Second Quarter 2026
Filed Aug 6, 2026Appian Announces Second Quarter 2026 Financial Results
Total revenue increased 19% year-over-year to $203.3 million, cloud subscriptions revenue increased 23% to $131.7 million, and non-GAAP operating income rose to $13.6 million from $5.6 million. GAAP net loss widened to $(11.8) million from $(0.3) million, but operating cash flow turned positive at $12.1 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $203.3 million | – | up 19% |
| Cloud subscriptions revenueGAAP | $131.7 million | – | up 23% |
| Total subscriptions revenueGAAP | $157.7 million | – | increased 19% year-over-year |
| Professional services revenueGAAP | $45.6 million | – | an increase of 20% |
| Cloud net annualized recurring revenue expansionother | 115% | – | – |
| Operating lossGAAP | $(5.4) million | – | – |
| Operating incomenon-GAAP | $13.6 million | – | – |
| Net lossGAAP | $(11.8) million | – | – |
| Net loss per shareGAAP | $(0.16) | – | – |
| Net incomenon-GAAP | $9.2 million | – | – |
| Net income per sharenon-GAAP | $0.13 | – | – |
| Adjusted EBITDAnon-GAAP | $16.2 million | – | – |
| Net cash provided by operating activitiesGAAP | $12.1 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cloud subscriptionsCloud net annualized recurring revenue (“ARR”) expansion was 115% as of June 30, 2026. | $131.7 million | – | up 23% |
| Total subscriptionsCloud subscriptions revenue was $131.7 million, up 23% compared to the second quarter of 2025. | $157.7 million | – | increased 19% year-over-year |
| Professional servicesProfessional services revenue increased compared to the second quarter of 2025. | $45.6 million | – | an increase of 20% |
Third Quarter 2026 and Full Year 2026 outlook
- NoteThird Quarter 2026: Cloud subscriptions revenue is expected to be between $133.0 million and $135.0 million, representing year-over-year growth of 17% to 19%.
- NoteThird Quarter 2026: Total revenue is expected to be between $214.0 million and $218.0 million, representing a year-over-year increase of 14% to 17%.
- NoteThird Quarter 2026: Adjusted EBITDA is expected to be between $30.0 million and $33.0 million.
- NoteThird Quarter 2026: Non-GAAP earnings per share is expected to be between $0.31 and $0.35, assuming weighted average common shares outstanding of 72.6 million.
- NoteFull Year 2026: Cloud subscriptions revenue is expected to be between $525.0 million and $529.0 million, representing year-over-year growth of 20% to 21%.
- NoteFull Year 2026: Total revenue is expected to be between $845.0 million and $853.0 million, representing a year-over-year increase of 16% to 17%.
- NoteFull Year 2026: Adjusted EBITDA is expected to be between $104.0 million and $110.0 million.
- NoteFull Year 2026: Non-GAAP earnings per share is expected to be between $1.04 and $1.12, assuming weighted average common shares outstanding of 73.2 million.
What drove it
- Cloud subscriptions revenue was $131.7 million, up 23% compared to the second quarter of 2025.
- Total subscriptions revenue increased 19% year-over-year to $157.7 million.
- Professional services revenue was $45.6 million, an increase of 20% compared to the second quarter of 2025.
- Cloud net annualized recurring revenue (“ARR”) expansion was 115% as of June 30, 2026.
- Non-GAAP operating income was $13.6 million, compared to non-GAAP operating income of $5.6 million for the second quarter of 2025.
- Net cash provided by operating activities was $12.1 million for the three months ended June 30, 2026.
Concerns
- GAAP net loss was $(11.8) million, compared to $(0.3) million for the second quarter of 2025.
- GAAP net loss per share was $(0.16) for the second quarter of 2026, compared to breakeven for the second quarter of 2025.
- GAAP operating loss was $(5.4) million.
- Appian cited risks associated with increased competition, innovations by new and existing competitors, the ability to manage or sustain growth and maintain profitability, customer-base composition and concentration, and customer demand.
What to watch
- Third Quarter 2026 cloud subscriptions revenue guidance of between $133.0 million and $135.0 million.
- Third Quarter 2026 total revenue guidance of between $214.0 million and $218.0 million.
- Third Quarter 2026 adjusted EBITDA guidance of between $30.0 million and $33.0 million.
- Full Year 2026 cloud subscriptions revenue guidance of between $525.0 million and $529.0 million.
- Full Year 2026 total revenue guidance of between $845.0 million and $853.0 million.
- Full Year 2026 adjusted EBITDA guidance of between $104.0 million and $110.0 million.
- Cloud net annualized recurring revenue (“ARR”) expansion.
Balance sheet and cash flow
- Net cash provided by operating activities was $12.1 million for the three months ended June 30, 2026 compared to $(1.9) million of net cash used by operating activities for the same period in 2025.
Analysis
Appian delivered broad top-line growth in the second quarter of 2026. Total revenue was $203.3 million, up 19% compared to the second quarter of 2025. Cloud subscriptions revenue increased 23% to $131.7 million, ahead of the 19% increase in total subscriptions revenue to $157.7 million. Professional services revenue also increased 20% to $45.6 million, showing growth across the reported revenue categories. Cloud net annualized recurring revenue expansion was 115% as of June 30, 2026.
The profitability picture improved substantially on the non-GAAP measures reported. Non-GAAP operating income was $13.6 million, compared to $5.6 million in the second quarter of 2025, while adjusted EBITDA was $16.2 million compared to $8.1 million. Non-GAAP net income was $9.2 million and non-GAAP net income per share was $0.13, compared with $0.3 million and breakeven, respectively, a year earlier.
GAAP results remained loss-making. GAAP operating loss narrowed to $(5.4) million from $(11.0) million, but GAAP net loss widened to $(11.8) million from $(0.3) million. GAAP net loss per share was $(0.16), compared to breakeven. The release explains that its non-GAAP measures exclude stock-based compensation expense, unrealized foreign exchange rate gains and losses, certain litigation-related expenses, JPI Amortization, and lease impairments and lease-related charges.
Cash generation improved during the period. Net cash provided by operating activities was $12.1 million for the three months ended June 30, 2026, compared to $(1.9) million of net cash used by operating activities for the same period in 2025. The filing did not report free cash flow, cash balances, debt, repurchases, or dividends.
The outlook calls for continued growth in both cloud subscriptions and total revenue. Third-quarter guidance calls for cloud subscriptions revenue of between $133.0 million and $135.0 million and total revenue of between $214.0 million and $218.0 million, alongside adjusted EBITDA of between $30.0 million and $33.0 million. Full-year guidance calls for cloud subscriptions revenue of between $525.0 million and $529.0 million, total revenue of between $845.0 million and $853.0 million, and adjusted EBITDA of between $104.0 million and $110.0 million.
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- Non-GAAP gross profit and gross margin
- Operating expenses and operating expense comparisons
- Income tax expense and tax rate
- Balance sheet cash and cash equivalents
- Debt and other borrowing balances
- Free cash flow
- Capital returns, including share repurchases and dividends
- Prior-quarter comparisons for reported revenue, profitability, EPS, adjusted EBITDA, and operating cash flow metrics
- Prior guidance for comparison with reported second-quarter results
- Named executive commentary or quotes
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.