# APPFOLIO INC (APPF)

Informational only - not investment advice.

CIK: 0001433195
SIC: 7372 Services-Prepackaged Software
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/)
Latest 10-K filed: 2026-02-05
SEC page: https://www.sec.gov/edgar/browse/?CIK=1433195
Filing source: https://www.sec.gov/Archives/edgar/data/1433195/000143319526000011/appf-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-05 · accession 0001433195-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001433195.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 950,822,000 USD | 2025 | verified |
| Net income | 140,923,000 USD | 2025 | verified |
| Assets | 688,967,000 USD | 2025 | verified |
| Free cash flow | 238,950,000 USD | 2025 | computed |
| Net margin | 14.82% | 2025 | computed |
| Operating margin | 16.08% | 2025 | computed |
| Revenue YoY | +19.72% | 2025 | computed |
| ROE | 25.97% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | APPF | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 14.8% | 1.5% | 78 | 122 |
| Operating margin | 16.1% | 1.3% | 79 | 121 |
| Revenue growth | 19.7% | 13.5% | 73 | 124 |
| FCF margin | 25.1% | 19.3% | 72 | 120 |
| ROE | 26.0% | 2.0% | 86 | 112 |
| ROA | 20.5% | 0.9% | 95 | 124 |
| Liabilities / equity | 0.27 | 0.91 | 10 | 113 |
| Current ratio | 3.31 | 1.57 | 87 | 124 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 950822000 | USD | 2025 | 2026-02-05 |
| Net income | 140923000 | USD | 2025 | 2026-02-05 |
| Assets | 688967000 | USD | 2025 | 2026-02-05 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001433195.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 105,586,000 | 143,803,000 | 190,071,000 | 256,012,000 | 310,056,000 | 359,370,000 | 471,883,000 | 620,445,000 | 794,202,000 | 950,822,000 |
| Net income | -8,281,000 | 9,716,000 | 19,967,000 | 36,282,000 | 158,403,000 | 1,028,000 | -68,119,000 | 2,702,000 | 204,068,000 | 140,923,000 |
| Operating income | -8,423,000 | 9,335,000 | 19,656,000 | 6,461,000 | 9,783,000 | -11,878,000 | -72,370,000 | 963,000 | 135,644,000 | 152,917,000 |
| Diluted EPS | -0.25 | 0.28 | 0.56 | 1.02 | 4.44 | 0.03 | -1.95 | 0.07 | 5.55 | 3.88 |
| Operating cash flow | 11,500,000 | 29,371,000 | 36,268,000 | 38,887,000 | 48,299,000 | 35,391,000 | 25,365,000 | 60,283,000 | 188,159,000 | 242,105,000 |
| Capital expenditures | 4,242,000 | 2,214,000 | 2,102,000 | 8,084,000 | 19,038,000 | 8,103,000 | 6,540,000 | 9,041,000 | 2,016,000 | 3,155,000 |
| Share buybacks | 0.00 | 0.00 | 21,562,000 | 0.00 | 4,194,000 | 0.00 | 0.00 | 0.00 | 0.00 | 145,723,000 |
| Assets | 92,583,000 | 110,248,000 | 175,741,000 | 260,102,000 | 389,480,000 | 408,017,000 | 381,217,000 | 408,889,000 | 626,678,000 | 688,967,000 |
| Liabilities | 22,901,000 | 25,169,000 | 83,895,000 | 128,152,000 | 103,560,000 | 110,636,000 | 115,671,000 | 111,577,000 | 107,388,000 | 146,388,000 |
| Stockholders' equity | 69,682,000 | 85,079,000 | 91,846,000 | 131,950,000 | 285,920,000 | 297,381,000 | 265,546,000 | 297,312,000 | 519,290,000 | 542,579,000 |
| Cash and cash equivalents | 10,699,000 | 16,109,000 | 74,076,000 | 15,813,000 | 140,263,000 | 57,847,000 | 70,769,000 | 49,509,000 | 42,504,000 | 106,967,000 |
| Free cash flow | 7,258,000 | 27,157,000 | 34,166,000 | 30,803,000 | 29,261,000 | 27,288,000 | 18,825,000 | 51,242,000 | 186,143,000 | 238,950,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -7.84% | 6.76% | 10.51% | 14.17% | 51.09% | 0.29% | -14.44% | 0.44% | 25.69% | 14.82% |
| Operating margin | -7.98% | 6.49% | 10.34% | 2.52% | 3.16% | -3.31% | -15.34% | 0.16% | 17.08% | 16.08% |
| Return on equity | -11.88% | 11.42% | 21.74% | 27.50% | 55.40% | 0.35% | -25.65% | 0.91% | 39.30% | 25.97% |
| Return on assets | -8.94% | 8.81% | 11.36% | 13.95% | 40.67% | 0.25% | -17.87% | 0.66% | 32.56% | 20.45% |
| Liabilities / equity | 0.33 | 0.30 | 0.91 | 0.97 | 0.36 | 0.37 | 0.44 | 0.38 | 0.21 | 0.27 |
| Current ratio | 1.51 | 2.25 | 3.83 | 1.30 | 4.00 | 3.01 | 3.28 | 3.90 | 5.30 | 3.31 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001433195.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.12 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.99 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.53 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 165,440,000 | 26,440,000 | 0.72 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 171,830,000 | 30,268,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 187,430,000 | 38,658,000 | 1.05 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 197,375,000 | 29,662,000 | 0.81 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 205,733,000 | 33,006,000 | 0.90 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 203,664,000 | 102,730,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 217,702,000 | 31,383,000 | 0.86 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 235,575,000 | 35,980,000 | 0.99 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 249,353,000 | 33,646,000 | 0.93 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 248,192,000 | 39,914,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 262,214,000 | 42,424,000 | 1.18 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 281,124,000 | 41,544,000 | 1.17 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from APPF's latest 10-K: [/company/APPF/business/](/company/APPF/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from APPF's latest 10-K: [/company/APPF/risk-factors/](/company/APPF/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1433195/000143319526000058/appf-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-23
Report date: 2026-06-30

