Appian Corporation reported fourth‑quarter 2025 results that included $202.9 million in total revenue, up 22% year‑over‑year, and earnings per share of $0.15, a $0.06 beat on the $0.09 consensus estimate. Cloud subscription revenue, the company’s highest‑margin recurring engine, grew 18% to $117.0 million, while full‑year cloud subscription revenue increased 19% to $437.4 million.
The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin AI‑enabled subscriptions. Management highlighted that AI usage on the platform grew 14‑fold year‑over‑year, and customers are upgrading to the AI license tier, which carries a 25% price premium. These factors lifted adjusted EBITDA to $19.7 million and helped the company move from a GAAP net loss of $92.3 million in 2024 to a GAAP net profit of $1.2 million in 2025.
Revenue growth was supported by strong demand in both commercial and government segments. A new eight‑figure annual recurring revenue contract with the U.S. Army, worth $500 million over ten years, added significant upside. The company also reported that its AI‑enabled process automation platform is gaining traction across regulated industries, reinforcing its up‑market strategy and expanding its customer base.
For 2026, management guided total revenue to $801.0 million–$817.0 million and Q1 revenue to $189.0 million–$193.0 million, both above the prior guidance range. Adjusted EBITDA guidance was raised to $76.8 million for the full year, reflecting confidence in continued double‑digit growth and margin expansion. The company also announced a $50 million share repurchase program, signaling management’s belief in the long‑term value of its equity.
Investors reacted positively to the results, citing the strong earnings beat, robust revenue growth, and optimistic forward outlook. The guidance indicates sustained momentum in cloud subscriptions and a clear path toward profitability, reinforcing confidence in the company’s AI‑centric strategy.
The results underscore Appian’s transition from a loss‑making enterprise to a profitable, high‑margin cloud business. While the company acknowledges a potential $10 million impact from a government shutdown, the overall trajectory remains upward, driven by AI monetization, large government contracts, and a growing customer base in regulated sectors. These developments position Appian to capture further market share in the low‑code automation space.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.