Revenue growth has normalized to 20.4% as of 2026Q1, while operating income reached $50.7 million, suggesting successful scaling of overhead relative to gross profit.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Sales/Revenue | 995.33M | 950.82M | 794.2M | 620.45M | 471.88M | 359.37M | 310.06M | 256.01M | 190.07M | 143.8M | 105.59M | 74.98M | 47.67M | 26.54M |
| Revenue Growth % | 20.72% | 19.72% | 28.01% | 31.48% | 31.31% | 15.9% | 21.11% | 34.69% | 32.17% | 36.2% | 40.82% | 57.28% | 79.61% | - |
| Cost of Goods Sold | 365.93M | 367.99M | 301.61M | 238.08M | 191.83M | 143.94M | 119.03M | 101.64M | 73.55M | 55.28M | 44.63M | 33.9M | 22.55M | 13.62M |
| COGS % of Revenue | - | 38.7% | 37.98% | 38.37% | 40.65% | 40.05% | 38.39% | 39.7% | 38.7% | 38.44% | 42.27% | 45.22% | 47.31% | 51.3% |
| Gross Profit | 629.41M | 582.83M | 492.59M | 382.37M | 280.06M | 215.43M | 191.03M | 154.37M | 116.52M | 88.52M | 60.96M | 41.07M | 25.12M | 12.93M |
| Gross Margin % | 63.24% | 61.3% | 62.02% | 61.63% | 59.35% | 59.95% | 61.61% | 60.3% | 61.3% | 61.56% | 57.73% | 54.78% | 52.69% | 48.7% |
| Gross Profit Growth % | - | 18.32% | 28.83% | 36.53% | 30% | 12.77% | 23.75% | 32.48% | 31.63% | 45.22% | 48.41% | 63.54% | 94.31% | - |
| Operating Expenses | 459.52M | 429.91M | 356.95M | 381.41M | 352.43M | 227.3M | 181.24M | 147.91M | 96.87M | 79.19M | 69.38M | 56.08M | 33.67M | 20.53M |
| OpEx % of Revenue | - | 45.21% | 44.94% | 61.47% | 74.69% | 63.25% | 58.46% | 57.77% | 50.96% | 55.06% | 65.71% | 74.79% | 70.64% | 77.35% |
| Selling, General & Admin | 246.93M | 239.49M | 196.57M | 201.05M | 208.19M | 130.48M | 105.92M | 86.01M | 58.18M | 49.91M | 46.81M | 40.42M | 23.36M | 12.62M |
| SG&A % of Revenue | - | 25.19% | 24.75% | 32.4% | 44.12% | 36.31% | 34.16% | 33.59% | 30.61% | 34.71% | 44.33% | 53.91% | 49.01% | 47.56% |
| Research & Development | 196.29M | 190.42M | 160.38M | 151.36M | 111.12M | 65.98M | 48.53M | 39.51M | 24.11M | 16.58M | 12.64M | 9.55M | 6.5M | 5.06M |
| R&D % of Revenue | - | 20.03% | 20.19% | 24.4% | 23.55% | 18.36% | 15.65% | 15.43% | 12.69% | 11.53% | 11.97% | 12.74% | 13.65% | 19.05% |
| Other Operating Expenses | 3M | 0 | 0 | 28.99M | 33.12M | 30.84M | 26.79M | 22.39M | -56K | -96K | -37K | 5K | -121K | 287K |
| Operating Income | 169.88M | 152.92M | 135.64M | 963K | -72.37M | -11.88M | 9.78M | 6.46M | 19.66M | 9.34M | -8.42M | -15M | -8.56M | -7.6M |
| Operating Margin % | 17.07% | 16.08% | 17.08% | 0.16% | -15.34% | -3.31% | 3.16% | 2.52% | 10.34% | 6.49% | -7.98% | -20.01% | -17.95% | -28.65% |
| Operating Income Growth % | - | 12.73% | 13985.57% | 101.33% | -509.28% | -221.41% | 51.42% | -67.13% | 110.56% | 210.83% | 43.86% | -75.29% | -12.56% | - |
| EBITDA | 191.81M | 175.57M | 155.19M | 29.59M | -36.06M | 22.17M | 40.27M | 32.99M | 34.23M | 22.03M | 1.51M | -8.9M | -4.75M | -4.75M |
| EBITDA Margin % | 19.27% | 18.46% | 19.54% | 4.77% | -7.64% | 6.17% | 12.99% | 12.88% | 18.01% | 15.32% | 1.43% | -11.87% | -9.97% | -17.91% |
| EBITDA Growth % | 22.15% | 13.13% | 424.38% | 182.06% | -262.7% | -44.96% | 22.09% | -3.64% | 55.36% | 1357.28% | 116.99% | -87.19% | 0% | - |
