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Appen Delivers Strong Q4 as China Growth and Generative AI Projects Boost Profitability

Story Highlights
  • Appen posted double-digit Q4 revenue growth and tripled underlying EBITDA, supported by higher margins and cost efficiencies.
  • China and Global divisions drove gains, with China’s rapid scale-up and generative AI projects underpinning profitability and a strong cash position.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Appen Delivers Strong Q4 as China Growth and Generative AI Projects Boost Profitability

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Appen ( (AU:APX) ) has shared an announcement.

Appen reported a strong Q4 FY25, with revenue rising 10% year-on-year to US$73.4 million and 33% quarter-on-quarter, while underlying EBITDA before FX surged 182% to US$13.3 million, supported by a 530-basis-point improvement in gross margin to 45.6%. Appen China continued to be a key growth engine, delivering quarterly revenue of US$32 million, up 81% on the prior corresponding period, an annualised revenue run-rate above US$135 million, and its seventh consecutive quarter of standalone positive underlying EBITDA at US$4.3 million, reflecting growing scale and operating leverage. The Appen Global division showed clear progress in its turnaround, with quarterly revenue increasing 56% from Q3 to US$41.4 million and underlying EBITDA improving to US$10.2 million, driven by cost efficiencies and expanding generative AI project work, including a previously announced contract exceeding US$10 million that is ramping faster than expected. The company also completed around US$10 million in annualised cost efficiencies through technology innovation and automation and ended the year with a strong cash balance of US$59.8 million, positioning it for sustained profitable growth and reinforcing its ability to capitalise on accelerating AI adoption globally.

The most recent analyst rating on (AU:APX) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Appen stock, see the AU:APX Stock Forecast page.

More about Appen

Appen Limited (ASX: APX) is a global market leader in providing data solutions for the artificial intelligence (AI) lifecycle, supplying high-quality training data and related services that support AI development and deployment across consumer, enterprise and emerging applications. The company operates through its Global and China divisions, focusing on data annotation, collection and labeling projects that underpin machine learning and generative AI systems for major technology and enterprise customers worldwide.

Average Trading Volume: 3,209,044

Technical Sentiment Signal: Hold

Current Market Cap: A$316.1M

For an in-depth examination of APX stock, go to TipRanks’ Overview page.

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