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.

• Adjusted EBITDA doubled to $16.2 million from $8.1 million in Q2 2025, reflecting improved profitability and operational efficiency.

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

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

• Guidance for full-year 2026 was raised, reflecting confidence in continued growth and margin expansion.

Financial highlights

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

• Gross margin for Q2 2026 was approximately 72–74%; subscriptions gross margin: 83.9–84%; professional services gross margin: 27.4–31%.

• Adjusted EBITDA: $16.2 million, up from $8.1 million last year; non-GAAP net income: $9.2 million, or $0.13 per diluted share.

• Cash and cash equivalents as of June 30, 2026 were $121.1 million; short-term investments were $46.8 million.

• Net cash provided by operating activities for the first half of 2026 was $60.9 million, up 41.6% year-over-year.

Outlook and guidance

• Q3 2026 cloud subscriptions revenue expected between $133–$135 million (17–19% growth YoY); total revenue $214–$218 million (14–17% growth).

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

• Full-year 2026 cloud subscriptions revenue expected $525–$529 million (20–21% growth); total revenue $845–$853 million (16–17% growth).

• Full-year adjusted EBITDA $104–$110 million (13% margin, 39% growth); non-GAAP EPS $1.04–$1.12 (77% growth).

• $625.3 million in remaining performance obligations as of June 30, 2026, with $428.8 million expected to be recognized as revenue over the next 12 months.