Company: APPF
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001433195-25-000105
Chunk: 76

Company: APPFOLIO INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 76
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 for the year ending December 31, 2025 to stay relatively flat as a percentage of revenue compared to the year ended December 31, 2024.

Interest Income, Net

Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change20252024Amount%20252024Amount%(dollars in thousands)Interest income, net$1,466 $3,476 $(2,010)(58)%$4,419 $6,468 $(2,049)(32)%Percentage of revenue0.6 %1.8 %1.0 %1.7 %

Interest income for the three and six months ended June 30, 2025 decreased, compared to the same periods in the prior year, primarily due to the sale of available-for-sale investment securities and lower interest rates.

Provision for income taxes

 Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change 20252024Amount%20252024Amount% (dollars in thousands)Income before provision for income taxes$41,967 $39,504 $2,463 6 %$78,759 $76,586 $2,173 3%Provision for (benefit from) income taxes$5,987 $9,839 $(3,852)(39)%$11,396 $8,258 $3,138 38%Effective tax rate14.3 %24.9 %14.5 %10.8 %

For the three and six months ended June 30, 2025, we recorded income tax expense of $6.0 million and $11.4 million, representing an effective tax rate of 14.3% and 14.5%, respectively. Our effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to excess tax benefits from stock-based compensation and research & development tax credits, partially offset by state income taxes and non-deductible officers' compensation. For the three and six months ended June 30, 2024, our effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to excess tax benefits from stock-based compensation and changes in valuation allowance against deferred tax assets. 

The decrease in our effective tax rate for the three months ended June 30, 2025, as compared to the same period in 2024, is primarily due to