Earnings release
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Appian Announces Third Quarter 2026 Financial Results November 5, 2026 Cloud subscriptions revenue increased 20% year-over-year to $136.4 million MCLEAN, Va., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced financial results for the third quarter ended September 30, 2026. Third Quarter 2026 Financial Highlights: Revenue: Cloud subscriptions revenue was $136.4 million, up 20% compared to the third quarter of 2025. Total subscriptions revenue increased 28% year-over-year to $187.8 million. Professional services revenue was $46.9 million, an increase of 18% compared to the third quarter of 2025. Total revenue was $234.6 million, up 25% compared to the third quarter of 2025. Cloud net annualized recurring revenue (“ARR”) expansion was 120% as of September 30, 2026. Operating income and non-GAAP operating income: GAAP operating income was $21.3 million, compared to $13.1 million for the third quarter of 2025. Non-GAAP operating income was $40.6 million, compared to $29.8 million for the third quarter of 2025. Net income and non-GAAP net income: GAAP net income was $12.3 million, compared to $7.8 million for the third quarter of 2025. GAAP net income per diluted share was $0.17 for the third quarter of 2026, compared to $0.10 for the third quarter of 2025. Non-GAAP net income was $37.1 million, compared to $24.4 million for the third quarter of 2025. Non-GAAP net income per share was $0.51, compared to $0.32 for the third quarter of 2025. Adjusted EBITDA: Adjusted EBITDA was $43.4 million, compared to adjusted EBITDA of $32.2 million for the third quarter of 2025. Cash flows: Net cash used by operating activities was $(15.4) million for the three months ended September 30, 2026 compared to $18.7 million of net cash provided 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 November 5, 2026, guidance for 2026 is as follows: Fourth Quarter 2026 Guidance: Cloud subscriptions revenue is expected to be between $143.0 million and $145.0 million, representing year-over-year growth of 22% to 24%. Total revenue is expected to be between $233.0 million and $237.0 million, representing a year-over-year increase of 15% 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 $0.30 and $0.34, assuming weighted average common shares outstanding of 73.4 million. Full Year 2026 Guidance: Cloud subscriptions revenue is expected to be between $536.0 million and $538.0 million, representing year-over-year growth of 23%. Total revenue is expected to be between $873.0 million and $877.0 million, representing a year-over-year increase of 20% to 21%. Adjusted EBITDA is expected to be between $116.0 million and $119.0 million. Non-GAAP earnings per share is expected to be between $1.20 and $1.24, assuming weighted average common shares outstanding of 73.5 million. Conference Call Details: Appian will host a conference call today, November 5, 2026, at 8:30 a.m. ET to discuss Appian's financial results for the third quarter ended
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September 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. 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 operating income, non-GAAP non-operating expense (income), non-GAAP income tax expense, non-GAAP net (loss) income, and non-GAAP net (loss) 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 and write off of deferred debt issuance costs, or Other Adjustments, 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 income (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 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 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
