APPIAN CORP Q1 FY2026 earnings

Appian's fiscal 2026 first quarter showed accelerating demand. Revenue reached $202.18 million, up 21.5% from $166.43 million in the prior-year quarter. Cloud subscriptions revenue was $124.5 million, up 25% year over year. Total subscriptions revenue, which bundles cloud subscriptions, other subscriptions, and related maintenance and support, rose 19% to $160.3 million. Professional services revenue climbed 31% to $41.9 million. Cloud net ARR expansion was 115% as of March 31, 2026, versus 112% a year earlier, a sign that existing customers kept spending more.

Operating leverage is showing up above the tax line. Gross profit was $147.77 million, up 20.7%, while gross margin slipped to 73.1% from 73.5%. Operating income was $3.16 million, a swing to a profit from a year earlier, and operating margin rose to 1.6% from -0.5%. Net loss still widened, to $1.52 million from $1.18 million, and diluted EPS was flat at -$0.02. Non-GAAP operating income was $24.4 million against $14.3 million a year ago, adjusted EBITDA was $26.6 million against $16.8 million, and non-GAAP net income was $19.8 million, or $0.27 per diluted share, versus $0.13. The spread between GAAP and non-GAAP results comes largely from stock-based compensation and legal costs tied to the Pegasystems case.

Cash generation held steady. Operating cash flow was $48.83 million for the quarter, up 8.6% from $44.97 million, helped by collections from strong bookings in the fourth quarter of 2025 and the first three months of 2026. Capital expenditures dropped 71.1% to $0.19 million. Deferred revenue increased 24.7% to $327.31 million, and remaining performance obligations were $600.10 million, up 15.6%. Accounts receivable fell to $173,874 thousand from $255,063 thousand at December 31, 2025, which supports the collection story in operating cash flow.

Guidance points to slower growth ahead. For the second quarter of 2026, total revenue is expected between $191.0 million and $195.0 million, up 12% to 14%. Cloud subscriptions revenue is guided to $126.0 million to $128.0 million, growth of 18% to 20%, with adjusted EBITDA of $5.0 million to $8.0 million and non-GAAP earnings per share between -$0.02 and $0.02. For the full year 2026, total revenue is expected between $819.0 million and $831.0 million, up 13% to 14%. Cloud subscriptions revenue is guided to $515.0 million to $521.0 million, up 18% to 19%, with adjusted EBITDA of $97.0 million to $105.0 million and non-GAAP earnings per share of $0.94 to $1.05.

Costs and legal exposure remain the main risks. General and administrative expense grew on a $5.9 million increase in professional fees, including a net $5.2 million rise in legal fees for the Pegasystems litigation. Headcount in professional services and product support rose 18% year over year, and sales and marketing headcount rose 9%. Appian carries a non-cancellable AWS hosting arrangement with $220.0 million of commitments over five years and minimum annual spending of $44.0 million from November 2024 to October 2029. Its credit agreement matures on November 3, 2027, with $62.0 million drawn under a $100.0 million revolver and $7.9 million of letters of credit outstanding. Revenue from U.S. federal agencies was 25.8% of the total, up from 23.9%, and 37.6% of revenue came from outside the United States. Management flags competition, the disruptive impact of AI, and the challenge of sustaining growth and profitability as risks.

Appian repurchased 843 thousand shares at an average price of $25.85 for $21,808 thousand under a February 2026 authorization. On May 5, 2026, the board added $50.0 million, bringing total authorization to $100.0 million.