📊 APPF Key Takeaways
Is Appfolio Inc. (APPF) a Good Investment?
AppFolio demonstrates solid fundamentals with 19.7% revenue growth, healthy operating margins (19.4%), and exceptional financial strength (0.10x D/E, $147.4M cash). However, the 30.1% decline in diluted EPS despite strong revenue growth signals margin compression or significant dilution that warrants investigation before upgrading conviction.
AppFolio shows strong fundamental quality with nearly 20% revenue growth, healthy 16.1% operating margins, and excellent free cash flow generation at a 25.1% margin. The balance sheet is conservatively structured with high liquidity and low leverage, which supports resilience and reinvestment capacity. The main caution is that net income was flat and diluted EPS declined sharply despite strong top-line growth, suggesting some pressure in earnings quality or share count dynamics.
Why Buy Appfolio Inc. Stock? APPF Key Strengths
- Strong top-line growth of 19.7% YoY in software sector, indicating robust market demand
- Fortress balance sheet with minimal leverage (D/E 0.10x), $147.4M cash, and exceptional liquidity (3.52x current ratio)
- Sustainable free cash flow generation of $34.1M (13% FCF margin) with asset-light capex model ($231K)
- Strong revenue growth of 19.7% YoY with positive operating leverage
- Excellent financial health with 3.31x current ratio and low debt-to-equity of 0.09x
- High cash generation with $238.95M in free cash flow and a 25.1% FCF margin
APPF Stock Risks: Appfolio Inc. Investment Risks
- EPS diluted down 30.1% YoY despite 19.7% revenue growth indicates material margin compression or shareholder dilution requiring clarification
- Moderate capital efficiency with ROE 9.0% and ROA 7.3% below software industry standards
- Missing gross margin data obscures cost of revenue trends and limits profitability visibility
- Net income was flat year over year despite strong revenue growth
- Diluted EPS fell 30.1% YoY, indicating possible dilution or weaker per-share earnings quality
- Gross margin data is unavailable, limiting visibility into underlying unit economics
Key Metrics to Watch
- EPS trajectory and analysis of YoY decline drivers (dilution vs. margin pressure)
- Operating expense ratio trend relative to revenue growth
- Free cash flow sustainability and customer retention rates
- Operating margin and net margin progression
- Diluted EPS trend versus revenue growth
Appfolio Inc. (APPF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.52x current ratio provides a solid financial cushion.
APPF Profit Margin, ROE & Profitability Analysis
APPF vs Technology Sector: How Appfolio Inc. Compares
How Appfolio Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Appfolio Inc. Stock Overvalued? APPF Valuation Analysis 2026
Based on fundamental analysis, Appfolio Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Appfolio Inc. Balance Sheet: APPF Debt, Cash & Liquidity
APPF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Appfolio Inc.'s revenue has grown significantly by 165% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.07 reflects profitable operations.
APPF Revenue Growth, EPS Growth & YoY Performance
APPF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $217.7M | $31.4M | $0.86 |
| Q3 2025 | $205.7M | $29.7M | $0.90 |
| Q2 2025 | $197.4M | $29.7M | $0.81 |
| Q1 2025 | $187.4M | $31.4M | $0.86 |
| Q3 2024 | $165.4M | -$18.9M | $0.72 |
| Q2 2024 | $147.1M | -$18.9M | $-0.53 |
| Q1 2024 | $136.1M | -$35.1M | $-0.99 |
| Q3 2023 | $125.1M | -$4.2M | $-0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Appfolio Inc. Dividends, Buybacks & Capital Allocation
APPF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Appfolio Inc. (CIK: 0001433195)
📋 Recent SEC Filings
❓ Frequently Asked Questions about APPF
What is the AI rating for APPF?
Appfolio Inc. (APPF) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are APPF's key strengths?
Claude: Strong top-line growth of 19.7% YoY in software sector, indicating robust market demand. Fortress balance sheet with minimal leverage (D/E 0.10x), $147.4M cash, and exceptional liquidity (3.52x current ratio). ChatGPT: Strong revenue growth of 19.7% YoY with positive operating leverage. Excellent financial health with 3.31x current ratio and low debt-to-equity of 0.09x.
What are the risks of investing in APPF?
Claude: EPS diluted down 30.1% YoY despite 19.7% revenue growth indicates material margin compression or shareholder dilution requiring clarification. Moderate capital efficiency with ROE 9.0% and ROA 7.3% below software industry standards. ChatGPT: Net income was flat year over year despite strong revenue growth. Diluted EPS fell 30.1% YoY, indicating possible dilution or weaker per-share earnings quality.
What is APPF's revenue and growth?
Appfolio Inc. reported revenue of $262.2M.
Does APPF pay dividends?
Appfolio Inc. does not currently pay dividends.
Where can I find APPF SEC filings?
Official SEC filings for Appfolio Inc. (CIK: 0001433195) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is APPF's EPS?
Appfolio Inc. has a diluted EPS of $1.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is APPF a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Appfolio Inc. has a BUY rating with 79% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is APPF stock overvalued or undervalued?
Valuation metrics for APPF: ROE of 9.0% (sector avg: 22%), net margin of 16.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy APPF stock in 2026?
Our dual AI analysis gives Appfolio Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is APPF's free cash flow?
Appfolio Inc.'s operating cash flow is $34.3M, with capital expenditures of $231.0K. FCF margin is 13.0%.
How does APPF compare to other Technology stocks?
Vs Technology sector averages: Net margin 16.2% (avg: 18%), ROE 9.0% (avg: 22%), current ratio 3.52 (avg: 2.5).