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition, results of operations and liquidity should be read together with our Condensed Consolidated Financial Statements and the related notes included elsewhere in this Quarterly Report and in our Annual Report.

Overview

We are a technology leader powering the future of the real estate industry. We provide a cloud-based platform on which our customers operate their businesses. We help our customers navigate an increasingly interconnected and growing network of stakeholders in their business ecosystems, including property managers, property investors, potential residents, residents, and vendors. We also provide key functionality related to critical transactions across the real estate lifecycle, including screening potential residents, sending and receiving payments, and providing insurance-related risk mitigation services. Our services enable our customers to connect communities, increase operational efficiency, deliver exceptional customer experiences, and improve financial and operational performance.

Financial Highlights for the Second Quarter of 2026

•Revenue grew 19% year-over-year to $281 million.

•Total units under management grew 8% year-over-year to 9.6 million.

•GAAP operating income grew 31% to $53 million, or 18.8% of revenue, compared to $41 million, or 17.2% of revenue in Q2 2025.

•Non-GAAP operating income grew 24% to $76 million, or 27.1% of revenue, compared to $62 million, or 26.2% of revenue in Q2 2025.

•Net cash provided by operating activities was $88 million, or 31.2% of revenue, compared to $53 million, or 22.3% of revenue in Q2 2025.

Key Business Metric

Property management units under management. We believe that our ability to increase our number of property management units under management is an indicator of our market penetration, growth, and potential future business opportunities. We define property management units under management as active or committed units under management at the period end date. We had 9.6 million and 8.9 million property management units under management as of June 30, 2026 and 2025, respectively.

Key Components of Results of Operations

Revenue

Our Subscription Services and certain of our Value Added Services are offered on a subscription basis. The subscription fees for our services vary by property type and are designed to scale with the size of our customers’ businesses. We recognize revenue for subscription-based services on a straight-line basis over the contract term beginning on the date that our service is made available. We generally invoice monthly or, to a lesser extent, annually in advance of a subscription period.

We also offer certain Value Added Services, which are not covered by our subscription fees, on a per-use basis. Usage-based fees are charged either as a percentage of the transaction amount (e.g., for certain of our electronic payment services) or on a flat fee per transaction basis generally with no minimum usage commitments (e.g., for our tenant screening and risk mitigation services). We recognize revenue for usage-based services in the period the service is rendered. Our payments services fees are recorded gross of any interchange and payment processing related fees. We generally invoice our usage-based services on a monthly basis or collect the fee at the time of service. A significant majority of our Value Added Services revenue comes from the use of our electronic payment services, tenant screening services, and risk mitigation services.

Other revenue includes fees from one-time services related to the implementation of our software solutions and other recurring or one-time fees related to our customers who are not otherwise using our Subscription Services. This includes legacy customers of businesses we have acquired where the customers haven't migrated to our Subscription Services. The fees for implementation and data migration services are billed upon signing our core subscription contract and are recognized as revenue in the period the service is rendered. Other services are billed when the services rendered are completed and delivered to the customer or billed in advance and deferred over the subscription period.

