AppFolio Q2 revenue rises on customer growth, raises FY outlook

Overview

• Real estate software firm's Q2 revenue rose 19% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company raised full-year revenue and non-GAAP operating margin outlook

Outlook

• AppFolio raises 2026 revenue outlook to $1.117-$1.127 bln

• Company lifts 2026 non-GAAP operating margin forecast to 26.5%-28.0%

• AppFolio expects diluted weighted average shares outstanding of about 36 mln for 2026

Result Drivers

• CUSTOMER GROWTH - Co said Q2 results reflected momentum with new and existing customers adopting its products and services

• AI PLATFORM ADOPTION - Co said operators are embracing AI features that drive real performance outcomes

Company press release: ID:nGNX1Yt3p6

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Appfolio Inc is $225.57, about 39.1% above its July 22 closing price of $162.21

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• July 21 - Pegasystems Q2 adjusted EPS misses as AI shifts delay purchases

• July 22 - Equity Residential suspends annual earnings outlook, quarterly FFO rises

• July 22 - AvalonBay suspends annual earnings outlook, posts mixed second-quarter results

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)