AppFolio (APPF) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $249.4 million, up 21% year-over-year, with non-GAAP operating margin at 23.5%.

• Net income for Q3 2025 was $33.6 million, nearly flat year-over-year; diluted EPS was $0.93 GAAP and $1.31 non-GAAP.

• Units under management grew 7% year-over-year to 9.1 million, reflecting strong new business and customer growth.

• Strategic focus on AI-native architecture, value-added services, and real estate performance management to address industry challenges.

• Customer and industry recognition for innovation and workplace culture.

Financial highlights

• Core Solutions revenue was $54 million, up 17% year-over-year; Value-added services revenue grew 22% to $192 million.

• Non-GAAP operating margin was 23.5%, down from 28.7% last year, impacted by a $13 million bonus accrual; excluding accrual, margin was approximately 29%.

• GAAP operating income was $35 million (14.1% margin), down from $43 million (20.7% margin) in Q3 2024.

• Net cash from operating activities rose to $86 million (34.5% of revenue), up from $58 million (28.1% of revenue) year-over-year.

• Cash, cash equivalents, and investment securities totaled $200.1 million as of September 30, 2025.

Outlook and guidance

• 2025 annual revenue guidance raised to $945–$950 million, implying 19% growth at the midpoint.

• Expected non-GAAP operating margin for 2025 is 23.5%–24.5%.

• Diluted weighted average shares outstanding projected at 36 million for the year.

• Cost of revenue as a percentage of revenue expected to remain elevated due to product mix and AI investments.

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