Appen (APX) Q4 2025 TU earnings summary

Executive summary

• Q4 FY25 revenue reached $73.4M, up 10% year-over-year and 33% sequentially, driven by new and expanding generative AI projects.

• Underlying Q4 FY25 EBITDA (ex FX) was $13.3M, up 182% year-over-year, reflecting operational efficiencies and technology innovation.

• Strong performance in both China and Global divisions, with China achieving an annualized revenue run-rate over $135M and Global benefiting from generative AI project expansion.

• FY25 revenue totaled $230.8M, up 4.5% year-over-year, with gross margin improving to 40.3%.

• Strong cash position at year-end with $59.8M on hand.

Financial highlights

• Q4 FY25 gross margin improved to 45.6%, up 530bps year-over-year, due to a higher mix of generative AI projects.

• FY25 underlying EBITDA before FX was $12.2M, up 251% year-over-year, with a 5.3% margin for the year.

• Employee and other expenses decreased due to cost efficiencies, partially offset by increased expenses in China to support growth.

• Share-based payments expense dropped 59.3% year-over-year.

• Cash balance at December 31, 2025 was $59.8M, up from $50.9M at September 30, 2025.

Outlook and guidance

• Focus for 2026 includes high data quality, customer growth in hyperscalers and foundation model builders, expansion into new data segments, and continued operational efficiency.

• Management expects continued momentum into FY26, driven by generative AI projects and international expansion.