APPF earnings analysis
What we found in APPF's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AppFolio reported Q1 2026 revenue of $262,214,000, up 20% year‑over‑year, driven by Value Added Services and an 8% increase in units under management to 9.5 million. GAAP operating income expanded to $50,748,000 (19.4% of revenue) and non‑GAAP operating income was $71,536,000 (27.3% of revenue). Operating cash flow declined to $34,298,000 (13.1% of revenue) and the company repurchased 702,502 shares for $125.0 million, leaving $125.0 million available under the repurchase program.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong top‑line growth
- Revenue grew 20% YoY to $262,214,000 for the quarter (three months ended March 31, 2026 vs 2025).
- Operating margin expansion
- GAAP income from operations increased to $50,748,000 (GAAP operating margin 19.4%), up from $33,783,000 (15.5% of revenue) in Q1 2025; non‑GAAP operating income rose to $71,536,000 (27.3% of revenue) from $52,953,000 (24.3%).
- Value Added Services drove growth
- Value Added Services revenue increased to $201,363,000, a $36,657,000 (22%) increase versus $164,706,000 in Q1 2025.
- Solid liquidity position
- As of March 31, 2026, the company held $151,700,000 in cash, cash equivalents and investment securities and had no outstanding borrowings under its $150.0 million Credit Facility.
- Share repurchase activity
- Repurchased 702,502 shares for an aggregate $125,000,000 during the quarter; $125,000,000 remained available under the 2025 Stock Repurchase Program as of March 31, 2026.
- Customer / units growth
- Property management units under management grew 8% YoY to 9.5 million (9,500,000 units) as of March 31, 2026 (versus 8.8 million as of March 31, 2025).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating cash flow contraction
- Net cash provided by operating activities fell to $34,298,000 (13.1% of revenue) in Q1 2026 from $38,465,000 (17.7% of revenue) in Q1 2025.
- Increased third‑party costs
- Cost of revenue (exclusive of depreciation and amortization) rose $15,477,000 to $94,975,000 and represented 36.2% of revenue for the quarter, driven primarily by $14.6 million higher third‑party service provider costs.
- Lower interest income
- Interest income, net declined 40% to $1,784,000 in Q1 2026 from $2,953,000 in Q1 2025, reflecting sales of investment securities and lower interest rates.
- Tax rate pressure
- Provision for income taxes increased to $10,677,000 (effective tax rate 20.1%) versus $5,409,000 (14.7%) in the prior‑year quarter, increasing the tax burden on pre‑tax income of $53,101,000.
- Cash deployed to buybacks
- Financing activities used $132,169,000 of cash in the quarter, primarily reflecting the $125,000,000 share repurchase, which reduced available liquidity despite a $151,700,000 cash and investment balance.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 63.8%
- Operating margin
- 19.4%
- Segment
- Subscription Services: $58,222,000 (up $8,709,000 or 18% vs Q1 2025)
- Segment
- Value Added Services: $201,363,000 (up $36,657,000 or 22% vs Q1 2025)
- Segment
- Other: $2,629,000 (down $854,000 or 25% vs Q1 2025)
What they said about what is next.
MD&A includes qualitative forward commentary: "We expect total revenue for the year ending December 31, 2026 to increase compared to the year ended December 31, 2025." Management also expects cost of revenue, sales & marketing, research & product development, general & administrative and depreciation & amortization to "stay relatively flat as a percentage of revenue" for the year ending December 31, 2026, and states cash and investments are expected to be sufficient to meet requirements for "at least the next twelve months." No numeric fiscal‑year guidance figures appear in this 10‑Q.
The filing reads about the same as the one before it.
What came before.
- 10-Q · October 30, 2025
- AppFolio reported Q3 (ended September 30, 2025) revenue of $249,353,000, up $43,620,000 (+21.2%) versus Q3 2024 and up $13,353,000 (+5.7%) versus the prior quarter. Operating margin compressed to 14.1% (income from…
- 10-Q · April 24, 2025
- AppFolio reported Q1 revenue of $217,702,000 (up $30,272,000 vs. Q1 2024) with operating income of $33,783,000 and diluted EPS of $0.86. Gross margin compressed to 63.5% and operating margin to 15.5% versus the…
- 10-Q · October 25, 2024
- AppFolio reported strong Q3 results with revenue of $205,733,000 (up $40,293,000 YoY from $165,440,000) and operating income of $42,568,000 (vs an operating loss of $67,000 a year ago). Diluted EPS was $0.90 for the…
- 10-Q · July 26, 2024
- AppFolio reported a strong Q2 (three months ended June 30, 2024) with revenue of $197,375,000, up from $147,075,000 a year ago, and operating income of $36,028,000 versus an operating loss of $(679,000) in Q2 2023. Net…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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