Original source text
Cloud subscriptions revenue increased 23% year-over-year to $131.7 million August 06, 2026 07:05 ET | Source: Appian Corporation
MCLEAN, Va., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights:
Revenue: Cloud subscriptions revenue was $131.7 million, up 23% compared to the second quarter of 2025. Total subscriptions revenue increased 19% year-over-year to $157.7 million. Professional services revenue was $45.6 million, an increase of 20% compared to the second quarter of 2025. Total revenue was $203.3 million, up 19% compared to the second quarter of 2025. Cloud net annualized recurring revenue (“ARR”) expansion was 115% as of June 30, 2026.Operating loss and non-GAAP operating income: GAAP operating loss was $(5.4) million, compared to GAAP operating loss of $(11.0) million for the second quarter of 2025. Non-GAAP operating income was $13.6 million, compared to non-GAAP operating income of $5.6 million for the second quarter of 2025.Net loss and non-GAAP net income: GAAP net loss was $(11.8) million, compared to $(0.3) million for the second quarter of 2025. GAAP net loss per share was $(0.16) for the second quarter of 2026, compared to breakeven for the second quarter of 2025. Non-GAAP net income was $9.2 million, compared to $0.3 million for the second quarter of 2025. Non-GAAP net income per share was $0.13, compared to breakeven for the second quarter of 2025.Adjusted EBITDA: Adjusted EBITDA was $16.2 million, compared to adjusted EBITDA of $8.1 million for the second quarter of 2025.Cash flows: Net cash provided by operating activities was $12.1 million for the three months ended June 30, 2026 compared to $(1.9) million of net cash used by operating activities for the same period in 2025. 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.”
Financial Outlook:
As of August 6, 2026, guidance for 2026 is as follows:
Third Quarter 2026 Guidance: Cloud subscriptions revenue is expected to be between $133.0 million and $135.0 million, representing year-over-year growth of 17% to 19%.Total revenue is expected to be between $214.0 million and $218.0 million, representing a year-over-year increase of 14% to 17%.Adjusted EBITDA is expected to be between $30.0 million and $33.0 million.Non-GAAP earnings per share is expected to be between $0.31 and $0.35, assuming weighted average common shares outstanding of 72.6 million. Full Year 2026 Guidance: Cloud subscriptions revenue is expected to be between $525.0 million and $529.0 million, representing year-over-year growth of 20% to 21%.Total revenue is expected to be between $845.0 million and $853.0 million, representing a year-over-year increase of 16% to 17%.Adjusted EBITDA is expected to be between $104.0 million and $110.0 million.Non-GAAP earnings per share is expected to be between $1.04 and $1.12, assuming weighted average common shares outstanding of 73.2 million. Conference Call Details:
Appian will host a conference call today, August 6, 2026, at 8:30 a.m. ET to discuss Appian's financial results for the second quarter ended June 30, 2026 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 provides process automation technology. We automate complex processes in large enterprises and governments. Our platform is known for its unique reliability and scale. We’ve been automating processes for 25 years and understand enterprise operations like no one else. 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 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 sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP total operating expense, non-GAAP non-operating (expense) income, non-GAAP income tax expense, non-GAAP net income, and non-GAAP net income 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, and lease impairments 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. Appian defines adjusted EBITDA as net loss before (1) other expense (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, and (8) 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 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 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 third quarter and full year 2026, 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 market opportunity and the expansion of its core software markets in general, the opportunity and disruptive impact of AI, the effects of increased competition, as well as innovations by new and existing competitors in its market, Appian’s ability to effectively manage or sustain its growth and to maintain profitability, Appian’s ability to maintain, or strengthen awareness of, its brand, 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
