[8-K] APPIAN CORP Reports Material Event
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Appian Corporation reported strong 2025 results and launched a new buyback. Total revenue rose 18% to $726.9 million, with cloud subscriptions revenue up 19% to $437.4 million. GAAP swung to net income of $1.2 million from a $(92.3) million loss, while non-GAAP net income reached $45.6 million.
Adjusted EBITDA increased to $76.8 million from $20.3 million, and net cash from operating activities improved to $62.9 million. As of December 31, 2025, cash, cash equivalents, and investments totaled $187.2 million. The board authorized a share repurchase program of up to $50.0 million from February 2026 through February 2028.
For 2026, Appian guides cloud subscriptions revenue between $502.0 million and $510.0 million, total revenue between $801.0 million and $817.0 million, adjusted EBITDA between $89.0 million and $99.0 million, and non-GAAP net income per diluted share between $0.82 and $0.96.
Positive
- None.
Negative
- None.
Insights
Appian combined strong growth, a move to profitability, and a new buyback.
Appian delivered 2025 revenue of
Non-GAAP operating income rose to
The board authorized up to
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 19, 2026
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s Telephone Number, Including Area Code: (703 ) 442-8844
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On February 19, 2026 , Appian Corporation (the "Company") issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2025, as well as information regarding a conference call to discuss these financial results and the Company's recent business highlights and financial outlook. The Company's press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information included in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 8.01. Other Events.
The Board of Directors has authorized a program to repurchase up to $50.0 million of Appian's common stock (the “Share Repurchase Program”), effective February 2026 through February 2028. The Share Repurchase Program does not obligate Appian to acquire any specific number of shares, and shares of common stock may be repurchased using a variety of methods, including privately negotiated and/or open market transactions, under plans complying with Rule 10b5-1 of the Exchange Act, as part of accelerated share repurchases, or other methods. The timing and amount of any purchases of common stock will be based on Appian’s liquidity, general business and market conditions, debt covenant restrictions and other factors, including alternative investment opportunities.
Item 9.01 Financial Statements and Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press release dated February 19, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Appian Corporation | |||||||||||
Date: | By: | /s/ Srdjan Tanjga | |||||||||
| Srdjan Tanjga | |||||||||||
| Chief Financial Officer | |||||||||||
Exhibit 99.1
Appian Announces Fourth Quarter and Full Year 2025 Financial Results
Fourth quarter cloud subscriptions revenue increased 18% year-over-year to $117.0 million
Full year cloud subscriptions revenue increased 19% year-over year to $437.4 million
McLean, VA – February 19, 2026 – Appian (Nasdaq: APPN) today announced financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Financial Highlights:
•Revenue: Cloud subscriptions revenue was $117.0 million, up 18% compared to the fourth quarter of 2024. Total subscriptions revenue, which includes sales of our cloud subscriptions, license subscriptions, and maintenance and support, increased 19% year-over-year to $162.3 million. Professional services revenue was $40.6 million, an increase of 36% compared to the fourth quarter of 2024. Total revenue was $202.9 million, up 22% compared to the fourth quarter of 2024. Cloud net annualized recurring revenue (“ARR”) expansion was 114% as of December 31, 2025.
•Operating (loss) income and non-GAAP operating income: GAAP operating loss was $(0.7) million, compared to GAAP operating income of $5.0 million for the fourth quarter of 2024. Non-GAAP operating income was $17.4 million, compared to non-GAAP operating income of $18.7 million for the fourth quarter of 2024.
•Net loss and non-GAAP net income (loss): GAAP net loss was $(5.1) million, compared to $(13.6) million for the fourth quarter of 2024. GAAP net loss per share was $(0.07) for the fourth quarter of 2025, compared to $(0.18) for the fourth quarter of 2024. Non-GAAP net income was $11.1 million, compared to non-GAAP net income of $13.2 million for the fourth quarter of 2024. Non-GAAP net income per share was $0.15, compared to the $0.18 net income per share for the fourth quarter of 2024.
