Appian Announces Third Quarter 2025 Financial Results

Third quarter cloud subscriptions revenue increased 21% year-over-year to $113.6 millionThird quarter total revenue increased 21% year-over-year to $187.0 million MCLEAN, Va., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced financial results for the third quarter ended September 30, 2025. Third Quarter 2025 Financial Highlights: Revenue: Cloud subscriptions revenue was $113.6 million, up 21% compared to the third quarter of 2024. Total subscriptions revenue, which includes sales of our cloud subscriptions, on-premises term license subscriptions, and maintenance and support, increased 20% year-over-year to $147.2 million. Professional services revenue was $39.8 million, up 29% compared to the third quarter of 2024. Total revenue was $187.0 million, up 21% compared to the third quarter of 2024. Cloud subscriptions revenue retention rate was 111% as of September 30, 2025.Operating income (loss) and non-GAAP operating income: GAAP operating income was $13.1 million, compared to GAAP operating loss of $(7.2) million for the third quarter of 2024. Non-GAAP operating income was $29.8 million, compared to non-GAAP operating income of $8.3 million for the third quarter of 2024.Net income (loss) and non-GAAP net income: GAAP net income was $7.8 million, compared to GAAP net loss of $(2.1) million for the third quarter of 2024. GAAP basic net income per share was $0.11 for the third quarter of 2025, compared to the $(0.03) net loss per share for the third quarter of 2024. Non-GAAP net income was $24.4 million, compared to $1.8 million of non-GAAP net income for the third quarter of 2024. Non-GAAP net income per basic and diluted share was $0.32, compared to non-GAAP net income per basic and diluted share of $0.02 for the third quarter of 2024.Adjusted EBITDA: Adjusted EBITDA was $32.2 million, compared to adjusted EBITDA of $10.8 million for the third quarter of 2024.Cash flows: Net cash provided by operating activities was $18.7 million for the three months ended September 30, 2025 compared to $(8.2) 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 Named a Leader in the IDC MarketScape:Worldwide Business Automation Platforms 2025 Vendor AssessmentAppian Named a Leader in Digital Process Automation Software Report by Independent Research FirmMagMutual Transforms Operations with AppianLatest Appian Platform Release Delivers Enterprise-Ready AI Financial Outlook: As of November 6, 2025, guidance for 2025 is as follows: Fourth Quarter 2025 Guidance: Cloud subscriptions revenue is expected to be between $115.0 million and $117.0 million, representing year-over-year growth of 16% to 18%.Total revenue is expected to be between $187.0 million and $191.0 million, representing a year-over-year increase of 12% to 15%.Adjusted EBITDA is expected to be between $10.0 million and $13.0 million.Non-GAAP net income per share is expected to be between $0.04 and $0.08, assuming weighted average common shares outstanding of 74.5 million. Full Year 2025 Guidance: Cloud subscriptions revenue is expected to be between $435.0 million and $437.0 million, representing year-over-year growth of 18% to 19%.Total revenue is expected to be between $711.0 million and $715.0 million, representing a year-over-year increase of 15% to 16%.Adjusted EBITDA is expected to be between $67.0 million and $70.0 million.Non-GAAP net income per share is expected to be between $0.50 and $0.54, assuming weighted average common shares outstanding of 74.6 million. Conference Call Details: Appian will host a conference call today, November 6, 2025, at 8:30 a.m. ET to discuss Appian's financial results for the third quarter ended September 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 delivers 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] 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, 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, and a short-swing profit disgorgement paid to us by an investor, or Short-Swing Profit Payment. 