AppFolio(US:APPF)2026-01-29 21:05Financial 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]