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Appen (APX) investor relations material

Appen Q3 2025 TU earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 TU earnings summary29 Oct, 2025

Executive summary

  • Q3 FY25 revenue reached $55.3 million, up 2% year-over-year, with underlying EBITDA (before FX) of $1.0 million, matching the prior year and improving $1.6 million sequentially from Q2 FY25.

  • China business delivered standout performance: $28.6 million in revenue (+81% year-over-year), annualized run-rate over $115 million, and $3.3 million underlying EBITDA, marking six consecutive profitable quarters.

  • A major project with $10 million+ annual revenue potential transitioned from pilot to full production in Q3 FY25.

  • Growth in China offset by ongoing volatility in the US AI market, particularly around large LLM project timing and volumes.

Financial highlights

  • Group revenue for Q3 FY25 was $55.3 million, up 2% year-over-year; YTD revenue (excluding Google) was $157.3 million, up 2% year-over-year.

  • Gross margin for Q3 FY25 was 39.2%, down 2.0 percentage points year-over-year; YTD gross margin was 37.8%, down 1.0 percentage point.

  • Underlying EBITDA (before FX) for Q3 FY25 was $1.0 million, flat year-over-year; YTD underlying EBITDA was -$1.2 million.

  • Cash balance at 30 September 2025 was $50.9 million, down from $60.9 million at 30 June 2025.

  • Net cash used in operating activities for Q3 FY25 was $4.9 million, with $8.3 million generated YTD.

Outlook and guidance

  • FY25 revenue is tracking toward the low end of the $235–$260 million range, with positive full-year underlying EBITDA reaffirmed.

  • Limited visibility remains on timing and volumes for large LLM projects, but long-term revenue opportunity is viewed as strong.

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Frequently asked questions

Appen Limited, operates as an AI lifecycle company that collects and labels image, text, speech, audio, video, and other data used to build and enhance artificial intelligence systems. It offers a suite of human annotation services and solutions across the globe to support combinations of technologies that enable machine learning and artificial intelligence. The company's products include image annotations, video classification, text transcription and categorization, text re-writes, audio captioning and tagging, website relevance assessment annotations. Appen Limited was founded in 1996 and is headquartered in Chatswood, Australia.

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