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Appfolio Inc

APPF · Technology (services-prepackaged software) · 10 years of annual accounts filed with the SEC · latest fiscal year ended 2025-12-31

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Appfolio Inc reported revenue of $950.8 million in fiscal 2025, after growing 23.4% a year over the previous 9 years. Its operating margin widened from 6.5% in 2017 to 16.1%. Of the $704.1 million its operations generated over 10 years, 24.4% went to buybacks and 20.8% to acquisitions; the share count rose 3.3%. On the accounting screens, it passes 5 of 7 Piotroski tests, its Altman Z'' of 9.77 is in the safe zone and its Beneish M-score is below the -1.78 line; 2 of the six cross-checks between its statements fire.

Revenue, fiscal 2025 950.8M +23.4% a year over 9 years
Operating margin 16.1% gross margin —
Return on invested capital —  
Free cash flow after stock pay 168.2M 17.7% of revenue
Net debt ÷ EBITDA — net debt —
Piotroski F-score 5/7 tests of improvement passed

Is it growing?

Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.

RevenueOperating income
Compound growth a year
3 yrs5 yrs9 yrs
Revenue+26.3%+25.1%+23.4%
Operating income—+73.3%+36.4%
Net income—-2.3%+34.6%
Earnings per share—-2.6%+34.1%
Free cash flow per share+130.4%+51.7%+26.9%
Shares+1.2%+0.3%+0.4%

Falling shares are buybacks: each remaining share owns more of the company.

Does it earn more than its capital costs?

Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.

GrossOperatingNetFree cash flow

Return on invested capital

Return on invested capital Cost of capital today · 10.3%

Economic profit

Economic profit

(return on capital − cost of capital) × capital invested: the profit left after paying for the money used. Today's cost of capital is applied to every year, since a past one cannot be rebuilt honestly.

Return on equity
26.0%
Return on assets
20.5%
Asset turnover
1.38×
Research & development
20.0% of revenue
Overheads (SG&A)
10.1% of revenue

Is the profit cash, and where does the cash go?

Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.

Net incomeFree cash flowAfter stock-based pay

Where 10 years of operating cash went, 2017–2025

704.1M generated by the business. Each band is its share of that total.

  • Reinvested in the business 9% 60.3M
  • Acquisitions 21% 146.8M
  • Dividends 0% 0
  • Share buybacks 24% 171.5M
  • Kept, or used to pay down debt 46% 325.6M

Over the same years it paid 274.7M in stock. The share count rose 3.3%. The buybacks did not even cover what was handed out in stock.

Per share

Earnings per shareFree cash flow per shareDividend per share

Shares outstanding

Diluted shares

Debt and liquidity

Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.

Net debt
Net debt ÷ EBITDA
—
Interest coverage
— operating income ÷ interest
Current ratio
3.31 current assets ÷ current liabilities
Cash conversion cycle
— collects in 14d

Three classic screens of the accounts

Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.

Piotroski F-score

Is the business improving? Nine yes-or-no tests, this year against last.

5of 7 tests passed
  • ProfitableReturn on assets above zero passed
  • Cash from operationsOperating cash flow above zero passed
  • Profitability improvedReturn on assets higher than a year before failed
  • Profit backed by cashOperating cash flow above net income (low accruals) passed
  • Less long-term debtLong-term debt as a share of assets fell — not reported no data
  • More liquidCurrent ratio higher than a year before failed
  • No new sharesShare count did not grow passed
  • Better gross marginGross margin higher than a year before — not reported no data
  • Sells more per assetAsset turnover higher than a year before passed

Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.

Altman Z''-score

Does the balance sheet look like those of companies that went bankrupt?

9.77safe zone
  • Working capital ÷ assets 0.36 × 6.56+2.35
  • Retained earnings ÷ assets 0.63 × 3.26+2.04
  • Operating income ÷ assets 0.22 × 6.72+1.49
  • Equity ÷ liabilities 3.71 × 1.05+3.89

Where it misleads: buybacks. A company that returns so much cash that its equity turns small or negative sinks the last two ratios without being anywhere near bankruptcy. Banks and insurers do not fit the model at all.

Beneish M-score

Do the accounts resemble those of companies that manipulated their earnings?

