Appian Announces Third Quarter 2025 Financial Results
Third quarter cloud subscriptions revenue increased 21% year-over-year to $113.6 million
Third quarter total revenue increased 21% year-over-year to $187.0 million
McLean, VA – November 6, 2025 – 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 Assessment
•Appian Named a Leader in Digital Process Automation Software Report by Independent Research Firm
•MagMutual Transforms Operations with Appian
•Latest 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]
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 Contact
investors@appian.com
Media Contact
Valerie Miller
Senior Manager, Media Relations North America
pr@appian.com
APPIAN CORPORATION
CONSOLIDATED 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 CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 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 CORPORATION
STOCK-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 CORPORATION
CONSOLIDATED 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 CORPORATION
RECONCILIATION 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 Measure
Three months ended September 30, 2025
Subscriptions 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 Measure
Nine months ended September 30, 2025
Subscriptions 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, 2024
Subscriptions 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
