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Appian Corp (APPN)
NASDAQ:APPN
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Appian
(NASDAQ:APPN)
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Rating:53Neutral
Price Target:
$25.00
▼(-0.56% Downside)
Action:ReiteratedDate:02/20/26
The score is held back most by balance-sheet risk (negative equity with meaningful debt) and weak technicals (below key moving averages with negative MACD). These are partially offset by improving operating fundamentals and cash generation, and a notably positive earnings outlook with AI-driven momentum and margin/cash-flow improvement guidance.
Positive Factors
Improved Profitability & Cash Flow
Appian has shifted from multi-year losses to modest GAAP profitability and materially positive operating/free cash flow (~$63M op cash in 2025). Durable cash generation reduces financing risk, funds reinvestment and buybacks, and supports sustained product development and sales scaling.
AI Monetization & Product Differentiation
Rapid AI adoption and a clear upsell path (AI license upgrades with ~25% price uplift and large AI-driven contracts) strengthen ARPU and product stickiness. Structural AI demand can widen competitive moats, increase lifetime value and support higher-margin recurring revenue over multiple years.
Cloud Recurring Revenue & Upsell
A rising share of cloud bookings and strong cloud ARR expansion indicate the business is shifting toward recurring SaaS economics. That improves revenue visibility, increases customer retention and upsell potential, and supports long-term margin expansion versus lumpy on‑prem contracts.
Negative Factors
Balance Sheet Risk
Negative equity alongside meaningful debt reduces financial flexibility and raises refinancing and covenant risk. Even with improving cash flow, the capital structure constrains strategic optionality (M&A, sustained buybacks) and increases sensitivity to any cash-flow setbacks over the next several quarters.
Slowing Revenue Growth
A notable deceleration in top-line growth limits operating leverage and makes margin gains harder to sustain. With profitability still thin, slower revenue increases pressure operating margins and raises reliance on upsells, AI monetization and services to meet profit and cash targets.
Services Margin & Revenue Lumpiness
Low and volatile professional services margins compress overall profitability and drive quarter-to-quarter cashflow swings. Dependence on large federal/on‑prem wins creates revenue lumpiness, increasing execution risk and making long-term margin improvement contingent on shifting customers to higher-margin cloud offerings.
Appian (APPN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.78B
Dividend YieldN/A
Average Volume (3M)1.24M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth15.97%
EPS Growth91.88%
CountryUS
Employees2,033
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.15
Shares Outstanding42,735,085
10 Day Avg. Volume1,460,315
30 Day Avg. Volume1,236,073
Financial Highlights & Ratios
PEG Ratio-20.99
Price to Book (P/B)-55.81
Price to Sales (P/S)3.61
P/FCF Ratio44.04
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue2.85
Enterprise Value/Gross Profit3.81
Enterprise Value/Ebitda59.19
Forecast
1Y Price Target
$31.00Price Target Upside23.31% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Appian Business Overview & Revenue Model
Company DescriptionAppian Corporation provides low-code automation platform in the United States and internationally. The company's platform automates the creation of forms, workflows, data structures, reports, user interfaces, and other software elements that are needed to be manually coded. The company also offers professional and customer support services. It serves to financial services, government, life sciences, insurance, manufacturing, energy, healthcare, telecommunications, and transportation industries. The company was incorporated in 1999 and is headquartered in McLean, Virginia.
How the Company Makes MoneyAppian generates revenue primarily through its subscription-based model, which includes licensing fees for its software platform, maintenance, and support services. The company offers different tiers of service, catering to a range of business needs from small enterprises to large organizations, thereby diversifying its customer base. Additionally, Appian earns revenue through professional services, such as training, consulting, and implementation support, which help clients maximize the value of their investments in Appian's solutions. Strategic partnerships with other technology providers and system integrators also play a crucial role in enhancing Appian's market presence and driving further revenue growth.
Appian Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market opportunities.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market opportunities.