-2.90below the -1.78 line
  • Receivables vs sales 1.27+1.16
  • Gross margin slipping 1.00 (not reported, set to 1)+0.53
  • Soft assets 1.07+0.43
  • Sales growth 1.20+1.07
  • Slower depreciation 0.90+0.10
  • Overheads vs sales 0.93-0.16
  • Profit not in cash -0.15-0.69
  • Leverage rising 1.54-0.50

Where it misleads: fast growth and acquisitions. Sales growth carries a heavy weight, so a company growing 50% a year scores like a suspect without having done anything. It is a screen from a 1999 study, not an accusation.

Where the statements disagree

Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.

Receivables are growing 51% against revenue growing 20%.

Benign

A shift towards larger customers on longer terms, or sales concentrated at the end of the period.

Worrying

Sales are being made on looser credit, or revenue has been booked that may never be collected.

Capital spending (3M) is well below depreciation (23M).

Benign

Mature assets, or a business that has become less capital-intensive.

Worrying

Under-investing: today's profit is being held up by consuming tomorrow's capacity.

What is it worth, under which assumptions?

A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.

Revenue
M $

revenue of fiscal 2025

%

revenue grew +25.1% a year over the last 5 years; it fades to the terminal rate by the last year

yrs

ten years for growth to fade to the terminal rate

Cash from each sale
%

free cash flow to the firm after stock-based pay ÷ revenue, last 3 fiscal years together

%

the margin in year ten; by default the business keeps today's

The long run
%

growth forever after year ten, below the risk-free rate: no company outgrows the economy forever

The discount rate
%

10-year US Treasury par yield (U.S. Treasury), 2026-09-29

not measured on this public page, which uses only public filings: 1.0 assumes it moves like the market. Sign in to measure it from prices

%

the extra return demanded for holding shares; it cannot be measured, and 4–6% is the common range

%

no interest line: the risk-free rate + 1.5 points

%

effective rate in the last fiscal year, 12.5%, kept within 0–35%

The price
$

Type the price you see at your broker. It is used only for the reverse questions: what that price implies.

Back to the defaults

SEC from the filings Treasury the 10-year yield measured from prices assumption cannot be measured yours you changed it

Value per share, with these assumptions $26.76 discounted at 10.3% a year · 56% of it from after year 10
$9.6980% of 5,000 simulations$47.33
Cautious $17.02 21.0% growth · 2.7% margin · 11.3% discount · 2.0% forever
Your assumptions $26.76 25.0% growth · 3.2% margin · 10.3% discount · 2.5% forever
Generous $43.81 29.0% growth · 3.7% margin · 9.3% discount · 3.0% forever

Type a share price on the left to ask the reverse questions: what growth, what margin or what discount rate that price implies.

What the value implies, in the usual multiples

At this model's value
Price ÷ earnings6.9×
Enterprise value ÷ EBITDA5.5×
Enterprise value ÷ revenue1.0×
Free cash flow yield17.3%

From cash flows to a value per share

10 years of cash flow, today432.1M
Everything after, today540.1M
The whole business972.2M
Minus net debt-0
What belongs to shareholders972.2M

Divided among 36.3M shares: <strong>$26.76</strong> each.

The projection next to its history

Reported free cash flow after stock pay, then the model's. A projection that looks nothing like the past needs a reason.

ReportedProjected
Year by year
2026202720282029203020312032203320342035
Revenue1.2B1.5B1.7B2.1B2.4B2.7B2.9B3.1B3.3B3.4B
Growth25.0%22.5%20.0%17.5%15.0%12.5%10.0%7.5%5.0%2.5%
Cash margin3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2%
Free cash flow38.2M46.8M56.1M66.0M75.8M85.3M93.9M100.9M105.9M108.6M
Worth today34.6M38.5M41.9M44.6M46.5M47.5M47.4M46.2M44.0M40.9M

If the least-known inputs move

Value per share as two inputs change at a time. Neighbouring cells that differ a lot are the conclusion: the value depends on numbers nobody knows to a point.

