Appen Ltd. (AU:APX)
ASX:APX
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Appen
(Sydney:APX)
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Rating:61Neutral
Price Target:
AU$1.50
▼(-11.24% Downside)
Action:ReiteratedDate:02/27/26
The score is driven by a strong technical uptrend and improving cash flow, partially offset by ongoing losses and volatile operating performance. Earnings-call commentary supports a cautious recovery (China momentum and cost actions), but low-end guidance and visibility risks keep conviction moderate, while negative earnings limit valuation support.
Positive Factors
China Market Momentum
A 67% YoY increase and a >$100m annualized run rate in China materially diversifies Appen’s revenue base and demonstrates durable demand for multilingual speech and AI training data. This market traction supports scalable, higher-margin work and reduces sole reliance on other geographies over months.
Negative Factors
Sustained Net Losses & Negative Margins
Multi-year net losses and persistently negative EBIT margins signal that profitability is not yet durable. Continued losses erode equity, restrict retained-capital reinvestment, and leave returns on equity negative—an enduring constraint on scaling investments and restoring long-term shareholder value if uncorrected.
Read all positive and negative factors
Positive Factors
Negative Factors
China Market Momentum
A 67% YoY increase and a >$100m annualized run rate in China materially diversifies Appen’s revenue base and demonstrates durable demand for multilingual speech and AI training data. This market traction supports scalable, higher-margin work and reduces sole reliance on other geographies over months.
Read all positive factors
Appen (APX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$376.57M
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)―
Beta (1Y)3.10
Revenue Growth-9.02%
EPS Growth80.67%
CountryAU
Employees1,130
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding268,019,900
10 Day Avg. Volume1,778,676
30 Day Avg. Volume1,764,209
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.49
Price to Sales (P/S)0.59
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.41Price Target Upside-16.57% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)AU$278.25M
Appen Business Overview & Revenue Model
Company Description
Appen Limited, together with its subsidiaries, operates as an AI lifecycle company that collects and labels image, text, speech, audio, video, and other data used to build and enhance artificial intelligence systems. It operates through two segmen...
How the Company Makes Money
Appen makes money primarily by selling AI data and related services to enterprise and technology customers that need high-quality, labeled and curated data to develop and improve machine-learning models. Its core revenue streams typically include:...
Appen Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Neutral
Appen's earnings call highlighted positive growth in revenue, particularly driven by the China market and cost efficiency initiatives. However, challenges remain due to losses in EBITDA, volatility in the U.S. market, and uncertainty in large LLM projects. The strong cash position and positive contributions from the China market provide a solid foundation for future growth.Positive Updates
Revenue Growth
Appen recorded revenue of USD 102.1 million, representing a 2% year-on-year growth when excluding the impact of Google. 24% of this revenue was from generative AI-related projects.
Negative Updates
Losses in EBITDA
Group underlying EBITDA before FX recorded a loss of $2.2 million despite improvements compared to the previous period.
Read all updates
Q2-2025 Updates
Positive
Negative
Revenue Growth
Appen recorded revenue of USD 102.1 million, representing a 2% year-on-year growth when excluding the impact of Google. 24% of this revenue was from generative AI-related projects.
Read all positive updates
Company Guidance
In the recent call, Appen provided detailed guidance for the fiscal year 2025, focusing on several key metrics and strategic initiatives. The company reported a 2% year-on-year revenue growth to USD 102.1 million, excluding the impact of Google, with 24% of this revenue coming from generative AI-related projects. Appen highlighted a significant 67% increase in revenue from China, achieving an annualized run rate exceeding $100 million by the half's end. The company has identified $10 million in annualized cost efficiencies in its non-China business, with 70% of these expected to be realized by the end of Q3 FY '25. Appen also mentioned an additional $4 million in annualized OpEx savings due to the wind-down of U.S. Government division investments. Despite a loss of $2.2 million in group underlying EBITDA before FX, the company remains focused on achieving EBITDA positivity for the full year. Appen reaffirmed its FY '25 revenue guidance towards the low end of the $235 million to $260 million range, supported by strong customer relationships and market differentiation in multilingual speech training data and large language model evaluation.Appen Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 357.89M | 234.28M | 411.31M | 559.89M | 615.57M |
| Gross Profit | 11.62M | 61.18M | -34.79M | 10.07M | 93.01M |
| EBITDA | 15.95M | 3.34M | -89.37M | 11.77M | 101.30M |
| Net Income | -33.84M | -20.01M | -118.08M | -344.86M | 28.52M |
Balance Sheet | |||||
| Total Assets | 228.63M | 170.59M | 227.65M | 375.94M | 690.68M |
| Cash, Cash Equivalents and Short-Term Investments | 89.71M | 54.81M | 47.17M | 34.55M | 65.85M |
| Total Debt | 21.97M | 16.83M | 17.01M | 15.01M | 20.71M |
| Total Liabilities | 86.77M | 56.27M | 91.50M | 157.72M | 151.69M |
| Stockholders Equity | 141.87M | 114.32M | 136.00M | 218.22M | 538.99M |
Cash Flow | |||||
| Free Cash Flow | 29.37M | -3.96M | -42.79M | -14.00M | 41.07M |
| Operating Cash Flow | 35.62M | -1.07M | -22.94M | 26.29M | 71.84M |
| Investing Cash Flow | -25.80M | -19.83M | -31.48M | -46.33M | -67.71M |
| Financing Cash Flow | -7.52M | 57.22M | 79.36M | -13.74M | -18.85M |
Appen Technical Analysis
Neutral
1.69
Price Trends
1.51
Negative
1.12
Positive
1.04
Positive
Market Momentum
-0.01
Positive
45.85
Neutral
13.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:APX, the sentiment is Neutral. The current price of 1.69 is above the 20-day moving average (MA) of 1.63, above the 50-day MA of 1.51, and above the 200-day MA of 1.04, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.85 is Neutral, neither overbought nor oversold. The STOCH value of 13.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:APX.
Appen Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | AU$1.06B | 15.07 | 58.17% | 3.02% | 5.82% | 11.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | AU$376.57M | -6.25 | -22.95% | ― | -9.02% | 80.67% | |
56 Neutral | AU$65.64M | 38.88 | 5.67% | ― | 11.90% | 42.11% | |
46 Neutral | AU$36.07M | 8.18 | -1.89% | 3.45% | 2.06% | -277.78% | |
46 Neutral | AU$270.99M | 31.82 | -10.10% | ― | -3.10% | -236.41% | |
45 Neutral | AU$86.53M | -58.44 | -1.40% | ― | -18.64% | 92.67% |
* Technology Sector Average
AU:APX
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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.