AppFolio (APPF) investor relations material

Executive summary

• Achieved $281 million in Q2 2026 revenue, up 19% year-over-year, surpassing $1 billion in trailing twelve-month revenue, driven by increased usage of payment, tenant screening, and risk mitigation services.

• GAAP operating income rose 31% to $53 million (18.8% margin); non-GAAP operating income increased 24% to $76 million (27.1% margin).

• Net income for Q2 2026 was $41.5 million, up from $36.0 million in Q2 2025.

• Units on platform grew to 9.6 million, an 8% increase year-over-year; customer count rose 6% to 22,751.

• Premium tier adoption expanded to nearly one in three units, reflecting deeper customer engagement and continued focus on AI-native architecture and workflow automation.

Financial highlights

• Q2 2026 revenue: $281 million, up 19% year-over-year; total revenue for the six months ended June 30, 2026 was $543.3 million, up 20% year-over-year.

• Subscription services revenue for Q2 2026 was $219.5 million; value-added services revenue was $59.8 million.

• Net cash from operating activities was $88 million (31.2% of revenue), up from $53 million (22.3% of revenue) in Q2 2025.

• Cash, cash equivalents, and investment securities totaled $221.7 million as of June 30, 2026.

• No outstanding borrowings under the $150 million credit facility as of June 30, 2026.

Outlook and guidance

• Raised full-year 2026 revenue guidance to $1.117–$1.127 billion, with midpoint growth of 18%.

• Increased non-GAAP operating margin guidance to 26.5%–28.0%.

• Expect cost of revenue, sales and marketing, research and product development, and general and administrative expenses to remain relatively flat as a percentage of revenue for the remainder of 2026.

• Anticipate diluted weighted average shares outstanding of approximately 36 million for the year.