Appian — Third Quarter 2026 Earnings Summary

Financial Performance:

• Cloud subscriptions revenue increased 20% year-over-year to $136.4 million.
• Total subscriptions revenue increased 28% year-over-year to $187.8 million.
• Professional services revenue increased 18% year-over-year to $46.9 million.
• Total revenue increased 25% year-over-year to $234.6 million.
• Cloud net annualized recurring revenue (ARR) expansion was 120% as of September 30, 2026.
• GAAP operating income was $21.3 million, compared to $13.1 million in the third quarter of 2025.
• Non-GAAP operating income was $40.6 million, compared to $29.8 million in the third quarter of 2025.
• GAAP net income was $12.3 million, compared to $7.8 million in the third quarter of 2025.
• GAAP net income per diluted share was $0.17, compared to $0.10 in the third quarter of 2025.
• Non-GAAP net income was $37.1 million, compared to $24.4 million in the third quarter of 2025.
• Non-GAAP net income per share was $0.51, compared to $0.32 in the third quarter of 2025.
• Adjusted EBITDA was $43.4 million, compared to $32.2 million in the third quarter of 2025.
• Net cash used by operating activities was $(15.4) million for the three months ended September 30, 2026, compared to $18.7 million of net cash provided by operating activities for the same period in 2025.
• Cash and cash equivalents were $47.3 million as of September 30, 2026, down from $135.8 million as of December 31, 2025.
• Total debt was $199.5 million ($2.9 million current, $196.6 million long-term) as of September 30, 2026, down from $240.8 million ($9.6 million current, $231.2 million long-term) as of December 31, 2025.
• Deferred revenue was $343.5 million ($337.0 million current, $6.5 million non-current) as of September 30, 2026, down from $350.2 million ($341.3 million current, $8.9 million non-current) as of December 31, 2025.

Guidance and Future Outlook:

• Fourth Quarter 2026 Cloud subscriptions revenue is expected to be between $143.0 million and $145.0 million, representing year-over-year growth of 22% to 24%.
• Fourth Quarter 2026 Total revenue is expected to be between $233.0 million and $237.0 million, representing a year-over-year increase of 15% to 17%.
• Fourth Quarter 2026 Adjusted EBITDA is expected to be between $30.0 million and $33.0 million.
• Fourth Quarter 2026 Non-GAAP earnings per share is expected to be between $0.30 and $0.34, assuming weighted average common shares outstanding of 73.4 million.
• Full Year 2026 Cloud subscriptions revenue is expected to be between $536.0 million and $538.0 million, representing year-over-year growth of 23%.
• Full Year 2026 Total revenue is expected to be between $873.0 million and $877.0 million, representing a year-over-year increase of 20% to 21%.
• Full Year 2026 Adjusted EBITDA is expected to be between $116.0 million and $119.0 million.
• Full Year 2026 Non-GAAP earnings per share is expected to be between $1.20 and $1.24, assuming weighted average common shares outstanding of 73.5 million.

Business Segments and Product Lines:

• Appian provides process automation for complex processes in large enterprises and governments.
• The company has been automating processes for 25 years.

Risks and Challenges:

• Forward-looking statements are subject to risks including market opportunity expansion, the disruptive impact of AI, increased competition, and innovations by new and existing competitors.
• Risks include the ability to sustain growth, maintain profitability, and maintain brand awareness.
• Risks related to customer base composition, concentration, demand, and satisfaction are noted.
• Risks include compliance with laws and regulations, strategic relationships with third parties, and other factors detailed in the company's Form 10-K and Form 10-Q filings.

Management Commentary and Tone:

• The press release states that non-GAAP measures are used for financial and operational decision-making and to evaluate period-to-period comparisons.
• Management believes non-GAAP measures provide meaningful supplemental information by excluding expenses not indicative of recurring core business operating results.
• The company notes that non-GAAP measures facilitate internal comparisons and comparisons to competitors' operating results.

Other Key Points:

• The company reported a loss on debt extinguishment of $438,000 for the nine months ended September 30, 2026.
• Repurchases of common stock totaled $83.0 million for the nine months ended September 30, 2026, compared to $20.0 million in the same period of 2025.
• Proceeds from borrowings were $200.0 million for the nine months ended September 30, 2026.
• Debt repayments totaled $241.6 million for the nine months ended September 30, 2026.
• Litigation expenses related to the Pegasystems cases (net of insurance reimbursements) were excluded from non-GAAP measures.
• Lease impairment and lease-related charges associated with reducing the footprint of leased office spaces were excluded from non-GAAP measures.
• JPI Amortization (amortization of the judgment preservation insurance policy) was excluded from non-GAAP measures.
• Unrealized foreign exchange gains and losses and write-offs of deferred debt issuance costs were included in "Other Adjustments" for non-GAAP reconciliation.
• The company hosts a conference call on November 5, 2026, at 8:30 a.m. ET to discuss results and outlook.