Summary
AppFolio opened fiscal 2025 with revenue of $217.7 million, up 16.2% from the prior-year quarter. Total property management units under management reached 8.8 million, up 6% year over year, and property management customers were 21,105 at March 31, 2025, compared with 19,941 a year earlier. The company attributed the top-line gain to greater use of its payments, tenant screening, and risk mitigation services, along with growth in units under management. Core solutions are subscription-based and scale with customer size, while many Value Added Services are usage-based and depend on transaction volume. Management also highlighted the LiveEasy acquisition, new partnerships with Zillow and Second Nature, and FolioSpace as moves to accelerate its resident strategy.
Profitability did not keep pace with revenue. Operating income was $33.8 million, down 0.9% from the prior-year quarter, and operating margin slipped to 15.5% from 18.2%. Net income fell 18.8% to $31.4 million, and diluted earnings per share was $0.86, down 18.1%. Non-GAAP operating income was $53 million, or 24.3% of revenue, compared with $48 million, or 25.7% of revenue, in the prior-year quarter. Non-GAAP net income was $44.2 million, and non-GAAP diluted earnings per share was $1.21. The gap between GAAP and non-GAAP results reflects stock-based compensation, amortization of capitalized stock-based compensation, and amortization of purchased intangibles. The company notes that its non-GAAP measures may not be comparable to other companies and exclude expenses that may have a material impact on reported results.
Cash generation also slowed. Net cash provided by operating activities was $38.5 million, down 10.5% from the prior-year quarter. Capital expenditures were $0.23 million, down 83.8% from the prior-year quarter. The MD&A says the operating cash flow decline came primarily from a higher increase in operating expenditures related to personnel-related costs. Investing activities provided cash from sales and maturities of available-for-sale investments, while financing activities used cash for common stock repurchases and tax withholding for net share settlement. On April 23, 2025, the board authorized a new $300.0 million share repurchase program, replacing a $100 million program that was substantially exhausted.
For the full fiscal year 2025, management's outlook is a top line of $920 million to $940 million. Full-year non-GAAP operating margin is expected to be 24.5% to 26.5%, and diluted weighted average shares outstanding are expected to be approximately 37 million for the full year. The MD&A says cost of revenue should stay relatively flat as a percentage of revenue, sales and marketing should increase as a percentage of revenue, and research and product development and general and administrative should decrease as a percentage of revenue. Depreciation and amortization is expected to increase as a percentage of revenue because of intangible assets from the Move EZ acquisition. The company does not provide a GAAP equivalent for forward-looking non-GAAP operating margin because certain items are uncertain, out of its control, or cannot be reasonably predicted.
The main risks center on execution. AppFolio is betting that LiveEasy, FolioSpace, and the Zillow and Second Nature partnerships will deepen its resident offerings, but integration and adoption are not guaranteed. The company may need additional equity or debt financing if it pursues more acquisitions or investments, which could affect its ability to compete. Sales and marketing investment is planned to rise as a percentage of revenue, and the effective tax rate is a swing factor after the first quarter's provision for income taxes. The repurchase program gives management flexibility, but it does not obligate the company to buy back any minimum dollar amount or number of shares. The company also faces the usual risks described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which may be updated in subsequent filings.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $217.7M | $203.7M | +6.9% | $187.4M | +16.2% |
| Research & development | $43.8M | $42.3M | +3.5% | $37.9M | +15.5% |
| Sales & marketing | $31.1M | $33.4M | -7.1% | $24.5M | +27.0% |
| General & administrative | $23.4M | $23.4M | -0.4% | $21.1M | +10.5% |
| Total operating expenses | $183.9M | $180.7M | +1.8% | $153.3M | +19.9% |
| Operating income (loss) | $33.8M | $23.0M | +47.2% | $34.1M | -0.9% |
| Operating margin | 15.5% | 11.3% | +4.3 pp | 18.2% | -2.7 pp |
| Net income (loss) | $31.4M | $102.7M | -69.5% | $38.7M | -18.8% |
| Net margin | 14.4% | 50.4% | -36.0 pp | 20.6% | -6.2 pp |
| Diluted EPS | $0.86 | $2.79 | -$1.93 | $1.05 | -$0.19 |
Risks
On April 23, 2025, the Board authorized up to $300.0 million of Class A common stock repurchases under the 2025 Stock Repurchase Program. The program could increase trading price volatility, reduce cash reserves, and there is no assurance it will enhance long-term stockholder value; it may be modified, suspended or terminated at any time.
For the three months ended March 31, 2025, cost of revenue (exclusive of depreciation and amortization) increased 23% and rose to 36.5% of revenue from 34.5%, while sales and marketing increased 27%. Management expects sales and marketing expense to increase as a percentage of revenue for the year ending December 31, 2025, which could pressure operating margins already down 2.7 percentage points to 15.5% in FY2025 Q1.
SaaS KPIs
All quarters →Property management customers
Non-GAAP operating margin
Total units under management
Summary, forecast, risks and KPIs are extracted from APPFOLIO INC's SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.