Company: APPF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001433195-25-000142
Chunk: 72

Company: APPFOLIO INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 72
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 from the acquisition of Move EZ, Inc. in the fourth quarter of 2024.

We expect depreciation and amortization expenses 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 EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change20252024Amount%20252024Amount%(dollars in thousands)Interest income, net$1,690 $4,014 $(2,324)(58)%$6,109 $10,482 $(4,373)(42)%Percentage of revenue0.7 %2.0 %0.9 %1.8 %

Interest income for the three and nine months ended September 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.

21

Provision for income taxes

 Three Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change 20252024Amount%20252024Amount% (dollars in thousands)Income before provision for income taxes$36,732 $46,582 $(9,850)(21)%$115,491 $123,168 $(7,677)(6)%Provision for income taxes$3,086 $13,576 $(10,490)(77)%$14,482 $21,834 $(7,352)(34)%Effective tax rate8.4 %29.1 %12.5 %17.7 %

For the three and nine months ended September 30, 2025, we recorded income tax expense of $3.1 million and $14.5 million, representing an effective tax rate of 8.4% and 12.5%, 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 nine months ended September 30, 2024, our effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to changes in valuation allowance against deferred tax assets and excess tax benefits from stock-based compensation.

The decrease in our effective tax rate for the three months ended September 30