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Appen (APX) investor relations material

Appen H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary25 Feb, 2026

Executive summary

  • FY 2025 revenue reached $230.8 million, up 4.5% year-over-year excluding Google impact and major contract termination, driven by new project wins and Generative AI expansion, especially in China.

  • Underlying EBITDA before FX was $12.2 million, with a full-year margin of 5.3% and Q4 margin of 18.2%.

  • Operational efficiencies and technology-led cost savings of $10 million were realized, driving margin improvements.

  • Strong momentum heading into FY 2026, with a robust balance sheet and strategic focus on high-value AI data projects.

  • Cash balance increased to $59.8 million, reflecting robust cash flow from operations.

Financial highlights

  • Gross margin improved by 100 basis points to 40.3%, driven by a higher mix of Generative AI projects.

  • Underlying EBITDA grew 251% year-over-year to $12.2 million.

  • Cash balance at year-end was $59.8 million, up $5 million from December 2024.

  • Cash flow from operations improved by $23.4 million year-over-year, with 178% EBITDA cash conversion.

  • Underlying NPAT was a loss of $10.3 million, with statutory NPAT at a loss of $21.8 million, impacted by non-cash amortisation.

Outlook and guidance

  • FY 2026 revenue guidance is $270 million–$300 million, with underlying EBITDA before FX margin of 5%–10%.

  • Continued focus on data quality, customer growth in hyperscalers and model builders, new data segments, and operational efficiency.

  • Strong Q4 momentum and confidence in AI data market growth, with positive signals for LLM-related growth in both segments.

How do new hires enable advanced GenAI projects?
Resource allocation between China and Global?
Impact of synthetic data and automation on Appen?
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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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