AppFolio Inc. Class A Common Stock (APPF)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach AppFolio as a business first and a stock second. It provides an embedded cloud platform for property managers, handling accounting, leasing, maintenance, and workflow. That kind of software can create switching costs, and the financials show signs of a quality operation: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $281.1M and net income $41.5M, or diluted EPS $1.17. Full-year FY2025 revenue was $950.8M with net income of $140.9M and diluted EPS of $3.88, up from $620.4M of revenue and only $2.7M of net income in FY2023. FairStock therefore classifies it as a TURNAROUND, based on returning to profit after a loss within the last three years. The balance sheet is conservative: D/E is 0.07, Altman Z-Score is 36.91, and trailing free cash flow is $265.5M. Returns are high, with FairStock ROE of 32.09% and ROCE of 18.75%. But the price is demanding. At the 2026-10-13 close of $199.03, FairStock shows a P/E of 45.44, P/B of 13.39, PEG of 2.94, EV/EBITDA of 33.50, and FCF yield of 3.8%. The Graham Number is $38.29, leaving a margin of safety of -419.80%. Also, FY2025 net income fell from FY2024's $204.1M despite higher revenue, and profit growth of 15.46% trails revenue growth of 19.34%. I admire the business, but I would want a much wider discount before calling the stock cheap.

In plain English: AppFolio sells cloud software that helps property managers run accounting, leasing, maintenance, and communication tasks. The business is profitable and growing, with little debt and solid cash generation, but the stock price looks high compared with its earnings, cash flow, and accounting value. It may be a good business, but the price already assumes a lot of future success.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer