APPF earnings call summary

Prepared Highlights

• Q3 2025 revenue was $249 million, growing 21% year-over-year (CFO).
• Non-GAAP operating margin was 23.5% in Q3, compared to 28.7% last year; excluding a ~$13 million overattainment bonus accrual (5.5% of Q3 revenue), margin was approximately 29% (CFO).
• Core solutions revenue: $54 million, up 17% YoY (CFO).
• Value-added services revenue: $192 million, up 22% YoY (CFO).
• Ending units: 9.1 million (up 7% YoY from 8.5M); customers: 21,759 (up 7% YoY from 20,403) (CFO).
• Employee count: 1,703 (up 10% from Q3 2024) (CFO).
• Cost of revenue (ex-D&A) was 36% of revenue vs. 34% last year; combined S&M, R&D, G&A was 39% vs. 35% (CFO).
• Official guidance (FY 2025): Revenue $945M–$950M (midpoint growth ~19%); non-GAAP operating margin 23.5%–24.5% ; diluted shares ~36 million (CFO).
• Realm-X Performers (agentic AI) outcomes: vacancies filled >5 days faster, renewal rates +20%, NOI almost 3% higher, avg. 10 hours/week saved (CEO).
• Mgmt quotes:
  • “The shift from property manager to performance manager is the future of this business.” — Wolfgang Croskey, President, Croskey Real Estate (CEO quoting customer)
  • “AI does not work if you have it separated. It has to be in one workflow or in one software that flows all the way through, and that’s what sets AppFolio apart.” — Rob Gayle, President, Dream Live Prosper (CEO quoting customer)
  • “Onboarding Lift is an amazing addition to the leasing experience… This takes customer experience to the next level.” — Tommy Perfect, Founder/CEO, Uplift Property Management (CEO quoting customer)
  • “We are proud to collaborate with a company whose value is recognized by the people using it every day.” — Jeff Pepperdine, President, Real Property Management (CEO quoting customer)

Prepared Metrics