| D&A (Non-Cash Add-back) | 21.92M | 22.65M | 19.55M | 28.63M | 36.31M | 34.04M | 30.49M | 26.52M | 14.58M | 12.7M | 9.94M | 6.1M | 3.81M | 2.85M |
| EBIT | 122.86M | 161.11M | 150.32M | 963K | -72.37M | -11.88M | 198.68M | 6.48M | 19.66M | 9.34M | -8.42M | -15M | -8.56M | -7.6M |
| Net Interest Income | 5.2M | 8.16M | 13.98M | 7.03M | 1.18M | 501K | -1.85M | -1.65M | 787K | 535K | 246K | -595K | 59K | 12K |
| Interest Income | 5.2M | 8.16M | 13.98M | 7.03M | 1.18M | 501K | 0 | 0 | 787K | 0 | 0 | 0 | 59K | 12K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 1.85M | 1.65M | 0 | 535K | 246K | 595K | 0 | 0 |
| Other Income/Expense | 7.54M | 8.2M | 14.68M | 7.03M | 5.65M | 13.61M | 187.05M | -1.64M | 731K | 439K | 209K | -590K | -62K | 299K |
| Pretax Income | 177.42M | 161.11M | 150.32M | 8M | -66.72M | 1.73M | 196.83M | 4.82M | 20.39M | 9.77M | -8.21M | -15.59M | -8.62M | -7.3M |
| Pretax Margin % | 17.83% | 16.94% | 18.93% | 1.29% | -14.14% | 0.48% | 63.48% | 1.88% | 10.73% | 6.8% | -7.78% | -20.8% | -18.08% | -27.52% |
| Income Tax | 25.46M | 20.19M | -53.75M | 5.29M | 1.4M | 706K | 38.43M | -31.46M | 420K | 58K | 67K | 75K | -59K | -12K |
| Effective Tax Rate % | 14.35% | 12.53% | -35.75% | 66.21% | -2.1% | 40.72% | 19.52% | -652.27% | 2.06% | 0.59% | -0.82% | -0.48% | 0.68% | 0.16% |
| Net Income | 151.96M | 140.92M | 204.07M | 2.7M | -68.12M | 1.03M | 158.4M | 36.28M | 19.97M | 9.72M | -8.28M | -15.67M | -8.62M | -7.3M |
| Net Margin % | 15.27% | 14.82% | 25.69% | 0.44% | -14.44% | 0.29% | 51.09% | 14.17% | 10.51% | 6.76% | -7.84% | -20.9% | -18.08% | -27.52% |
| Net Income Growth % | -22.78% | -30.94% | 7452.48% | 103.97% | -6726.36% | -99.35% | 336.59% | 81.71% | 105.51% | 217.33% | 47.15% | -81.74% | -18.02% | - |
| Net Income (Continuing) | 151.96M | 140.92M | 204.07M | 2.7M | -68.12M | 1.03M | 158.4M | 36.28M | 19.97M | 9.72M | -8.28M | -15.67M | -8.62M | -7.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.24 | 3.88 | 5.55 | 0.07 | -1.95 | 0.03 | 4.44 | 1.02 | 0.56 | 0.28 | -0.25 | -0.73 | -0.33 | -0.28 |
| EPS Growth % | -21.64% | -30.09% | 7379.78% | 103.81% | -6870.83% | -99.35% | 335.29% | 82.14% | 100% | 212% | 65.75% | -121.21% | -17.86% | - |
| EPS (Basic) | - | 3.91 | 5.63 | 0.08 | -1.95 | 0.03 | 4.62 | 1.07 | 0.59 | 0.29 | -0.25 | -0.73 | -0.33 | -0.28 |
| Diluted Shares Outstanding | 35.81M | 36.33M | 36.78M | 36.42M | 35.01M | 35.7M | 35.71M | 35.57M | 35.56M | 35.15M | 33.56M | 21.34M | 25.76M | 25.76M |
| Basic Shares Outstanding | 35.7M | 36.01M | 36.25M | 35.63M | 35.01M | 34.58M | 34.26M | 34.02M | 34.13M | 33.85M | 33.12M | 21.34M | 25.76M | 25.76M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Transaction volume sensitivity
As reported in recent financial statements, AppFolio's year-over-year revenue growth has decelerated from 38.5% in 2023Q4 to 20.4% by 2026Q1, suggesting that the initial rapid expansion phase of its Value-Added Services segment is transitioning toward a more mature, albeit still double-digit, growth trajectory.
The deceleration in top-line growth indicates that the company is increasingly reliant on existing customer expansion rather than pure new-unit acquisition. Investors should monitor whether the shift toward the 'Plus' tier can offset the natural maturation of the core subscription base.
