As we move deeper into the Q4 earnings season, the pervading mood in the markets appears to be one of caution. Investors are very wary of escalating macroeconomic and trade tensions, which look perilous set against the backdrop of steep valuations.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a re ...

Core Viewpoint - AppFolio Inc reported its Fourth Quarter and Full Year 2025 financial results during a conference call, highlighting key financial metrics and future expectations [1][2]. Financial Results - The conference call was led by AppFolio's President and CEO Shane Trigg and CFO Tim Eaton, indicating a structured approach to presenting financial outcomes [3]. - The company emphasized the importance of its safe harbor policy, which outlines that forward-looking statements made during the call are subject to risks and uncertainties [3][4]. Future Outlook - AppFolio's management discussed expectations and projections regarding future market conditions and business performance, indicating a focus on growth and product development [4].

Core Insights - AppFolio reported revenue of $248.19 million for the quarter ended December 2025, marking a year-over-year increase of 21.9% and exceeding the Zacks Consensus Estimate of $246.09 million by 0.86% [1] - The company's EPS for the same period was $1.39, compared to $0.92 a year ago, resulting in an EPS surprise of 13.93% against the consensus estimate of $1.22 [1] Revenue Breakdown - Revenue from Other services was $7.87 million, significantly higher than the average estimate of $2.9 million, reflecting a year-over-year change of 191.5% [4] - Revenue from Value Added Services was $184.61 million, slightly below the average estimate of $186.84 million, with a year-over-year increase of 20.4% [4] - Revenue from Core Solutions was $55.72 million, compared to the average estimate of $56.01 million, showing a year-over-year growth of 17% [4] Stock Performance - Over the past month, AppFolio's shares have returned -6.3%, while the Zacks S&P 500 composite has increased by 0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Value-added services revenue totaled $185 million in the fourth quarter, an increase of 20% year over year. Eaton said the increase reflected greater use of FolioGuard risk mitigation services, FolioScreen offerings, and online payments, along with growth in units under management. He also said Resident Onboarding Lift (through a partnership with Second Nature) and LiveEasy were “beginning to contribute” to value-added services. For the full year, value-added services revenue was $722 million, up 19% year o ...

