Appian Announces Third Quarter 2026 Financial Results

(MENAFN- GlobeNewsWire - Nasdaq) 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

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.

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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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