As of June 30, 2026 and 2025, we had 22,751 and 21,403 property management customers, respectively.

16

Costs and Operating Expenses

Cost of Revenue (Exclusive of Depreciation and Amortization). Many of our Value Added Services are facilitated by third-party service providers. Cost of revenue paid to these third-party service providers includes, without limitation, the cost of electronic interchange and payment processing-related services to support our payments services, the cost of credit reporting services for our tenant screening services, and various costs associated with our risk mitigation service providers. These third-party costs vary both in amount and as a percentage of revenue for each Value Added Service offering. Cost of revenue also includes personnel-related costs for our employees focused on customer service and the support of our operations (including salaries, cash bonuses, benefits, and stock-based compensation), platform infrastructure costs (such as data center operations and hosting-related costs), and allocated shared and other costs. Cost of revenue excludes depreciation of property and equipment, amortization of capitalized software development costs and amortization of intangible assets.

Sales and Marketing. Sales and marketing expense consists of personnel-related costs for our employees focused on sales and marketing (including salaries, sales commissions, cash bonuses, benefits, and stock-based compensation), costs associated with sales and marketing activities, and allocated shared and other costs. Marketing activities include advertising, online lead generation, lead nurturing, customer and industry events, and the creation of industry-related content and collateral. We focus our sales and marketing efforts on generating awareness of our software solutions, creating sales leads, establishing and promoting our brands, and cultivating an educated community of successful and vocal customers.

Research and Product Development. Research and product development expense consists of personnel-related costs for our employees focused on research and product development (including salaries, cash bonuses, benefits, and stock-based compensation), fees for third-party development resources, and allocated shared and other costs. Our research and product development efforts are focused on expanding functionality and the ease of use of our existing software solutions by adding new core functionality, Value Added Services and other improvements, as well as developing new products and services. We capitalize our software development costs that meet the criteria for capitalization. Amortization of capitalized software development costs is included in depreciation and amortization expense.

General and Administrative. General and administrative expense consists of personnel-related costs for employees in our executive, finance, information technology, human resources, legal, compliance, and administrative organizations (including salaries, cash bonuses, benefits, and stock-based compensation). In addition, general and administrative expense includes fees for third-party professional services (including audit, legal, compliance, and tax services), regulatory fees, other corporate expenses, impairment of long-lived assets, gains on lease modifications, and allocated shared and other costs.

Depreciation and Amortization. Depreciation and amortization expense includes depreciation of property and equipment, amortization of capitalized software development costs, and amortization of intangible assets. We depreciate or amortize property and equipment, software development costs, and intangible assets over their expected useful lives on a straight-line basis, which approximates the pattern in which the economic benefits of the assets are consumed.

Interest Income, Net. Interest income, net includes interest earned on investment securities, amortization and accretion of the premium and discounts paid from the purchase of investment securities, and interest earned on cash deposited in our bank accounts.

Provision for income taxes. Provision for income taxes consists of federal and state income taxes in the United States.

Results of Operations

Revenue

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The increase in revenue for the three and six months ended June 30, 2026, compared to the same periods in the prior year, was primarily attributable to an increase in the usage of our payments, tenant screening, and risk mitigation services. During the three and six months ended June 30, 2026, we also experienced growth of 8% in the number of property management units under management compared to the same periods in the prior year, which drove growth in users of our Subscription Services and Value Added Services.

17

Our payment services experienced increased usage during the comparative periods as residents and property managers transacted more business online.

We expect total revenue for the year ending December 31, 2026 to increase compared to the year ended December 31, 2025 as we continue to add new customers and property management units under management, along with increased adoption and usage of our Value Added Services.

Cost of Revenue (Exclusive of Depreciation and Amortization)

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[[/GREPCENT_TABLE]]

Cost of revenue (exclusive of depreciation and amortization) increased for the three and six months ended June 30, 2026, compared to the same periods in the prior year. The increase was primarily driven by higher third-party service provider costs of $15.6 million and $30.2 million, respectively, due to increased adoption and usage of our Value Added Services for the respective three and six-month periods.

We expect cost of revenue (exclusive of depreciation and amortization) for the year ending December 31, 2026, to stay relatively flat as a percentage of revenue compared to the year ended December 31, 2025.

Sales and Marketing

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1433195/000143319526000011/appf-20251231.htm
Complete FY 2025 MD&A: /company/APPF/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-05
Report date: 2025-12-31

ITEM 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition, results of operations and liquidity should be read together with our Consolidated Financial Statements and the related notes included elsewhere in this Annual Report.

