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AppFolio

APPF
65
Software - Application · Technology
Price
$224.40
+5.55 (+2.54%)
Market Cap
$8.02B
Exchange
NASDAQ
Winston Score
65
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Exceptional
Stability
Good
Valuation
Good
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Share count rising — dilution

+1.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 35.7M (2021) → 36.3M (2025)

Winston Score History

The full picture

AppFolio makes software specifically for property management companies. Its main product is a cloud-based platform that helps landlords and property managers handle tasks like collecting rent, screening tenants, tracking maintenance requests, and managing accounting. The company focuses almost entirely on the real estate industry, serving small and mid-sized residential and commercial property management businesses across the United States.

AppFolio charges customers a monthly subscription fee based on the number of units they manage, which creates predictable, recurring revenue. It also earns money from add-on services like tenant screening, renters insurance, and payment processing. The company operates almost exclusively in the US and generates over $700 million in annual revenue. Its deep integration into daily property management workflows makes it sticky — customers rarely switch once they are set up. The main growth driver is expanding its share of the large US property management market, while the main risk is competition from larger software platforms like Yardi and RealPage.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+19.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+17.0% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$190M/ year

↑ Rising (+19% vs prior year)

20.0% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

3.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$309M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

AppFolio is putting 20% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
63.5%
Premium pricing power — 63.5% gross margin
Profit after running costs
Operating Margin
18.8%
Healthy — 18.8% operating margin
Return on the money invested
ROCE
34.7%
Exceptional — 34.7% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+20.7%
Fast-growing sales (+20.7% YoY)
Profit growth
EPS YoY
-21.1%
Earnings shrinking (-21.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
173%
Turns 173% of profit into real cash
Spare cash per sale
FCF Margin
25.9%
Converts sales into free cash efficiently (25.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
100.00x
—
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
50.9x
Expensive — P/E 50.9

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+22.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (50.9 → 28.8)

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Dividends

Not applicable for this business.
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