MCLEAN, Va., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Appian (NASDAQ:APPN) today announced financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights:

Revenue: Cloud subscriptions revenue was $131.7 million, up 23% compared to the second quarter of 2025. Total subscriptions revenue increased 19% year-over-year to $157.7 million. Professional services revenue was $45.6 million, an increase of 20% compared to the second quarter of 2025. Total revenue was $203.3 million, up 19% compared to the second quarter of 2025. Cloud net annualized recurring revenue ("ARR") expansion was 115% as of June 30, 2026.
Operating loss and non-GAAP operating income: GAAP operating loss was $(5.4) million, compared to GAAP operating loss of $(11.0) million for the second quarter of 2025. Non-GAAP operating income was $13.6 million, compared to non-GAAP operating income of $5.6 million for the second quarter of 2025.
Net loss and non-GAAP net income: GAAP net loss was $(11.8) million, compared to $(0.3) million for the second quarter of 2025. GAAP net loss per share was $(0.16) for the second quarter of 2026, compared to breakeven for the second quarter of 2025. Non-GAAP net income was $9.2 million, compared to $0.3 million for the second quarter of 2025. Non-GAAP net income per share was $0.13, compared to breakeven for the second quarter of 2025.
Adjusted EBITDA: Adjusted EBITDA was $16.2 million, compared to adjusted EBITDA of $8.1 million for the second quarter of 2025.
Cash flows: Net cash provided by operating activities was $12.1 million for the three months ended June 30, 2026 compared to $(1.9) million of net cash used 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 August 6, 2026, guidance for 2026 is as follows:

Third Quarter 2026 Guidance:

- Cloud subscriptions revenue is expected to be between $133.0 million and $135.0 million, representing year-over-year growth of 17% to 19%.
- Total revenue is expected to be between $214.0 million and $218.0 million, representing a year-over-year increase of 14% 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 $0.31 and $0.35, assuming weighted average common shares outstanding of 72.6 million.

Full Year 2026 Guidance:

- Cloud subscriptions revenue is expected to be between $525.0 million and $529.0 million, representing year-over-year growth of 20% to 21%.
- Total revenue is expected to be between $845.0 million and $853.0 million, representing a year-over-year increase of 16% to 17%.
- Adjusted EBITDA is expected to be between $104.0 million and $110.0 million.
- Non-GAAP earnings per share is expected to be between $1.04 and $1.12, assuming weighted average common shares outstanding of 73.2 million.

Conference Call Details:

Appian will host a conference call today, August 6, 2026, at 8:30 a.m. ET to discuss Appian's financial results for the second quarter ended June 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 technology. 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 non-operating (expense) income, non-GAAP income tax expense, non-GAAP net income, and non-GAAP net 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, 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 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 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 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 third 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
	June 30, 2026			December 31, 2025
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	121,111		$	135,810
Short-term investments and marketable securities		46,755			51,415
Accounts receivable, net of allowance of $3,416 and $3,362, respectively		171,162			255,063
Deferred commissions, current		38,026			35,166
Prepaid expenses and other current assets		32,952			41,970
Total current assets		410,006			519,424
Property and equipment, net of accumulated depreciation of $42,933 and $40,747, respectively		30,667			32,087
Goodwill		27,973			28,811
Intangible assets, net of accumulated amortization of $7,710 and $7,301, respectively		588			1,246
Right-of-use assets for operating leases		30,437			28,075
Deferred commissions, net of current portion		67,376			65,199
Deferred tax assets		4,857			4,850
Other assets		13,809			11,703
Total assets	$	585,713		$	691,395
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable	$	8,077		$	6,655
Accrued expenses		21,662			18,483
Accrued compensation and related benefits		43,035			61,781
Deferred revenue		314,263			341,281
Debt		9,598			9,598
Operating lease liabilities		14,171			13,181
Other current liabilities		1,012			1,128
Total current liabilities		411,818			452,107
Long-term debt		226,429			231,228
Non-current operating lease liabilities		45,128			45,693
Deferred revenue, non-current		7,208			8,962
Other non-current liabilities		311			398
Total liabilities		690,894			738,388
Stockholders’ deficit
Class A common stock—par value $0.0001; 500,000,000 shares authorized as of June 30, 2026 and December 31, 2025 and 43,504,355 and 43,408,828 shares issued as of June 30, 2026 and December 31, 2025, respectively		4			4
Class B common stock—par value $0.0001; 100,000,000 shares authorized as June 30, 2026 and December 31, 2025 and 31,087,385 and 31,088,085 shares issued as of June 30, 2026 and December 31, 2025, respectively		3			3
Treasury stock at cost, 2,795,084 and 542,288 shares as of June 30, 2026 and December 31, 2025, respectively		(70,391	)		(16,935	)
Additional paid-in capital		623,090			617,318
Accumulated other comprehensive loss		(33,624	)		(36,462	)
Accumulated deficit		(624,263	)		(610,921	)
Total stockholders’ deficit		(105,181	)		(46,993	)
Total liabilities and stockholders’ deficit	$	585,713		$	691,395

APPIAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)

	Three Months Ended June 30,						Six months ended June 30,
		2026			2025			2026			2025
Revenue
Subscriptions	$	157,682		$	132,657		$	317,993		$	267,009
Professional services		45,574			37,983			87,443			70,057
Total revenue		203,256			170,640			405,436			337,066
Cost of revenue
Subscriptions		25,409			20,707			48,313			39,228
Professional services		33,104			28,247			64,611			53,766
Total cost of revenue		58,513			48,954			112,924			92,994
Gross profit		144,743			121,686			292,512			244,072
Operating expenses
Sales and marketing		70,113			62,157			134,732			118,467
Research and development		47,305			42,655			93,629			84,485
General and administrative		32,765			27,858			66,435			52,938
Total operating expenses		150,183			132,670			294,796			255,890
Operating loss		(5,440	)		(10,984	)		(2,284	)		(11,818	)
Other non-operating expense (income)
Other expense (income), net		827			(17,564	)		743			(23,280	)
Interest expense		3,780			5,319			7,952			10,637
Total other non-operating expense (income)		4,607			(12,245	)		8,695			(12,643	)
(Loss) income before income taxes		(10,047	)		1,261			(10,979	)		825
Income tax expense		1,770			1,573			2,363			2,314
Net loss	$	(11,817	)	$	(312	)	$	(13,342	)	$	(1,489	)
Net loss per Class A and Class B share:
Basic and diluted	$	(0.16	)	$	(0.00	)	$	(0.18	)	$	(0.02	)
Weighted average common shares outstanding:
Basic and diluted		72,896			74,202			73,348			74,148

APPIAN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

	Six Months Ended June 30,
		2026			2025
Cash flows from operating activities
Net loss	$	(13,342	)	$	(1,489	)
Adjustments to reconcile net loss to net cash provided by operating activities
Stock-based compensation		22,449			20,732
Depreciation expense and amortization of intangible assets		4,780			4,970
Bad debt expense		634			550
Amortization of debt issuance costs		300			300
Benefit for deferred income taxes		(68	)		(689	)
Foreign currency transaction losses (gains), net		3,372			(20,659	)
Changes in assets and liabilities
Accounts receivable		82,946			49,720
Prepaid expenses and other assets		6,991			10,174
Deferred commissions		(5,037	)		3,228
Accounts payable and accrued expenses		4,298			7,559
Accrued compensation and related benefits		(17,348	)		(3,811	)
Other current and non-current liabilities		(538	)		(277	)
Deferred revenue		(26,590	)		(25,611	)
Operating lease assets and liabilities, net		(1,938	)		(1,671	)
Net cash provided by operating activities		60,909			43,026
Cash flows from investing activities
Proceeds from maturities of investments		49,079			27,985
Purchases of investments		(44,866	)		(59,281	)
Purchases of property and equipment		(2,491	)		(1,797	)
Net cash provided by (used by) investing activities		1,722			(33,093	)
Cash flows from financing activities
Debt repayments		(5,000	)		(5,000	)
Repurchases of common stock		(65,736	)		(10,000	)
Payments for employee taxes related to the net share settlement of equity awards		(6,395	)		(4,469	)
Proceeds from exercise of common stock options		876			504
Net cash used by financing activities		(76,255	)		(18,965	)
Effect of foreign exchange rate changes on cash and cash equivalents		(1,075	)		2,687
Net decrease in cash and cash equivalents		(14,699	)		(6,345	)
Cash and cash equivalents at beginning of period		135,810			118,552
Cash and cash equivalents at end of period	$	121,111		$	112,207

