William Blair on AppFolio (APPF): 'remains a top pick across our coverage list'

William Blair analyst Stephen Sheldon reiterated an Outperform rating and {REMOVEPT} price target on AppFolio (NASDAQ: APPF).

The analyst comments "While it appears today’ s captious market may be scrutinizing the company’ s growth outlook for 2026 (shares are down about 1 1% after hours), we believe management has set initial guidance conservatively (as it typically does), and we were very encouraged by the business’ s underlying performance this quarter (accelerating unit additions and revenue growth, exceptional free cash flow , etc.). Further , the customer count AppFolio disclosed implies that its average new customer had 852 units this quarter (up 58% sequentially and 70% year-over-y ear), which we view very positively in the context of AppFolio’ s push upmarket. In addition to these exceptional unit trends, the team highlighted that: 1) 25% of users are now on APM Plus or Max (up from 20% at the end of 2024), 2) it is seeing accelerating adoption of the AI performers it released just last October (see our note for more detail), and 3) uptake of its resident services has continued to trend well—all of which tells us that management is executing on its key strategic priorities. W e remain encouraged by the company’ s performance, and with shares trading at a reasonable 6 times forward revenue and 22 times adjusted EBITDA (on an aftermarket price of $183/share) , AppFolio remains a top pick across our coverage list, and we would use any weakness today to add to positions."

For an analyst ratings summary and ratings history on AppFolio click here. For more ratings news on AppFolio click here.

Shares of AppFolio closed at $207.10 yesterday.

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