•Adjusted EBITDA: Adjusted EBITDA was $19.7 million, compared to adjusted EBITDA of $21.2 million for the fourth quarter of 2024.
•Cash flows: Net cash provided by operating activities was $1.1 million for the three months ended December 31, 2025 compared to $13.9 million of net cash provided by operating activities for the same period in 2024.
Full Year 2025 Financial Highlights:
•Revenue: Cloud subscriptions revenue was $437.4 million for the full year 2025, up 19% compared to the full year 2024. Total subscriptions revenue increased 18% year-over-year to $576.5 million for the full year 2025. Professional services revenue was $150.5 million for the full year 2025, compared to $126.5 million for the full year 2024. Total revenue was $726.9 million for the full year 2025, up 18% compared to the full year 2024.
•Operating income (loss) and non-GAAP operating income: GAAP operating income was $0.6 million for the full year 2025, compared to GAAP operating losses of $(60.9) million for the full year 2024. Non-GAAP operating income was $67.1 million for the full year 2025, compared to non-GAAP operating income $10.2 million for the full year 2024.
•Net income (loss) and non-GAAP net income (loss): GAAP net income was $1.2 million for the full year 2025, compared to GAAP net loss of $(92.3) million for the full year 2024. GAAP basic and diluted net income per share was $0.02 for the full year 2025, compared to $(1.26) net loss per share for the full year 2024. Non-GAAP net income was $45.6 million for the full year 2025, compared to $(9.4) million of non-GAAP net loss for the full year 2024. Non-GAAP net income per diluted share was $0.61 for the full year 2025, compared to the $(0.13) net loss per share for the full year 2024.
•Adjusted EBITDA: Adjusted EBITDA was $76.8 million for the full year 2025, compared to adjusted EBITDA of $20.3 million for the full year 2024.
•Balance sheet and cash flows: As of December 31, 2025, Appian had total cash, cash equivalents, and investments of $187.2 million. Net cash provided by operating activities was $62.9 million for the full year 2025, compared to $6.9 million of net cash provided by operating activities for the full year 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:
•US Army Awards Appian Enterprise Agreement to Support AI-Powered Transformation Efforts
•Appian AI Transforms Clinical Workflows for Global Public Health Agencies
•Appian Launches New AI Capabilities to Automate Complex Work & Accelerate App Modernization
•Appian Names 2025 Public Sector Partner Award Winners
•New Zealand Police Use Appian for Case Processing
Financial Outlook:
As of February 19, 2026, guidance for 2026 is as follows:
•First Quarter 2026 Guidance:
◦Cloud subscriptions revenue is expected to be between $119.0 million and $121.0 million, representing year-over-year growth of 19% to 21%.
◦Total revenue is expected to be between $189.0 million and $193.0 million, representing a year-over-year increase of 14% to 16%.
◦Adjusted EBITDA is expected to be between $19.0 million and $22.0 million.
◦Non-GAAP net income per share is expected to be between $0.16 and $0.20, assuming weighted average common shares outstanding of 75.1 million.
•Full Year 2026 Guidance:
◦Cloud subscriptions revenue is expected to be between $502.0 million and $510.0 million, representing year-over-year growth of 15% to 17%.
◦Total revenue is expected to be between $801.0 million and $817.0 million, representing a year-over-year increase of 10% to 12%.
◦Adjusted EBITDA is expected to be between $89.0 million and $99.0 million.
◦Non-GAAP net income per share is expected to be between $0.82 and $0.96, assuming weighted average common shares outstanding of 74.8 million.
