AppFolio Grew Free Cash Flow 30% in 2025 and Deepened Switching Costs for Customers. Is the Sell-Off Overdone?
2026-03-03 14:37:00 ET
Shares of AppFolio (NASDAQ: APPF) , which makes software landlords and property managers use to run their businesses, are down 36% over the past six months as I write this, including an 18.5% decline after the company reported fourth-quarter earnings in January.
Slowing revenue growth, from 28% in 2024 to a projected 16.5% this year, has weighed on the stock. Adding to the negativity has been the fact that investor sentiment has shifted away from software-as-a-service (SaaS) stocks broadly, with the iShares Expanded Tech-Software Sector ETF (NYSEMKT: IGV) dropping more than 24% in early 2026 on fears that artificial intelligence (AI) tools will reduce demand for traditional software.
However, AppFolio sales grew 20% last year, and free-cash-flow (FCF) margin widened to 24.8%. After its recent slide, the stock is as cheap as it's ever been on a price-to-sales and FCF basis.
NASDAQ: APPF
APPF Trading
-1.75% G/L:
$172.74 Last:
80,073 Volume:
$177.58 Open:
