Appfolio | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 281.12 M

Revenue: As of FY2026 Q2, the actual value is USD 281.12 M, beating the estimate of USD 277.33 M.

EPS: As of FY2026 Q2, the actual value is USD 1.17, missing the estimate of USD 1.1954.

EBIT: As of FY2026 Q2, the actual value is USD 54.41 M.

Second Quarter 2026 Financial Highlights

Revenue

AppFolio, Inc. reported total revenue of $281 million for the second quarter of 2026, representing a 19% year-over-year growth. Subscription Services revenue was $59,800 thousand, while Value Added Services revenue reached $219,467 thousand. Other revenue amounted to $1,857 thousand.

Operational Metrics

GAAP operating income grew 31% to $53 million, representing 18.8% of revenue in Q2 2026, compared to $41 million or 17.2% of revenue in Q2 2025. Non-GAAP operating income increased by 24% to $76 million, or 27.1% of revenue in Q2 2026, up from $62 million or 26.2% of revenue in Q2 2025. Net income for the quarter was $41,544 thousand, compared to $35,980 thousand in Q2 2025.

Cash Flow

Net cash provided by operating activities was $88 million, or 31.2% of revenue, in Q2 2026, an increase from $53 million or 22.3% of revenue in Q2 2025.

Unique Metrics

Total units under management grew 8% year-over-year to 9.6 million.

Six Months Ended June 30, 2026 Financial Highlights

Revenue

For the six months ended June 30, 2026, total revenue was $543,338 thousand, compared to $453,277 thousand for the same period in 2025. Subscription Services revenue was $118,022 thousand, Value Added Services revenue was $420,830 thousand, and Other revenue amounted to $4,486 thousand.

Operational Metrics

GAAP income from operations was $103,725 thousand, up from $74,295 thousand in the prior year period. Non-GAAP income from operations was $147,782 thousand, compared to $114,562 thousand in 2025. GAAP operating margin was 19.1%, and non-GAAP operating margin was 27.2%. Net income was $83,968 thousand, compared to $67,363 thousand in the first six months of 2025.

Cash Flow

Net cash provided by operating activities was $121,902 thousand. Net cash provided by investing activities was $127,022 thousand. Net cash used in financing activities was -$138,490 thousand. The net increase in cash, cash equivalents and restricted cash was $110,434 thousand, resulting in an end-of-period balance of $217,651 thousand.

Balance Sheet Highlights (as of June 30, 2026)

Assets

Cash and cash equivalents totaled $217,401 thousand, and total current assets were $325,185 thousand. Total assets for AppFolio, Inc. were $648,371 thousand.

Liabilities and Equity

Total current liabilities were $84,882 thousand, and total liabilities were $122,229 thousand. Stockholders’ equity stood at $526,142 thousand.

Financial Outlook

AppFolio, Inc. is increasing its full-year revenue range for fiscal year 2026 to $1.117 - $1.127 billion. The full-year non-GAAP operating margin range as a percentage of revenue is increasing to 26.5% - 28.0%. Diluted weighted average shares outstanding are expected to be approximately 36 million for the full year.