Appian (APPN) Q4 2025 earnings summary

Executive summary

• Q4 2025 total revenue grew 22% year-over-year to $202.9 million, with cloud subscriptions revenue up 18% to $117.0 million and total subscriptions revenue at $162.3 million (+19% YoY).

• Full year 2025 total revenue increased 18% to $726.9 million, with cloud subscriptions revenue up 19% to $437.4 million.

• Adjusted EBITDA for Q4 2025 was $19.7 million; for the full year, adjusted EBITDA was $76.8 million, reflecting improved operational efficiency.

• Large enterprise deals increased, with customers purchasing over $1 million in software up 50% year-over-year; notable wins include a $500 million, 10-year U.S. Army agreement and adoption by global public health agencies.

• Announced a $50 million stock buyback, initiating a consistent capital return policy.

Financial highlights

• Q4 2025 cloud subscription revenue: $117 million (+18% YoY); total subscription revenue: $162.3 million (+19% YoY); professional services revenue: $40.6 million (+36% YoY); total revenue: $202.9 million (+22% YoY).

• Q4 2025 non-GAAP gross margin was 73%, with subscriptions gross margin at 86% and professional services gross margin at 23%.

• Q4 2025 non-GAAP net income was $11.1 million ($0.15 per diluted share); GAAP net loss was $5.1 million ($(0.07) per share).

• Cash, cash equivalents, and investments at year-end 2025 totaled $187.2 million.

• Operating cash flow for 2025 was $62.9 million, up from $6.9 million in 2024.

Outlook and guidance

• Q1 2026 cloud subscription revenue expected between $119–$121 million (+20% YoY at midpoint); total revenue guidance: $189–$193 million (+15% YoY at midpoint); Adjusted EBITDA: $19–$22 million.

• Full year 2026 cloud subscription revenue: $502–$510 million (+16% YoY at midpoint); total revenue: $801–$817 million (+11% YoY at midpoint); Adjusted EBITDA: $89–$99 million (~12% margin at midpoint); non-GAAP EPS: $0.82–$0.96.

• Professional services expected to grow in the teens for Q1 and high single digits for the year.