (PPI) increased by 0.5% month-over-month and 3.0% year-over-year, both exceeding market expectations, indicating heightened inflationary pressures that could influence the Fed's policy decisions moving forward.
- Mining Stocks Plummet: Mining stocks faced significant sell-offs as gold and silver prices dropped sharply, with Coeur Mining and Hecla Mining declining over 17% and 15%, respectively, reflecting a pessimistic outlook on precious metals amid rising dollar strength.
- Positive Earnings Outlook: Despite the overall market decline, 102 S&P 500 companies are set to report earnings this week, with 77% of the 143 companies that have reported so far exceeding expectations, indicating resilience in corporate profitability, with S&P earnings growth projected to reach 8.4% in Q4.
See More
US Stocks Decline Amid Inflation Data Pressure
- Inflation Data Impact: The US December Producer Price Index (PPI) rose 0.5% month-over-month and 3.0% year-over-year, exceeding expectations, indicating heightened inflationary pressures that could lead the Fed to maintain high interest rates, negatively impacting the stock market.
- Fed Chair Nomination: President Trump nominated Kevin Warsh as the next Fed Chair, with markets perceiving him as cautious towards rate cuts, which pushed the 10-year Treasury yield to a one-week high of 4.277%, exacerbating downward pressure on stocks.
- Earnings Outlook: With 102 S&P 500 companies set to report earnings this week, 77% of the 143 companies that have reported so far have beaten expectations, demonstrating corporate earnings resilience that may provide support for the market.
- Government Shutdown Risk: Trump reached a tentative deal with Senate Democrats to avert a government shutdown, but the House will take 72 hours to vote, and if unresolved quickly, it could negatively affect market sentiment in the short term.
See More
US Stocks Decline Amid Inflation Data Pressure
- Inflation Data Surprises: The US December Producer Price Index (PPI) rose 0.5% month-over-month and 3.0% year-over-year, exceeding expectations of 0.2% and 2.8%, indicating heightened inflationary pressures that could influence Fed policy decisions.
- Fed Chair Nomination Impact: President Trump nominated Kevin Warsh as the next Fed Chair, with markets perceiving him as more hawkish, leading to a rise in the 10-year T-note yield to a one-week high of 4.277%, further exacerbating downward pressure on stocks.
- Strong Earnings Reports: With 102 S&P 500 companies set to report earnings this week, 77% of the 143 companies that have reported so far have beaten expectations, and S&P earnings growth is projected to reach 8.4% in Q4, showcasing corporate resilience amid market volatility.
- Government Shutdown Risk Eases: Trump reached a tentative deal with Senate Democrats to avert a government shutdown, which, while requiring a 72-hour House vote, is expected to have minimal impact on federal operations if resolved quickly.
See More
AppFolio's 2026 Guidance Falls Short of Expectations, Shares Drop
- 2026 Revenue Guidance: AppFolio's 2026 revenue guidance of $1.1B to $1.12B fell short of the $1.13B market expectation, leading to an 8% drop in shares during early trading, reflecting investor anxiety about future growth prospects.
- Q4 Performance Exceeds Expectations: Although Q4 results surpassed market estimates with unit growth accelerating to 8% year-over-year (up from 7% last quarter), the lack of clear targets/frameworks disappointed investors, impacting market confidence.
- Analyst Rating Adjustments: Piper Sandler maintained an Overweight rating on AppFolio but cut its price target from $350 to $245, while JPMorgan and D.A. Davidson also lowered their targets to $300 and $275 respectively, indicating a cautious market outlook on future growth.
- Optimistic Operating Margin Guidance: Despite the revenue guidance falling short, AppFolio's operating margin guidance of 25.5%-27.5%, with a midpoint of 26.5% slightly above the consensus estimate of 26.2%, indicates positive progress in core ARPU expansion and premium tier adoption.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, such changes typically have a direct impact on the stock prices of the affected companies, prompting investors to pay close attention to these shifts.
- Market Reaction Expectations: Adjustments in analyst ratings may lead to short-term volatility in the stocks involved, and investors should consider these professional insights when contemplating buy or sell actions.
- Investor Decision Impact: As analysts revise their views on stocks, investors may reassess their portfolios, potentially affecting overall market sentiment and liquidity.
See More
AppFolio Reports Strong Q4 2025 Earnings with AI-Driven Growth
- Significant Revenue Growth: AppFolio reported Q4 revenue of $248 million, a 22% year-over-year increase, with full-year revenue reaching $951 million, reflecting strong growth potential driven by AI innovations.
- Enhanced Customer Satisfaction: 96% of customers reported improved overall business performance after switching to AppFolio, while 94% noted increased resident satisfaction, indicating substantial success in enhancing customer experience.
- Expansion in Managed Units: By the end of Q4, AppFolio managed approximately 9.4 million units with 22,096 customers, representing an 8% and 2% increase from the previous quarter, respectively, showcasing sustained market demand.
- Optimistic Future Outlook: CFO Eaton projected 2026 annual revenue between $1.1 billion and $1.12 billion, with expected non-GAAP operating margins between 25.5% and 27.5%, reflecting the company's confidence and strategic positioning for future growth.
See More
US Stocks Close Lower Amid Cautious Market Sentiment
- Stock Index Declines: The S&P 500 index fell by 0.43%, the Dow Jones Industrial Average dropped by 0.36%, and the Nasdaq 100 decreased by 1.28%, reflecting cautious investor sentiment following President Trump's nomination of Kevin Warsh as the new Fed Chair, which raised concerns about future monetary policy.
