Appian (APPN) Q4 2025 earnings summary

Executive summary

• Q4 2025 total revenue grew 22% year-over-year to $202.9 million, with cloud subscriptions revenue up 18% to $117.0 million and total subscriptions revenue at $162.3 million (+19% YoY).

• Full year 2025 total revenue increased 18% to $726.9 million, with cloud subscriptions revenue up 19% to $437.4 million and adjusted EBITDA of $76.8 million.

• Adjusted EBITDA for Q4 2025 was $19.7 million; GAAP net income for 2025 was $1.2 million, a turnaround from a net loss of $92.3 million in 2024.

• Major growth drivers included large enterprise deals, strengthened public sector presence, and increased operational efficiency.

• Announced a $50 million stock buyback, marking the start of a consistent capital return policy.

Financial highlights

• Q4 2025 professional services revenue rose 36% year-over-year to $40.6 million.

• Q4 2025 non-GAAP gross margin was 73%, with subscriptions gross margin at 86% and professional services gross margin at 23%.

• Q4 2025 adjusted EBITDA was $19.7 million; non-GAAP net income was $11.1 million ($0.15 per diluted share).

• Cash and equivalents at year-end: $187.2 million; full-year operating cash flow: $62.9 million.

• Stock-based compensation expense for 2025 was $41.5 million.

Outlook and guidance

• Q1 2026 cloud subscription revenue expected between $119–$121 million (+19–21% YoY); total revenue $189–$193 million (+14–16% YoY).

• Full-year 2026 cloud subscription revenue expected $502–$510 million (+15–17% YoY); total revenue $801–$817 million (+10–12% YoY).

• Adjusted EBITDA for 2026: $89–$99 million (~12% margin); non-GAAP EPS: $0.82–$0.96.

• Professional services expected to grow in high single digits for 2026; non-cloud subscription revenue to remain flat.

• FX expected to benefit Q1 but be neutral for the rest of the year.