Supplemental disclosure of cash flow information:
Cash paid for interest	$	7,338		$	10,023
Cash paid for income taxes	$	2,542		$	1,997
Supplemental disclosure of non-cash investing and financing information:
Accrued capital expenditures	$	408		$	54
Operating lease liabilities arising from obtaining right-of-use assets	$	5,370		$	—

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			Unrealized Foreign Exchange Rate Gains and Losses			Non-GAAP Measure
Three Months Ended June 30, 2026
Subscriptions cost of revenue	$	25,409		$	(497	)	$	—		$	—		$	—		$	—		$	24,912
Professional services cost of revenue		33,104			(1,520	)		—			—			—			—			31,584
Total cost of revenue		58,513			(2,017	)		—			—			—			—			56,496
Sales and marketing expense		70,113			(1,963	)		—			—			—			—			68,150
Research and development expense		47,305			(3,382	)		—			—			—			—			43,923
General and administrative expense		32,765			(3,198	)		(6,293	)		(1,957	)		(279	)		—			21,038
Total operating expense		150,183			(8,543	)		(6,293	)		(1,957	)		(279	)		—			133,111
Operating (loss) income		(5,440	)		10,560			6,293			1,957			279			—			13,649
Non-operating expense (income)		827			—			—			—			—			(2,523	)		(1,696	)
Income tax impact of above items		1,770			504			—			—			—			95			2,369
Net (loss) income		(11,817	)		10,056			6,293			1,957			279			2,428			9,196
Net (loss) income per share, basic	$	(0.16	)	$	0.14		$	0.09		$	0.03		$	—		$	0.03		$	0.13
Net (loss) income per share, diluted^(a⁾	$	(0.16	)	$	0.14		$	0.09		$	0.03		$	—		$	0.03		$	0.13

Three Months Ended June 30, 2025
Subscriptions cost of revenue	$	20,707		$	(418	)	$	—		$	—		$	—		$	—		$	20,289
Professional services cost of revenue		28,247			(1,400	)		—			—			—			—			26,847
Total cost of revenue		48,954			(1,818	)		—			—			—			—			47,136
Sales and marketing expense		62,157			(2,087	)		—			—			—			—			60,070
Research and development expense		42,655			(3,357	)		—			—			—			—			39,298
General and administrative expense		27,858			(3,431	)		(2,482	)		(3,118	)		(297	)		—			18,530
Total operating expense		132,670			(8,875	)		(2,482	)		(3,118	)		(297	)		—			117,898
Operating (loss) income		(10,984	)		10,693			2,482			3,118			297			—			5,606
Non-operating (income) expense		(17,564	)		—			—			—			—			16,754			(810	)
Income tax impact of above items		1,573			295			—			—			—			(1,059	)		809
Net (loss) income		(312	)		10,398			2,482			3,118			297			(15,695	)		288
Net (loss) income per share, basic	$	(0.00	)	$	0.14		$	0.03		$	0.04		$	—		$	(0.21	)	$	0.00
Net (loss) income per share, diluted⁽^a⁾	$	(0.00	)	$	0.14		$	0.03		$	0.04		$	—		$	(0.21	)	$	0.00

⁽^a⁾ Accounts for the impact of 0.4 million shares of dilutive securities.