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $248 million, a 22% year-over-year increase, while full-year revenue was $951 million, representing 20% year-over-year growth [4][15] - Non-GAAP operating margin for the fourth quarter was 24.9%, compared to 20.2% last year, and for the full year, it was 24.7%, down from 25.2% last year [17] - Core revenue, now referred to as subscription services revenue, was $56 million in the fourth quarter, a 17% year-over-year increase [15][16] Business Line Data and Key Metrics Changes - Subscription services revenue for the full year was $211 million, representing 17% growth year-over-year [16] - Fourth quarter revenue from value-added services grew 20% year-over-year to $185 million, driven by increased adoption of various services [16] - Full year value-added services revenue was $722 million, representing 19% growth year-over-year [17] Market Data and Key Metrics Changes - The company managed approximately 9.4 million units from 22,096 customers, compared to 8.7 million units from 20,784 customers a year ago, reflecting an 8% increase in units and a 6% increase in customers [16] - Adoption of premium tiers, Plus and Max, exceeded 25%, indicating success in capturing both SMB and upmarket customers [10] Company Strategy and Development Direction - The company focuses on three strategic pillars: Differentiate to Win, Deliver Performance Efficiently, and Great People and Culture [7][11][12] - The introduction of agentic AI capabilities aims to transform property management into performance management, enhancing customer workflows and operational efficiency [7][10] - The company is positioned to lead the transition towards a unified platform that reduces software fragmentation and enhances customer experience [6] Management's Comments on Operating Environment and Future Outlook - Management noted that while 81% of managers feel positive about the market, rising operating costs and pressure on occupancy rates remain challenges [5] - The 2026 financial outlook anticipates annual revenue between $1.1 billion and $1.12 billion, with a midpoint growth rate of 17% [19] - Management emphasized the importance of innovation and execution in achieving customer performance and maintaining a competitive edge [20] Other Important Information - The company ended 2025 with 1,702 employees, a 4% increase from the previous year, reflecting growth in various functional areas [18] - The company has been recognized on Forbes' America's Most Successful Mid-Cap Companies and Time Magazine's America's Growth Leaders, validating its strategic momentum [4] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $248 million, a 22% year-over-year increase, while full-year revenue was $951 million, representing 20% year-over-year growth [4][15] - Non-GAAP operating margin for the fourth quarter was 24.9%, compared to 20.2% last year, and for the full year, it was 24.7%, down from 25.2% last year [17] - Core revenue, now referred to as subscription services revenue, was $56 million in the fourth quarter, a 17% year-over-year increase [15][16] Business Line Data and Key Metrics Changes - Subscription services revenue for the full year was $211 million, representing 17% growth year-over-year [16] - Fourth quarter revenue from value-added services grew 20% year-over-year to $185 million, driven by increased adoption of FolioGuard, FolioScreen, and online payments [16] - Full year value-added services revenue was $722 million, representing 19% growth year-over-year [17] Market Data and Key Metrics Changes - The company managed approximately 9.4 million units from 22,096 customers, compared to 8.7 million units from 20,784 customers a year ago, reflecting an 8% increase in units and a 6% increase in customers [16] - In the second half of 2025, over 500,000 units were added to the platform, with adoption of premium tiers exceeding 25% [10] Company Strategy and Development Direction - The company focuses on three strategic pillars: Differentiate to Win, Deliver Performance Efficiently, and Great People and Culture [7][11][12] - The introduction of agentic AI capabilities aims to transform property managers into performance managers, enhancing operational efficiency and customer experience [7][10] - The company is positioned to lead the transition towards a unified platform that reduces software fragmentation and enhances user experience [6] Management's Comments on Operating Environment and Future Outlook - Management noted that while 81% of managers feel positive about the market, rising operating costs and occupancy rate pressures remain challenges [5] - The 2026 guidance for annual revenue is projected to be between $1.1 billion and $1.12 billion, with a midpoint growth rate of 17% [19] - Management emphasized the importance of innovation and execution in achieving customer performance and maintaining a competitive edge [20] Other Important Information - The company has been recognized on Forbes' America's Most Successful Midcap Companies and Time Magazine's America's Growth Leaders, validating its strategy and momentum [4] - The company ended 2025 with 1,702 employees, reflecting a 4% increase from the previous year, indicating ongoing investment in innovation and sales capacity [18] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $248 million, a 22% year-over-year increase, while full-year revenue was $951 million, representing 20% year-over-year growth [4][15] - Non-GAAP operating margin for the fourth quarter was 24.9%, compared to 20.2% last year, and for the full year, it was 24.7%, down from 25.2% last year [17] - Core revenue, now referred to as subscription services revenue, was $56 million in the fourth quarter, a 17% year-over-year increase [15][16] Business Line Data and Key Metrics Changes - Subscription services revenue for the full year was $211 million, representing 17% growth year-over-year [16] - Fourth quarter revenue from value-added services grew 20% year-over-year to $185 million, reflecting greater adoption of various services [16][17] - Full-year value-added services revenue was $722 million, representing 19% growth year-over-year [17] Market Data and Key Metrics Changes - The company