Revenue growth accelerated to 19.1% YoY in 2026Q2, but gross margin compressed to 71.2% from 74.3% a year earlier, and operating income swung to a -$5.4M loss, indicating cost growth outpacing revenue gains.
Appian Corporation (APPN) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 795.31M | 726.94M | 617.02M | 545.36M | 467.99M | 369.26M | 304.57M | 260.35M | 226.74M | 176.74M | 132.92M | 111.2M |
| Revenue Growth % | 20.9% | 17.81% | 13.14% | 16.53% | 26.74% | 21.24% | 16.99% | 14.82% | 28.29% | 32.96% | 19.53% | - |
| Cost of Goods Sold | 214.12M | 199.6M | 150.18M | 143.32M | 133.31M | 104.09M | 88.77M | 93.84M | 84.92M | 64.6M | 50.12M | 48.48M |
| COGS % of Revenue | - | 27.46% | 24.34% | 26.28% | 28.48% | 28.19% | 29.14% | 36.04% | 37.45% | 36.55% | 37.71% | 43.6% |
| Gross Profit | 581.19M | 527.34M | 466.84M | 402.04M | 334.69M | 265.17M | 215.81M | 166.51M | 141.82M | 112.14M | 82.8M | 62.72M |
| Gross Margin % | 73.08% | 72.54% | 75.66% | 73.72% | 71.52% | 71.81% | 70.86% | 63.96% | 62.55% | 63.45% | 62.29% | 56.4% |
| Gross Profit Growth % | - | 12.96% | 16.12% | 20.13% | 26.22% | 22.87% | 29.61% | 17.41% | 26.47% | 35.43% | 32.01% | - |
| Operating Expenses | 571.05M | 526.73M | 527.7M | 510.01M | 479.69M | 349.07M | 253.71M | 216.98M | 188.54M | 143.95M | 94.17M | 67.56M |
| OpEx % of Revenue | - | 72.46% | 85.52% | 93.52% | 102.5% | 94.53% | 83.3% | 83.34% | 83.15% | 81.45% | 70.85% | 60.76% |
| Selling, General & Admin | 392.01M | 354.54M | 372.72M | 356.92M | 340.49M | 251.56M | 183.47M | 158.94M | 143.81M | 109.12M | 71.18M | 50.81M |
| SG&A % of Revenue | - | 48.77% | 60.41% | 65.45% | 72.75% | 68.12% | 60.24% | 61.05% | 63.43% | 61.74% | 53.55% | 45.7% |
| Research & Development | 179.03M | 172.19M | 154.98M | 153.1M | 139.21M | 97.52M | 70.24M | 58.04M | 44.72M | 34.84M | 22.99M | 16.75M |
| R&D % of Revenue | - | 23.69% | 25.12% | 28.07% | 29.75% | 26.41% | 23.06% | 22.29% | 19.72% | 19.71% | 17.3% | 15.06% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 941K | 0 | 0 | 0 | 0 |
| Operating Income | 10.14M | 609K | -60.85M | -107.97M | -145.01M | -83.91M | -37.9M | -50.47M | -46.72M | -31.81M | -11.37M | -4.84M |
| Operating Margin % | 1.28% | 0.08% | -9.86% | -19.8% | -30.99% | -22.72% | -12.44% | -19.38% | -20.6% | -18% | -8.55% | -4.35% |
| Operating Income Growth % | - | 101% | 43.64% | 25.54% | -72.82% | -121.38% | 24.9% | -8.02% | -46.86% | -179.78% | -134.82% | - |
| EBITDA | 21.93M | 10.31M | -50.82M | -98.5M | -137.71M | -78.16M | -32.05M | -45.73M | -44.7M | -30.93M | -10.61M | -4.08M |
| EBITDA Margin % | 2.76% | 1.42% | -8.24% | -18.06% | -29.43% | -21.17% | -10.52% | -17.56% | -19.71% | -17.5% | -7.98% | -3.67% |
| EBITDA Growth % | 664.8% | 120.3% | 48.4% | 28.47% | -76.18% | -143.87% | 29.91% | -2.3% | -44.54% | -191.58% | -160.01% | - |
| D&A (Non-Cash Add-back) | 11.79M | 9.71M | 10.03M | 9.47M | 7.3M | 5.74M | 5.85M | 4.74M | 2.02M | 886K | 764K | 763K |
