AppFolio (APPF) Stock Surges 19% on Strong Q2 Earnings

by MarketNewsData

Shares of AppFolio soared over 19% today to close at $319.15, a new 52 Week High, after the company reported better-than-expected second-quarter results and raised its full-year guidance. AppFolio provides cloud-based software for property management companies, with growing adoption of its AI-powered tools driving recurring revenue growth.

Q2 2025 Highlights (Ended June 30, 2025):

  • Revenue: $236 million, up 19% year-over-year
  • EPS (Non-GAAP): $1.38, beating consensus estimates of $1.27
  • GAAP Operating Income: $41 million (17.2% margin)
  • Non-GAAP Operating Margin: 26.2%, up from 26.0% last year
  • Operating Cash Flow: $53 million (22% of revenue)
  • Units Under Management: 8.9 million, up 6% YoY

Operational and Strategic Drivers:

  • 96% of customers now use at least one Realm-X AI feature
  • Growth in high-margin value-added services like screening, payments, and risk tools
  • 11% headcount growth without margin compression

Updated Guidance for FY25:

  • Revenue: $935M to $945M (approx. 18% growth)
  • Non-GAAP Operating Margin: 24.5% to 26.5%
  • Shares Outstanding: ~37 million diluted

Stock Reaction and Outlook:
The stock’s sharp move reflects investor confidence in AppFolio’s ability to scale efficiently while expanding AI monetization. Analysts responded positively with multiple target upgrades, citing strong execution and a premium SaaS model with visible growth levers.

AppFolio is executing well across financial and operational fronts—AI is no longer just a buzzword here, it’s boosting margins and customer value.

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