AppFolio Q4 Revenue Rises 22% to $248M; 2026 Revenue Forecast at $1.10–$1.12B
AppFolio reported Q4 revenue of $248M (+22% YoY) with non-GAAP operating margin of 24.9%, and full-year revenue of $951M (+20% YoY) with 24.7% margin. Management ended 2025 with 9.4M units managed (8% YoY growth), >25% premium-tier adoption, and guided 2026 revenue of $1.10–$1.12B (17% growth).
1. Q4 and Full-Year 2025 Performance
AppFolio reported Q4 revenue of $248 million, up 22% year-over-year, and full-year revenue of $951 million, a 20% increase versus 2024. Non-GAAP operating margin rose to 24.9% in Q4 from 20.2% a year ago, and full-year non-GAAP margin was 24.7% compared with 25.2% in 2024. Management credited AI-driven product enhancements and accelerating unit growth for driving the top-line and margin expansion, with CEO Shane Trigg highlighting the company’s goal of surpassing $1 billion in annual revenue in 2026.
2. Revenue Composition and Customer Metrics
Subscription services revenue reached $56 million in the quarter (17% growth) and $211 million for the year (also 17% growth), fueled by new customer wins, rising units under management, and upsells to Plus and Max tiers. Value-added services generated $185 million in Q4 (20% growth) and $722 million for the full year (19% growth), driven by increased usage of FolioGuard risk mitigation, folioscreen tenant screening, online payments, Resident Onboarding Lift and LiveEasy offerings.
3. Unit Growth and AI-Native Platform Expansion
AppFolio ended the year with 9.4 million units under management (8% year-over-year growth) from 22,096 customers (6% growth). More than 500,000 units were added in H2 2025. Premium-tier adoption (Plus and Max) exceeded 25% of customers. The company is embedding “agentic AI” into workflows via its Realm-X Performers—maintenance, leasing and workflow automation tools—claiming 98% of customers actively use at least one AI capability. A benchmark survey showed 81% of property managers feel positive about 2026 and 77% plan to grow unit counts.
4. 2026 Guidance and Financial Outlook
CFO Tim Eaton forecasted 2026 revenue between $1.10 billion and $1.12 billion (17% growth at midpoint), with non-GAAP operating margin of 25.5% to 27.5% and cost of revenue (ex-D&A) flat as a percentage of sales. Diluted share count is expected to range from 36 million to 37 million. Management projects revenue growth will be supported by premium-tier adoption, new business wins, increased uptake of AI-native performers and expanded resident services, with seasonal revenue patterns largely consistent with 2025.