Data provided by:
The Fly
The FlyAppian Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone driven by strong top-line growth, notable AI traction and monetization (14x YoY AI usage), expanding large enterprise and public sector wins (including a $500M Army framework), improved full-year profitability and materially stronger cash generation, and a $50M buyback announcement. Offsetting items include some gross-margin compression (especially services), higher operating expenses as the company modestly re-invests, a slight QoQ softness in quarterly cash flow, and lumpiness in on‑prem/services revenue. Management provided constructive guidance for 2026 with continued cloud growth, margin expansion, and a planed measured reinvestment in sales/engineering.Q4-2025 Updates
Positive Updates
Strong Top-line Growth
Q4 total revenue grew 22% YoY to $202.9M; Q4 subscriptions revenue grew 19% YoY to $162.3M; Q4 cloud subscription revenue grew 18% YoY to $117.0M. Full-year 2025 total revenue grew 18% to $726.9M; full-year cloud subscription revenue grew 19% to $437.4M.
Improved Profitability and Full-Year Cash Generation
Adjusted EBITDA for FY2025 was $76.8M (Q4 adjusted EBITDA $19.7M). Appian reported an 11% adjusted EBITDA margin for full-year 2025 vs negative 8% two years prior. Full-year cash provided by operations was $62.9M (CEO cited ~$63M), a substantial improvement versus $6.9M in 2024 and a turnaround from a loss two years ago.
Significant AI Traction and Monetization
AI usage on the Appian platform grew ~14x YoY. Customers upgrading to Appian's AI license tier face an average price increase of ~25%, and a meaningful number of customers upgraded in 2025. Management cited multiple 7-figure deals driven by demand for AI features (e.g., Doc Center producing an 88% faster response time; European banks expecting >EUR 20M savings over 3 years).
Large Enterprise & U.S. Public Sector Wins
Won major public sector agreements including a U.S. Army enterprise framework that could purchase ~$500M of Appian software and services over 10 years. Ended the year with 140 customers at $1M+ ARR (vs 115 a year ago). Management emphasized strengthened position across U.S. cabinet-level agencies and military branches.
Cloud Bookings Momentum and Customer Mix Shift
Cloud net new ACV was ~76% of total net new software bookings in Q4 vs 65% a year ago; Q4 cloud net new ACV growth was the strongest in almost 3 years. Cloud net ARR expansion was 114% in Q4 (vs 113% a year ago and 112% in the prior quarter), indicating continued upsells to existing cloud customers.
Professional Services Revenue Upside
Professional services revenue grew 36% YoY in Q4 to $40.6M, driven by AI-related implementations and federal work, supporting faster time-to-value for customers and additional revenue capture.
Balance Sheet & Capital Return
Cash and investments totaled $187.2M at year-end (vs $159.9M prior year). Company announced a $50M stock buyback authorization to begin returning capital, with intent to scale repurchases as cash flow grows.
Negative Updates
Gross Margin Compression
Non-GAAP gross margin decreased to 73% in Q4 from 77% a year ago. Subscription non-GAAP gross profit margin declined to 86% from 88% YoY. Professional services gross margin fell to 23% in Q4 from 27% a year ago and 31% in the prior quarter.
Rising Operating Expenses as Company Reinvests
Total non-GAAP operating expenses increased to $131.5M in Q4 from $109.8M a year ago. Management signaled a moderate pace of incremental investment in 2026 (sales headcount and engineering in India), which will increase OpEx versus the prior two years of relatively flat spending.
Slight Decline in Quarterly Profitability Metrics
Q4 adjusted EBITDA was $19.7M, down from $21.2M in the year-ago quarter. Non-GAAP net income for Q4 was $11.1M ($0.15 per diluted share) vs $13.2M ($0.18) in Q4 2024.
Weakness in Q4 Operating Cash Flow
Cash provided by operations in Q4 was only $1.1M compared with $13.9M in the same period last year, reflecting a back-end loaded quarter and limited near-term cash conversion in that quarter (full-year cash flow remained strong).
On-Prem & Services Lumpy; Some Q4 Strength May Be One-Time
Q4 on‑prem strength was driven by federal deals (noted as largely a federal/one-time uplift when a shutdown ended). Management expects professional services growth to moderate to high single digits for the full year and expects non-cloud subscription revenue to be roughly flat in 2026 as customers shift to cloud.
