At a glance
Appfolio Inc is worth $7.27B, about 53 times its fiscal 2025 earnings. Revenue grew 19.7% to $950.8M in fiscal 2025, with 14.8% kept as profit; over 5 years it has grown 25.1% a year. It pays no dividend; it spent $145.7M buying back its shares over FY2021–FY2025. The stock returned −16.1% over the past year with dividends reinvested and +9.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 41.3% in the 2020 crash (S&P 500: 33.7%) and 34.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 6 months after the lows.
The business in plain English
AppFolio, founded in 2006, sells cloud-based software that property management companies use to run their businesses. Cloud-based means customers use it over the internet instead of installing it themselves. Its customers manage single-family homes, apartment buildings, affordable and student housing, commercial property and community associations. As of December 31, 2025, it had 22,096 property management customers, and all of its revenue came from the real estate industry.
It earns money in two ways. Subscription Services are software plans (Core, Plus and Max) for firms from small to very large, covering accounting, leasing, maintenance and resident communication. Value Added Services are extras tied to everyday transactions: collecting rent and paying owners and vendors electronically, screening rental applicants for credit and criminal history, and insurance products, including renters insurance sold through its own insurance subsidiary. It is also building artificial intelligence tools that handle tasks such as answering leasing inquiries and sorting repair requests.
Value Added Services are by far the larger business. In the fiscal year ended December 31, 2025, they brought in about $721.5 million, or 75.9% of total revenue of $950.8 million. Subscription Services contributed about $211.5 million (22.2%), and other revenue the remaining 1.9%. The company says use of its services is typically higher for residential rentals than for community associations or commercial property.
Price history
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APPF -16.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Value Added Services | $721.5M | 75.9% |
| Subscription Services | $211.5M | 22.2% |
| Other | $17.8M | 1.9% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $295.7M, up 18.6% from a year earlier, and net income was $46.0M (+36.7%).
- For fiscal 2025, revenue was $950.8M (+19.7% year over year; +25.1% a year from FY2020 to FY2025) with a 14.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +25.1% good |
|---|---|
| Operating margin | 16.1% good |
| Free cash flow margin | 25.1% good |
| Return on equity (FY2025) | 26% good |
| Return on assets (FY2025) | 20.5% good |
| Cash and investments | $346.2M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $310.1M | $158.4M | $29.3M |
| FY2021 | $359.4M | $1.0M | $27.3M |
| FY2022 | $471.9M | $-68.1M | $18.8M |
| FY2023 | $620.4M | $2.7M | $51.2M |
| FY2024 | $794.2M | $204.1M | $186.1M |
| FY2025 | $950.8M | $140.9M | $238.9M |
Valuation snapshot
| Market value | $7.27B |
|---|---|
| P/E ratio | 52.8 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| APPF price data to Oct 28, 2026 | -11.9% | -16.1% | +2.9% | +9.0% | +26.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -11.9% |
| 2025 | -5.7% |
| 2024 | +42.4% |
| 2023 | +64.4% |
| 2022 | -12.9% |
| 2021 | -32.8% |
| 2020 | +63.8% |
| 2019 | +85.7% |
| 2018 | +42.7% |
| 2017 | +74.0% |
| 2016 | +63.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38% over that stretch · deepest drop along the way 41.3%, back to its old high 2.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 9.8% over that stretch · deepest drop along the way 34.2%, back to its old high 5.7 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 347 sales ($37.8M), 347 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 31, 2026 | Maurice J Duca 10% owner | sell (plan) | $990K |
| Jul 31, 2026 | Maurice J Duca 10% owner | sell (plan) | $619K |
| Aug 18, 2026 | Maurice J Duca 10% owner | sell (plan) | $528K |
| Aug 6, 2026 | Maurice J Duca 10% owner | sell (plan) | $470K |
| Jul 17, 2026 | Maurice J Duca 10% owner | sell (plan) | $468K |
Who owns it
Large shareholders (13G filings)
| Klaus Schauser | 11.1% | Sep 30, 2025 |
| PRINCIPAL GLOBAL INVESTORS | 6.4% | Jun 30, 2026 |
| Vanguard Portfolio Management | 6.12% | Mar 31, 2026 |
| Ashe Capital Management, LP | 5.8% | Jun 30, 2025 |
| Vanguard Capital Management | 5.05% | Mar 31, 2026 |
ETFs with the most weight in APPF
| PTEC Global X PropTech ETF | 5.12% |
| WCLD WisdomTree Cloud Computing Fund | 1.89% |
| RFG Invesco S&P MidCap 400® Pure Growth ETF | 1.26% |
| FSGS First Trust SMID Growth Strength ETF | 1.04% |
| SKYY First Trust Cloud Computing ETF | 0.85% |
| QMID WisdomTree U.S. MidCap Quality Growth Fund | 0.82% |
| XSW SPDR S&P Software & Services ETF | 0.82% |
| JMID Janus Henderson Mid Cap Growth Alpha ETF | 0.58% |
What could go wrong
- Tenant screening faces heavy regulatory scrutiny. Tenant screening and insurance services are highly regulated. The Federal Trade Commission, Consumer Financial Protection Bureau and state agencies watch screening closely, and new tenant-protection rules could bring fines or forced product changes.