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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 pr@appian.com APPIAN CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share data) As of September 30, 2026 December 31, 2025 (unaudited) Assets Current assets Cash and cash equivalents $ 47,326 $ 135,810 Short-term investments and marketable securities 41,620 51,415 Accounts receivable, net of allowance of $3,912 and $3,362, respectively 244,041 255,063 Deferred commissions, current 43,255 35,166 Prepaid expenses and other current assets 39,432 41,970 Total current assets 415,674 519,424 Property and equipment, net of accumulated depreciation of $45,498 and $40,747, respectively 35,271 32,087 Goodwill 27,875 28,811 Intangible assets, net of accumulated amortization of $7,836 and $7,301, respectively 433 1,246 Right-of-use assets for operating leases 29,628 28,075 Deferred commissions, net of current portion 73,257 65,199 Deferred tax assets 5,333 4,850 Other assets 13,433 11,703 Total assets $ 600,904 $ 691,395 Liabilities and Stockholders’ Deficit Current liabilities Accounts payable $ 10,873 $ 6,655 Accrued expenses 25,385 18,483 Accrued compensation and related benefits 60,647 61,781 Deferred revenue 337,029 341,281 Debt 2,894 9,598 Operating lease liabilities 14,506 13,181 Other current liabilities 1,281 1,128 Total current liabilities 452,615 452,107 Long-term debt 196,591 231,228 Non-current operating lease liabilities 42,931 45,693 Deferred revenue, net of current portion 6,503 8,962 Other liabilities 138 398 Total liabilities 698,778 738,388 Stockholders’ deficit Class A common stock—par value $0.0001; 500,000,000 shares authorized as of September 30, 2026 and December 31, 2025 and 43,557,940 and 43,408,828 shares issued as of September 30, 2026 and December 31, 2025, respectively 4 4 Class B common stock—par value $0.0001; 100,000,000 shares authorized as of September 30, 2026 and December 31, 2025 and 31,087,385 and 31,088,085 shares issued as of September 30, 2026 and December 31, 2025, respectively 3 3 Treasury stock at cost, 3,157,662 and 542,288 shares as of September 30, 2026 and December 31, 2025, respectively (82,958) (16,935) Additional paid-in capital 623,466 617,318 Accumulated other comprehensive loss (26,467) (36,462)
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Accumulated deficit (611,922) (610,921) Total stockholders’ deficit (97,874) (46,993) Total liabilities and stockholders’ deficit $ 600,904 $ 691,395 APPIAN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Revenue Subscriptions $ 187,754 $ 147,188 $ 505,747 $ 414,197 Professional services 46,878 39,816 134,321 109,873 Total revenue 234,632 187,004 640,068 524,070 Cost of revenue Subscriptions 26,187 21,667 74,500 60,895 Professional services 37,291 29,037 101,902 82,803 Total cost of revenue 63,478 50,704 176,402 143,698 Gross profit 171,154 136,300 463,666 380,372 Operating expenses Sales and marketing 65,826 53,574 200,558 172,041 Research and development 50,554 42,561 144,183 127,046 General and administrative 33,471 27,051 99,906 79,989 Total operating expenses 149,851 123,186 444,647 379,076 Operating income 21,303 13,114 19,019 1,296 Other non-operating expense (income) Other expense (income), net 4,822 (1,398) 5,565 (24,678) Interest expense 3,304 5,311 11,256 15,948 Total non-operating other expense (income) 8,126 3,913 16,821 (8,730) Income before income taxes 13,177 9,201 2,198 10,026 Income tax expense 836 1,376 3,199 3,690 Net income (loss) $ 12,341 $ 7,825 $ (1,001) $ 6,336 Net income (loss) per Class A and Class B share: Basic $ 0.17 $ 0.11 $ (0.01) $ 0.09 Diluted $ 0.17 $ 0.10 $ (0.01) $ 0.08 Weighted average common shares outstanding: Basic 71,641 74,008 72,773 74,101 Diluted 72,741 74,575 72,773 74,554 APPIAN CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Nine Months Ended September 30, 2026 2025 Cash flows from operating activities Net (loss) income $ (1,001) $ 6,336 Adjustments to reconcile net (loss) income to net cash provided by operating activities Stock-based compensation 35,031 30,992 Depreciation expense and amortization of intangible assets 7,655 7,429 Lease impairment charges — 779 Bad debt expense 1,255 692 Loss on debt extinguishment 438 — Amortization of debt issuance costs 424 450 Benefit for deferred income taxes (551) (648) Foreign currency transaction losses (gains), net 9,225 (20,864) Changes in assets and liabilities