- Producer Prices Rise: The US December Producer Price Index (PPI) increased by 0.5% month-over-month and 3.0% year-over-year, both exceeding market expectations, indicating heightened inflationary pressures that could influence the Fed's policy decisions moving forward.
- Mining Stocks Plummet: Mining stocks faced significant sell-offs as gold and silver prices dropped sharply, with Coeur Mining and Hecla Mining declining over 17% and 15%, respectively, reflecting a pessimistic outlook on precious metals amid rising dollar strength.
- Positive Earnings Outlook: Despite the overall market decline, 102 S&P 500 companies are set to report earnings this week, with 77% of the 143 companies that have reported so far exceeding expectations, indicating resilience in corporate profitability, with S&P earnings growth projected to reach 8.4% in Q4.
See More
US Stocks Decline Amid Inflation Data Pressure
- Inflation Data Impact: The US December Producer Price Index (PPI) rose 0.5% month-over-month and 3.0% year-over-year, exceeding expectations, indicating heightened inflationary pressures that could lead the Fed to maintain high interest rates, negatively impacting the stock market.
- Fed Chair Nomination: President Trump nominated Kevin Warsh as the next Fed Chair, with markets perceiving him as cautious towards rate cuts, which pushed the 10-year Treasury yield to a one-week high of 4.277%, exacerbating downward pressure on stocks.
- Earnings Outlook: With 102 S&P 500 companies set to report earnings this week, 77% of the 143 companies that have reported so far have beaten expectations, demonstrating corporate earnings resilience that may provide support for the market.
- Government Shutdown Risk: Trump reached a tentative deal with Senate Democrats to avert a government shutdown, but the House will take 72 hours to vote, and if unresolved quickly, it could negatively affect market sentiment in the short term.
See More
US Stocks Decline Amid Inflation Data Pressure
- Inflation Data Surprises: The US December Producer Price Index (PPI) rose 0.5% month-over-month and 3.0% year-over-year, exceeding expectations of 0.2% and 2.8%, indicating heightened inflationary pressures that could influence Fed policy decisions.
- Fed Chair Nomination Impact: President Trump nominated Kevin Warsh as the next Fed Chair, with markets perceiving him as more hawkish, leading to a rise in the 10-year T-note yield to a one-week high of 4.277%, further exacerbating downward pressure on stocks.
- Strong Earnings Reports: With 102 S&P 500 companies set to report earnings this week, 77% of the 143 companies that have reported so far have beaten expectations, and S&P earnings growth is projected to reach 8.4% in Q4, showcasing corporate resilience amid market volatility.
- Government Shutdown Risk Eases: Trump reached a tentative deal with Senate Democrats to avert a government shutdown, which, while requiring a 72-hour House vote, is expected to have minimal impact on federal operations if resolved quickly.
See More
AppFolio's 2026 Guidance Falls Short of Expectations, Shares Drop
- 2026 Revenue Guidance: AppFolio's 2026 revenue guidance of $1.1B to $1.12B fell short of the $1.13B market expectation, leading to an 8% drop in shares during early trading, reflecting investor anxiety about future growth prospects.
- Q4 Performance Exceeds Expectations: Although Q4 results surpassed market estimates with unit growth accelerating to 8% year-over-year (up from 7% last quarter), the lack of clear targets/frameworks disappointed investors, impacting market confidence.
- Analyst Rating Adjustments: Piper Sandler maintained an Overweight rating on AppFolio but cut its price target from $350 to $245, while JPMorgan and D.A. Davidson also lowered their targets to $300 and $275 respectively, indicating a cautious market outlook on future growth.
- Optimistic Operating Margin Guidance: Despite the revenue guidance falling short, AppFolio's operating margin guidance of 25.5%-27.5%, with a midpoint of 26.5% slightly above the consensus estimate of 26.2%, indicates positive progress in core ARPU expansion and premium tier adoption.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, such changes typically have a direct impact on the stock prices of the affected companies, prompting investors to pay close attention to these shifts.
- Market Reaction Expectations: Adjustments in analyst ratings may lead to short-term volatility in the stocks involved, and investors should consider these professional insights when contemplating buy or sell actions.
- Investor Decision Impact: As analysts revise their views on stocks, investors may reassess their portfolios, potentially affecting overall market sentiment and liquidity.
See More
AppFolio Reports Strong Q4 2025 Earnings with AI-Driven Growth
- Significant Revenue Growth: AppFolio reported Q4 revenue of $248 million, a 22% year-over-year increase, with full-year revenue reaching $951 million, reflecting strong growth potential driven by AI innovations.
- Enhanced Customer Satisfaction: 96% of customers reported improved overall business performance after switching to AppFolio, while 94% noted increased resident satisfaction, indicating substantial success in enhancing customer experience.
- Expansion in Managed Units: By the end of Q4, AppFolio managed approximately 9.4 million units with 22,096 customers, representing an 8% and 2% increase from the previous quarter, respectively, showcasing sustained market demand.
- Optimistic Future Outlook: CFO Eaton projected 2026 annual revenue between $1.1 billion and $1.12 billion, with expected non-GAAP operating margins between 25.5% and 27.5%, reflecting the company's confidence and strategic positioning for future growth.
See More