The following discussion and analysis of our financial condition and results of operations includes 2025 and 2024 items and year-over-year comparisons between 2025 and 2024. For discussion of 2023 items and year-over-year comparisons between 2024 and 2023, refer to Part II. Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024. Our Consolidated Financial Statements are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"). This Annual Report also contains information regarding our non-GAAP income from operations ("Non-GAAP operating income") and non-GAAP operating margin ("Non-GAAP Operating Margin"), each of which constitutes a non-GAAP financial measure. We use these non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. For more information regarding these non-GAAP financial measures, refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures" below.

25

Overview

We are a technology leader powering the future of real estate. We provide a cloud-based platform on which our customers operate their businesses. We help our customers navigate an increasingly interconnected and growing network of stakeholders in their business ecosystems, including property managers, property investors, potential residents, residents, and vendors. We also provide key functionality related to critical transactions across the real estate lifecycle, including screening potential residents, sending and receiving payments, and providing insurance-related risk mitigation services. Our services enable our customers to connect communities, increase operational efficiency, deliver exceptional customer experiences, and improve financial and operational performance.

Financial Highlights for the Fiscal Year 2025

•Total property management units under management grew 8% year-over-year to 9.4 million.

•Revenue grew 20% year-over-year to $950.8 million.

•GAAP operating income was $152.9 million, or 16.1% of revenue, compared to GAAP operating income of $135.6 million, or 17.1% of revenue in 2024.

•Non-GAAP operating income was $234.9 million, or 24.7% of revenue, compared to non-GAAP operating income of $199.8 million, or 25.2% of revenue, in 2024.

•Net cash provided by operating activities was $242.1 million, or 25.5% of revenue, compared to $188.2 million, or 23.7% of revenue, in 2024.

Key Business Metric

We monitor the key business metric set forth below to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Property management units under management. We believe that our ability to increase the number of property management units under management is an indicator of our market penetration, growth, and potential future business opportunities. We define property management units under management as active or committed units under management at the period end date. We had 9.4 million and 8.7 million property management units under management, as of December 31, 2025 and 2024, respectively.

Seasonality

We have historically experienced seasonality in our Value Added Services revenue due to seasonally higher leasing activities in the second quarter. Specifically, higher tenant applications in the second quarter typically result in increased use by our property management customers of our tenant screening services and, in the third quarter once resident move-ins have occurred, higher demand for our risk mitigation services. Because of the seasonality in our Value Added Services, we typically experience a sequential increase in revenue in the first, second, and third quarters and a sequential decline in revenue in the fourth quarter. Moreover, if macroeconomic factors in a given fiscal year impact tenant behavior, our product portfolio mix, or the adoption rate of our other less seasonally impacted Value Added Services, the effect that seasonal factors have on our revenue may be exacerbated. Although these seasonal factors are common in the real estate industry, historical patterns should not be considered a reliable indicator of our future sales activity or performance.

Key Components of Results of Operations

Revenue

Our Subscription Services and certain of our Value Added Services are offered on a subscription basis. The subscription fees for our Subscription Services vary by property type and are designed to scale with the size of our customers’ businesses. We recognize revenue for subscription-based services on a straight-line basis over the contract term beginning on the date that our service is made available. We generally invoice monthly or, to a lesser extent, annually in advance of a subscription period.

We also offer certain Value Added Services, which are not covered by our subscription fees, on a per-use basis. Usage-based fees are charged either as a percentage of the transaction amount (e.g., for certain of our electronic payment services) or on a flat fee per transaction basis, generally with no minimum usage commitments (e.g., for our tenant screening and risk mitigation services). We recognize revenue for usage-based services in the period the service is rendered. Our payments services fees are recorded gross of any interchange and payment processing related fees. We generally invoice our usage-based services on a monthly basis or collect the fee at the time of service. A significant majority of our Value Added Services revenue comes from the use of our electronic payment services, tenant screening services, and risk mitigation services.

26

In addition, we charge our customers for assistance onboarding onto our Subscription Services and for certain other non-recurring services. We generally invoice for these other services in advance of the services being completed and recognize revenue in the period the service is rendered. We also generate revenue from the legacy customers of businesses we acquire that provide standalone services outside of our platform. Revenue derived from these services is recorded in Other revenue. As of December 31, 2025 and 2024, we had 22,096 and 20,784 property management customers, respectively.