[email protected]
Media Contact
[email protected]
APPIAN CORPORATIONCONSOLIDATED BALANCE SHEETS(in thousands, except par value and share data) As of June 30, 2026 December 31, 2025 (unaudited) Assets Current assets Cash and cash equivalents$121,111 $135,810 Short-term investments and marketable securities 46,755 51,415 Accounts receivable, net of allowance of $3,416 and $3,362, respectively 171,162 255,063 Deferred commissions, current 38,026 35,166 Prepaid expenses and other current assets 32,952 41,970 Total current assets 410,006 519,424 Property and equipment, net of accumulated depreciation of $42,933 and $40,747, respectively 30,667 32,087 Goodwill 27,973 28,811 Intangible assets, net of accumulated amortization of $7,710 and $7,301, respectively 588 1,246 Right-of-use assets for operating leases 30,437 28,075 Deferred commissions, net of current portion 67,376 65,199 Deferred tax assets 4,857 4,850 Other assets 13,809 11,703 Total assets$585,713 $691,395 Liabilities and Stockholders’ Deficit Current liabilities Accounts payable$8,077 $6,655 Accrued expenses 21,662 18,483 Accrued compensation and related benefits 43,035 61,781 Deferred revenue 314,263 341,281 Debt 9,598 9,598 Operating lease liabilities 14,171 13,181 Other current liabilities 1,012 1,128 Total current liabilities 411,818 452,107 Long-term debt 226,429 231,228 Non-current operating lease liabilities 45,128 45,693 Deferred revenue, non-current 7,208 8,962 Other non-current liabilities 311 398 Total liabilities 690,894 738,388 Stockholders’ deficit Class A common stock—par value $0.0001; 500,000,000 shares authorized as of June 30, 2026 and December 31, 2025 and 43,504,355 and 43,408,828 shares issued as of June 30, 2026 and December 31, 2025, respectively 4 4 Class B common stock—par value $0.0001; 100,000,000 shares authorized as June 30, 2026 and December 31, 2025 and 31,087,385 and 31,088,085 shares issued as of June 30, 2026 and December 31, 2025, respectively 3 3 Treasury stock at cost, 2,795,084 and 542,288 shares as of June 30, 2026 and December 31, 2025, respectively (70,391) (16,935)Additional paid-in capital 623,090 617,318 Accumulated other comprehensive loss (33,624) (36,462)Accumulated deficit (624,263) (610,921)Total stockholders’ deficit (105,181) (46,993)Total liabilities and stockholders’ deficit$585,713 $691,395 APPIAN CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands, except per share data) Three Months Ended June 30, Six months ended June 30, 2026 2025 2026 2025 Revenue Subscriptions$157,682 $132,657 $317,993 $267,009 Professional services 45,574 37,983 87,443 70,057 Total revenue 203,256 170,640 405,436 337,066 Cost of revenue Subscriptions 25,409 20,707 48,313 39,228 Professional services 33,104 28,247 64,611 53,766 Total cost of revenue 58,513 48,954 112,924 92,994 Gross profit 144,743 121,686 292,512 244,072 Operating expenses Sales and marketing 70,113 62,157 134,732 118,467 Research and development 47,305 42,655 93,629 84,485 General and administrative 32,765 27,858 66,435 52,938 Total operating expenses 150,183 132,670 294,796 255,890 Operating loss (5,440) (10,984) (2,284) (11,818)Other non-operating expense (income) Other expense (income), net 827 (17,564) 743 (23,280)Interest expense 3,780 5,319 7,952 10,637 Total other non-operating expense (income) 4,607 (12,245) 8,695 (12,643)(Loss) income before income taxes (10,047) 1,261 (10,979) 825 Income tax expense 1,770 1,573 2,363 2,314 Net loss$(11,817) $(312) $(13,342) $(1,489)Net loss per Class A and Class B share: Basic and diluted$(0.16) $(0.00) $(0.18) $(0.02)Weighted