$APPF

APPFOLIO INC

CIK:0001433195|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Income Statement [Abstract]

Revenue

$ 281,124

$ 235,575

$ 543,338

$ 453,277

Costs and operating expenses:

Cost of revenue (exclusive of depreciation and amortization)

^[1]

102,595

83,827

197,570

163,325

Sales and marketing

^[1]

43,944

36,776

81,445

67,833

Research and product development

^[1]

50,997

46,674

100,626

90,432

General and administrative

^[1]

25,626

21,936

49,967

45,287

Depreciation and amortization

4,985

5,850

10,005

12,105

Total costs and operating expenses

228,147

195,063

439,613

378,982

Income from operations

52,977

40,512

103,725

74,295

Other (loss) income, net

(1)

(11)

568

Interest income, net

1,435

1,466

3,219

4,419

Income before provision for income taxes

54,411

41,967

107,512

78,759

Provision for income taxes

12,867

5,987

23,544

11,396

Net income

$ 41,544

$ 35,980

$ 83,968

$ 67,363

Net income per common share:

Basic (in dollars per share)

$ 1.17

$ 1.00

$ 2.36

$ 1.87

Diluted (in dollars per share)

$ 1.17

$ 0.99

$ 2.36

$ 1.85

Weighted average common shares outstanding:

Basic (in shares)

35,391

35,922

35,544

36,111

Diluted (in shares)

35,461

36,204

35,635

36,425

[1]

Includes stock-based compensation expense as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Stock-based compensation expense included in costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)	$	1,246	$	1,419	$	2,334	$	2,706
Sales and marketing	3,633		3,045		6,973		5,893
Research and product development	8,918		8,176		16,800		15,107
General and administrative	6,674		5,659		12,353		10,964
Total stock-based compensation expense	$	20,471	$	18,299	$	38,460	$	34,670

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash from operating activities
Net income	$ 83,968	$ 67,363
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,005	12,105
Amortization of operating lease right-of-use assets	1,126	1,008
Amortization of costs capitalized to obtain revenue contracts	6,468	5,419
Deferred income taxes	16,004	(13,185)
Stock-based compensation, including as amortized	38,460	34,670
Other	(523)	(1,048)
Changes in operating assets and liabilities:
Accounts receivable	(13,918)	(8,197)
Prepaid expenses and other assets	(10,093)	(11,426)
Accounts payable	653	852
Operating lease liabilities	(2,384)	(2,102)
Accrued expenses and other liabilities	(7,864)	5,649
Net cash provided by operating activities	121,902	91,108
Cash from investing activities
Purchases of available-for-sale investments	(45,940)	(64,034)
Proceeds from sales of available-for-sale investments	140,154	202,662
Proceeds from maturities of available-for-sale investments	45,590	43,820
Purchases of property and equipment	(228)	(505)
Capitalization of software development costs	(2,554)	(1,478)
Purchases of long-term investments	(10,000)	(75,000)
Cash paid in business acquisition, net of cash acquired	0	(906)
Net cash provided by investing activities	127,022	104,559
Cash from financing activities
Proceeds from stock option exercises and the issuance of common stock under the Employee Stock Purchase Plan	998	128
Tax withholding for net share settlement	(14,478)	(19,098)
Purchase of common stock	(125,010)	(145,723)
Net cash used in financing activities	(138,490)	(164,693)
Net increase in cash, cash equivalents and restricted cash	110,434	30,974
Cash, cash equivalents and restricted cash
Beginning of period	107,217	42,754
End of period	217,651	73,728
Cash and cash equivalents	217,401	73,478
Restricted cash included in prepaid expenses and other current assets	250	250
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	217,651	73,728
Supplemental disclosure of cash flow information
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows	$ 3,324	$ 3,109

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 217,401	$ 106,967
Investment securities—current	4,284	144,256
Accounts receivable, net	50,442	36,873
Prepaid expenses and other current assets	53,058	65,218
Total current assets	325,185	353,314
Property and equipment, net	21,464	23,228
Operating lease right-of-use assets	14,798	15,924
Capitalized software development costs, net	11,444	11,324
Goodwill	96,410	96,410
Intangible assets, net	33,711	38,826
Deferred income taxes	42,819	58,823
Long-term investments	87,668	77,033
Other long-term assets	14,872	14,085
Total assets	648,371	688,967
Current liabilities
Accounts payable	4,776	4,123
Accrued employee expenses	30,010	59,774
Accrued expenses	26,990	20,829
Other current liabilities	23,106	22,121
Total current liabilities	84,882	106,847
Operating lease liabilities	30,660	33,287
Other liabilities	6,687	6,254
Total liabilities	122,229	146,388
Commitments and contingencies (Note 6)
Stockholders’ equity:
Additional paid-in capital	309,484	284,054
Accumulated other comprehensive (loss) Income	(12)	30
Treasury stock	(298,273)	(172,480)
Retained earnings	514,939	430,971
Total stockholders’ equity	526,142	542,579
Total liabilities and stockholders’ equity	648,371	688,967
Class A common stock
Stockholders’ equity:
Common stock	3	3
Class B common stock
Stockholders’ equity:
Common stock	$ 1	$ 1