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 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 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)
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   
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 
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:       
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 
               

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