The discount rate and growth forever

discount ↓ · forever →1.5%2.0%2.5%3.0%3.5%
9.3% 28 29 31 33 36
9.8% 26 27 29 31 33
10.3% 24 25 27 28 30
10.8% 23 24 25 26 28
11.3% 21 22 23 25 26

Year-one growth and the final margin

margin ↓ · growth →21.0%23.0%25.0%27.0%29.0%
2.6% 19 21 22 24 26
2.9% 21 23 25 26 29
3.2% 23 25 27 29 31
3.5% 25 27 29 31 34
3.9% 27 29 31 34 36

All the inputs moving at once

5,000 valuations, each with growth, final margin, discount rate and growth forever drawn at random around the values on the left (spreads of 3.0%, 2.0%, 1.0% and 0.5%). Not a probability — the spreads are assumptions too — but an honest picture of how wide the answer is.

Half of the simulations land between <b>$17.43</b> and <b>$36.58</b>; one in ten below $9.69, one in ten above $47.33.

Does the long run make sense?

  • 2.3×The terminal value prices the business in year 10 at 2.3 times that year's EBITDA.
  • 3%To grow 2.5% forever while reinvesting 77% of its after-tax operating profit, the business must earn 3% on the new capital.
  • 56%of the value comes from after year 10. The more of it, the more the answer depends on the part nobody can see.
The discount rate, taken apart
  1. What shareholders demand (CAPM): 5.26% risk-free + 1.00 beta × 5.0% premium = <strong>10.26%</strong>.
  2. What lenders charge, after the tax saving on interest: 6.76% × (1 − 12.5%) = <strong>5.91%</strong>.
  3. Weighted by how much of each the company uses (book value (no price given)): <strong>10.26%</strong>, the rate every future cash flow is discounted at.

What it has filed lately

The last twelve months at the SEC, most important first: annual and quarterly reports, events, large holders and insiders.

Quarterly 2026-07-23
Quarterly report
Results 2026-07-23
Reported results
Event 2026-07-01
Changed a director or officer
Event 2026-06-15
Published the results of a shareholder vote
Quarterly 2026-04-23
Quarterly report
Results 2026-04-23
Reported results
Event 2026-04-10
Changed a director or officer
Annual 2026-02-05
Annual report
Estimatein 27d
Results for the period ending 2026-09-29

What its own directors and officers did

Every Form 4 filed in the last twelve months, read line by line: 6 filings by 2 people. Open-market purchases and sales are counted apart from awards, option exercises and shares withheld for taxes.

Bought on the open market—none in the period
Sold on the open market$9.6M105 sale(s) by 2 insider(s)
Under pre-arranged plans100%of the sales followed a 10b5-1 plan set months earlier
Other lines00 awards · 0 option exercises · 0 tax withholdings
DateWhoWhatSharesPriceValueHolds after
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 183 $216.38 $39,598 33,657
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 92 $218.14 $20,069 33,565
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 365 $221.37 $80,800 33,200
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 1,006 $222.43 $223,765 32,194
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 694 $224.13 $155,546 31,500
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 17 $216.38 $3,678 8,199
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 8 $218.14 $1,745 8,191
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 8 $214.71 $1,718 8,216
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 35 $221.41 $7,749 8,156
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 94 $222.42 $20,907 8,062
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 62 $224.14 $13,897 8,000
21 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 92 $214.73 $19,755 33,840
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 702 $216.43 $151,934 38,208
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 1,947 $218.45 $425,322 34,711
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 701 $219.35 $153,764 34,010
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 78 $220.06 $17,165 33,932
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 178 $215.37 $38,336 9,646
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 198 $216.44 $42,855 9,448
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 452 $217.68 $98,391 8,996
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 551 $218.46 $120,371 8,445
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 199 $219.35 $43,651 8,246
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 22 $220.06 $4,841 8,224
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 622 $215.37 $133,960 38,910
20 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 1,550 $217.67 $337,388 36,658
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 219 $212.64 $46,568 11,006
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 584 $213.78 $124,848 10,422
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 510 $214.94 $109,619 9,912
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 88 $215.60 $18,973 9,824
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 78 $202.61 $15,804 45,054
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 78 $203.98 $15,910 44,976
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 132 $206.45 $27,251 44,844
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 23 $207.27 $4,767 44,821
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 156 $209.12 $32,623 44,665
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 234 $211.18 $49,416 44,431
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 781 $212.64 $166,072 43,650
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 2,005 $213.78 $428,629 41,645
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 1,801 $214.94 $387,107 39,844
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 312 $215.60 $67,267 39,532
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 22 $202.61 $4,457 11,402
19 Aug 2026 Duca Maurice JHolder of more than 10% Sold on the open market · pre-arranged plan · indirect 22 $203.98 $4,488 11,380

The 40 most recent lines of 105.

