Appian Announces Second Quarter 2025 Financial Results

Second quarter cloud subscriptions revenue increased 21% year-over-year to $106.9 million Second quarter total revenue increased 17% year-over-year to $170.6 million MCLEAN, Va., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced financial results for the second quarter ended June 30, 2025. “Appian AI drove strong financial results in the second quarter of 2025, with higher prices and a larger pipeline,” said Matt Calkins, CEO & Founder. Second Quarter 2025 Financial Highlights: Revenue: Cloud subscriptions revenue was $106.9 million, up 21% compared to the second quarter of 2024. Total subscriptions revenue, which includes sales of our cloud subscriptions, on-premises term license subscriptions, and maintenance and support, increased 17% year-over-year to $132.7 million. Professional services revenue was $38.0 million, up 13% compared to the second quarter of 2024. Total revenue was $170.6 million, up 17% compared to the second quarter of 2024. Cloud subscriptions revenue retention rate was 111% as of June 30, 2025.Operating loss and non-GAAP operating income (loss): GAAP operating loss was $(11.0) million, compared to GAAP operating loss of $(39.2) million for the second quarter of 2024. Non-GAAP operating income was $5.6 million, compared to non-GAAP operating loss of $(13.1) million for the second quarter of 2024.Net loss and non-GAAP net income (loss): GAAP net loss was $(0.3) million, compared to $(43.6) million for the second quarter of 2024. GAAP net loss per share was breakeven for the second quarter of 2025, compared to $(0.60) for the second quarter of 2024. Non-GAAP net income was $0.3 million, compared to non-GAAP net loss of $(18.2) million for the second quarter of 2024. Non-GAAP net income per basic and diluted share was breakeven, compared to the $(0.25) net loss per share for the second quarter of 2024.Adjusted EBITDA: Adjusted EBITDA was $8.1 million, compared to adjusted EBITDA loss of $(10.5) million for the second quarter of 2024.Cash flows: Net cash used by operating activities was $(1.9) million for the three months ended June 30, 2025 compared to $(17.6) million of net cash used by operating activities for the same period in 2024. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” Recent Business Highlights: Appian Recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Low-Code Application PlatformsChartis Recognizes Appian for AI-Powered Process OrchestrationAppian Recognized in the 2025 AIFinTech100 List for Transforming Financial Services with AIAppian Connected Claims 2.0 Transforms Insurance Claims Management with AIAppian Appoints David Crozier as Chief Marketing Officer Financial Outlook: As of August 7, 2025, guidance for 2025 is as follows: Third Quarter 2025 Guidance: Cloud subscriptions revenue is expected to be between $109.0 million and $111.0 million, representing year-over-year growth of 16% to 18%.Total revenue is expected to be between $172.0 million and $176.0 million, representing a year-over-year increase of 12% to 14%.Adjusted EBITDA is expected to be between $9.0 million and $12.0 million.Non-GAAP net income per share is expected to be between $0.03 and $0.07, assuming weighted average common shares outstanding of 74.7 million. Full Year 2025 Guidance: Cloud subscriptions revenue is expected to be between $429.0 million and $433.0 million, representing year-over-year growth of 17% to 18%.Total revenue is expected to be between $695.0 million and $703.0 million, representing a year-over-year increase of 13% to 14%.Adjusted EBITDA is expected to be between $49.0 million and $55.0 million.Non-GAAP net income per share is expected to be between $0.28 and $0.36, assuming weighted average common shares outstanding of 74.7 million. Conference Call Details: Appian will host a conference call today, August 7, 2025, at 8:30 a.m. ET to discuss Appian's financial results for the second quarter ended June 30, 2025 and business outlook. To access the call, navigate to the following link(1). Once registered, participants can dial in using their phone with a dial in and PIN, or they can choose the Call Me option for instant dial to their phone. The live webcast of the conference call can also be accessed on the Investor Relations page of our website at https://investors.appian.com. About Appian Appian is The Process