Costs and Operating Expenses

Cost of Revenue (Exclusive of Depreciation and Amortization). Many of our Value Added Services are facilitated by third-party service providers. Cost of revenue paid to these third-party service providers includes, without limitation, the cost of electronic interchange and payment processing-related services to support our payments services, the cost of credit reporting services for our tenant screening services, and various costs associated with our risk mitigation service providers. These third-party costs vary both in amount and as a percentage of revenue for each Value Added Service offering. Cost of revenue also includes personnel-related costs for our employees focused on customer service and the support of our operations (including salaries, cash bonuses, benefits, and stock-based compensation), platform infrastructure costs (such as data center operations and hosting-related costs), and allocated shared and other costs. Cost of revenue excludes depreciation of property and equipment, amortization of capitalized software development costs and amortization of intangible assets.

Sales and Marketing. Sales and marketing expense consists of personnel-related costs for our employees focused on sales and marketing (including salaries, sales commissions, cash bonuses, benefits, and stock-based compensation), costs associated with sales and marketing activities, and allocated shared and other costs. Marketing activities include advertising, online lead generation, lead nurturing, customer and industry events, and the creation of industry-related content and collateral. We focus our sales and marketing efforts on generating awareness of our products and services, creating sales leads, establishing and promoting our brands, and cultivating an educated community of successful and vocal customers.

Research and Product Development. Research and product development expense consists of personnel-related costs for our employees focused on research and product development (including salaries, cash bonuses, benefits, and stock-based compensation), fees for third-party development resources, and allocated shared and other costs. Our research and product development efforts are focused on expanding functionality and the ease of use of our existing software products and services by adding new core functionality, Value Added Services and other improvements, as well as developing new products and services. We capitalize our software development costs that meet the criteria for capitalization. Amortization of capitalized software development costs is included in depreciation and amortization expense.

General and Administrative. General and administrative expense consists of personnel-related costs for employees in our executive, finance, information technology, human resources, legal, compliance, and administrative organizations (including salaries, cash bonuses, benefits, and stock-based compensation). In addition, general and administrative expense includes fees for third-party professional services (including audit, legal, compliance, and tax services), regulatory fees, other corporate expenses, impairment of long-lived assets, gains on lease modifications, and allocated shared and other costs.

Depreciation and Amortization. Depreciation and amortization expense includes depreciation of property and equipment, amortization of capitalized software development costs, and amortization of intangible assets. We depreciate or amortize property and equipment, software development costs, and intangible assets over their expected useful lives on a straight-line basis, which approximates the pattern in which the economic benefits of the assets are consumed.

Interest Income, Net. Interest income, net includes interest earned on investment securities, amortization and accretion of the premium and discounts paid from the purchase of investment securities, and interest earned on cash deposited in our bank accounts.

Provision for (benefit from) income taxes. Provision for (benefit from) income taxes consists of federal and state income taxes in the United States.

27

Results of Operations

Revenue

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","","","Change"],["","2025","","2024","","","","Amount","","%"],["","(dollars in thousands)"],["Subscription Services","$","211,457","","","$","180,605","","","","","$","30,852","","","17","%"],["Value Added Services","721,549","","","605,011","","","","","116,538","","","19"],["Other","17,816","","","8,586","","","","","9,230","","","108"],["Total revenue","$","950,822","","","$","794,202","","","","","$","156,620","","","20","%"]]
[[/GREPCENT_TABLE]]

The increase in revenue for the year ended December 31, 2025, compared to the prior year, was primarily attributable to an increase in the usage of our electronic payment, tenant screening, and risk mitigation services by property managers and residents. During the year ended December 31, 2025, we experienced growth of 8% in the number of property management units under management compared to the prior year, which drove growth in users of our Subscription Services and Value Added Services.

We expect total revenue for the year endin

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/APPF/mda/fy2025/
All MD&A years: /company/APPF/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/APPF/mda/fy2024/): filed 2025-02-06; accession 0001433195-25-000013 (https://www.sec.gov/Archives/edgar/data/1433195/000143319525000013/appf-20241231.htm)
- [FY 2023 MD&A](/company/APPF/mda/fy2023/): filed 2024-02-01; accession 0001433195-24-000023 (https://www.sec.gov/Archives/edgar/data/1433195/000143319524000023/appf-20231231.htm)
- [FY 2022 MD&A](/company/APPF/mda/fy2022/): filed 2023-02-09; accession 0001433195-23-000021 (https://www.sec.gov/Archives/edgar/data/1433195/000143319523000021/appf-20221231.htm)
- [FY 2021 MD&A](/company/APPF/mda/fy2021/): filed 2022-02-28; accession 0001433195-22-000023 (https://www.sec.gov/Archives/edgar/data/1433195/000143319522000023/appf-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/APPF.md · JSON record: /company/APPF.json · verified financials: /company/APPF/financials.json / /company/APPF/financials.csv · machine TOC for the whole site: /llms.txt