AppFolio reported third‑quarter 2025 results with revenue of $249 million, a 21% year‑over‑year increase that exceeded the consensus estimate of $245.62 million. Net income per share was 93 cents and earnings per share were $1.31, both below the consensus estimate of $1.45 per share.
The company’s units under management grew 7% to 9.1 million, reflecting continued customer acquisition and expansion of existing customers. Core Solutions revenue reached $53.8 million, up 16.8% year‑over‑year, while Value‑Added Services revenue rose 21.8% to $192.1 million.
Non‑GAAP operating margin contracted to 23.5% from 28.7% in the same quarter a year earlier. Management attributed the decline to increased investment in innovation and sales capacity, a $13 million bonus over‑attainment accrual, higher data‑center and card‑processing costs, and continued investment in AI and resident‑facing products. Cost of revenue rose to 36% from 34% due to higher credit‑card adoption and AI product usage.
Comparing to prior periods, Q3 2024 revenue was $206 million and EPS was $1.30, while Q2 2025 revenue was $236 million and EPS was $1.38. The Q3 2025 results therefore show revenue growth but a margin squeeze relative to the previous year and a slight decline in EPS compared to Q2 2025.
AppFolio raised its full‑year revenue guidance to $945 million–$950 million and expects a non‑GAAP operating margin between 23.5% and 24.5%.
The company’s AI‑native platform, particularly the Realm‑X suite, remains a key driver of growth, with 96% of customers utilizing AI features in Q2 2025. AppFolio faces competition from Entrata, Yardi Genesis, RealPage, Buildium, and TenantCloud, but its focus on performance management and resident experience differentiates it in the market.
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