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 income (loss) before (1) other income, net, (2) interest expense, (3) income tax expense, (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 income (loss). Users should consider the limitations of using adjusted EBITDA, including the fact this measure does not provide a complete depiction of our operating performance. Adjusted EBITDA is not intended to purport to be an alternative to net income (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 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 fourth 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 Contactinvestors@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 September 30, 2025 December 31, 2024 (unaudited) Assets Current assets Cash and cash equivalents$125,249 $118,552 Short-term investments and marketable securities 66,312 41,308 Accounts receivable, net of allowance of $2,862 and $3,396, respectively 172,615 195,069 Deferred commissions, current 34,131 36,630 Prepaid expenses and other current assets 41,104 43,984 Total current assets 439,411 435,543 Property and equipment, net of accumulated depreciation of $38,789 and $32,142, respectively 33,168 37,109 Goodwill 28,833 25,555 Intangible assets, net of accumulated amortization of $6,985 and $5,341, respectively 1,567 2,240 Right-of-use assets for operating leases 29,110 31,081 Deferred commissions, net of current portion 59,395 60,540 Deferred tax assets 5,144 4,129 Other assets 15,107 24,842 Total assets$611,735 $621,039 Liabilities and Stockholders’ Deficit Current liabilities Accounts payable$8,605 $4,322 Accrued expenses 20,082 11,388 Accrued compensation and related benefits 38,677 34,223 Deferred revenue 275,449 281,760 Debt 12,098 9,598 Operating lease liabilities 13,110 12,378 Other current liabilities 2,105 1,087 Total current liabilities 370,126 354,756 Long-term debt 233,627 240,826 Non-current operating lease liabilities 47,769 52,189 Deferred revenue, non-current 8,322 5,477 Other non-current liabilities 435 431 Total liabilities 660,279 653,679 Stockholders’ deficit Class A common stock—par value $0.0001; 500,000,000 shares authorized as of September 30, 2025 and December 31, 2024 and 43,369,326 and 42,938,701 shares issued as of September 30, 2025 and December 31, 2024, respectively 4 4 Class B common stock—par value $0.0001; 100,000,000 shares authorized as of September 30, 2025 and December 31, 2024 and 31,088,085 and 31,090,085 shares issued as of September 30, 2025 and December 31, 2024, respectively 3 3 Treasury stock at cost, 639,751 shares as of September 30, 2025 (20,000) — Additional paid-in capital 612,488 591,281 Accumulated other comprehensive loss (35,221) (11,774)Accumulated deficit (605,818) (612,154)Total stockholders’ deficit (48,544) (32,640)Total liabilities and stockholders’ deficit$611,735 $621,039 APPIAN CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands, except per share data) Three Months Ended September 30, Nine Months EndedSeptember 30, 2025 2024 2025 2024 Revenue Subscriptions$147,188 $123,121 $414,197 $353,789 Professional services 39,816 30,931 109,873 96,548 Total revenue 187,004 154,052 524,070 450,337 Cost of revenue Subscriptions 17,762 14,082 49,810 39,614 Professional services 27,531 23,002 78,322 74,880 Total cost of revenue 45,293 37,084 128,132 114,494 Gross profit 141,711 116,968 395,938 335,843 Operating expenses Sales and marketing 51,918 50,865 166,929 175,613 Research and development 40,263 38,572 120,127 117,789 General and administrative 36,416 34,688 107,586 108,327 Total operating expenses 128,597 124,125 394,642 401,729 Operating income (loss) 13,114 (7,157) 