AppFolio Inc.

AppFolio reported second-quarter revenue of $281 million, up 19% year over year from $236 million. Subscription services revenue was $60 million, up 14% from $52.5 million, and value-added services revenue was $219 million, up 22%. GAAP operating income was $53 million, or 18.8% of revenue, versus $41 million, or 17.2%, a year ago; non-GAAP operating income was $76 million, or 27.1% of revenue, versus $62 million, or 26.2%. Units under management were approximately 9.6 million, up 8% from 8.9 million, and customers were 22,751, up 6% from 21,403. Operating cash flow was $88 million, and the company ended with $222 million in cash, cash equivalents and current investment securities. For 2026, AppFolio raised full-year revenue guidance to $1.117 billion to $1.127 billion and lifted non-GAAP operating margin guidance to 26.5% to 28.0%. It expects diluted weighted average shares outstanding of approximately 36 million.

Shane Trigg framed the quarter around AppFolio’s role in helping property managers simplify their tech stacks and improve performance, emphasizing that customers are increasingly prioritizing consolidation over adding more tools. He pointed to AI-native workflows, Realm-X Flows, and agentic products like Leasing Performer, Maintenance Performer, Resident Messenger Performer, and the newly announced Accounting Performer as central to the company’s differentiation. His tone was confident and strategic, with repeated references to “real estate performance management” as the organizing idea behind the platform.

Tim Eaton highlighted broad-based financial strength: revenue growth of 19%, subscription revenue growth of 14%, value-added services growth of 22%, and operating margin expansion to 27.1% non-GAAP and 18.8% GAAP. He said cost of revenue was 36% of revenue, up from 35% a year ago, due to payments mix and incremental data center capacity supporting AI usage, while R&D improved to 15% of revenue from 16% as AI tools boosted engineering productivity. He also cited $88 million in operating cash flow, $222 million in cash and investments, and said capital allocation remains focused on investing in the business with opportunistic share repurchases.

There was no live analyst Q&A in the transcript provided, so no external questions or management back-and-forth were captured. The closest discussion of concerns was management’s note that 2026 outlook assumes a more moderate pace of unit expansion among existing customers, while new customer acquisition and retention remain healthy. They also reminded investors that 2025 included one-time revenue from a Stack partnership in the fourth quarter, which affects year-over-year comparisons.