Based on reported figures, gross margins have fluctuated between 60.0% and 65.2% over the last ten quarters, reflecting the inherent cost burden of third-party payment processing and screening services that differentiate this model from pure-play software providers with higher margin profiles.
The inability to consistently breach the mid-60% margin threshold suggests that the company's profitability is structurally tethered to the variable costs of its financial plumbing. This implies that margin expansion will likely require significant operational leverage or a favorable shift in the product mix toward higher-margin software subscriptions.
According to quarterly filings, operating income reached $50.7 million in 2026Q1, demonstrating that the company is successfully scaling its operating expenses slower than its gross profit, which suggests an improving ability to manage overhead costs as the platform reaches greater scale.
The trend of operating margins expanding from 11.3% in 2024Q4 to 19.4% in 2026Q1 indicates disciplined expense management. This improvement warrants further investigation into whether this efficiency is sustainable or if it reflects a temporary reduction in discretionary spending.
Analysis of the income statement reveals that stock-based compensation remains a consistent expense, reaching $18.0 million in 2026Q1, which necessitates careful adjustment when evaluating the true cash-generative capacity of the firm's reported net income figures.
The persistent use of equity-based incentives suggests that management is prioritizing talent retention, though this dilutes the quality of reported EPS. Investors should remain cautious of the gap between GAAP net income and underlying operational cash flow given these recurring non-cash charges.
While the company presents a strong growth story, the reliance on transaction-based Value-Added Services, which accounted for a significant portion of revenue, exposes the firm to macroeconomic volatility in rental markets that could lead to unexpected revenue contraction during periods of lower tenant turnover.
Short-term growth may be masking the underlying sensitivity to external transaction volumes, which are less predictable than recurring subscription fees. This suggests that the market may be overvaluing the stability of the revenue stream compared to traditional SaaS peers.
Quick answers to the most common questions about buying APPF stock.
For fiscal year 2025, AppFolio, Inc. (APPF) reported total revenue of $950.8M. This represents a 3482.3% increase compared to $26.5M in 2013.
AppFolio, Inc. (APPF) is profitable, generating $140.9M in net income for the fiscal year ending 2025 with a net profit margin of 14.8%.
AppFolio, Inc. (APPF) reported an operating income of $152.9M, resulting in an operating profit margin of 16.1%. This margin reflects the operational efficiency of the business before interest and taxes.
AppFolio, Inc. (APPF) generated $582.8M in gross profit for the year, representing a gross profit margin of 61.3%. This demonstrates the company's core pricing power and production efficiency.