Company: APPF
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001433195-25-000055
Chunk: 26

Company: APPFOLIO INC
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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, of our Condensed Consolidated Financial Statements and Part 2, Item 2, "Unregistered Sales of Equity Securities and Use of Proceeds" of this Quarterly Report.

Cash Flows

The following table summarizes our cash flows for the periods indicated (in thousands):

 Three Months EndedMarch 31, 20252024Net cash provided by operating activities$38,465 $42,954 Net cash provided by (used in) investing activities80,794 (23,037)Net cash used in financing activities(104,830)(10,212)Net increase in cash, cash equivalents and restricted cash$14,429 $9,705 

Operating Activities

Our primary source of operating cash inflows is cash collected from our customers in connection with their use of our core solutions and Value Added Services. Our primary uses of cash from operating activities are for personnel-related expenditures and third-party costs incurred to support the delivery of our software solutions.

The net decrease in cash provided by operating activities for the three months ended March 31, 2025, compared to the same period in the prior year, was primarily due to a higher increase in operating expenditures related to personnel-related costs. 

Investing Activities

Cash provided by (used in) investing activities is generally composed of the cash paid in purchases of investment securities, maturities and sales of investment securities, purchases of property and equipment, business acquisition, net of cash acquired, and additions to capitalized software development.

The net increase in cash provided by (used in) investing activities for the three months ended March 31, 2025, compared to the same period in the prior year, was primarily due to higher sales and maturities of available-for-sale investment securities.

Financing Activities

Cash used in financing activities is generally composed of net share settlements for employee tax withholdings associated with the vesting of equity awards and repurchases of our Class A common stock offset by proceeds from the exercise of stock options.

The net increase in cash used in financing activities for the three months ended March 31, 2025, compared to the same period in the prior year, was primarily due to repurchases of our Class A common stock.

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Critical Accounting Policies and Estimates

Our Condensed Consolidated Financial Statements and the related notes are prepared in accordance with GAAP. The preparation of our Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of