	GAAP Measure			Stock-Based Compensation			Litigation Expense			JPI Amortization			Lease Impairment and Lease- Related Charges			Unrealized Foreign Exchange Rate Gains and Losses			Non-GAAP Measure
Six months ended June 30, 2026
Subscriptions cost of revenue	$	48,313		$	(1,056	)	$	—		$	—		$	—		$	—		$	47,257
Professional services cost of revenue		64,611			(3,158	)		—			—			—			—			61,453
Total cost of revenue		112,924			(4,214	)		—			—			—			—			108,710
Sales and marketing expense		134,732			(4,366	)		—			—			—			—			130,366
Research and development expense		93,629			(7,117	)		—			—			—			—			86,512
General and administrative expense		66,435			(6,752	)		(13,241	)		(4,012	)		(581	)		—			41,849
Total operating expense		294,796			(18,235	)		(13,241	)		(4,012	)		(581	)		—			258,727
Operating (loss) income		(2,284	)		22,449			13,241			4,012			581			—			37,999
Non-operating expense (income)		743			—			—			—			—			(3,371	)		(2,628	)
Income tax impact of above items		2,363			1,011			—			—			—			294			3,668
Net (loss) income		(13,342	)		21,438			13,241			4,012			581			3,077			29,007
Net (loss) income per share, basic^(c)	$	(0.18	)	$	0.29		$	0.18		$	0.05		$	0.01		$	0.04		$	0.40
Net (loss) income per share, diluted^(a⁾	$	(0.18	)	$	0.29		$	0.18		$	0.05		$	0.01		$	0.04		$	0.39

Six months ended June 30, 2025
Subscriptions cost of revenue	$	39,228		$	(916	)	$	—		$	—		$	—		$	—		$	38,312
Professional services cost of revenue		53,766			(2,856	)		—			—			—			—			50,910
Total cost of revenue		92,994			(3,772	)		—			—			—			—			89,222
Sales and marketing expense		118,467			(4,333	)		—			—			—			—			114,134
Research and development expense		84,485			(6,371	)		—			—			—			—			78,114
General and administrative expense		52,938			(6,256	)		(4,194	)		(6,202	)		(609	)		—			35,677
Total operating expense		255,890			(16,960	)		(4,194	)		(6,202	)		(609	)		—			227,925
Operating (loss) income		(11,818	)		20,732			4,194			6,202			609			—			19,919
Non-operating (income) expense		(23,280	)		—			—			—			—			20,770			(2,510	)
Income tax impact of above items		2,314			750			—			—			—			(1,326	)		1,738
Net (loss) income		(1,489	)		19,982			4,194			6,202			609			(19,444	)		10,054
Net (loss) income per share, basic	$	(0.02	)	$	0.27		$	0.06		$	0.08		$	0.01		$	(0.26	)	$	0.14
Net (loss) income per share, diluted^(b,c)	$	(0.02	)	$	0.27		$	0.06		$	0.08		$	0.01		$	(0.26	)	$	0.13

^(a) Accounts for the impact of 0.5 million shares of dilutive securities.

^(b) Accounts for the impact of 0.4 million shares of dilutive securities.

^(c)Per share amounts do not foot due to rounding.

	Three months ended June 30,						Six months ended June 30,
		2026			2025			2026			2025
Reconciliation of adjusted EBITDA:
GAAP net loss	$	(11,817	)	$	(312	)	$	(13,342	)	$	(1,489	)
Other expense (income), net		827			(17,564	)		743			(23,280	)
Interest expense		3,780			5,319			7,952			10,637
Income tax expense		1,770			1,573			2,363			2,314
Depreciation expense and amortization of intangible assets		2,507			2,524			4,780			4,970
Stock-based compensation expense		10,560			10,693			22,449			20,732
Litigation Expense		6,293			2,482			13,241			4,194
JPI Amortization		1,957			3,118			4,012			6,202
Lease Impairment and Lease-Related Charges		279			297			581			609
Adjusted EBITDA	$	16,156		$	8,130		$	42,779		$	24,889

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