AppFolio (APPF) Misses Q3 Earnings Estimates

Core Insights - AppFolio reported quarterly earnings of $1.31 per share, missing the Zacks Consensus Estimate of $1.45 per share, representing an earnings surprise of -9.66% [1] - The company posted revenues of $249.35 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.52% and showing a year-over-year increase from $205.73 million [2] - AppFolio has underperformed the market, with shares down about 3.3% year-to-date compared to the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $244 million, and for the current fiscal year, it is $5.36 on revenues of $942.91 million [7] - The estimate revisions trend for AppFolio was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which AppFolio belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]