Appian Announces Second Quarter 2026 Financial Results

About this update from Appian Corporation

Cloud subscriptions revenue increased 23% year-over-year to $131.7 million 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 CORPORATION CONSOLIDATED 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 CORPORATION CONSOLIDATED 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 CORPORATION CONSOLIDATED 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 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 June 30, 2026 Subscriptions 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 Measure Six months ended June 30, 2026 Subscriptions 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

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