Conference Call Details:
Appian will host a conference call today, February 19, 2026, at 8:30 a.m. ET to discuss Appian's financial results for the fourth quarter and fiscal year ended December 31, 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 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 total operating expense, non-GAAP operating income (loss), non-GAAP income tax expense, 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 involuntary reductions in our workforce, or Severance Costs, 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, 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 (loss) income before (1) other (income) expense, 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
1 https://register-conf.media-server.com/register/BI615bc1f3042f4951a1f347fb0187d4be
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 (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 first 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
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 December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 135,810 | $ | 118,552 | |||||||
| Short-term investments and marketable securities | 51,415 | 41,308 | |||||||||
Accounts receivable, net of allowance of $3,362 and $3,396, respectively | 255,063 | 195,069 | |||||||||
| Deferred commissions, current | 35,166 | 36,630 | |||||||||
| Prepaid expenses and other current assets | 41,970 | 43,984 | |||||||||
| Total current assets | 519,424 | 435,543 | |||||||||
Property and equipment, net of accumulated depreciation of $40,747 and $32,142, respectively | 32,087 | 37,109 | |||||||||
| Goodwill | 28,811 | 25,555 | |||||||||
Intangible assets, net of accumulated amortization of $7,301 and $5,341, respectively | 1,246 | 2,240 | |||||||||
| Right-of-use assets for operating leases | 28,075 | 31,081 | |||||||||
| Deferred commissions, net of current portion | 65,199 | 60,540 | |||||||||
| Deferred tax assets | 4,850 | 4,129 | |||||||||
| Other assets | 11,703 | 24,842 | |||||||||
| Total assets | $ | 691,395 | $ | 621,039 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 6,655 | $ | 4,322 | |||||||
| Accrued expenses | 18,483 | 11,388 | |||||||||
| Accrued compensation and related benefits | 61,781 | 34,223 | |||||||||
| Deferred revenue | 341,281 | 281,760 | |||||||||
| Debt | 9,598 | 9,598 | |||||||||
| Operating lease liabilities | 13,181 | 12,378 | |||||||||
| Other current liabilities | 1,128 | 1,087 | |||||||||
| Total current liabilities | 452,107 | 354,756 | |||||||||
| Long-term debt | 231,228 | 240,826 | |||||||||
| Non-current operating lease liabilities | 45,693 | 52,189 | |||||||||
| Deferred revenue, non-current | 8,962 | 5,477 | |||||||||
| Other non-current liabilities | 398 | 431 | |||||||||
| Total liabilities | 738,388 | 653,679 | |||||||||
Stockholders’ deficit | |||||||||||
Class A common stock—par value $0.0001; 500,000,000 shares authorized as of December 31, 2025 and 2024 and 43,408,828 and 42,938,701 shares issued as of December 31, 2025 and 2024, respectively | 4 | 4 | |||||||||
Class B common stock—par value $0.0001; 100,000,000 shares authorized as December 31, 2025 and 2024 and 31,088,085 and 31,090,085 shares issued as of December 31, 2025 and 2024, respectively | 3 | 3 | |||||||||
Treasury stock at cost, 542,288 shares as of December 31, 2025 | (16,935) | — | |||||||||
| Additional paid-in capital | 617,318 | 591,281 | |||||||||
| Accumulated other comprehensive loss | (36,462) | (11,774) | |||||||||
| Accumulated deficit | (610,921) | (612,154) | |||||||||
Total stockholders’ deficit | (46,993) | (32,640) | |||||||||
Total liabilities and stockholders’ deficit | $ | 691,395 | $ | 621,039 | |||||||
APPIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Note: The Company has reclassified certain information technology, cybersecurity and facility operating expenses from general and administrative expenses to cost of revenue, research and development, and sales and marketing expense. Prior year amounts have been reclassified to conform to the current period presentation.