FX Impact and Back-End Loaded New Business
Q4 was more back-end loaded with limited revenue contribution from new business in the quarter. FX reduced reported revenue by about $1M relative to guidance assumptions; management expects a temporary FX tailwind in Q1 then neutral FX for the remainder of 2026 as U.S. dollar movements annualize.
Company Guidance
Appian guided Q1 2026 cloud subscription revenue of $119–$121M (≈20% YoY at the midpoint), total revenue $189–$193M (≈15% YoY), adjusted EBITDA $19–$22M and non‑GAAP EPS $0.16–$0.20 (assumes ~75.1M diluted shares). For full‑year 2026 it guided cloud subscription revenue of $502–$510M (≈16% YoY at midpoint), total revenue $801–$817M (≈11% YoY), adjusted EBITDA $89–$99M (≈12% margin at midpoint) and non‑GAAP EPS $0.82–$0.96 (~46% growth at midpoint, assumes ~74.8M shares). Guidance assumptions include non‑cloud subscription revenue roughly flat, professional services growth in the teens in Q1 and high single digits for the year, total other income/interest of ~$3M in Q1 and ~$12M for the year, FX rates as of mid‑February (Q1 FX tailwind then neutralizing), a moderate return to OpEx investment (sales and India engineering) and ~1 percentage point of adjusted EBITDA margin expansion in 2026; the company also announced a $50M share buyback to offset dilution.Appian Financial Statement Overview
Summary
Operating progress is evident: strong gross margins, a return to modest profitability in 2025, and positive operating/free cash flow in 2024–2025 support the story. The key drag is balance-sheet quality—negative equity in 2024–2025 alongside meaningful debt reduces financial flexibility, and revenue growth has recently slowed.Income Statement
Revenue has grown steadily over time (from $305M in 2020 to $727M in 2025), but the growth rate has decelerated meaningfully in the most recent year (2025 growth ~5% vs. mid-to-high teens earlier). Profitability has improved sharply: the company moved from sizable losses in 2021–2024 to modest profitability in 2025 (net margin ~0.2%), supported by consistently strong gross margins (~71–76%). The main weakness is that operating profitability is still very thin, leaving results sensitive to spending levels and demand changes.56
Neutral
Balance Sheet
The balance sheet shows rising financial risk: total debt is elevated (~$290M in 2025) while stockholders’ equity has turned negative in 2024–2025, which reduces financial flexibility and makes leverage metrics unfavorable. Total assets increased to ~$691M in 2025, but the negative equity position is a clear weakness and raises the importance of maintaining consistent profitability and cash generation going forward.38
Negative
Cash Flow
Cash generation improved substantially versus 2020–2023, with positive operating cash flow and free cash flow in 2024 and 2025 (2025 operating cash flow ~$63M; free cash flow ~$60M). However, free cash flow declined in 2025 (down ~18%), and operating cash flow remains modest relative to the business scale, indicating cash conversion can still fluctuate. Overall, cash flow is a relative strength versus the income statement’s still-thin profitability.62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 726.94M | 617.02M | 545.36M | 467.99M | 369.26M |
| Gross Profit | 527.34M | 466.84M | 402.04M | 334.69M | 265.17M |
| EBITDA | 10.31M | -57.60M | -80.90M | -141.26M | -81.75M |
| Net Income | 1.23M | -92.26M | -111.44M | -150.92M | -88.64M |
Balance Sheet | |||||
| Total Assets | 691.39M | 621.04M | 627.50M | 594.21M | 504.52M |
| Cash, Cash Equivalents and Short-Term Investments | 187.22M | 159.86M | 159.00M | 196.00M | 155.97M |
| Total Debt | 345.39M | 314.99M | 277.35M | 184.03M | 56.89M |
| Total Liabilities | 738.39M | 653.68M | 575.16M | 448.51M | 270.60M |
| Stockholders Equity | -46.99M | -32.64M | 52.34M | 145.70M | 233.92M |
Cash Flow | |||||
| Free Cash Flow | 59.56M | 3.08M | -120.08M | -115.65M | -59.98M |
| Operating Cash Flow | 62.87M | 6.88M | -110.44M | -106.55M | -53.92M |
| Investing Cash Flow | -12.83M | -35.39M | 28.59M | 10.26M | 41.94M |
| Financing Cash Flow | -36.28M | -258.00K | 79.17M | 142.87M | 2.79M |
Appian Technical Analysis
Negative
25.14
Price Trends
31.27
Negative
33.08
Negative
31.73
Negative
Market Momentum
-2.11
Negative
40.16
Neutral
58.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPN, the sentiment is Negative. The current price of 25.14 is below the 20-day moving average (MA) of 26.13, below the 50-day MA of 31.27, and below the 200-day MA of 31.73, indicating a bearish trend. The MACD of -2.11 indicates Negative momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 58.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APPN.
