Appian (APPN) Q2 2026 earnings summary

Executive summary

• Q2 2026 total revenue grew 19% year-over-year to $203.3 million, led by a 23% increase in cloud subscriptions revenue and strong professional services growth.

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

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

• Cloud net annualized recurring revenue (ARR) expansion reached 115% as of June 30, 2026.

• The company entered a new $300 million Senior Secured Credit Agreement in August 2026, refinancing existing debt and providing additional liquidity.

Financial highlights

• Cloud subscriptions revenue was $131.7 million in Q2 2026 (+23% YoY); total revenue was $203.3 million (+19% YoY).

• Professional services revenue increased 20% year-over-year to $45.6 million.

• Non-GAAP gross margin was 72% in Q2 2026; subscriptions gross margin was 84%, and professional services gross margin was 31%.

• Adjusted EBITDA was $16.2 million for Q2 2026, up from $8.1 million in Q2 2025.

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

Outlook and guidance

• Q3 2026: Cloud subscriptions revenue expected at $133.0–$135.0 million (+17–19% YoY); total revenue $214.0–$218.0 million (+14–17% YoY); adjusted EBITDA $30.0–$33.0 million; non-GAAP EPS $0.31–$0.35.

• FY 2026: Cloud subscriptions revenue guidance $525.0–$529.0 million (+20–21% YoY); total revenue $845.0–$853.0 million (+16–17% YoY); adjusted EBITDA $104.0–$110.0 million; non-GAAP EPS $1.04–$1.12.

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

• Management expects continued investment in sales, marketing, and R&D to drive long-term growth.

• The company believes existing liquidity and cash flows will support operations and capital requirements for at least the next twelve months.