"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 OutlookBased 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 InformationAs 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 AppFolioAppFolio 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 MeasuresReconciliations 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 31,2025
Assets
Current assets
Cash and cash equivalents
$
147,412
$
106,967
Investment securities—current
4,241
144,256
Accounts receivable, net
43,966
36,873
Prepaid expenses and other current assets
59,323
65,218
Total current assets
254,942
353,314
Property and equipment, net
22,449
23,228
Operating lease right-of-use assets
15,364
15,924
Capitalized software development costs, net
11,416
11,324
Goodwill
96,410
96,410
Intangible assets, net
36,269
38,826
Deferred income taxes
50,795
58,823
Long-term investments
77,668
77,033
Other long-term assets
15,247
14,085
Total assets
$
580,560
$
688,967
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
3,740
$
4,123
Accrued employee expenses
25,163
59,774
Accrued expenses
21,436
20,829
Other current liabilities
22,018
22,121
Total current liabilities
72,357
106,847
Operating lease liabilities
31,981
33,287
Other liabilities
5,994
6,254
Total liabilities
110,332
146,388
Stockholders' equity
470,228
542,579
Total liabilities and stockholders' equity
$
580,560
$
688,967
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)(in thousands, except per share amounts)
Three Months EndedMarch 31,
2026
2025
Revenue(1)
$
262,214
$
217,702
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)(2)
94,975
79,498
Sales and marketing(2)
37,501
31,057
Research and product development(2)
49,629
43,758
General and administrative(2)
24,341
23,351
Depreciation and amortization
5,020
6,255
Total costs and operating expenses
211,466
183,919
Income from operations
50,748
33,783
Other income, net
569
56
Interest income, net
1,784
2,953
Income before provision for income taxes
53,101
36,792
Provision for income taxes
10,677
5,409
Net income
$
42,424
$
31,383
Net income per common share:
Basic
$
1.19
$
0.86
Diluted
$
1.18
$
0.86
Weighted average common shares outstanding
Basic
35,699
36,302
Diluted
35,812
36,648
(1) The following table presents our revenue categories:
Three Months EndedMarch 31,
2026
2025
Subscription Services
$
58,222
$
49,513
Value Added Services