- Payments rely on a few outside partners. Payments settle through a sponsoring bank, money transmitters and card processors, generally without long-term contracts and sometimes with no backup. Losing a partner, or higher card or bank fees, could hurt results.
- Insurance requirements could fade. Part of its insurance-related revenue depends on property managers requiring coverage for their units. If customers stop requiring insurance, demand for FolioGuard renters and liability products could drop.
- All revenue comes from real estate. In its annual report for fiscal 2025, AppFolio said all its revenue came from customers in real estate. A housing slump, weaker rental activity or strain among property managers could hit results directly.
- Sensitive tenant and payment data at risk. The platform handles credit checks, criminal histories, income verification and payments. A hack, software flaw or human error could expose that information, leading to lawsuits, fines and lost customers.
- Dual-class shares limit outside voting power. AppFolio has two share classes, and voting control is concentrated in a small group, including certain directors and major stockholders. Holders of the traded Class A shares have limited say over corporate decisions.
Recent events
- Quarterly results released
- Quarterly results released
- Executive or board change
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
- Executive or board change
- Executive or board change
- Investor presentation or announcement
For income and retirement investors
AppFolio pays no dividend, and its annual report says it does not expect to pay any in the foreseeable future. It has instead returned cash by buying back its own stock: about $145.7 million in fiscal 2025, after none in fiscal 2021 through 2024. Free cash flow, the cash left after running and investing in the business, was about $239.0 million in fiscal 2025. For income investors, any return has to come from the share price, so drawing cash means selling shares.
The share price has swung hard. In the 2020 COVID crash it fell 41.3%, then regained its peak by May 26, 2020. In the 2022 bear market, when stocks fell broadly, it dropped 34.2% from February to May 2022 and recovered by October 31, 2022. Its largest drop over the three years to October 28, 2026, was 55.4%. Its price history does not cover the 2008 crisis. Single stocks carry more risk than diversified funds.
Questions investors ask
How does AppFolio make money?
AppFolio makes most of its money from Value Added Services, not software subscriptions. In the fiscal year ended December 31, 2025, these add-on services, led by electronic payments, tenant screening and insurance products, brought in about $721.5 million, or 75.9% of $950.8 million in revenue. Subscription plans for its property management software added about $211.5 million, or 22.2%. Its customers are property management companies, and it had 22,096 of them as of December 31, 2025.
Does AppFolio pay a dividend?
No. AppFolio does not pay a dividend, and its annual report for fiscal 2025 says it does not expect to pay any in the foreseeable future. It has returned cash through share buybacks instead, meaning it purchases its own stock, spending about $145.7 million in fiscal 2025 after none in the four prior years. Investors who need regular income would need to raise cash by selling shares, which is costlier when the price is down.
Is AppFolio profitable?
Yes. For the fiscal year ended December 31, 2025, AppFolio earned net income of about $140.9 million on $950.8 million in revenue, a 14.8% net profit margin, and produced about $239.0 million in free cash flow. Net income fell 30.9% from fiscal 2024, though revenue grew 19.7%. Results have been uneven: it lost about $68.1 million in fiscal 2022. In the quarter ended September 30, 2026, revenue rose 18.6% and net income rose 36.7% from a year earlier.
How has AppFolio stock performed?
Strong over the long run, weaker over the past year. As of October 28, 2026, the share price had gained about 26.8% a year over 10 years and 9% a year over five years, but had fallen 16.1% over one year and 11.9% year to date. Calendar-year results swing widely: up 64.4% in 2023 and 42.4% in 2024, then down 5.7% in 2025. Its price-to-earnings ratio was about 52.8 on fiscal 2025 profit, meaning investors paid about $52.80 per $1 of yearly earnings.
Which ETFs hold AppFolio stock?
AppFolio is held mostly by property-technology, cloud-software and mid-cap growth ETFs. The Global X PropTech ETF (PTEC) gives it one of the largest weights, about 5.1% of the fund. Others include the WisdomTree Cloud Computing Fund (WCLD) at about 1.9%, the Invesco S&P MidCap 400 Pure Growth ETF (RFG) at about 1.3%, and the First Trust Cloud Computing ETF (SKYY) and SPDR S&P Software & Services ETF (XSW), each under 1%. These weights shift as prices move and funds rebalance.