AppFolio raises revenue outlook as software margins expand

AppFolio ($APPF) reported third-quarter 2026 revenue of approximately $296 million, up 19%, while property units under management increased 8% to 9.8 million. GAAP operating income rose 64% to $57 million, lifting operating margin to 19.4% from 14.1%. Adjusted operating income increased 38% to $81 million, equivalent to a 27.3% margin.

The property-management software provider raised its full-year 2026 revenue forecast to $1.122–$1.127 billion and set adjusted operating-margin guidance at 26.5%–27.5%. Quarterly operating cash flow reached $97 million, compared with $86 million a year earlier. Growth in both customer activity and profitability supports the higher outlook, although the adjusted margin excludes costs included in GAAP results. The company did not provide an equivalent GAAP forward-margin forecast because some excluded items cannot be reliably estimated.

Sources:

• Issuer release via MarketScreener