Appian : Q1 2026 Earnings Call Supplemental Deck

Published: 2026-05-07 07:35:16 ET APPN

Published on 05/07/2026 at 07:35 am EDT

Revenue

Cloud subscriptions revenue was $124.5 million in Q1 2026 (+25% Y/Y)

Subscriptions revenue was $160.3 million in Q1 2026 (+19% Y/Y)

Total revenue was $202.2 million in Q1 2026 (+21% Y/Y)

Non-GAAP Gross Margins*

Subscriptions gross margin was 86%.

Professional services gross margin was 29%.

Overall gross margin was 74%.

Profitability

Q1 2026 adjusted EBITDA was $26.6 million.

* Data excludes stock-based compensation expense. Refer to the reconciliation of GAAP to non-GAAP measures in the Appendix.

3.42

2.52

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

Calculated by adding total revenue and the quarterly changes in short term deferred revenue for the trailing 12-month period, then dividing the result by non-GAAP sales and marketing

expense for the trailing 12-month period. Refer to the reconciliation of GAAP to non-GAAP measures in the Appendix for details.

202.9

202.2

187.0

166.4

170.6

40.6

41.9

39.8

32.1

38.0

33.6

45.2

35.8

34.5

25.7

124.5

99.8

106.9

113.6

117.0

$200.0 million

$150.0 million

$100.0 million

$50.0 million

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

Cloud Revenue

Subscriptions Revenue

Total Revenue

21%

20%

18%

18% 18%

16%

22%

21%

19% 19%

17%

18%

17%

15%

16%

14%

15%

17%

15%

14%

11%

12%

10%

Q1 '24

Q2 '24

Q3 '24

Q4 '24

Q1 '25

Q2 '25

Q3 '25

Q4 '25

Q1 '26

Q1 '24

Q2 '24

Q3 '24

Q4 '24

Q1 '25

Q2 '25

Q3 '25

Q4 '25

Q1 '26

Q1 '24

Q2 '24

Q3 '24

Q4 '24

Q1 '25

Q2 '25

Q3 '25

Q4 '25

Q1 '26

117%

114%

113%

112%

113%

112%

114%

115%

125%

Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

To calculate this metric, we first define ARR on a customer level as monthly recurring cloud subscriptions revenue multiplied by 12. Next, we identify all customers with cloud subscriptions

ARR as of the end of the prior year quarter, then calculate cloud subscriptions ARR for that same cohort of customers as of the end of the current quarter. The current quarter's total divided by the prior quarter's total represents cloud net ARR expansion.

Subscriptions

87% 85% 86% 86% 86%

Professional Services

Overall

75% 72% 74% 73% 74%

29%

31%

25%

29%

23%

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

* Data excludes stock-based compensation expense and severance costs. Amounts also reflect reclassified expenses. Refer to the reconciliation of GAAP to non-GAAP measures in the Appendix.

Given on May 7, 2026

(in millions, except for EPS)

Q2 2026

Full Year 2026

Cloud Subscriptions Revenue

$126.0

$128.0

$515.0

$521.0

Cloud Subscriptions Revenue Growth YoY

18%

20%

18%

19%

Total Revenue

$191.0

$195.0

$819.0

$831.0

Total Revenue Increase YoY

12%

14%

13%

14%

Adjusted EBITDA

$5.0

$8.0

$97.0

$105.0

Non-GAAP Diluted Earnings per Share*

$(0.02)

$0.02

$0.94

$1.05

As of

$ in thousands March 31, 2026 December 31, 2025

Assets (unaudited)

Cash and cash equivalents $ 150,025 $ 135,810

Short-term investments and marketable securities 55,963 51,415

Accounts receivable, net of allowance 173,874 255,063

Deferred commissions, current 35,459 35,166

Prepaid expenses and other current assets 38,632 41,970

Property and equipment, net 30,279 32,087

Goodwill 28,145 28,811

Intangible assets, net of accumulated amortization 904 1,246

Right-of-use assets for operating leases 26,992 28,075

Deferred commissions, net of current portion 64,199 65,199

Other assets 18,891 16,553

Total assets $ 623,363 $ 691,395

Liabilities and Stockholders' Deficit

Accounts payable and accrued expenses 25,797 25,138

Accrued compensation and related benefits 32,354 61,781

Deferred revenue, current 320,401 341,281

Debt, current 9,598 9,598

Operating lease liabilities, current 13,201 13,181

Long-term debt 228,828 231,228

Non-current operating lease liabilities 43,585 45,693

Deferred revenue, non-current 6,913 8,962

Other current and non-current liabilities 1,653 1,526

Total liabilities 682,330 738,388

Stockholders' deficit

Common stock 7 7

Treasury stock (29,152) (16,935)

Additional paid-in capital 618,798 617,318

Accumulated other comprehensive loss (36,174) (36,462)

Accumulated deficit (612,446) (610,921)

Total stockholders' deficit (58,967) (46,993)

Total liabilities and stockholders' deficit

$ 623,363 $

691,395

Three months ended March 31,

$ in thousands, except for per share data 2026 2025

(unaudited)

Revenue

Cloud subscriptions

124,511

99,826

Other subscriptions

35,800

34,526

Total subscriptions revenue

160,311

134,352

Professional services

41,869

32,074

Total revenue

202,180

166,426

Cost of revenue

Subscriptions

22,904

18,521

Professional services

31,507

25,519

Total cost of revenue

54,411

44,040

Gross profit

147,769

122,386

Operating expenses

Sales and marketing

64,619

56,310

Research and development

46,324

41,830

General and administrative

33,670

25,080

Total operating expenses

144,613

123,220

Operating income (loss)