Appian Risk Analysis
Appian disclosed 57 risk factors in its most recent earnings report. Appian reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Appian Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $5.24B | 27.46 | 15.52% | ― | 23.16% | 27.38% | |
62 Neutral | $15.73B | 32.13 | 9.17% | ― | 4.21% | -0.63% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $10.97B | -35.78 | -27.72% | ― | 21.58% | 18.88% | |
60 Neutral | $14.70B | 75.10 | 2.96% | ― | 12.12% | ― | |
53 Neutral | $1.78B | -246.14 | ― | ― | 15.97% | 91.88% | |
51 Neutral | $10.89B | -27.66 | ― | ― | 48.93% | 69.39% |
* Technology Sector Average
APPN
Appian
25.14
-8.09
-24.35%
AKAM
Akamai
94.17
16.52
21.27%
OKTA
Okta
74.29
-16.59
-18.25%
FOUR
Shift4 Payments
58.49
-38.50
-39.69%
CFLT
Confluent
30.70
-0.39
-1.25%
RBRK
Rubrik, Inc. Class A
50.20
-17.52
-25.87%
Appian Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Appian Posts Profit, Launches Buyback After Strong 2025
Positive
Feb 19, 2026
On February 19, 2026, Appian reported its fourth-quarter and full-year 2025 results, highlighting 18% cloud subscriptions revenue growth in the quarter to $117 million and 19% growth for the year to $437.4 million, with total 2025 revenue up 18% to $726.9 million. The company swung to a modest GAAP net profit of $1.2 million for 2025 from a $92.3 million loss in 2024, significantly expanded non-GAAP profitability and adjusted EBITDA, and noted stronger operating cash flow alongside recent AI-focused contract wins with public-sector and health agencies.
Appian’s board also approved a share repurchase program of up to $50 million of common stock, to run from February 2026 through February 2028, signaling confidence in the firm’s financial trajectory and balance sheet strength. Management issued 2026 guidance calling for continued double-digit growth in cloud subscriptions and total revenue and higher adjusted EBITDA, underscoring an emphasis on profitable expansion as the company deepens its position in AI-driven process automation for government and enterprise customers.
The most recent analyst rating on (APPN) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Appian stock, see the APPN Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Appian Adds AI-Focused ScienceLogic CEO to Board
Positive
Jan 21, 2026
On January 21, 2026, Appian announced that its Board of Directors had appointed David Link, co-founder and CEO of ScienceLogic, to the Appian Board effective January 25, 2026, with service continuing until the company’s 2026 annual stockholders’ meeting. Link, an expert in scaling enterprise software platforms and applying AI and automation to complex, globally distributed IT systems, will also join the Audit Committee and receive standard non-employee director compensation, including a $250,000 annual retainer paid half in cash and half in fully vested Class A common shares. His appointment brings deep expertise in AI-driven IT operations and observability to Appian, reinforcing the company’s strategic emphasis on AI and automation in process management and potentially strengthening its competitive positioning in enterprise automation markets.
The most recent analyst rating on (APPN) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Appian stock, see the APPN Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.