Appen Ltd. (AU:APX)
ASX:APX
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Appen
(Sydney:APX)
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Rating:52Neutral
Price Target:
AU$1.00
▼(-40.83% Downside)
Action:Reiterated
Date:05/01/26
The score is held back primarily by weak multi-year profitability and bearish technicals (price below key moving averages with negative MACD). Offsetting this is a notably positive earnings-call backdrop with upbeat FY26 guidance, improving EBITDA and cash conversion, but valuation remains constrained by ongoing losses and the lack of a dividend signal.
Positive Factors
Rising generative AI mix
A meaningful shift toward generative-AI work increases mix of higher-value projects and supports structurally higher gross margins. As GenAI use cases scale, recurring demand from model training and evaluation should sustain better pricing and mix advantages versus commodity labeling.
Negative Factors
Multi-year net losses
Persistent annual net losses and negative EBIT margins erode retained equity and constrain strategic optionality. Continued statutory losses reduce room for shareholder-friendly actions, increase sensitivity to non-cash charges, and leave long-term profitability and return metrics unproven.
Read all positive and negative factors
Positive Factors
Negative Factors
Rising generative AI mix
A meaningful shift toward generative-AI work increases mix of higher-value projects and supports structurally higher gross margins. As GenAI use cases scale, recurring demand from model training and evaluation should sustain better pricing and mix advantages versus commodity labeling.
Read all positive factors
Appen (APX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$288.66M
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)―
Beta (1Y)2.90
Revenue Growth0.60%
EPS Growth4.13%
CountryAU
Employees1,130
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.08
Shares Outstanding268,523,650
10 Day Avg. Volume1,778,676
30 Day Avg. Volume1,764,209
Financial Highlights & Ratios
PEG Ratio-0.10
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$0.52Price Target Upside-69.23% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)<0.01
Revenue Forecast (FY)AU$277.12M
Appen Business Overview & Revenue Model
Company Description
Appen Limited, along with its various subsidiaries, functions as a comprehensive provider throughout the artificial intelligence development cycle. The company specializes in gathering and annotating diverse forms of data—including visual, textual...
How the Company Makes Money
Appen primarily makes money by delivering contracted data services that help customers build and improve AI models. Revenue is generated mainly through (1) enterprise projects in which Appen is paid to source, create, label, and quality-control tr...
Appen Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call conveyed clear progress: solid group-level revenue growth (ex-Google), substantial improvement in underlying EBITDA, exceptional expansion and profitability in Appen China, growing exposure to higher-margin generative AI work, realized cost efficiencies, a stronger technical team, and a positive cash position. Offsetting these positives are a material YoY decline in Appen Global for the full year, seasonality and project-driven volatility, and earnings pressure from accelerated non-cash amortization. Management provided explicit FY '26 guidance, signaling confidence in continued momentum. On balance the positive operational and financial developments — particularly China’s outperformance, margin recovery, and cost savings — outweigh the near-term variability and accounting headwinds.Positive Updates
Group Revenue Growth (Ex-Google)
Group revenue of $230.8M, up 4.5% vs FY '24 when excluding the impact of Google, driven primarily by new project wins and expansions in generative AI.
Negative Updates
Appen Global Full-Year Decline
Appen Global full-year revenue of $127.9M was down 21.1% YoY (excluding Google) due to lower volumes in Q1–Q3, resulting in full-year underlying EBITDA of $5.8M (down from $9.2M in FY '24).
Read all updates
Q4-2025 Updates
Positive
Negative
Group Revenue Growth (Ex-Google)
Group revenue of $230.8M, up 4.5% vs FY '24 when excluding the impact of Google, driven primarily by new project wins and expansions in generative AI.
