AppFolio (APPF) Q2 2025 earnings summary

Executive summary

• Revenue reached $236 million in Q2 2025, up 19% year-over-year, driven by premium tier adoption, AI-powered solutions, and value-added services.

• Net income for Q2 2025 was $36 million, up from $29.7 million in Q2 2024; diluted EPS was $0.99 compared to $0.81 year-over-year.

• Growth was supported by new business wins, increased use of payments, tenant screening, and risk mitigation services, as well as a 6% increase in property management units under management to 8.9 million.

• AI innovation, particularly through Realm-X, is delivering measurable performance benefits for customers, with 96% of customers using at least one AI-powered solution.

• Tim Eaton was appointed as CFO effective July 30, 2025, after serving as interim.

Financial highlights

• Q2 2025 revenue was $236 million, up 19% year-over-year; net income was $36 million; diluted EPS was $0.99.

• Non-GAAP operating income reached $62 million (26.2% margin), compared to $51 million (26.0%) a year ago.

• Cash, cash equivalents, and investment securities totaled $128 million at quarter-end.

• Net cash from operations for the first half of 2025 was $91.1 million.

• Managed 8.9 million units from 21,403 customers, a 6% increase year-over-year.

Outlook and guidance

• 2025 annual revenue guidance raised to $935–$945 million, representing 18% growth at the midpoint.

• Non-GAAP operating margin expected between 24.5% and 26.5% for the full year.

• Diluted weighted average shares outstanding projected at approximately 37 million.

• Headcount growth to continue but at a slower rate than revenue growth.

• Cost of revenue, sales and marketing, R&D, and G&A expenses expected to remain relatively flat as a percentage of revenue.