AppFolio (APPF) investor relations material

Executive summary

• Q3 revenue rose 19% YoY to $295.7M; GAAP operating margin reached 19.4%, and units under management grew 8% to 9.8M.

• GAAP operating income increased 64% YoY to $57.4M; net income was $46.0M versus $33.6M, and diluted EPS was $1.29 versus $0.93.

• FY 2026 revenue and non-GAAP operating margin guidance increased; investment in sales capacity and go-to-market activity continued.

Financial highlights

• Q3 revenue was $295.7M versus $249.4M; 9M revenue was $839.0M versus $702.6M.

• Q3 non-GAAP operating income increased 38% YoY to $80.7M; non-GAAP net income was $64.7M versus $47.7M.

• Q3 net cash from operating activities was $96.8M, or 32.7% of revenue, versus $86.0M, or 34.5%, a year earlier.

• Customers increased 6% YoY to 23,121; quarter-end headcount was 1,744, up 2%.

Outlook and guidance

• FY 2026 revenue guidance increased to $1.122B–$1.127B, with midpoint growth of 18.3%.

• FY 2026 non-GAAP operating margin guidance is 26.5%–27.5%, versus 24.7% in 2025; diluted weighted-average shares are expected to be ~36M.

• Q4 new-customer acquisition and retention are expected to remain healthy; existing-customer unit expansion is expected below Q4 2025 and comparable to Q3 2026.

• FY cost of revenue, excluding D&A, is expected to remain relatively flat as a share of revenue; operating expenses as a share of revenue are expected to decline modestly.

• FY 2026 cost of revenue, sales and marketing, and G&A are expected to remain relatively flat as a percentage of revenue; R&D and D&A are expected to decline as a percentage of revenue.