Read all positive updates
Company Guidance
Appen guided FY '26 group revenue of $270–$300 million and an underlying EBITDA before FX margin of 5%–10% (implying ~17%–30% growth versus FY '25 revenue of $230.8M and materially higher margin potential versus FY '25 underlying EBITDA of $12.2M and a 5.3% full‑year margin). That outlook follows strong Q4 momentum (group Q4 EBITDA margin 18.2%; Appen Global Q4 revenue $41.4M, +56% QoQ, with Q4 Appen Global EBITDA $10.2M at a 24.6% margin), Appen China FY '25 revenue $102.9M (+74.8% YoY) with EBITDA up 640% to $10.6M and annualized revenue exiting the year >$135M, a group gross margin of 40.3% (up 100 bps), 44.1% of Q4 revenue from generative AI (versus 34.8% a year ago), $10M of annualized cost efficiencies, cash of USD 59.8M (AUD 89.5M), ~100% conversion of EBITDA to operating cash flow in the period, and a longer‑term FY '27 margin ambition of 10%.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 | 238.82M | 234.28M | 280.02M | 382.63M | 446.18M |
| Gross Profit | 7.75M | 234.28M | -23.68M | 388.13M | 107.61M |
| EBITDA | 10.64M | 2.07M | -60.84M | 8.04M | 73.43M |
| Net Income | -22.58M | -12.38M | -80.39M | -235.68M | 20.67M |
Balance Sheet | |||||
| Total Assets | 152.57M | 170.59M | 154.98M | 256.91M | 500.62M |
| Cash, Cash Equivalents and Short-Term Investments | 59.86M | 54.81M | 32.12M | 23.61M | 47.73M |
| Total Debt | 9.40M | 16.83M | 11.58M | 10.18M | 15.01M |
| Total Liabilities | 57.90M | 56.27M | 62.29M | 107.78M | 109.95M |
| Stockholders Equity | 94.67M | 114.32M | 92.59M | 149.13M | 390.67M |
Cash Flow | |||||
| Free Cash Flow | 19.60M | -3.96M | -29.13M | -9.57M | 29.77M |
| Operating Cash Flow | 23.77M | -1.07M | -23.53M | 17.97M | 52.07M |
| Investing Cash Flow | -17.22M | -19.83M | -21.43M | -31.66M | -49.08M |
| Financing Cash Flow | -5.02M | 57.22M | 54.03M | -9.39M | -13.66M |
Appen Technical Analysis
Negative
1.69
Price Trends
1.27
Negative
1.42
Negative
1.12
Negative
Market Momentum
-0.05
Negative
41.59
Neutral
53.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:APX, the sentiment is Negative. The current price of 1.69 is above the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.27, and above the 200-day MA of 1.12, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 53.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | AU$1.50B | 31.65 | 58.17% | 3.02% | 17.39% | 10.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | AU$56.89M | 35.92 | 5.67% | ― | 13.98% | 90.00% | |
52 Neutral | AU$288.66M | -9.54 | -26.36% | ― | 0.60% | 4.13% | |
46 Neutral | AU$38.27M | 52.21 | 1.96% | 3.45% | 3.65% | 22.22% | |
46 Neutral | AU$308.95M | 128.85 | 3.34% | ― | 17.94% | ― | |
45 Neutral | AU$69.64M | -49.67 | -1.40% | ― | -30.24% | -52.96% |
* Technology Sector Average
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Appen Corporate Events
Appen boosts director equity stake through incentive share issue
Jun 9, 2026
Appen Limited has disclosed a change in the equity holdings of director Ryan Kolln, who received an additional 239,417 ordinary shares at no cash consideration. This issuance relates to his short-term incentive awards for the 2024 and 2025 financi...
Appen Grants CEO Equity Incentives Through New Share Issuance
Jun 5, 2026
Appen Limited has issued new fully paid ordinary shares to its CEO and managing director as part of the company’s short-term incentive awards for the 2024 and 2025 financial years, following shareholder approval at its 22 May 2026 annual gen...
Appen Increases Director Ryan Kolln’s Performance Rights Holding
Jun 4, 2026
Appen has disclosed a change in the equity interests of director Ryan Kolln, who received a grant of 3,024,260 performance rights at no cash consideration. Following the grant, approved by shareholders at the 22 May 2026 annual general meeting, Ko...
Appen Issues Over 3 Million Unquoted Performance Rights Under Employee Scheme
Jun 4, 2026
Appen Limited has issued 3,024,260 unquoted performance rights under its employee incentive scheme, effective June 3, 2026. The new rights, which will not be quoted on the ASX, expand the company’s pool of equity-based rewards and are likely...
Appen Seeks ASX Quotation for 264,321 New Ordinary Shares
Jun 1, 2026
Appen Limited has applied for quotation on the ASX of 264,321 fully paid ordinary shares, to be traded under its existing APX code from June 1, 2026. The new securities arise from the lifting of transfer restrictions on shares previously issued un...
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.