AppFolio Reports 19% Revenue Growth to $295.7 Million in Q3 2026

AppFolio, Inc. reported significant financial growth in its third quarter of 2026, with total revenue reaching $295.7 million, a 19% increase from $249.4 million in the same quarter of 2025. The company's net income also saw a substantial rise, climbing to $46.0 million, compared to $33.6 million in the prior year, resulting in a diluted earnings per share of $1.29, up from $0.93. For the nine months ending September 30, 2026, revenue totaled $839.0 million, reflecting a 19% increase year-over-year, while net income for the same period was $129.9 million, compared to $101.0 million in 2025.

The company experienced notable operational improvements, with total units under management increasing by 8% to 9.8 million. AppFolio's customer base also expanded, with 23,121 property management customers as of September 30, 2026, up from 21,759 a year earlier. The growth in revenue was primarily driven by increased usage of its Value Added Services, particularly in electronic payments and tenant screening, which contributed to a 21% rise in this segment's revenue.

In terms of expenses, AppFolio's total operating costs rose to $238.3 million for the quarter, up from $214.3 million in Q3 2025. The increase was largely attributed to higher costs associated with third-party service providers and personnel-related expenses. Despite these rising costs, the company's operating income grew significantly, reaching $57.4 million, or 19.4% of revenue, compared to $35.0 million, or 14.1% of revenue, in the prior year. The company anticipates that operating expenses will remain stable as a percentage of revenue for the remainder of the fiscal year.

Strategically, AppFolio has focused on enhancing its product offerings and expanding its market presence. The company has made investments in technology, including artificial intelligence, to improve operational efficiency and customer experience. Additionally, AppFolio has engaged in share repurchase activities, buying back $129.2 million worth of its Class A common stock in the first quarter of 2026 and $4.2 million in the third quarter, reflecting its commitment to returning value to shareholders.

Looking ahead, AppFolio expects continued revenue growth driven by an increase in new customers and property management units under management, alongside greater adoption of its Value Added Services. The company remains optimistic about its financial outlook, projecting that total revenue for the year ending December 31, 2026, will surpass that of 2025, supported by its strategic initiatives and market expansion efforts.