A Form 4 says what happened, when, how many shares and at what price. It does not say why: a sale can be diversification, a tax bill or a plan fixed months earlier, and an award is pay, not a purchase. Nothing here is a reason to buy or sell anything.

Which large funds report holding it

From the Form 13F of the 28 institutions followed on this site, as of the end of their last reported quarter. A 13F is filed up to 45 days later and shows only long positions in US-listed shares.

FundSharesValueShare of the fundSince the quarter before
Norges Bank (Norway's sovereign fund) 30 Jun 2026 95,576 $15.3M 0.0% New

All the funds and what they reported ›

Companies like this one

Same SEC industry (services-prepackaged software) first, then the rest of technology.

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Every figure, year by year

10 fiscal years · 30 measures
2017201820182019202020212022202320242025
Size
Revenue143.8M—190.1M256.0M310.1M359.4M471.9M620.4M794.2M950.8M
Revenue growth———+34.7%+21.1%+15.9%+31.3%+31.5%+28.0%+19.7%
Operating income9.3M—19.7M6.5M9.8M-11.9M-72.4M963,000135.6M152.9M
Net income9.7M—20.0M36.3M158.4M1.0M-68.1M2.7M204.1M140.9M
Margins
Gross margin61.6%—61.3%60.3%61.6%59.9%————
Operating margin6.5%—10.3%2.5%3.2%-3.3%-15.3%0.2%17.1%16.1%
Net margin6.8%—10.5%14.2%51.1%0.3%-14.4%0.4%25.7%14.8%
Free cash flow margin18.9%—18.0%12.0%9.4%7.6%4.0%8.3%23.4%25.1%
R&D ÷ revenue11.5%—12.7%15.4%15.7%18.4%23.5%24.4%20.2%20.0%
SG&A ÷ revenue14.7%—13.1%13.5%15.3%15.9%21.4%15.1%10.8%10.1%
Cash
Free cash flow27.2M—34.2M30.8M29.3M27.3M18.8M51.2M186.1M238.9M
Stock-based pay6.1M—6.3M8.1M10.3M17.2M43.2M52.4M60.3M70.8M
Free cash flow after stock pay21.1M—27.8M22.7M19.0M10.1M-24.4M-1.1M125.8M168.2M
Free cash flow to the firm19.8M—31.7M-23.0M12.2M12.0M-52.7M14.7M102.3M142.5M
Free cash flow ÷ net income2.8×—1.7×0.8×0.2×26.5×-0.3×19.0×0.9×1.7×
Capex ÷ revenue1.5%—1.1%3.2%6.1%2.3%1.4%1.5%0.3%0.3%
Returns
Return on invested capital10.9%—13.6%-19.8%2.8%—————
Return on equity11.4%—21.7%27.5%55.4%0.3%-25.7%0.9%39.3%26.0%
Return on assets8.8%—11.4%13.9%40.7%0.3%-17.9%0.7%32.6%20.5%
Asset turnover1.3×—1.1×1.0×0.8×0.9×1.2×1.5×1.3×1.4×
Economic profit550,500—4.7M-54.2M-21.5M—————
Per share
Earnings per share$0.28—$0.56$1.02$4.44$0.03$-1.95$0.07$5.55$3.88
Free cash flow per share$0.77—$0.96$0.87$0.82$0.76$0.54$1.41$5.06$6.58
Dividend per share——————————
Payout ratio——————————
Book value per share$2.42—$2.58$3.71$8.01$8.33$7.58$8.16$14.12$14.94
Diluted shares35.2M—35.6M35.6M35.7M35.7M35.0M36.4M36.8M36.3M
Balance sheet
Net debt-16.1M—-24.3M32.8M-140.3M—————
Net debt ÷ EBITDA-0.7×—-0.7×1.1×-3.8×—————
Interest coverage17.4×—25.0×3.9×5.3×-23.7×-61.1×0.1×——
Current ratio2.3×—3.8×1.3×4.0×3.0×3.3×3.9×5.3×3.3×
Cash conversion cycle (days)——————————
Scores
Piotroski F-score—025655645
Altman Z''3.91—4.061.516.855.544.266.7510.899.77
Beneish M———-1.71-0.84-2.54-3.60-3.00-1.74-2.90

Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.