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Subscriptions | $ | 162,265 | $ | 136,779 | $ | 576,462 | $ | 490,568 | |||||||||||||||
| Professional services | 40,602 | 29,906 | 150,475 | 126,454 | |||||||||||||||||||
| Total revenue | 202,867 | 166,685 | 726,937 | 617,022 | |||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||
| Subscriptions | 23,093 | 16,774 | 83,988 | 65,680 | |||||||||||||||||||
| Professional services | 32,808 | 23,209 | 115,611 | 102,560 | |||||||||||||||||||
| Total cost of revenue | 55,901 | 39,983 | 199,599 | 168,240 | |||||||||||||||||||
| Gross profit | 146,966 | 126,702 | 527,338 | 448,782 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Sales and marketing | 69,145 | 57,073 | 241,186 | 238,454 | |||||||||||||||||||
| Research and development | 45,142 | 39,193 | 172,188 | 163,400 | |||||||||||||||||||
| General and administrative | 33,366 | 25,403 | 113,355 | 107,781 | |||||||||||||||||||
| Total operating expenses | 147,653 | 121,669 | 526,729 | 509,635 | |||||||||||||||||||
Operating (loss) income | (687) | 5,033 | 609 | (60,853) | |||||||||||||||||||
| Other non-operating expense (income) | |||||||||||||||||||||||
Other (income) expense, net | (2,007) | 12,655 | (26,685) | 6,773 | |||||||||||||||||||
| Interest expense | 4,902 | 5,661 | 20,850 | 23,582 | |||||||||||||||||||
| Total other non-operating expense (income) | 2,895 | 18,316 | (5,835) | 30,355 | |||||||||||||||||||
(Loss) income before income taxes | (3,582) | (13,283) | 6,444 | (91,208) | |||||||||||||||||||
| Income tax expense | 1,521 | 364 | 5,211 | 1,054 | |||||||||||||||||||
Net (loss) income | $ | (5,103) | $ | (13,647) | $ | 1,233 | $ | (92,262) | |||||||||||||||
(Loss) earnings per Class A and Class B share: | |||||||||||||||||||||||
| Basic | $ | (0.07) | $ | (0.18) | $ | 0.02 | $ | (1.26) | |||||||||||||||
| Diluted | $ | (0.07) | $ | (0.18) | $ | 0.02 | $ | (1.26) | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 73,895 | 73,953 | 74,049 | 72,988 | |||||||||||||||||||
| Diluted | 73,895 | 73,953 | 74,649 | 72,988 | |||||||||||||||||||
APPIAN CORPORATION
STOCK-BASED COMPENSATION EXPENSE
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||
| Subscriptions | $ | 475 | $ | 395 | $ | 1,810 | $ | 1,638 | |||||||||||||||
| Professional services | 1,483 | 1,362 | 5,787 | 5,925 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Sales and marketing | 2,219 | 1,991 | 8,434 | 8,526 | |||||||||||||||||||
| Research and development | 3,045 | 2,937 | 12,407 | 12,077 | |||||||||||||||||||
| General and administrative | 3,326 | 2,349 | 13,102 | 10,879 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 10,548 | $ | 9,034 | $ | 41,540 | $ | 39,045 | |||||||||||||||
APPIAN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 1,233 | $ | (92,262) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Stock-based compensation | 41,540 | 39,045 | |||||||||
| Depreciation expense and amortization of intangible assets | 9,706 | 10,030 | |||||||||
| Lease impairment charges | 779 | 5,462 | |||||||||
| Bad debt expense | 1,232 | 1,760 | |||||||||
| Amortization of debt issuance costs | 600 | 589 | |||||||||
Benefit for deferred income taxes | (349) | (899) | |||||||||
Foreign currency transaction (gains) losses, net | (21,732) | 16,745 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | (51,673) | (28,353) | |||||||||
| Prepaid expenses and other assets | 15,316 | 16,551 | |||||||||
| Deferred commissions | (3,195) | (3,144) | |||||||||