Company. We deliver a software platform that helps organizations run better processes that reduce costs, improve customer experiences, and gain a strategic edge. Committed to client success, we serve many of the world’s largest companies across various industries. For more information, visit appian.com. [Nasdaq: APPN] 1 https://register-conf.media-server.com/register/BI1e1e5237257b42d09d37bb52ee5552aa Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, Appian provides investors with certain non-GAAP financial performance measures. Appian uses these non-GAAP financial performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Appian’s management believes these non-GAAP financial measures provide meaningful supplemental information regarding Appian’s performance by excluding certain expenses that may not be indicative of our recurring core business operating results. Appian believes both management and investors benefit from referring to these non-GAAP financial measures in assessing Appian’s performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance as well as comparisons to competitors’ operating results. Appian believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to measures used by management in its financial and operational decision-making and (2) they are used by Appian’s institutional investors and the analyst community to help them analyze the health of Appian’s business. The non-GAAP financial performance measures include the following: non-GAAP subscriptions cost of revenue, non-GAAP professional services cost of revenue, non-GAAP total cost of revenue, non-GAAP total operating expense, non-GAAP operating income (loss), non-GAAP income tax expense (benefit), non-GAAP net income (loss), and non-GAAP net income (loss) per share, basic and diluted. These non-GAAP financial performance measures exclude the effect of stock-based compensation expense, unrealized foreign exchange rate gains and losses, certain non-ordinary litigation-related expenses consisting of legal and other professional fees associated with the Pegasystems cases (net of insurance reimbursements), or Litigation Expense, amortization of the judgment preservation insurance policy, or JPI Amortization, severance costs related to an involuntary reduction in our workforce, or Severance Costs, and lease impairment and lease-related charges associated with actions taken to reduce the footprint of our leased office spaces, or Lease Impairment and Lease-Related Charges. While some of these items may be recurring in nature and should not be disregarded in the evaluation of our earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods as these items can vary significantly from period to period depending on specific underlying transactions or events that may occur. Therefore, while we may incur or recognize these types of expenses in the future, we believe removing these items for purposes of calculating our non-GAAP financial measures provides investors with a more focused presentation of our ongoing operating performance. Appian also discusses adjusted EBITDA, a non-GAAP financial performance measure it believes offers a useful view of the overall operation of its businesses. The Company defines adjusted EBITDA as net loss before (1) other (income) expense, net, (2) interest expense, (3) income tax expense (benefit), (4) depreciation expense and amortization of intangible assets, (5) stock-based compensation expense, (6) Litigation Expense, (7) JPI Amortization, (8) Severance Costs, and (9) Lease Impairment and Lease-Related Charges. The most directly comparable GAAP financial measure to adjusted EBITDA is net loss. Users should consider the limitations of using adjusted EBITDA, including the fact that this measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to purport to be an alternative to net loss as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared and presented in accordance with GAAP, and Appian’s non-GAAP measures may be different from non-GAAP measures used by other companies. For more information on these non-GAAP financial measures, see the reconciliation of these non-GAAP financial measures to their nearest comparable GAAP measures at the end of this press release. Appian provides guidance ranges for non-GAAP net income (loss) per share and adjusted EBITDA; however, we are not able to reconcile these amounts