average common shares outstanding: Basic and diluted 72,896 74,202 73,348 74,148 APPIAN CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited, in thousands) Six Months Ended June 30, 2026 2025 Cash flows from operating activities Net loss$(13,342) $(1,489)Adjustments to reconcile net loss to net cash provided by operating activities Stock-based compensation 22,449 20,732 Depreciation expense and amortization of intangible assets 4,780 4,970 Bad debt expense 634 550 Amortization of debt issuance costs 300 300 Benefit for deferred income taxes (68) (689)Foreign currency transaction losses (gains), net 3,372 (20,659)Changes in assets and liabilities Accounts receivable 82,946 49,720 Prepaid expenses and other assets 6,991 10,174 Deferred commissions (5,037) 3,228 Accounts payable and accrued expenses 4,298 7,559 Accrued compensation and related benefits (17,348) (3,811)Other current and non-current liabilities (538) (277)Deferred revenue (26,590) (25,611)Operating lease assets and liabilities, net (1,938) (1,671)Net cash provided by operating activities 60,909 43,026 Cash flows from investing activities Proceeds from maturities of investments 49,079 27,985 Purchases of investments (44,866) (59,281)Purchases of property and equipment (2,491) (1,797)Net cash provided by (used by) investing activities 1,722 (33,093)Cash flows from financing activities Debt repayments (5,000) (5,000)Repurchases of common stock (65,736) (10,000)Payments for employee taxes related to the net share settlement of equity awards (6,395) (4,469)Proceeds from exercise of common stock options 876 504 Net cash used by financing activities (76,255) (18,965)Effect of foreign exchange rate changes on cash and cash equivalents (1,075) 2,687 Net decrease in cash and cash equivalents (14,699) (6,345)Cash and cash equivalents at beginning of period 135,810 118,552 Cash and cash equivalents at end of period$121,111 $112,207 Supplemental disclosure of cash flow information: Cash paid for interest$7,338 $10,023 Cash paid for income taxes$2,542 $1,997 Supplemental disclosure of non-cash investing and financing information: Accrued capital expenditures$408 $54 Operating lease liabilities arising from obtaining right-of-use assets$5,370 $— 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, 2026Subscriptions cost of revenue$25,409 $(497) $— $— $— $— $24,912 Professional services cost of revenue 33,104 (1,520) — — — — 31,584 Total cost of revenue 58,513 (2,017) — — — — 56,496 Sales and marketing expense 70,113 (1,963) — — — — 68,150 Research and development expense 47,305 (3,382) — — — — 43,923 General and administrative expense 32,765 (3,198) (6,293) (1,957) (279) — 21,038 Total operating expense 150,183 (8,543) (6,293) (1,957) (279) — 133,111 Operating (loss) income (5,440) 10,560 6,293 1,957 279 — 13,649 Non-operating expense (income) 827 — — — — (2,523) (1,696)Income tax impact of above items 1,770 504 — — — 95 2,369 Net (loss) income (11,817) 10,056 6,293 1,957 279 2,428 9,196 Net (loss) income per share, basic$(0.16) $0.14 $0.09 $0.03 $— $0.03 $0.13 Net (loss) income per share, diluted(a)$(0.16) $0.14 $0.09 $0.03 $— $0.03 $0.13 Three Months Ended June 30, 2025 Subscriptions cost of revenue$20,707 $(418) $— $— $— $— $20,289 Professional services cost of revenue 28,247 (1,400) — — — — 26,847 Total cost of revenue 48,954 (1,818) — — — — 47,136 Sales and marketing expense 62,157 (2,087) — — — — 60,070 Research and development expense 42,655 (3,357) — — — — 39,298 General and administrative expense 27,858 (3,431) (2,482) (3,118) (297) — 18,530 Total operating expense 132,670 (8,875) (2,482) (3,118) (297) — 117,898 Operating (loss) income (10,984) 10,693 2,482 3,118 297 — 5,606 Non-operating (income) expense (17,564) — — — — 16,754 (810)Income tax impact of above items 1,573 295 — — — (1,059) 809 Net (loss) income (312) 10,398 2,482 3,118 297 (15,695) 288 Net (loss) income per share, basic$(0.00) $0.14 $0.03 $0.04 $— $(0.21) $0.00 Net (loss) income per share, diluted(a)$(0.00) $0.14 $0.03 $0.04 $— $(0.21) $0.00 (a) Accounts for the impact of 0.4 million shares of dilutive securities.