| Accounts payable and accrued expenses | 9,269 | (871) | |||||||||
| Accrued compensation and related benefits | 19,993 | (2,947) | |||||||||
| Other current and non-current liabilities | (3,489) | (1,478) | |||||||||
| Deferred revenue | 47,200 | 49,309 | |||||||||
| Operating lease assets and liabilities | (3,556) | (2,659) | |||||||||
Net cash provided by operating activities | 62,874 | 6,878 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Proceeds from maturities of investments | 52,540 | 20,038 | |||||||||
| Purchases of investments | (62,048) | (51,630) | |||||||||
| Purchases of property and equipment | (3,318) | (3,798) | |||||||||
Net cash used by investing activities | (12,826) | (35,390) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from borrowings | — | 50,000 | |||||||||
| Payments for debt issuance costs | — | (463) | |||||||||
| Debt repayments | (10,000) | (6,250) | |||||||||
| Repurchase of common stock | (20,000) | (50,019) | |||||||||
| Payments for employee taxes related to the net share settlement of equity awards | (7,396) | (7,987) | |||||||||
| Proceeds from exercise of common stock options | 1,118 | 14,461 | |||||||||
Net cash used by financing activities | (36,278) | (258) | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | 3,488 | (2,029) | |||||||||
Net increase (decrease) in cash and cash equivalents | 17,258 | (30,799) | |||||||||
| Cash and cash equivalents at beginning of period | 118,552 | 149,351 | |||||||||
Cash and cash equivalents at end of period | $ | 135,810 | $ | 118,552 | |||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for interest | $ | 19,644 | $ | 22,574 | |||||||
| Cash paid for income taxes | $ | 5,120 | $ | 3,334 | |||||||
| Supplemental non-cash investing and financing information: | |||||||||||
| Accrued capital expenditures | $ | 87 | $ | 155 | |||||||
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 | Unrealized Foreign Exchange Rate Gains and Losses | Non-GAAP Measure | |||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Subscriptions cost of revenue | $ | 23,093 | $ | (475) | $ | — | $ | — | $ | — | $ | — | $ | 22,618 | |||||||||||||||||||||||||||
| Professional services cost of revenue | 32,808 | (1,483) | — | — | — | — | 31,325 | ||||||||||||||||||||||||||||||||||
| Total cost of revenue | 55,901 | (1,958) | — | — | — | — | 53,943 | ||||||||||||||||||||||||||||||||||
Sales and marketing expense | 69,145 | (2,219) | — | — | — | — | 66,926 | ||||||||||||||||||||||||||||||||||
Research and development expense | 45,142 | (3,045) | — | — | — | — | 42,097 | ||||||||||||||||||||||||||||||||||
General and administrative expense | 33,366 | (3,326) | (4,083) | (3,153) | (318) | — | 22,486 | ||||||||||||||||||||||||||||||||||
| Total operating expense | 147,653 | (8,590) | (4,083) | (3,153) | (318) | — | 131,509 | ||||||||||||||||||||||||||||||||||
Operating (loss) income | (687) | 10,548 | 4,083 | 3,153 | 318 | — | 17,415 | ||||||||||||||||||||||||||||||||||
Non-operating expense | 2,895 | — | — | — | — | 1,060 | 3,955 | ||||||||||||||||||||||||||||||||||
Income tax impact of above items | 1,521 | 183 | — | — | — | 618 | 2,322 | ||||||||||||||||||||||||||||||||||
Net (loss) income | (5,103) | 10,365 | 4,083 | 3,153 | 318 | (1,678) | 11,138 | ||||||||||||||||||||||||||||||||||
Net (loss) income per share, basic and diluted(a) | $ | (0.07) | $ | 0.14 | $ | 0.05 | $ | 0.04 | $ | — | $ | (0.02) | $ | 0.15 | |||||||||||||||||||||||||||