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Accounts receivable 7,745 29,655 Prepaid expenses and other assets 2,029 13,279 Deferred commissions (16,146) 3,644 Accounts payable and accrued expenses 7,609 12,871 Accrued compensation and related benefits (4,228) (1,043) Other current and non-current liabilities 625 (1,707) Deferred revenue (1,654) (17,545) Operating lease assets and liabilities, net (2,947) (2,583) Net cash provided by operating activities 45,509 61,737 Cash flows from investing activities Proceeds from maturities of investments 54,299 34,278 Purchases of investments (44,866) (59,281) Purchases of property and equipment (7,097) (2,451) Net cash provided by (used by) investing activities 2,336 (27,454) Cash flows from financing activities Proceeds from borrowings 200,000 — Payments for debt issuance costs (1,619) — Debt repayments (241,563) (5,000) Repurchases of common stock (83,015) (20,000) Payments for employee taxes related to the net share settlement of equity awards (9,882) (5,890) Proceeds from exercise of common stock options 1,420 752 Net cash used by financing activities (134,659) (30,138) Effect of foreign exchange rate changes on cash and cash equivalents (1,670) 2,552 Net (decrease) increase in cash and cash equivalents (88,484) 6,697 Cash and cash equivalents at beginning of period 135,810 118,552 Cash and cash equivalents at end of period $ 47,326 $ 125,249 Supplemental disclosure of cash flow information: Cash paid for interest $ 8,575 $ 10,023 Cash paid for income taxes $ 4,634 $ 3,391 Supplemental disclosure of non-cash investing and financing information: Purchases of property and equipment included in accounts payable and accrued expenses $ 3,274 $ 41 Operating lease liabilities arising from obtaining right-of-use assets $ 5,921 $ — Unpaid debt issuance costs in accrued expenses $ 460 $ — 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 Other Adjustments(a) Non-GAAP Measure Three Months Ended September 30, 2026 Subscriptions cost of revenue $ 26,187 $ (514) $ — $ — $ — $ — $ 25,673 Professional services cost of revenue 37,291 (1,658) — — — — 35,633 Total cost of revenue 63,478 (2,172) — — — — 61,306 Sales and marketing expense 65,826 (2,591) — — — — 63,235 Research and development expense 50,554 (3,852) — — — — 46,702 General and administrative expense 33,471 (3,967) (4,664) (1,732) (292) — 22,816 Total operating expense 149,851 (10,410) (4,664) (1,732) (292) — 132,753 Operating income 21,303 12,582 4,664 1,732 292 — 40,573 Non-operating expense (income) 4,822 — — — — (6,291) (1,469) Income tax impact of above items 836 443 — — — 342 1,621 Net income 12,341 12,139 4,664 1,732 292 5,949 37,117 Net income per share, basic $ 0.17 $ 0.17 $ 0.07 $ 0.02 $ — $ 0.08 $ 0.51 Net income per share, diluted(b,d) $ 0.17 $ 0.17 $ 0.06 $ 0.02 $ — $ 0.08 $ 0.51 Three Months Ended September 30, 2025 Subscriptions cost of revenue $ 21,667 $ (419) $ — $ — $ — $ — $ 21,248