managed approximately 9.4 million units from 22,096 customers, compared to 8.7 million units from 20,784 customers a year ago, representing an 8% increase in units and a 6% increase in customers [16] - Adoption of premium tiers, Plus and Max, exceeded 25%, indicating success with both SMB and upmarket customers [10] Company Strategy and Development Direction - The company focuses on three strategic pillars: Differentiate to Win, Deliver Performance Efficiently, and Great People and Culture [6][11] - The introduction of AI-native features aims to transform property management into performance management, enhancing customer operations [6][9] - The company is positioned to lead the transition towards a unified platform that reduces fragmentation and enhances customer experience [5][10] Management's Comments on Operating Environment and Future Outlook - Management noted that while 81% of managers feel positive about the market, rising operating costs and pressure on occupancy rates remain challenges [5] - The 2026 guidance for annual revenue is projected to be between $1.1 billion and $1.12 billion, with a midpoint growth rate of 17% [19] - Management emphasized the importance of innovation and execution in achieving customer performance and business growth [20] Other Important Information - The company has been recognized on Forbes' America's Most Successful Midcap Companies and Time Magazine's America's Growth Leaders, validating its strategy and momentum [4] - The company ended 2025 with 1,702 employees, reflecting a 4% increase from the previous year, indicating growth in various functional areas [18] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Performance - Revenue for Q4 2025 was $248.2 million, a 22% increase year-over-year from $203.7 million in Q4 2024[15] - Full year revenue for 2025 reached $951 million, a 20% increase from $794 million in 2024[4] - Net income for Q4 2025 was $39,914 thousand, a decrease of 61% compared to $102,734 thousand in Q4 2024[17] - Non-GAAP net income for the twelve months ended December 31, 2025, was $192,046 thousand, up from $160,877 thousand in 2024, reflecting a growth of 19%[20] Operating Income and Margins - GAAP operating income for Q4 2025 was $44 million, representing 17.6% of revenue, compared to $23 million or 11.3% of revenue in Q4 2024[4] - Non-GAAP operating income for Q4 2025 was $62 million, or 24.9% of revenue, up from $41 million or 20.2% in Q4 2024[4] - Full year non-GAAP operating margin is expected to be in the range of 25.5% to 27.5% for fiscal year 2026[4] - Non-GAAP operating margin improved to 24.9% in Q4 2025 from 20.2% in Q4 2024[20] Cash Flow and Assets - Net cash provided by operating activities for Q4 2025 was $65 million, or 26.2% of revenue, compared to $37 million or 18.0% in Q4 2024[4] - Cash provided by operating activities for Q4 2025 was $64,990 thousand, compared to $36,566 thousand in Q4 2024, marking an increase of 78%[17] - Cash and cash equivalents increased to $107 million in 2025 from $42.5 million in 2024[13] - Total assets grew to $689 million in 2025, up from $627 million in 2024[13] Expenses - GAAP cost of revenue for Q4 2025 was $90,540 thousand, up from $76,189 thousand in Q4 2024, indicating a rise of 19%[19] - GAAP sales and marketing expenses for Q4 2025 were $40,159 thousand, up from $33,436 thousand in Q4 2024, reflecting a growth of 20%[19] - Stock-based compensation expense for the twelve months ended December 31, 2025, was $70,790 thousand, compared to $60,328 thousand in 2024, an increase of 17%[20] Future Projections - The company anticipates full year revenue for 2026 to be in the range of $1,100 million to $1,120 million[4] Non-GAAP Financial Measures - The company utilizes non-GAAP financial measures to assess operating performance, which include income from operations, operating margin, and net income per share[22] - Non-GAAP operating margin is calculated as non-GAAP operating income from operations as a percentage of revenue, providing insights into financial performance[22] - The company emphasizes the importance of reconciling non-GAAP financial measures to GAAP measures for a comprehensive understanding of financial results[23] - Investors are encouraged to review reconciliations of historical non-GAAP measures to their GAAP counterparts for better clarity[23] - Non-GAAP financial measures may not be directly comparable to those of other companies in the industry due to different calculation methods[23] - Non-GAAP measures are used for internal budgeting and forecasting, aiding in the evaluation of financial performance across reporting periods[22] Tax Rates and Compliance - The projected long-term non-GAAP tax rates are set at 21% for 2025 and 25% for 2024, based on the company's operating structure and tax positions[24] - The company periodically re-evaluates its projected tax rate based on significant events and changes in tax law[24] - Amortization of purchased intangibles is considered a pre-acquisition expense and does not typically reflect operational performance during specific periods[24] - Stock-based compensation expenses are used to attract and retain employees, aligning their interests with stockholders, but vary independently of operational performance[24]

Fourth quarter caps off a year of industry leading innovation and accelerated unit growthSANTA BARBARA, Calif., Jan. 29, 2026 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), a technology leader powering the future of the real estate industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2025. "I am proud of our strong unit acquisition and financial performance in 2025, which validates our strategy and the momentum we have as ...

AppFolio, Inc. (NASDAQ:APPF) is one of the 11 Best Stocks to Buy for Investment. As of January 27, AppFolio, Inc. (NASDAQ:APPF) shares have plunged by over 15% over the past year. However, all analysts covering APPF are bullish on the stock with a median price target of $318. This implies a potential upside of over 47%. Is AppFolio, Inc. (NASDAQ:APPF) One of the Best Stocks to Buy For Investment? Studio Grand Ouest/Shutterstock.com On December 12, TheFly reported that UBS initiated coverage of AppFolio ...