Company: APPF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001433195-25-000142
Chunk: 44

Company: APPFOLIO INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 44
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 readily determinable fair value. Strategic investments are classified as Level 3 in the fair value hierarchy, as their nonrecurring fair value measurements may include observable and unobservable inputs. As of September 30, 2025 and December 31, 2024, the balance of strategic investments was $77.0 million and $2.0 million, respectively.

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 4. Other Balance Sheet Components

Prepaid expenses and other current assetsPrepaid expenses and other current assets consisted of the following (in thousands):September 30,2025December 31,2024Income tax receivable(1)$31,460 $1,089 Prepaid expenses19,668 12,430 Deferred commissions(2)9,936 9,898 Deposits for insurance services(3)4,592 6,668 Other2,613 2,722   Total Prepaid expenses and other current assets$68,269 $32,807 (1)For additional information on income tax, refer to Note 8, Income Taxes.(2)For additional information on deferred commissions, refer to Deferred Costs in Note 2, Summary of Significant Accounting Policies.(3)For additional information on deposits held with a third party related to requirements to maintain collateral for insurance services, refer to "Legal Liability to Landlord Insurance" in Note 5, Commitments and Contingencies.Accrued Employee ExpensesAccrued employee expenses consisted of the following (in thousands):September 30,2025December 31,2024Accrued bonuses$34,571 $17,092 Accrued payroll and other17,750 13,065     Total accrued employee expenses$52,321 $30,157 Other Current LiabilitiesOther current liabilities consisted of the following (in thousands): September 30,2025December 31,2024Unearned premium liabilities$6,869 $5,455 Insurance reserves(1)5,682 3,908 Operating lease liabilities-current4,713 4,273 Other7,511 2,451     Total other current liabilities$24,775 $16,087 Unearned premium liabilities are the refundable portion of commissions received in connection with the sale of renters insurance policies to residents through AppFolio Insurance Services, Inc., our wholly owned subsidiary. In the event a resident cancels their renters insurance policy prior to the end of such policy, we may be required