1,296 (65,886)Other non-operating expense (income) Other income, net (1,398) (12,544) (24,678) (5,882)Interest expense 5,311 6,168 15,948 17,921 Total other non-operating expense (income) 3,913 (6,376) (8,730) 12,039 Income (loss) before income taxes 9,201 (781) 10,026 (77,925)Income tax expense 1,376 1,319 3,690 690 Net income (loss)$7,825 $(2,100) $6,336 $(78,615)Earnings (loss) per share: Basic$0.11 $(0.03) $0.09 $(1.08)Diluted$0.10 $(0.03) $0.08 $(1.08)Weighted average common shares outstanding: Basic 74,008 72,396 74,101 72,664 Diluted 74,575 72,396 74,554 72,664 APPIAN CORPORATIONSTOCK-BASED COMPENSATION EXPENSE(unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of revenue Subscriptions$224 $211 $672 $641 Professional services 1,399 1,325 4,161 4,364 Operating expenses Sales and marketing 1,827 1,746 6,050 6,270 Research and development 2,915 2,939 9,139 8,859 General and administrative 3,895 3,284 10,970 9,877 Total stock-based compensation expense$10,260 $9,505 $30,992 $30,011` APPIAN CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited, in thousands) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities Net income (loss)$6,336 $(78,615)Adjustments to reconcile net income (loss) to net cash provided by (used by) operating activities Stock-based compensation 30,992 30,011 Depreciation expense and amortization of intangible assets 7,429 7,503 Lease impairment charges 779 5,462 Bad debt expense 692 619 Amortization of debt issuance costs 450 439 Benefit for deferred income taxes (648) (1,281)Foreign currency transaction (gains) losses, net (20,864) 2,895 Changes in assets and liabilities Accounts receivable 29,655 30,859 Prepaid expenses and other assets 13,279 12,279 Deferred commissions 3,644 4,665 Accounts payable and accrued expenses 12,871 1,495 Accrued compensation and related benefits (1,043) (6,975)Other current and non-current liabilities (1,707) 535 Deferred revenue (17,545) (15,096)Operating lease assets and liabilities, net (2,583) (1,788)Net cash provided by (used by) operating activities 61,737 (6,993)Cash flows from investing activities Proceeds from maturities of investments 34,278 11,631 Purchases of investments (59,281) (42,638)Purchases of property and equipment (2,451) (3,287)Net cash used by investing activities (27,454) (34,294)Cash flows from financing activities Proceeds from borrowings — 50,000 Payments for debt issuance costs — (463)Debt repayments (5,000) (3,750)Repurchases of common stock (20,000) (50,019)Payments for employee taxes related to the net share settlement of equity awards (5,890) (4,883)Proceeds from exercise of common stock options 752 619 Net cash used by financing activities (30,138) (8,496)Effect of foreign exchange rate changes on cash and cash equivalents 2,552 (375)Net increase (decrease) in cash and cash equivalents 6,697 (50,158)Cash and cash equivalents at beginning of period 118,552 149,351 Cash and cash equivalents at end of period$125,249 $99,193 Supplemental disclosure of cash flow information Cash paid for interest$10,023 $17,193 Cash paid for income taxes$3,391 $1,925 Supplemental disclosure of non-cash investing and financing activities Accrued capital expenditures$41 $109 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 Short-Swing Profit Payment Unrealized Foreign Exchange Rate Gains and Losses Non-GAAP MeasureThree months ended September 30, 2025Subscriptions cost of revenue$17,762 $(224) $— $— $— $— $— $17,538 Professional services cost of revenue 27,531 (1,399) — — — — — 26,132 Total cost of revenue 45,293 (1,623) — — — — — 43,670 Total operating expense 128,597 (8,637) (2,130) (3,153) (1,105) — — 113,572 Operating income 13,114 10,260 2,130 3,153 1,105 — — 29,762 Non-operating (income) expense (1,398) — — — — — 110 (1,288)Income tax impact of above items 1,376 375 — — — — (406) 1,345 Net income (loss) 