SANTA BARBARA, Calif., Dec. 10, 2025 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, in partnership with the National Apartment Association (NAA), today released the 2025 Performance Ecosystem Report, revealing critical insights into the challenges and opportunities shaping property management performance. Surveying nearly 2,000 real estate industry professionals, the report is a wake-up call for operators, highlighting the risks of not adap ...

Financial Data and Key Metrics Changes - In Q3 2025, revenue reached $249 million, reflecting a 21% year-over-year growth, while the non-GAAP operating margin was 23.5% [4][17] - Core Solutions revenue was $54 million, a 17% year-over-year increase, driven by new customer acquisition and growth in units under management [17] - Non-GAAP operating margin decreased from 28.7% last year to 23.5% this year, primarily due to an additional expense of approximately $13 million related to the corporate bonus plan [18][19] Business Line Data and Key Metrics Changes - Revenue from value-added services grew 22% year-over-year to $192 million, attributed to increased adoption of risk mitigation services and online payments [17][18] - The company managed approximately 9.1 million units from 21,759 customers, up from 8.5 million units from 20,403 customers a year ago, indicating a 7% increase in both units and customers [17] Market Data and Key Metrics Changes - The company is experiencing significant growth in the property management sector, with a focus on transitioning from task efficiency to real estate performance management [5][8] - Research indicates that property management businesses spend 42% of their time on routine work and 24% on reactive tasks, highlighting the need for improved efficiency [5] Company Strategy and Development Direction - The company aims to differentiate itself by creating systems that work alongside users, focusing on real estate performance management [8][10] - The introduction of RealmX Performers, an AI-driven system, is designed to enhance productivity and optimize business goals for property managers [9][10] - The strategic pillars include differentiating to win, delivering performance efficiently, and fostering a strong company culture [15][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the property management industry, including external market pressures and the need for unified technology solutions [5][8] - The company anticipates annual revenue guidance for 2025 to be between $945 million and $950 million, reflecting a growth rate of 19% [20][21] Other Important Information - The company has been recognized on Fortune's Future 50 and Best Workplaces in Technology lists, emphasizing its potential for growth and strong company culture [15][16] - The partnership with Procore allows customers to manage real estate development and construction operations seamlessly within the AppFolio platform [11] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Core Insights - AppFolio has introduced Real Estate Performance Management, a new approach aimed at enhancing performance across the property management industry for all stakeholders, including residents, owners, and investors [4][8] - The traditional focus on task efficiency is no longer sufficient; the industry must shift towards delivering real performance outcomes [5][8] - The AppFolio Performance Platform is built on AI-native architecture, enabling seamless workflows and empowering teams to focus on higher-value tasks [7][9] Performance Platform Features - The platform captures data as a unified source of truth, ensuring all property, resident, and vendor information is securely stored and accessible [6] - It automates repetitive tasks through agentic tools, enhancing operational efficiency and effectiveness [6][9] - The system of growth unlocks future success opportunities by continually optimizing processes with intelligence from the data captured [7] Realm-X Performers - AppFolio has launched Realm-X Performers, which include Realm-X Leasing Performer and Realm-X Maintenance Performer, designed to automate workflows and improve service delivery [10][11] - The Realm-X Leasing Performer accelerates the lead-to-lease lifecycle, while the Maintenance Performer enhances service intake and triage, improving communication and issue resolution [10][11] Resident Onboarding Innovations - AppFolio introduced Resident Onboarding Lift to streamline the move-in process, enhancing resident satisfaction and retention [12][13] - The onboarding innovations provide property managers with greater visibility and create shared value for all stakeholders [12][13] - Insights from the 2025 AppFolio Renter Preferences Report indicate that 75% of residents face challenges during move-in, and satisfaction with the move-in process significantly impacts overall satisfaction with property management [17]