to their comparable GAAP financial measures without unreasonable efforts because certain information necessary to calculate such measures on a GAAP basis is unavailable, subject to high variability, dependent on future events outside of our control, and cannot be predicted. In addition, Appian believes such reconciliations could imply a degree of precision that might be confusing or misleading to investors. The actual effect of the reconciling items that Appian may exclude from these non-GAAP expense numbers, when determined, may be significant to the calculation of the comparable GAAP measures. Forward-Looking Statements This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including statements regarding Appian’s future financial and business performance for the third quarter and full year 2025, future investment by Appian in its go-to-market initiatives, increased demand for the Appian Platform, market opportunity and plans and objectives for future operations, including Appian’s ability to drive continued subscriptions revenue and total revenue growth, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,” and similar expressions are intended to identify forward-looking statements. Appian has based these forward-looking statements on its current expectations and projections about future events and financial trends that Appian believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including the risks and uncertainties associated with Appian’s ability to grow its business and manage its growth, Appian’s ability to sustain its revenue growth rate, continued market acceptance of Appian’s Platform and adoption of low-code solutions to drive digital transformation, the fluctuation of Appian’s operating results due to the length and variability of its sales cycle, competition in the markets in which Appian operates, AI being a disruptive set of technologies that may affect the markets for Appian’s software dramatically and in unpredictable ways, risks and uncertainties associated with the composition and concentration of Appian’s customer base and their demand for its platform and satisfaction with the services provided by Appian, Appian’s ability to operate in compliance with applicable laws and regulations, Appian’s strategic relationships with third parties, and additional risks and uncertainties set forth in the “Risk Factors” section of Appian’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Moreover, Appian operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Appian’s management to predict all risks, nor can Appian assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Appian may make. In light of these risks, uncertainties, and assumptions, Appian cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Appian is under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. Investor ContactJack AndrewsVice President, Investor Relationsinvestors@appian.com Media ContactValerie MillerSenior Manager, Media Relations North Americapr@appian.com APPIAN CORPORATIONCONSOLIDATED BALANCE SHEETS(in thousands, except par value and share data) As of June 30, 2025 December 31, 2024 (unaudited) Assets Current assets Cash and cash equivalents$112,207 $118,552 Short-term investments and marketable securities 72,546 41,308 Accounts receivable, net of allowance of $2,705 and $3,396, respectively 151,202 195,069 Deferred commissions, current 34,577 36,630 Prepaid expenses and other current assets 41,149 43,984 Total current assets 411,681 435,543 Property and equipment, net of accumulated depreciation of $36,719 and $32,142, respectively 34,799 37,109 Goodwill 28,763 25,555 Intangible assets, net of accumulated amortization of $6,650 and $5,341, respectively 1,882 2,240 Right-of-use assets for operating leases 30,951 31,081 Deferred commissions, net of current portion 59,366 60,540 Deferred tax assets 5,176 4,129 Other assets 18,130 24,842 Total assets$590,748 $621,039 Liabilities and Stockholders’ Deficit Current liabilities Accounts payable$8,881 $4,322 Accrued expenses 14,547 11,388 Accrued compensation and related benefits 34,414 34,223 Deferred revenue 264,917 281,760 Debt 9,598 9,598 Operating lease liabilities 13,052 12,378 Other current liabilities 1,952 1,087 Total current liabilities 347,361 354,756 Long-term debt 236,027 240,826 Non-current operating lease liabilities 49,810 52,189 Deferred revenue, non-current 