Appian (APPN) investor relations material

Executive summary

• Cloud subscriptions revenue grew 23% year-over-year to $131.7 million for Q2 2026, driving total revenue up 19% to $203.3 million and adjusted EBITDA to $16.2 million, more than doubling year-over-year.

• AI adoption accelerated, with 85% of new Q2 customers purchasing AI-enabled tiers and AI usage up 20x year-over-year.

• Net loss for Q2 2026 was $11.8 million, compared to $0.3 million in Q2 2025, reflecting higher operating expenses and lower non-operating income.

• Strong performance was broad-based across all major regions and verticals, with notable wins in healthcare, financial services, and the public sector.

• Non-GAAP operating income rose to $13.6 million from $5.6 million year-over-year.

Financial highlights

• Cloud subscription revenue: $131.7 million (+23% YoY); total subscription revenue: $157.7 million (+19% YoY); professional services revenue: $45.6 million (+20% YoY).

• Gross margin: 72% (flat YoY); subscription gross margin: 84%; professional services gross margin: 31%.

• Adjusted EBITDA: $16.2 million (vs. $8.1 million YoY); non-GAAP net income: $9.2 million ($0.13 per diluted share).

• Cloud net ARR expansion: 115% (vs. 113% YoY).

• Weighted average shares outstanding for Q2 2026 were 72.9 million.

Outlook and guidance

• Q3 2026 cloud subscription revenue expected at $133–$135 million (+18% YoY midpoint); total revenue $214–$218 million (+16% YoY midpoint).

• Q3 adjusted EBITDA: $30–$33 million; non-GAAP EPS: $0.31–$0.35.

• FY26 cloud subscription revenue: $525–$529 million (+20% YoY midpoint); total revenue: $845–$853 million (+17% YoY midpoint).

• FY26 adjusted EBITDA: $104–$110 million (13% margin, +39% YoY midpoint); non-GAAP EPS: $1.04–$1.12 (+77% YoY midpoint).

• Guidance assumes modest FX headwind in H2 2026 and two percentage points of EBITDA margin improvement.