AppFolio, Inc. Announces Second Quarter 2025 Financial Results

Core Insights - AppFolio reported strong revenue growth of 19% year-over-year, reaching $236 million for Q2 2025, driven by the adoption of its AI-native platform and premium services [6][2] - The company highlighted that 96% of its customers utilized one or more AI-powered solutions, indicating a competitive advantage in the property management sector [2][6] - The financial outlook for the full year 2025 anticipates revenue between $935 million and $945 million, with a non-GAAP operating margin expected to range from 24.5% to 26.5% [6][3] Financial Performance - Total units under management increased by 6% year-over-year to 8.9 million [6] - GAAP operating income was reported at $41 million, representing 17.2% of revenue, compared to $36 million or 18.3% of revenue in Q2 2024 [6] - Non-GAAP operating income rose to $62 million, or 26.2% of revenue, compared to $51 million or 26.0% of revenue in the same quarter last year [6] - Net cash provided by operating activities was $53 million, or 22.3% of revenue, compared to $51 million or 25.8% of revenue in Q2 2024 [6] Revenue Breakdown - Revenue from core solutions was $52.5 million, up from $44.0 million in Q2 2024 [16] - Value-added services generated $180.1 million, compared to $151.6 million in the prior year [16] - Other revenue sources contributed $3.0 million, an increase from $1.7 million in Q2 2024 [16] Balance Sheet Highlights - As of June 30, 2025, total assets amounted to $567.4 million, down from $626.7 million a year earlier [13] - Current assets included cash and cash equivalents of $73.5 million, up from $42.5 million in the previous year [12] - Total liabilities were reported at $111.8 million, compared to $107.4 million in Q2 2024 [13] Cash Flow Analysis - The company reported a net cash increase of $16.5 million in cash, cash equivalents, and restricted cash during the quarter [19] - Cash from operating activities for the first half of 2025 was $91.1 million, slightly down from $93.8 million in the same period last year [18] - Investing activities resulted in a net cash outflow of $23.8 million, compared to an outflow of $38.0 million in the previous year [19]