AppFolio, Inc. reported significant financial growth for the fiscal year ending December 31, 2025, with total revenue reaching $950.8 million, a 20% increase from $794.2 million in 2024. The company's GAAP operating income was $152.9 million, representing 16.1% of revenue, compared to $135.6 million or 17.1% of revenue in the previous year. Non-GAAP operating income also saw a rise to $234.9 million, or 24.7% of revenue, down slightly from 25.2% in 2024. The increase in revenue was primarily driven by heightened usage of electronic payment, tenant screening, and risk mitigation services, alongside an 8% growth in property management units under management, totaling 9.4 million.
In terms of operational metrics, AppFolio's customer base expanded to 22,096 property management customers, up from 20,784 in 2024. The company also experienced a notable increase in cash flow, with net cash provided by operating activities amounting to $242.1 million, or 25.5% of revenue, compared to $188.2 million, or 23.7% of revenue, in the prior year. The company’s strategic focus on enhancing its cloud-based platform and expanding its service offerings has contributed to this growth, as evidenced by the successful integration of AI capabilities into its workflows.
AppFolio has made strategic investments to bolster its market position, including the acquisition of Move EZ, Inc. in October 2024 for $78.5 million, which is expected to enhance its resident onboarding services. The company has also launched a new stock repurchase program, authorizing the repurchase of up to $300 million of its Class A common stock, following the completion of a previous $100 million program. As of December 31, 2025, AppFolio had $251.2 million in cash, cash equivalents, and investment securities, providing a solid liquidity position to support ongoing operations and strategic initiatives.
Looking ahead, AppFolio anticipates continued revenue growth for the fiscal year ending December 31, 2026, driven by the addition of new customers and increased adoption of its Value Added Services. The company expects to maintain its cost of revenue as a percentage of revenue relatively flat, while investing in sales and marketing to further expand its customer base. However, the company acknowledges potential challenges, including macroeconomic factors that could impact tenant behavior and overall market conditions. AppFolio remains committed to leveraging its technology platform to deliver value to its customers and enhance operational efficiency.
About APPFOLIO INC
AppFolio, Inc. is a technology leader in the real estate industry, providing a cloud-based platform that streamlines property management operations. Its key offerings include property management software, tenant screening, and electronic payment services, targeting property managers and investors. With a focus on innovation, AppFolio integrates AI tools to enhance efficiency and customer experience. The company aims to expand its market presence by delivering value across the property management ecosystem.
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