Three Months Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Subscriptions cost of revenue | $ | 16,774 | $ | (395) | $ | — | $ | — | $ | — | $ | — | $ | 16,379 | |||||||||||||||||||||||||||
| Professional services cost of revenue | 23,209 | (1,362) | — | — | — | — | 21,847 | ||||||||||||||||||||||||||||||||||
| Total cost of revenue | 39,983 | (1,757) | — | — | — | — | 38,226 | ||||||||||||||||||||||||||||||||||
Sales and marketing expense | 57,073 | (1,991) | — | — | — | — | 55,082 | ||||||||||||||||||||||||||||||||||
Research and development expense | 39,193 | (2,937) | — | — | — | — | 36,256 | ||||||||||||||||||||||||||||||||||
General and administrative expense | 25,403 | (2,349) | (1,160) | (3,152) | (318) | — | 18,424 | ||||||||||||||||||||||||||||||||||
| Total operating expense | 121,669 | (7,277) | (1,160) | (3,152) | (318) | — | 109,762 | ||||||||||||||||||||||||||||||||||
Operating income | 5,033 | 9,034 | 1,160 | 3,152 | 318 | — | 18,697 | ||||||||||||||||||||||||||||||||||
Non-operating expense (income) | 18,316 | — | — | — | — | (13,840) | 4,476 | ||||||||||||||||||||||||||||||||||
| Income tax impact of above items | 364 | 241 | — | — | — | 398 | 1,003 | ||||||||||||||||||||||||||||||||||
| Net (loss) income | (13,647) | 8,793 | 1,160 | 3,152 | 318 | 13,442 | 13,218 | ||||||||||||||||||||||||||||||||||
| Net (loss) income per share, basic and diluted | $ | (0.18) | $ | 0.12 | $ | 0.02 | $ | 0.04 | $ | — | $ | 0.18 | $ | 0.18 | |||||||||||||||||||||||||||
(a) Per share amounts do not foot due to rounding.
| GAAP Measure | Stock-Based Compensation | Litigation Expense | JPI Amortization | Lease Impairment and Lease-Related Charges | Unrealized Foreign Exchange Rate Gains and Losses | Non-GAAP Measure | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Subscriptions cost of revenue | $ | 83,988 | $ | (1,810) | $ | — | $ | — | $ | — | $ | — | $ | 82,178 | |||||||||||||||||||||||||||
| Professional services cost of revenue | 115,611 | (5,787) | — | — | — | — | 109,824 | ||||||||||||||||||||||||||||||||||
| Total cost of revenue | 199,599 | (7,597) | — | — | — | — | 192,002 | ||||||||||||||||||||||||||||||||||
Sales and marketing expense | 241,186 | (8,434) | — | — | — | — | 232,752 | ||||||||||||||||||||||||||||||||||
Research and development expense | 172,188 | (12,407) | — | — | — | — | 159,781 | ||||||||||||||||||||||||||||||||||
General and administrative expense | 113,355 | (13,102) | (10,407) | (12,508) | (2,032) | — | 75,306 | ||||||||||||||||||||||||||||||||||
| Total operating expense | 526,729 | (33,943) | (10,407) | (12,508) | (2,032) | — | 467,839 | ||||||||||||||||||||||||||||||||||
Operating income | 609 | 41,540 | 10,407 | 12,508 | 2,032 | — | 67,096 | ||||||||||||||||||||||||||||||||||
| Non-operating (income) expense | (5,835) | — | — | — | — | 21,939 | 16,104 | ||||||||||||||||||||||||||||||||||
| Income tax impact of above items | 5,211 | 1,308 | — | — | — | (1,114) | 5,405 | ||||||||||||||||||||||||||||||||||
Net income (loss) | 1,233 | 40,232 | 10,407 | 12,508 | 2,032 | (20,825) | 45,587 | ||||||||||||||||||||||||||||||||||
Net income (loss) per share, basic | $ | 0.02 | $ | 0.54 | $ | 0.14 | $ | 0.17 | $ | 0.03 | $ | (0.28) | $ | 0.62 | |||||||||||||||||||||||||||
Net income (loss) per share, diluted(a),(b) | $ | 0.02 | $ | 0.54 | $ | 0.14 | $ | 0.17 | $ | 0.03 | $ | (0.28) | $ | 0.61 | |||||||||||||||||||||||||||
(a) Accounts for the impact of 0.6 million shares of dilutive securities.
