AppFolio Revenue Climbs 20% to $262.2M as Q1 Profit Jumps 35%

AppFolio, Inc. (NASDAQ: APPF), a property management software provider, reported revenue of $262.2 million for the first quarter of fiscal 2026, a 20% increase from $217.7 million in the same quarter of fiscal 2025. Net income for the period rose 35% to $42.4 million, compared to $31.4 million a year earlier. Read more earnings reports.

Operating income for the three months ending March 31, 2026, reached $50.7 million, up from $33.8 million in the prior-year quarter. The company's operating margin expanded as revenue growth outpaced the rise in operating expenses.

Earnings and Cash Position

Diluted earnings per share came in at $1.18, up from $0.86 in the first quarter of fiscal 2025. Basic earnings per share rose to $1.19 from $0.86. The weighted average diluted share count decreased to 35.8 million from 36.6 million a year earlier.

Cash and cash equivalents stood at $147.4 million as of March 31, 2026, compared to $107.0 million at the end of December 2025 and $56.9 million at the end of March 2025. Cash from operations for the quarter totaled $34.3 million, down from $38.5 million in the same period last year.

Balance Sheet and Capital Allocation

Total assets declined to $580.6 million as of March 31, 2026, from $689.0 million at year-end 2025. Stockholders' equity decreased to $470.2 million from $542.6 million over the same period. The decline in equity was driven by a $132.2 million outflow from financing activities during the quarter, compared to a $104.8 million outflow in the prior-year period.

Treasury stock increased to $298.3 million as of March 31, 2026, from $172.5 million at December 31, 2025, indicating continued share repurchases. Common shares outstanding decreased to 11.3 million from 11.7 million over the same timeframe.

Revenue Mix and Expenses

The company reported subscription and services revenue of $201.4 million for the quarter, up from $164.7 million in the first quarter of fiscal 2025. Transaction-based revenue rose to $58.2 million from $49.5 million. Other revenue declined to $2.6 million from $3.5 million.

Research and development expenses increased to $49.6 million from $43.8 million in the prior-year quarter. Accounts receivable grew to $44.0 million as of March 31, 2026, from $36.9 million at the end of December 2025.

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