7,825 9,885 2,130 3,153 1,105 — 296 24,394 Net income per share, basic$0.11 $0.13 $0.03 $0.04 $0.01 $— $— $0.32 Net income per share, diluted(a, c)$0.10 $0.13 $0.03 $0.04 $0.01 $— $— $0.32 Three months ended September 30, 2024 Subscriptions cost of revenue$14,082 $(211) $— $— $— $— $— $13,871 Professional services cost of revenue 23,002 (1,325) — — — — — 21,677 Total cost of revenue 37,084 (1,536) — — — — — 35,548 Total operating expense 124,125 (7,969) (1,979) (3,635) (324) — — 110,218 Operating (loss) income (7,157) 9,505 1,979 3,635 324 — — 8,286 Non-operating (income) expense (12,544) — — — — 1,799 9,950 (795)Income tax impact of above items 1,319 117 — — — — (327) 1,109 Net (loss) income (2,100) 9,388 1,979 3,635 324 (1,799) (9,623) 1,804 Net (loss) income per share, basic(c)$(0.03) $0.13 $0.03 $0.05 $— $(0.02) $(0.13) $0.02 Net (loss) income per share, diluted(b,c)$(0.03) $0.13 $0.03 $0.05 $— $(0.02) $(0.13) $0.02 (a) Accounts for the impact of 0.6 million shares of dilutive securities.(b) Accounts for the impact of 1.8 million shares of dilutive securities.(c) Per share amounts do not foot due to rounding. GAAP Measure Stock-Based Compensation Litigation Expense JPI Amortization Severance Costs Lease Impairment and Lease-Related Charges Short-Swing Profit Payment Unrealized Foreign Exchange Rate Gains and Losses Non-GAAP MeasureNine months ended September 30, 2025Subscriptions cost of revenue$49,810 $(672) $— $— $— $— $— $— $49,138 Professional services cost of revenue 78,322 (4,161) — — — — — — 74,161 Total cost of revenue 128,132 (4,833) — — — — — — 123,299 Total operating expense 394,642 (26,159) (6,324) (9,355) — (1,714) — — 351,090 Operating income 1,296 30,992 6,324 9,355 — 1,714 — — 49,681 Non-operating (income) expense (24,678) — — — — — — 20,879 (3,799)Income tax impact of above items 3,690 1,125 — — — — — (1,732) 3,083 Net income (loss) 6,336 29,867 6,324 9,355 — 1,714 — (19,147) 34,449 Net income (loss) per share, basic$0.09 $0.40 $0.09 $0.13 $— $0.02 $— $(0.26) $0.47 Net income (loss) per share, diluted(a)$0.08 $0.40 $0.08 $0.13 $— $0.02 $— $(0.26) $0.46 Nine months ended September 30, 2024Subscriptions cost of revenue$39,614 $(641) $— $— $— $— $— $— $38,973 Professional services cost of revenue 74,880 (4,364) — — (1,398) — — — 69,118 Total cost of revenue 114,494 (5,005) — — (1,398) — — — 108,091 Total operating expense 401,729 (25,006) (3,442) (12,643) (4,136) (5,786) — — 350,716 Operating (loss) income (65,886) 30,011 3,442 12,643 5,534 5,786 — — (8,470)Non-operating (income) expense (5,882) — — — — — 1,799 (2,856) (6,939)Income tax impact of above items 690 1,258 — — 1,096 — — 81 3,125 Net (loss) income (78,615) 28,753 3,442 12,643 4,438 5,786 (1,799) 2,775 (22,577)Net (loss) income per share, basic and diluted(b)$(1.08) $0.40 $0.05 $0.17 $0.06 $0.08 $(0.02) $0.04 $(0.31) (a) Accounts for the impact of 0.5 million shares of dilutive securities.(b) Per share amounts do not foot due to rounding. Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (unaudited)Reconciliation of adjusted EBITDA: GAAP net income (loss)$7,825 $(2,100) $6,336 $(78,615)Other income, net (1,398) (12,544) (24,678) (5,882)Interest expense 5,311 6,168 15,948 17,921 Income tax expense 1,376 1,319 3,690 690 Depreciation expense and amortization of intangible assets 2,459 2,562 7,429 7,503 Stock-based compensation expense 10,260 9,505 30,992 30,011 Litigation Expense 2,130 1,979 6,324 3,442 JPI Amortization 3,153 3,635 9,355 12,643 Severance Costs — — — 5,534 Lease Impairment and Lease-Related Charges 1,105 324 1,714 5,786 Adjusted EBITDA$32,221 $10,848 $57,110 $(967) 1 https://register-conf.media-server.com/register/BIbdd542c41bca47739455f1e9a1207f24

Appian Announces Third Quarter 2025 Financial Results

FAQ

Why Very Bullish?

How important is it?

Why Short Term?

Related Companies

Related News