Summary
Appian's FY2025 Q1, ended March 31, 2025, showed a cleaner income statement than the prior-year quarter. Total revenue rose 11.1% to $166.4 million. Gross profit increased 14.0% to $127.5 million. Gross margin improved to 76.6% from 74.6%. The operating loss narrowed to $0.8 million from $19.5 million. The net loss narrowed to $1.2 million from $32.9 million. Diluted EPS was a loss of $0.02, compared with a loss of $0.45. Operating margin improved to -0.5% from -13.0%.
Non-GAAP results were stronger. Non-GAAP operating income was $14.3 million, compared with a non-GAAP operating loss of $3.7 million in the prior-year quarter. Non-GAAP net income was $9.8 million, compared with a non-GAAP net loss of $6.8 million. Adjusted EBITDA was $16.8 million, compared with an adjusted EBITDA loss of $1.3 million. The CEO called it the third straight quarter of positive adjusted EBITDA. Appian generated $45.0 million of operating cash flow, up from $18.9 million. Capital expenditures were $0.7 million, down from $2.2 million. The company used $62.0 million of borrowing capacity under a $100.0 million revolving credit facility and had letters of credit totaling $14.6 million. The Credit Agreement matures on November 3, 2027, and Appian says it is in compliance with all covenants.
Backlog and customer metrics were mixed. Deferred revenue was $262.5 million, up 16.1% from a year earlier. Remaining performance obligations were $519.1 million, up 10.8%. Cloud subscriptions revenue retention rate was 112% as of March 31, 2025, down from 120% a year earlier. The MD&A notes an average cloud subscriptions gross renewal rate of 99% over the last three completed fiscal years. Government exposure remains significant. Government agencies represented 33.4% of total revenue in the quarter, with U.S. federal agencies at 23.9%. Those figures were 29.5% and 21.7%, respectively, in the prior-year quarter. Revenue outside the United States was 36.2% of total revenue, down from 37.2%.
Guidance points to continued expansion. For the second quarter of 2025, Appian expects cloud subscriptions revenue of $101.0 million to $103.0 million, or year-over-year growth of 14% to 16%. Total revenue is guided to $158.0 million to $162.0 million, an increase of 8% to 11%. Adjusted EBITDA is expected to be between negative $5.0 million and negative $2.0 million, and non-GAAP net loss per share is expected to be between negative $0.15 and negative $0.11, based on 74.8 million weighted average shares. For the full year 2025, cloud subscriptions revenue is guided to $419.0 million to $423.0 million, or growth of 14% to 15%. Total revenue is guided to $680.0 million to $688.0 million, up 10% to 12%. Adjusted EBITDA is expected to be $40.0 million to $46.0 million, and non-GAAP net income per share is expected to be $0.18 to $0.26, based on 75.1 million weighted average shares.
Risks remain familiar for a company with a long sales cycle and heavy government exposure. The 10-Q points to the length and variability of the sales cycle, competition, and AI as a disruptive set of technologies that could affect markets dramatically. Customer concentration and composition, compliance with laws, and reliance on strategic third parties are also named. Appian has a non-cancellable cloud hosting arrangement with AWS that carries $220.0 million in purchase commitments over five years and minimum annual spending of $44.0 million from November 2024 to October 2029. The company spent $10.4 million under that agreement in the quarter. It also faces the Pegasystems litigation backdrop, including a $2.036 billion judgment and a $57.3 million judgment preservation insurance policy. Management's cost controls are helping margins, but the company still needs durable growth to keep losses narrow and cash flow positive.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $166.4M | $166.7M | -0.2% | $149.8M | +11.1% |
| Gross profit | $127.5M | $131.0M | -2.7% | $111.8M | +14.0% |
| Gross margin | 76.6% | 78.6% | -2.0 pp | 74.6% | +2.0 pp |
| Research & development | $39.5M | $37.2M | +6.3% | $39.8M | -0.6% |
| Sales & marketing | $54.6M | $55.3M | -1.3% | $58.2M | -6.2% |
| General & administrative | $34.3M | $33.5M | +2.3% | $33.4M | +2.5% |
| Total operating expenses | $128.3M | $126.0M | +1.9% | $131.4M | -2.3% |
| Operating income (loss) | -$834.0K | $5.0M | -116.6% | -$19.5M | +95.7% |
| Operating margin | -0.5% | 3.0% | -3.5 pp | -13.0% | +12.5 pp |
| Net income (loss) | -$1.2M | -$13.6M | +91.4% | -$32.9M | +96.4% |
| Net margin | -0.7% | -8.2% | +7.5 pp | -22.0% | +21.3 pp |
| Diluted EPS | -$0.02 | -$0.19 | +$0.17 | -$0.45 | +$0.43 |
Risks
Revenue generated from government agencies represented 33.4% of total revenue for the three months ended March 31, 2025, of which U.S. federal government agencies were 23.9%, up from 29.5% and 21.7% respectively for the three months ended March 31, 2024. This increasing reliance on government budgets and procurement cycles could pressure results if spending slows.
Cloud subscriptions revenue retention rate declined to 112% as of March 31, 2025 from 120% as of March 31, 2024. A lower retention rate could reduce future expansion revenue and growth.
Litigation-related expenses attributable to the Pegasystems cases increased by $1.1 million in the three months ended March 31, 2025, contributing to higher professional fees. The company also maintains a judgment preservation insurance policy tied to its $2.036 billion judgment against Pegasystems, exposing it to ongoing litigation and collection risk.
Appian has a non-cancellable cloud hosting arrangement with AWS with minimum purchase commitments of $220.0 million over five years and annual minimum spending requirements of $44.0 million from November 2024 to October 2029. If demand slows, these fixed obligations could pressure gross margin and cash flow.
The Credit Agreement matures on November 3, 2027, with a $200.0 million term loan and a $100.0 million revolving facility; as of March 31, 2025, $62.0 million of borrowing capacity was used and letters of credit totaled $14.6 million. Failure to meet financial covenants could impair liquidity.
SaaS KPIs
All quarters →Cloud Subscriptions Revenue Retention Rate
Summary, forecast, risks and KPIs are extracted from APPIAN CORP's SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.