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AppFolio Crosses $1 Billion — Is Its AI Growth Engine Just Beginning?

AppFolio, Inc. reported financial results for the second quarter of 2026 that demonstrated continued growth and margin expansion, crossing $1 billion in trailing 12-month revenue for the first time. Total revenue reached $281 million, a 19% increase year-over-year, driven by growth in subscription services and value-added services. Subscription services revenue grew 14% to $60 million, while value-added services increased 22% to $219 million. The company’s platform now manages approximately 9.6 million units, an 8% increase from the prior year, with a customer count rising 6% to 22,751. Operating income improved, with GAAP operating income at 18.8% of revenue, up from 17.2% a year earlier, and non-GAAP operating income increasing to 27.1% of revenue from 26.2%. Cost of revenue, excluding depreciation and amortization, was 36% of revenue, slightly higher than the previous year, influenced by payments product mix and additional data center capacity for AI capabilities.