| EBIT | 12.8M | 27.29M | -67.63M | -90.37M | -148.56M | -87.49M | -32.12M | -49.53M | -49.01M | -29.77M | -13.16M | -6.42M |
| Net Interest Income | -18.16M | -20.85M | -23.58M | -17.86M | -1.67M | -372K | -478K | -367K | -198K | -473K | -982K | -188K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 18.16M | 20.85M | 23.58M | 17.86M | 1.67M | 372K | 478K | 367K | 198K | 473K | 982K | 188K |
| Other Income/Expense | -15.5M | 5.83M | -30.36M | -259K | -5.22M | -3.96M | 5.31M | 574K | -2.49M | 1.56M | -2.77M | -1.77M |
| Pretax Income | -5.36M | 6.44M | -91.21M | -108.23M | -150.23M | -87.86M | -32.59M | -49.89M | -49.21M | -30.25M | -14.14M | -6.61M |
| Pretax Margin % | -0.67% | 0.89% | -14.78% | -19.85% | -32.1% | -23.79% | -10.7% | -19.16% | -21.7% | -17.11% | -10.64% | -5.94% |
| Income Tax | 5.26M | 5.21M | 1.05M | 3.21M | 692K | 778K | 883K | 820K | 239K | 761K | -1.68M | 378K |
| Effective Tax Rate % | -98.13% | 80.87% | -1.16% | -2.96% | -0.46% | -0.89% | -2.71% | -1.64% | -0.49% | -2.52% | 11.9% | -5.72% |
| Net Income | -10.62M | 1.23M | -92.26M | -111.44M | -150.92M | -88.64M | -33.48M | -50.71M | -49.45M | -31.01M | -12.46M | -6.99M |
| Net Margin % | -1.34% | 0.17% | -14.95% | -20.43% | -32.25% | -24.01% | -10.99% | -19.48% | -21.81% | -17.54% | -9.37% | -6.28% |
| Net Income Growth % | 38.38% | 101.34% | 17.21% | 26.16% | -70.26% | -164.78% | 33.99% | -2.55% | -59.48% | -148.83% | -78.35% | - |
| Net Income (Continuing) | -10.62M | 1.23M | -92.26M | -111.44M | -150.92M | -88.64M | -33.48M | -50.71M | -49.45M | -31.01M | -12.46M | -6.99M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.15 | 0.02 | -1.26 | -1.52 | -2.08 | -1.25 | -0.48 | -0.77 | -0.80 | -0.63 | -0.23 | -0.13 |
| EPS Growth % | 34.53% | 101.31% | 17.11% | 26.92% | -66.4% | -160.42% | 37.66% | 3.75% | -26.98% | -173.91% | -76.92% | - |
| EPS (Basic) | - | 0.02 | -1.26 | -1.52 | -2.08 | -1.25 | -0.48 | -0.77 | -0.80 | -0.63 | -0.23 | -0.13 |
| Diluted Shares Outstanding | 72.9M | 74.65M | 72.99M | 73.1M | 72.46M | 71.04M | 69.05M | 65.48M | 62.14M | 49.53M | 54.72M | 54.72M |
| Basic Shares Outstanding | 72.9M | 74.05M | 72.99M | 73.1M | 72.46M | 71.04M | 69.05M | 65.48M | 62.14M | 49.53M | 54.72M | 54.72M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying APPN stock.
For fiscal year 2025, Appian Corporation (APPN) reported total revenue of $726.9M. This represents a 553.7% increase compared to $111.2M in 2015.
Appian Corporation (APPN) is profitable, generating $1.2M in net income for the fiscal year ending 2025 with a net profit margin of 0.2%.
Appian Corporation (APPN) reported an operating income of $0.6M, resulting in an operating profit margin of 0.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Appian Corporation (APPN) generated $527.3M in gross profit for the year, representing a gross profit margin of 72.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Legal overhang and margin volatility
Metrics are mathematically derived from official filings.
