AppFolio Q3 revenue slightly beats estimates on strong customer adoption

Overview

• US real estate software firm's Q3 revenue grew 19%, slightly beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company raised full-year revenue and non-GAAP operating margin outlook

Outlook

• Appfolio raises 2026 revenue outlook to $1.122-$1.127 bln

• Company expects 2026 non-GAAP operating margin of 26.5%-27.5%

• Appfolio expects diluted weighted average shares outstanding of about 36 mln for 2026

Result Drivers

• CUSTOMER ADOPTION - Co said new and existing customers continued to adopt its performance platform, according to CEO Shane Trigg

• UNITS UNDER MANAGEMENT - Total units under management grew 8% year-over-year to 9.8 mln

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for AppFolio, Inc. is $230.81, about 6.3% above its October 21 closing price of $217.20

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• Oct 20 - Sweden's Exsitec Q3 net sales rise on recurring software revenue

• Oct 21 - Germany's SAP hits €10 billion quarterly revenue milestone, lifts 2026 view

• Oct 20 - Pegasystems Q3 revenue, adjusted EPS miss estimates as contract growth slows

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)