Company: APPF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001433195-25-000142
Chunk: 19

Company: APPFOLIO INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 $124,056 $178,130 December 31, 2024Level 1Level 2Total FairValueCash equivalents:Money market funds$25,167 $— $25,167 Available-for-sale investment securities:U.S. government and agency securities— 235,745 235,745 Total$25,167 $235,745 $260,912 The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short maturity of these items.Fair value for our Level 1 investment securities is based on market prices for identical assets. Our Level 2 securities were priced by a pricing vendor. The pricing vendor utilizes the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, other observable inputs like market transactions involving comparable securities are used.Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring BasisStrategic investments primarily include equity investments in privately-held companies, which do not have a 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