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Professional services cost of revenue 29,037 (1,448) — — — — 27,589 Total cost of revenue 50,704 (1,867) — — — — 48,837 Sales and marketing expense 53,574 (1,882) — — — — 51,692 Research and development expense 42,561 (2,991) — — — — 39,570 General and administrative expense 27,051 (3,520) (2,130) (3,153) (1,105) — 17,143 Total operating expense 123,186 (8,393) (2,130) (3,153) (1,105) — 108,405 Operating income 13,114 10,260 2,130 3,153 1,105 — 29,762 Non-operating (income) expense (1,398) — — — — 110 (1,288) Income tax impact of above items 1,376 375 — — — (406) 1,345 Net income 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(c, d) $ 0.10 $ 0.13 $ 0.03 $ 0.04 $ 0.01 $ — $ 0.32 (a) Other adjustments primarily includes unrealized foreign exchange gains and losses and write off of deferred debt issuance costs. (b) Accounts for the impact of 1.1 million shares of dilutive securities. (c) Accounts for the impact of 0.6 million shares of dilutive securities. (d) Per share amounts do not foot due to rounding. GAAP Measure Stock-Based Compensation Litigation Expense JPI Amortization Lease Impairment and Lease- Related Charges Other Adjustments(a) Non-GAAP Measure Nine months ended September 30, 2026 Subscriptions cost of revenue $ 74,500 $ (1,570) $ — $ — $ — $ — $ 72,930 Professional services cost of revenue 101,902 (4,816) — — — — 97,086 Total cost of revenue 176,402 (6,386) — — — — 170,016 Sales and marketing expense 200,558 (6,957) — — — — 193,601 Research and development expense 144,183 (10,969) — — — — 133,214 General and administrative expense 99,906 (10,719) (17,905) (5,744) (873) — 64,665 Total operating expense 444,647 (28,645) (17,905) (5,744) (873) — 391,480 Operating income 19,019 35,031 17,905 5,744 873 — 78,572 Non-operating expense (income) 5,565 — — — — (9,663) (4,098) Income tax impact of above items 3,199 1,454 — — — 636 5,289 Net (loss) income (1,001) 33,577 17,905 5,744 873 9,027 66,125 Net (loss) income per share, basic $ (0.01) $ 0.46 $ 0.25 $ 0.08 $ 0.01 $ 0.12 $ 0.91 Net (loss) income per share, diluted(b,d) $ (0.01) $ 0.46 $ 0.24 $ 0.08 $ 0.01 $ 0.12 $ 0.90 Nine months ended September 30, 2025 Subscriptions cost of revenue $ 60,895 $ (1,335) $ — $ — $ — $ — $ 59,560 Professional services cost of revenue 82,803 (4,304) — — — — 78,499 Total cost of revenue 143,698 (5,639) — — — — 138,059 Sales and marketing expense 172,041 (6,215) — — — — 165,826 Research and development expense 127,046 (9,362) — — — — 117,684 General and administrative expense 79,989 (9,776) (6,324) (9,355) (1,714) — 52,820 Total operating expense 379,076 (25,353) (6,324) (9,355) (1,714) — 336,330 Operating income 1,296 30,992 6,324 9,355 1,714 — 49,681 Non-operating (income) expense (24,678) — — — — 20,879 (3,799) Income tax impact of above items 3,690 1,125 — — — (1,732) 3,083 Net income (loss) 6,336 29,867 6,324 9,355 1,714 (19,147) 34,449 Net income (loss) per share, basic $ 0.09 $ 0.40 $ 0.09 $ 0.13 $ 0.02 $ (0.26) $ 0.47 Net income (loss) per share, diluted(c,d) $ 0.08 $ 0.40 $ 0.08 $ 0.13 $ 0.02 $ (0.26) $ 0.46 (a) Other adjustments primarily includes unrealized foreign exchange gains and losses and write off of deferred debt issuance costs. (b) Accounts for the impact of 0.7 million shares of dilutive securities. (c) Accounts for the impact of 0.5 million shares of dilutive securities. (d) Per share amounts do not foot due to rounding. Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Reconciliation of adjusted EBITDA:
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GAAP net income (loss) $ 12,341 $ 7,825 $ (1,001) $ 6,336 Other expense (income), net 4,822 (1,398) 5,565 (24,678) Interest expense 3,304 5,311 11,256 15,948 Income tax expense 836 1,376 3,199 3,690 Depreciation expense and amortization of intangible assets 2,875 2,459 7,655 7,429 Stock-based compensation expense 12,582 10,260 35,031 30,992 Litigation Expense 4,664 2,130 17,905 6,324 JPI Amortization 1,732 3,153 5,744 9,355 Lease Impairment and Lease-Related Charges 292 1,105 873 1,714 Adjusted EBITDA $ 43,448 $ 32,221 $ 86,227 $ 57,110 _________________________ 1 https://register-conf.media-server.com/register/BI84c4dbd5199f4b1ea210d95e609c156f