(b) 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 | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subscriptions cost of revenue | $ | 65,680 | $ | (1,638) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 64,042 | |||||||||||||||||||||||||||||||||||
| Professional services cost of revenue | 102,560 | (5,925) | — | — | (1,398) | — | — | — | 95,237 | ||||||||||||||||||||||||||||||||||||||||||||
| Total cost of revenue | 168,240 | (7,563) | — | — | (1,398) | — | — | — | 159,279 | ||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing expense | 238,454 | (8,526) | — | — | (3,937) | — | — | — | 225,991 | ||||||||||||||||||||||||||||||||||||||||||||
| Research and development expense | 163,400 | (12,077) | — | — | (5) | — | — | — | 151,318 | ||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expense | 107,781 | (10,879) | (4,602) | (15,795) | (194) | (6,104) | — | — | 70,207 | ||||||||||||||||||||||||||||||||||||||||||||
| Total operating expense | 509,635 | (31,482) | (4,602) | (15,795) | (4,136) | (6,104) | — | — | 447,516 | ||||||||||||||||||||||||||||||||||||||||||||
Operating (loss) income | (60,853) | 39,045 | 4,602 | 15,795 | 5,534 | 6,104 | — | — | 10,227 | ||||||||||||||||||||||||||||||||||||||||||||
Non-operating expense (income) | 30,355 | — | — | — | — | — | 1,799 | (16,697) | 15,457 | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax impact of above items | 1,054 | 1,499 | — | — | 1,096 | — | — | 479 | 4,128 | ||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | (92,262) | 37,546 | 4,602 | 15,795 | 4,438 | 6,104 | (1,799) | 16,218 | (9,358) | ||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income per share, basic and diluted | $ | (1.26) | $ | 0.51 | $ | 0.06 | $ | 0.22 | $ | 0.06 | $ | 0.08 | $ | (0.02) | $ | 0.22 | $ | (0.13) | |||||||||||||||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Reconciliation of adjusted EBITDA: | |||||||||||||||||||||||
GAAP net (loss) income | $ | (5,103) | $ | (13,647) | $ | 1,233 | $ | (92,262) | |||||||||||||||
Other (income) expense, net | (2,007) | 12,655 | (26,685) | 6,773 | |||||||||||||||||||
| Interest expense | 4,902 | 5,661 | 20,850 | 23,582 | |||||||||||||||||||
| Income tax expense | 1,521 | 364 | 5,211 | 1,054 | |||||||||||||||||||
| Depreciation expense and amortization of intangible assets | 2,276 | 2,527 | 9,706 | 10,030 | |||||||||||||||||||
| Stock-based compensation expense | 10,548 | 9,034 | 41,540 | 39,045 | |||||||||||||||||||
| Litigation Expense | 4,083 | 1,160 | 10,407 | 4,602 | |||||||||||||||||||
| JPI Amortization | 3,153 | 3,152 | 12,508 | 15,795 | |||||||||||||||||||
| Severance Costs | — | — | — | 5,534 | |||||||||||||||||||
| Lease Impairment and Lease-Related Charges | 318 | 318 | 2,032 | 6,104 | |||||||||||||||||||
| Adjusted EBITDA | $ | 19,691 | $ | 21,224 | $ | 76,802 | $ | 20,257 | |||||||||||||||
Filing Exhibits & Attachments
4 documents
Appian
NASDAQ:APPN
APPN Rankings
APPN Latest News
APPN Latest SEC Filings
Feb 19, 2026
[Form 4] APPIAN CORP Insider Trading Activity
Feb 19, 2026
[Form 4] APPIAN CORP Insider Trading Activity
Feb 19, 2026
[10-K] APPIAN CORP Files Annual Report
Feb 4, 2026
[Form 4] APPIAN CORP Insider Trading Activity