10,798 5,477 Other non-current liabilities 493 431 Total liabilities 644,489 653,679 Stockholders’ deficit Class A common stock—par value $0.0001; 500,000,000 shares authorized as of June 30, 2025 and December 31, 2024 and 43,245,763 and 42,938,701 shares issued as of June 30, 2025 and December 31, 2024, respectively 4 4 Class B common stock—par value $0.0001; 100,000,000 shares authorized as June 30, 2025 and December 31, 2024 and 31,088,085 and 31,090,085 shares issued as of June 30, 2025 and December 31, 2024, respectively 3 3 Treasury stock at cost, 313,160 shares as of June 30, 2025 (10,000) — Additional paid-in capital 605,084 591,281 Accumulated other comprehensive loss (35,189) (11,774)Accumulated deficit (613,643) (612,154)Total stockholders’ deficit (53,741) (32,640)Total liabilities and stockholders’ deficit$590,748 $621,039 APPIAN CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue Subscriptions$132,657 $112,974 $267,009 $230,668 Professional services 37,983 33,476 70,057 65,617 Total revenue 170,640 146,450 337,066 296,285 Cost of revenue Subscriptions 17,154 13,262 32,048 25,532 Professional services 26,767 26,151 50,791 51,878 Total cost of revenue 43,921 39,413 82,839 77,410 Gross profit 126,719 107,037 254,227 218,875 Operating expenses Sales and marketing 60,458 66,592 115,011 124,748 Research and development 40,347 39,446 79,864 79,217 General and administrative 36,898 40,193 71,170 73,639 Total operating expenses 137,703 146,231 266,045 277,604 Operating loss (10,984) (39,194) (11,818) (58,729)Other non-operating (income) expense Other (income) expense, net (17,564) (1,545) (23,280) 6,662 Interest expense 5,319 6,107 10,637 11,753 Total other non-operating (income) expense (12,245) 4,562 (12,643) 18,415 Income (loss) before income taxes 1,261 (43,756) 825 (77,144)Income tax expense (benefit) 1,573 (164) 2,314 (629)Net loss$(312) $(43,592) $(1,489) $(76,515)Net loss per share: Basic and diluted$(0.00) $(0.60) $(0.02) $(1.05)Weighted average common shares outstanding: Basic and diluted 74,202 72,300 74,148 72,800 APPIAN CORPORATIONSTOCK-BASED COMPENSATION EXPENSE(unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of revenue Subscriptions$205 $217 $448 $430Professional services 1,355 1,461 2,762 3,039Operating expenses Sales and marketing 2,035 1,997 4,223 4,524Research and development 3,286 2,919 6,224 5,920General and administrative 3,812 3,306 7,075 6,593Total stock-based compensation expense$10,693 $9,900 $20,732 $20,506 APPIAN CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited, in thousands) Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net loss$(1,489) $(76,515)Adjustments to reconcile net loss to net cash provided by operating activities Stock-based compensation 20,732 20,506 Depreciation expense and amortization of intangible assets 4,970 4,941 Lease impairment charges — 5,462 Bad debt expense 550 253 Amortization of debt issuance costs 300 290 Benefit for deferred income taxes (689) (982)Foreign currency transaction (gains) losses, net (20,659) 12,787 Changes in assets and liabilities Accounts receivable 49,720 37,114 Prepaid expenses and other assets 10,174 10,524 Deferred commissions 3,228 2,897 Accounts payable and accrued expenses 7,559 2,882 Accrued compensation and related benefits (3,811) (3,808)Other current and non-current liabilities (277) 121 Deferred revenue (25,611) (14,267)Operating lease assets and liabilities (1,671) (954)Net cash provided by operating activities 43,026 1,251 Cash flows from investing activities Proceeds from maturities of investments 27,985 9,657 Purchases of investments (59,281) (28,354)Purchases of property and equipment (1,797) (2,932)Net cash used by investing activities (33,093) (21,629)Cash flows from financing activities Proceeds from borrowings — 50,000 Payments for debt issuance costs — (463)Debt repayments (5,000) (2,500)Repurchase of common stock (10,000) (50,019)Payments for employee taxes related to the net share settlement of equity awards (4,469) (4,221)Proceeds from exercise of common stock options 504 508 Net cash used by financing activities (18,965) (6,695)Effect of foreign exchange rate changes on cash and cash equivalents 2,687 (1,491)Net decrease in cash and cash equivalents (6,345) (28,564)Cash and cash equivalents at beginning of period 118,552 149,351 Cash and cash equivalents at end of period$112,207 $120,787 Supplemental disclosure of cash flow information Cash paid for interest$10,023 $11,168 Cash paid for income taxes$1,997 $1,436 Supplemental disclosure of non-cash financing information Accrued capital expenditures$54 $182 APPIAN CORPORATIONRECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES(unaudited, in thousands, except per share data) GAAP Measure Stock-Based Compensation Litigation Expense JPI Amortization Lease Impairment and Lease-Related Charges Unrealized Foreign Exchange Rate Gains and Losses Non-GAAP MeasureThree Months Ended June 30, 2025Subscriptions cost of revenue$17,154 $(205) $— $— $— $— $16,949 Professional services cost of revenue 26,767 (1,355) — — — — 25,412 Total cost of revenue 43,921 (1,560) — — — — 42,361 Total operating expense 137,703 (9,133) (2,482) (3,118) (297) — 122,673 Operating (loss) income (10,984) 10,693 2,482 3,118 297 — 5,606 Non-operating (income) expense (17,564) — — — — 16,754 (810)Income tax impact of above items 1,573 295 — — — (1,059) 809 Net (loss) income (312) 10,398 2,482 3,118 297 (15,695) 288 Net (loss) income per share, basic$(0.00) $0.14 $0.03 $0.04 $— $(0.21) $0.00 Net (loss) income per share, diluted(b)$(0.00) $0.14 $0.03 $0.04 $— $(0.21) $0.00 Six Months Ended June 30, 2025 Subscriptions cost of revenue$32,048 $(448) $— $— $— $— $31,600 Professional services cost of revenue 50,791 (2,762) — — — — 48,029 Total cost of revenue 82,839 (3,210) — — — — 79,629 Total operating expense 266,045 (17,522) (4,194) (6,202) (609) — 237,518 Operating (loss) income (11,818) 20,732 4,194 6,202 609 — 19,919 Non-operating (income) expense (23,280) — — — — 20,770 (2,510)Income tax impact of above items 2,314 750 — — — (1,326) 1,738 Net (loss) income (1,489) 19,982 4,194 6,202 609 (19,444) 10,054 Net (loss) income per share, basic$(0.02) $0.27 $0.06 $0.08 $0.01 $(0.26) $0.14 Net (loss) income per share, diluted(a,b)$(0.02) $0.27 $0.06 $0.08 $0.01 $(0.26) $0.13 (a) Per share amounts do not foot due to rounding.(b) Accounts for the impact of 0.4 million shares of dilutive securities. GAAPMeasure Stock-BasedCompensation LitigationExpense JPIAmortization SeveranceCosts LeaseImpairmentandLease-RelatedCharges UnrealizedForeignExchangeRate Gainsand Losses Non-GAAPMeasureThree Months Ended June 30, 2024Subscriptions cost of revenue$13,262 $(217) $— $— $— $— $— $13,045 Professional services cost of revenue 26,151 (1,461) — — (1,398) — — 23,292 Total cost of revenue 39,413 (1,678) — — (1,398) — — 36,337 Total operating expense 146,231 (8,222) (721) (4,504) (4,136) (5,462) — 123,186 Operating (loss) income (39,194) 9,900 721 4,504 5,534 5,462 — (13,073)Non-operating income (1,545) — — — — — (959) (2,504)Income tax impact of above items (164) 537 — — 1,096 — 103 1,572 Net (loss) income (43,592) 9,363 721 4,504 4,438 5,462 856 (18,248)Net (loss) income per share, basic and diluted$(0.60) $0.13 $0.01 $0.06 $0.06 $0.08 $0.01 $(0.25) Six Months Ended June 30, 2024Subscriptions cost of revenue$25,532 $(430) $— $— $— $— $— $25,102 Professional services cost of revenue 51,878 (3,039) — — (1,398) — — 47,441 Total cost of revenue 77,410 (3,469) — — (1,398) — — 72,543 Total operating expense 277,604 (17,037) (1,463) (9,008) (4,136) (5,462) — 240,498 Operating (loss) income (58,729) 20,506 1,463 9,008 5,534 5,462 — (16,756)Non-operating expense (income) 6,662 — — — — — (12,807) (6,145)Income tax impact of above items (629) 1,141 — — 1,096 — 1,038 2,646 Net (loss) income (76,515) 19,365 1,463 9,008 4,438 5,462 11,769 (25,010)Net (loss) income per share, basic and diluted$(1.05) $0.27 $0.02 $0.12 $0.06 $0.08 $0.16 $(0.34) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (unaudited)Reconciliation of adjusted EBITDA: GAAP net loss$(312) $(43,592) $(1,489) $(76,515)Other (income) expense, net (17,564) (1,545) (23,280) 6,662 Interest expense 5,319 6,107 10,637 11,753 Income tax expense (benefit) 1,573 (164) 2,314 (629)Depreciation expense and amortization of intangible assets 2,524 2,580 4,970 4,941 Stock-based compensation expense 10,693 9,900 20,732 20,506 Litigation Expense 2,482 721 4,194 1,463 JPI Amortization 3,118 4,504 6,202 9,008 Severance Costs — 5,534 — 5,534 Lease Impairment and Lease-Related Charges 297 5,462 609 5,462 Adjusted EBITDA$8,130 $(10,493) $24,889 $(11,815)

Appian Announces Second Quarter 2025 Financial Results

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