Appfolio raises annual guidance as revenue crosses $1 billion mark
The cloud-based real estate software provider raised its full-year revenue guidance to a range of $1.117 billion to $1.127 billion.
Appfolio (APPF), the cloud-based real estate software provider, reported second-quarter revenue of $281 million.
The results marked a significant scale milestone for the company, as trailing twelve-month revenue crossed $1 billion for the first time. This growth occurred alongside a steady expansion of the company's user base, though top-line growth showed signs of a slight cooling.
Revenue grew 19% year-over-year, a deceleration from the 20% growth rate recorded in the first quarter. Total units under management reached 9.6 million, an 8% increase from the prior year. This growth rate remained flat compared to the 8% increases reported in the first quarter of 2026 and the fourth quarter of 2025.
Profitability metrics shifted slightly between quarters. GAAP operating margin expanded to 18.8% from 17.2% in the second quarter of 2025, though it fell from the 19.4% margin reported in the first quarter of 2026. Non-GAAP operating margin followed a similar pattern, rising to 27.1% from 26.2% a year earlier, but decreasing sequentially from 27.3%.
Cash flow saw a sharp increase during the period. Net cash provided by operating activities rose to $88 million, representing 31.2% of revenue. This compared to $53 million, or 22.3% of revenue, in the second quarter of 2025, and $34 million, or 13.1% of revenue, in the first quarter of 2026.
Appfolio raised its full-year 2026 revenue guidance to between $1.117 billion and $1.127 billion, up from the previous range of $1.110 billion to $1.125 billion. The company also increased its full-year non-GAAP operating margin guidance to a range of 26.5% to 28.0%, compared to the prior forecast of 26.0% to 28.0%.
The company previously utilized its capital for share buybacks, repurchasing 703,000 shares of Class A common stock for $125 million during the first quarter of 2026.