EX-99.1 2 appnex991earningsrelease-9.htm EX-99.1 Document

Exhibit 99.1
appian2021white-bluefielda.jpg

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]

1 https://register-conf.media-server.com/register/BIbdd542c41bca47739455f1e9a1207f24


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 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, 2025December 31, 2024
(unaudited)
Assets
Current assets
Cash and cash equivalents$125,249 $118,552 
Short-term investments and marketable securities66,312 41,308 
Accounts receivable, net of allowance of $2,862 and $3,396, respectively
172,615 195,069 
Deferred commissions, current34,131 36,630 
Prepaid expenses and other current assets41,104 43,984 
Total current assets439,411 435,543 
Property and equipment, net of accumulated depreciation of $38,789 and $32,142, respectively
33,168 37,109 
Goodwill28,833 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 leases29,110 31,081 
Deferred commissions, net of current portion59,395 60,540 
Deferred tax assets5,144 4,129 
Other assets15,107 24,842 
Total assets$611,735 $621,039 
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable$8,605 $4,322 
Accrued expenses20,082 11,388 
Accrued compensation and related benefits38,677 34,223 
Deferred revenue275,449 281,760 
Debt12,098 9,598 
Operating lease liabilities13,110 12,378 
Other current liabilities2,105 1,087 
Total current liabilities370,126 354,756 
Long-term debt233,627 240,826 
Non-current operating lease liabilities47,769 52,189 
Deferred revenue, non-current8,322 5,477 
Other non-current liabilities435 431 
Total liabilities660,279 653,679 
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 capital612,488 591,281 
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,
2025202420252024
Revenue
Subscriptions$147,188 $123,121 $414,197 $353,789 
Professional services39,816 30,931 109,873 96,548 
Total revenue187,004 154,052 524,070 450,337 
Cost of revenue
Subscriptions17,762 14,082 49,810 39,614 
Professional services27,531 23,002 78,322 74,880 
Total cost of revenue45,293 37,084 128,132 114,494 
Gross profit141,711 116,968 395,938 335,843 
Operating expenses
Sales and marketing51,918 50,865 166,929 175,613 
Research and development40,263 38,572 120,127 117,789 
General and administrative36,416 34,688 107,586 108,327 
Total operating expenses128,597 124,125 394,642 401,729 
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 expense5,311 6,168 15,948 17,921 
Total other non-operating expense (income)3,913 (6,376)(8,730)12,039 
Income (loss) before income taxes9,201 (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:
Basic74,008 72,396 74,101 72,664 
Diluted74,575 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,
2025202420252024
Cost of revenue
Subscriptions$224 $211 $672 $641 
Professional services1,399 1,325 4,161 4,364 
Operating expenses
Sales and marketing1,827 1,746 6,050 6,270 
Research and development2,915 2,939 9,139 8,859 
General and administrative3,895 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,
20252024
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 compensation30,992 30,011 
Depreciation expense and amortization of intangible assets7,429 7,503 
Lease impairment charges779 5,462 
Bad debt expense692 619 
Amortization of debt issuance costs450 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 receivable29,655 30,859 
Prepaid expenses and other assets13,279 12,279 
Deferred commissions3,644 4,665 
Accounts payable and accrued expenses12,871 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 activities61,737 (6,993)
Cash flows from investing activities
Proceeds from maturities of investments34,278 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 options752 619 
Net cash used by financing activities(30,138)(8,496)
Effect of foreign exchange rate changes on cash and cash equivalents2,552 (375)
Net increase (decrease) in cash and cash equivalents6,697 (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 MeasureStock-Based CompensationLitigation ExpenseJPI AmortizationLease Impairment and Lease-Related ChargesShort-Swing Profit PaymentUnrealized Foreign Exchange Rate Gains and LossesNon-GAAP Measure
Three months ended September 30, 2025
Subscriptions cost of revenue$17,762 $(224)$— $— $— $— $— $17,538 
Professional services cost of revenue27,531 (1,399)— — — — — 26,132 
Total cost of revenue45,293 (1,623)— — — — — 43,670 
Total operating expense128,597 (8,637)(2,130)(3,153)(1,105)— — 113,572 
Operating income13,114 10,260 2,130 3,153 1,105 — — 29,762 
Non-operating (income) expense(1,398)— — — — — 110 (1,288)
Income tax impact of above items1,376 375 — — — — (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 revenue23,002 (1,325)— — — — — 21,677 
Total cost of revenue37,084 (1,536)— — — — — 35,548 
Total operating expense124,125 (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 items1,319 117 — — — — (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 MeasureStock-Based CompensationLitigation ExpenseJPI AmortizationSeverance CostsLease Impairment and Lease-Related ChargesShort-Swing Profit PaymentUnrealized Foreign Exchange Rate Gains and LossesNon-GAAP Measure
Nine months ended September 30, 2025
Subscriptions cost of revenue$49,810 $(672)$— $— $— $— $— $— $49,138 
Professional services cost of revenue78,322 (4,161)— — — — — — 74,161 
Total cost of revenue128,132 (4,833)— — — — — — 123,299 
Total operating expense394,642 (26,159)(6,324)(9,355)— (1,714)— — 351,090 
Operating income1,296 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 items3,690 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 revenue74,880 (4,364)— — (1,398)— — — 69,118 
Total cost of revenue114,494 (5,005)— — (1,398)— — — 108,091 
Total operating expense401,729 (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 items690 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,
2025202420252024
(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 expense5,311 6,168 15,948 17,921 
Income tax expense1,376 1,319 3,690 690 
Depreciation expense and amortization of intangible assets2,459 2,562 7,429 7,503 
Stock-based compensation expense10,260 9,505 30,992 30,011 
Litigation Expense
2,130 1,979 6,324 3,442 
JPI Amortization3,153 3,635 9,355 12,643 
Severance Costs— — — 5,534 
Lease Impairment and Lease-Related Charges1,105 324 1,714 5,786 
Adjusted EBITDA$32,221 $10,848 $57,110 $(967)