Appen (APX) Q1 2026 TU earnings summary

Executive summary

• Q1 FY26 revenue reached $54.8 million, up 9% year-over-year, with underlying EBITDA (before FX) of $1.0 million, a $2.5 million improvement from the prior year.

• Appen China delivered strong growth, with quarterly revenue of $34.9 million (+88% vs pcp) and an annualized run-rate exceeding $144 million.

• Appen Global experienced typical seasonality, with revenue of $19.9 million (-37% vs pcp), but achieved positive operational milestones and a foundation for future growth.

• Expanded use of AI in operations is expected to drive future efficiency improvements.

Financial highlights

• Group gross margin was 36.5%, down 90 bps year-over-year.

• Underlying EBITDA (before FX) improved to $1.0 million from a loss of $1.5 million in Q1 FY25.

• Cash on hand at 31 March 2026 was $59.0 million, down $0.8 million from the previous quarter.

• Net cash from operating activities was $3.8 million, compared to $14.7 million in Q4 FY25, reflecting seasonality.

Outlook and guidance

• FY26 group guidance reaffirmed: revenue of $270–$300 million and underlying EBITDA (before FX) margin of ~5–10%.

• Positive signals for LLM-related growth from both Appen Global and Appen China customers.

• Appen Global revenue expected to remain seasonal, skewed to H2.