AppFolio, Inc.
APPF Technology Software Application
AppFolio, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $950.8 million, up 19.7% from fiscal 2024. In the quarter to June 2026, revenue grew 19.3%, EPS grew 17.0% and free cash flow grew 67.6%, each against the same quarter a year earlier. Revenue growth for ten consecutive years, operating cash flow growth for three.
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AppFolio, Inc. (APPF) Altman Z-score
AppFolio, Inc.'s Altman Z-score for fiscal 2025 is 37.76, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 37.76 | (15.36) |
| FY2024 | 53.12 | 17.52 |
| FY2023 | 35.61 | 15.11 |
| FY2022 | 20.50 | (3.82) |
| FY2021 | 24.32 | (13.30) |
| FY2020 | 37.62 | 19.02 |
| FY2019 | 18.60 | 2.50 |
| FY2018 | 16.10 | (18.45) |
| FY2017 | 34.54 | 13.75 |
| FY2016 | 20.79 | 10.92 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.36 | — | 0.43 | |
| Retained earnings / total assets | 0.63 | — | 0.88 | |
| EBIT / total assets | 0.22 | — | 0.73 | |
| Market value of equity / total liabilities | 57.23 | — | 34.34 | |
| Sales / total assets | 1.38 | — | 1.38 | |
| Altman Z-score | Safe zone | 37.76 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 9.77 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| APPF AppFolio, Inc. | 37.8× |
| TTAN ServiceTitan Inc. compare | 19.3× |
| YMM Full Truck Alliance Co. Ltd. Sponsored ADR compare | 13.3× |
| DUOL Duolingo, Inc. compare | 9.0× |
| NICE Nice compare | 5.5× |
| CVLT CommVault Systems, Inc. compare | 1.2× |
| RNG Ringcentral, Inc. compare | 0.7× |
| NAVN Navan, Inc. compare | 0.4× |
| LYFT Lyft, Inc. compare | 0.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets