AI-extracted from the 10-Q filed 2026-10-22 — Q3 2026 (quarter ended September 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
AppFolio Q3 revenue grew 19% YoY to $295.7M, driven by 21% growth in Value Added Services, with operating income surging 64% to $57.4M.
Biggest Revenue Drivers
Value Added Services$231.9M+21% YoY
Increased adoption and usage of payments, tenant screening, and risk mitigation services
Subscription Services$61.5M+14% YoY
Growth from 8% increase in property management units under management to 9.8 million
Biggest Revenue Drivers
Total revenue: $295.7M+19% YoY
Value Added Services$231.9M+21% YoY
Increased adoption and usage of payments, tenant screening, and risk mitigation services
Subscription Services$61.5M+14% YoY
Growth from 8% increase in property management units under management to 9.8 million
Other$2.2M-37% YoY
Legacy implementation and one-time services
Largest Expense Items
Cost of revenue (exclusive of depreciation and amortization)$105.6M+15% YoY
Higher third-party service provider costs of $13.4M due to increased Value Added Services usage
Sales and marketing$48.6M+35% YoY
$7.6M increase in events, advertising and promotion from targeted go-to-market investments, plus $2.5M personnel costs increase
Research and product development$53.1M-2% YoY
$3.9M decrease in personnel costs net of capitalized software, offset by $1.8M software costs and $1.1M purchased services increases
General and administrative$26.0M-5% YoY
$2.9M decrease in personnel costs and $1.5M gain on lease termination, partially offset by $2.6M professional fees increase
Margins: GAAP operating margin expanded to 19.4% in Q3 2026 from 14.1% in Q3 2025, driven by strong revenue growth outpacing cost growth. Non-GAAP operating margin improved to 27.3% from 23.5% YoY, reflecting operational leverage and efficiency improvements.
Watch Items from the Filing
Property management units under management grew 8% YoY to 9.8M; customer count grew from 21,759 to 23,121, indicating steady but moderate customer acquisition pace.
Company committed to minimum $219.3M spend through 2031 with cloud computing vendors ($36.2M short-term), representing significant fixed obligations for infrastructure.
Sales and marketing expense jumped 35% YoY to $48.6M (16.4% of revenue) due to increased targeted go-to-market investments; company expects it to stay flat as % of revenue going forward.
Remaining Performance Obligations (RPO) of $161.4M with only 41.4% expected to recognize over next 12 months; near-term revenue visibility solid but back-half dependent on contract realization.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
14 transactions in APPF reported by 5 members of Congress under the STOCK Act, most recent trade Feb 18, 2026. Reported transactions, not recommendations.
About APPFOLIO INC (APPF): stock profile, AI score and financials
APPFOLIO INC (APPF) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores APPF at 70.1/100 on a composite quality score built from its SEC filings, placing it at rank #225 of 2,925 stocks — the top 10% of the AI-ranked universe. APPF scores in the top quartile across balance sheet strength (97.5), institutional flow (90.3), free cash flow (80.4). Shareholder dilution risk is elevated at 19.3/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), APPFOLIO INC reports quarterly revenue of $295.7M, net income of $46.0M, an operating margin of 19.4%. Top institutional holders of APPF by reported 13-F value include BlackRock, PRINCIPAL FINANCIAL GROUP, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. APPF trades on the Nasdaq exchange and files with the SEC under CIK 1433195. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate APPF daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for APPFOLIO INC directly from SEC EDGAR.