Revenue Growth Accelerates on Cloud Strength
Appian's revenue growth accelerated to 19.1% year-over-year in 2026Q2, up from 16.5% in 2025Q2, according to recent financial statements, suggesting sustained momentum in cloud subscriptions.
The sequential acceleration from 16.5% to 19.1% over the past year indicates that the company is gaining traction, likely driven by cloud subscription revenue, which is the primary growth engine. The consistent double-digit growth across all quarters, even during seasonally weaker periods, suggests a durable demand for its automation platform. However, the growth rate remains below the hyper-growth seen in some peers, implying a more mature but steady expansion.
Gross Margin Pressured by Services Mix
Gross margin declined to 71.2% in 2026Q2 from 74.3% a year earlier, as reported in the income statement, reflecting a higher mix of lower-margin professional services.
The 310 basis point year-over-year decline in gross margin suggests that the professional services segment is growing faster than the high-margin cloud subscription business, diluting overall profitability. This trend may indicate that the company is still in the early stages of transitioning implementation work to partners, a key driver for future margin expansion. If the services mix continues to rise, gross margin could face further pressure, but the company's focus on cloud subscriptions may eventually reverse this trend.
Operating Leverage Elusive as Costs Outpace Revenue
Operating income swung from a $13.1M profit in 2025Q3 to a $5.4M loss in 2026Q2, based on reported figures, indicating that expense growth is outpacing revenue gains.
Despite revenue growing 19.1% year-over-year, operating income deteriorated, suggesting that R&D and SG&A expenses are increasing at a faster rate. The 2026Q2 operating margin of -2.7% contrasts with the 7.0% margin in 2025Q3, highlighting the volatility in profitability. This lack of operating leverage may be due to heavy investments in AI-driven initiatives and sales capacity, which could pay off in the long term but currently strain margins.
Net Losses Persist Despite Positive Operating Quarters
Net income was negative in 2026Q2 at -$11.8M, even though operating income was positive in the prior quarter, as per the income statement, suggesting non-operating items or tax effects.
The discrepancy between operating income and net income in quarters like 2025Q3 (operating income of $13.1M but net income of $7.8M) indicates that interest expense, taxes, or other non-operating charges are impacting the bottom line. Stock-based compensation of around $10-12M per quarter is a significant non-cash expense that reduces reported earnings but is added back in cash flow calculations. Investors should focus on operating cash flow and free cash flow to assess the true earnings power.
R&D and SG&A Escalate, Pressuring Margins
R&D and SG&A combined rose to $150.2M in 2026Q2 from $137.7M in 2025Q2, as reported in financial statements, representing a 9.1% increase that outpaced revenue growth.
The increase in operating expenses, particularly in R&D (up 17.4% year-over-year) and SG&A (up 5.6%), suggests that management is investing heavily in product innovation and sales capacity. While these investments are necessary to sustain growth, they are currently outpacing revenue growth, leading to operating losses. The company's ability to control these costs while scaling will be critical to achieving sustained profitability.
2025Q3 Marks a Temporary Profitability Peak
The 2025Q3 quarter stands out as the only period with both positive operating income ($13.1M) and net income ($7.8M) in the last ten quarters, according to the income statement data.
This inflection point appears to have been driven by a combination of strong revenue growth (21.4% year-over-year) and a gross margin of 75.8%, the highest in the period. However, the subsequent quarters saw a reversal, with operating income turning negative again, suggesting that the profitability was not sustainable. The volatility in margins and earnings indicates that the company is still in a transition phase, and investors should monitor whether it can achieve consistent profitability.
Margin Compression and Legal Overhang Threaten
The recent EPS miss and maintained guidance, as noted in recent context, may indicate that the company is facing margin pressure that could persist, while the overturned Pegasystems judgment removes a potential cash windfall.
Short-sellers could argue that the company's path to profitability is elusive, given the recurring operating losses and the rising cost structure. The gross margin decline and the lack of operating leverage suggest that the business model may not scale as expected. Additionally, the legal uncertainty following the overturned judgment could result in ongoing litigation costs and distract management, further pressuring margins. If the company cannot successfully shift to a partner-led implementation model, the current margin profile may be structurally capped.