GAAP
Measure Stock-Based
Compensation Litigation
Expense JPI
Amortization Lease
Impairment
and Lease-
Related
Charges Unrealized
Foreign
Exchange Rate
Gains and
Losses Non-GAAP
MeasureSix months ended June 30, 2026Subscriptions cost of revenue$48,313 $(1,056) $— $— $— $— $47,257 Professional services cost of revenue 64,611 (3,158) — — — — 61,453 Total cost of revenue 112,924 (4,214) — — — — 108,710 Sales and marketing expense 134,732 (4,366) — — — — 130,366 Research and development expense 93,629 (7,117) — — — — 86,512 General and administrative expense 66,435 (6,752) (13,241) (4,012) (581) — 41,849 Total operating expense 294,796 (18,235) (13,241) (4,012) (581) — 258,727 Operating (loss) income (2,284) 22,449 13,241 4,012 581 — 37,999 Non-operating expense (income) 743 — — — — (3,371) (2,628)Income tax impact of above items 2,363 1,011 — — — 294 3,668 Net (loss) income (13,342) 21,438 13,241 4,012 581 3,077 29,007 Net (loss) income per share, basic(c)$(0.18) $0.29 $0.18 $0.05 $0.01 $0.04 $0.40 Net (loss) income per share, diluted(a)$(0.18) $0.29 $0.18 $0.05 $0.01 $0.04 $0.39 Six months ended June 30, 2025 Subscriptions cost of revenue$39,228 $(916) $— $— $— $— $38,312 Professional services cost of revenue 53,766 (2,856) — — — — 50,910 Total cost of revenue 92,994 (3,772) — — — — 89,222 Sales and marketing expense 118,467 (4,333) — — — — 114,134 Research and development expense 84,485 (6,371) — — — — 78,114 General and administrative expense 52,938 (6,256) (4,194) (6,202) (609) — 35,677 Total operating expense 255,890 (16,960) (4,194) (6,202) (609) — 227,925 Operating (loss) income (11,818) 20,732 4,194 6,202 609 — 19,919 Non-operating (income) expense (23,280) — — — — 20,770 (2,510)Income tax impact of above items 2,314 750 — — — (1,326) 1,738 Net (loss) income (1,489) 19,982 4,194 6,202 609 (19,444) 10,054 Net (loss) income per share, basic$(0.02) $0.27 $0.06 $0.08 $0.01 $(0.26) $0.14 Net (loss) income per share, diluted(b,c)$(0.02) $0.27 $0.06 $0.08 $0.01 $(0.26) $0.13 (a) Accounts for the impact of 0.5 million shares of dilutive securities.
(b) Accounts for the impact of 0.4 million shares of dilutive securities.
(c) Per share amounts do not foot due to rounding.
Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Reconciliation of adjusted EBITDA: GAAP net loss$(11,817) $(312) $(13,342) $(1,489)Other expense (income), net 827 (17,564) 743 (23,280)Interest expense 3,780 5,319 7,952 10,637 Income tax expense 1,770 1,573 2,363 2,314 Depreciation expense and amortization of intangible assets 2,507 2,524 4,780 4,970 Stock-based compensation expense 10,560 10,693 22,449 20,732 Litigation Expense 6,293 2,482 13,241 4,194 JPI Amortization 1,957 3,118 4,012 6,202 Lease Impairment and Lease-Related Charges 279 297 581 609 Adjusted EBITDA$16,156 $8,130 $42,779 $24,889 _________________________
1 https://register-conf.media-server.com/register/BI28813a37ca7a432497f0bb1cdcef1e12