3,156

(834)

Other non-operating expense (income)

Other income, net

(84)

(5,716)

Interest expense

4,172

5,318

Total other non-operating expense (income)

4,088

(398)

Loss before income taxes

(932)

(436)

Income tax expense

593

741

Net loss

(1,525)

(1,177)

Net loss per Class A and Class B share:

Basic and diluted

(0.02)

Weighted average common shares outstanding:

Basic and diluted

73,820

74,094

Three months ended March 31,

$ in thousands 2026 2025

(unaudited)

Subscriptions $ 559 $ 498

Cost of revenue

Professional services 1,638 1,456

Operating expenses

Sales and marketing

2,403

2,246

Research and development

3,735

3,014

General and administrative

3,554

2,825

Total stock-based compensation expense

$ 11,889

$ 10,039

unaudited, $ in thousands

Lease

Unrealized

Impairment

Foreign

and Lease-

Exchange

GAAP

Stock-Based

Litigation

JPI

Rate Gains

Non-GAAP

Measure

Compensation

Expense

Amortization

Charges

and Losses

Measure

Three Months Ended March 31, 2026

Subscriptions cost of revenue

$ 22,904

$ (559)

$ -

$ 22,345

Professional services cost of revenue

31,507

(1,638)

29,869

Total cost of revenue

54,411

(2,197)

52,214

Sales and marketing expense

64,619

(2,403)

62,216

Research and development expense

46,324

(3,735)

42,589

General and administrative expense

33,670

(3,554)

(6,948)

(2,055)

(302)

20,811

Total operating expense

144,613

(9,692)

(6,948)

(2,055)

(302)

125,616

Operating income

3,156

11,889

6,948

2,055

302

24,350

Non-operating income

(84)

(848)

(932)

Income tax impact of above items

593

507

199

1,299

Net (loss) income

(1,525)

11,382

6,948

2,055

302

649

19,811

Net (loss) income per share, basic(a)

$ (0.02)

$ 0.15

$ 0.09

$ 0.03

$ -

$ 0.01

$ 0.27

Net (loss) income per share, diluted(a)

$ (0.02)

$ 0.15

$ 0.09

$ 0.03

$ -

$ 0.01

$ 0.27

(a) Totals do not foot due to rounding.

unaudited, $ in thousands

Lease

Unrealized

Impairment

Foreign

and Lease-

Exchange

GAAP

Stock-Based

Litigation

JPI

Rate Gains

Non-GAAP

Measure

Compensation

Expense

Amortization

Charges

and Losses

Measure

Three Months Ended March 31, 2025

Subscriptions cost of revenue

$ 18,521

$ (498)

$ -

$ 18,023

Professional services cost of revenue

25,519

(1,456)

24,063

Total cost of revenue

44,040

(1,954)

42,086

Sales and marketing expense

56,310

(2,246)

54,064

Research and development expense

41,830

(3,014)

38,816

General and administrative expense

25,080

(2,825)

(1,712)

(3,084)

(312)

17,147

Total operating expense

123,220

(8,085)

(1,712)

(3,084)

(312)

110,027

Operating (loss) income

(834)

10,039

1,712

3,084

312

14,313

Non-operating (income) expense

(5,716)

4,016

(1,700)

Income tax impact of above items

741

455

(267)

929

Net (loss) income

(1,177)

9,584

1,712

3,084

312

(3,749)

9,766

Net (loss) income per share, basic

$ (0.02)

$ 0.13

$ 0.02

$ 0.04

$ -

$ (0.05)

$ 0.13

Net (loss) income per share, diluted

$ (0.02)

$ 0.13

$ 0.02

$ 0.04

$ -

(0.05)

0.13

unaudited, $ in thousands Three months ended March 31,

2026

2025

Reconciliation of adjusted EBITDA:

GAAP net loss

$ (1,525)

$ (1,177)

Other income, net

(84)

(5,716)

Interest expense

4,172

5,318

Income tax expense

593

741

Depreciation expense and amortization of intangible assets

2,273

2,446

Stock-based compensation expense

11,889

10,039

Litigation Expense

6,948

1,712

JPI Amortization

2,055

3,084

Lease Impairment and Lease-Related Charges

302

312

Adjusted EBITDA

$ 26,623

$ 16,759

The following table reconciles our GAAP gross margin percentage to our non-GAAP gross margin percentage for our overall, subscriptions, and professional services margins. The non-GAAP adjustment represents adding back the margin impact of stock-based compensation expense and severance costs recorded to "Cost of revenue" within our consolidated income statements.

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Reconciliation of non-GAAP overall gross margin:

GAAP overall gross margin 73.1%

72.4%

72.9%

71.3%

73.5%

Add back:

Non-GAAP adjustments to overall gross margin 1.1%

1.0%

1.1%

1.2%

Non-GAAP overall gross margin 74.2%

73.4%

73.9%

72.4%

74.7%

Reconciliation of non-GAAP subscriptions gross margin:

GAAP subscriptions gross margin

85.7%

85.8%

85.3%

84.4%

86.2%

Add back:

Non-GAAP adjustments to subscriptions gross margin

0.4%

0.3%

0.4%

Non-GAAP subscriptions gross margin

86.1%

85.6%

84.7%

86.6%

Reconciliation of non-GAAP professional services gross margin:

GAAP professional services gross margin

24.7%

19.2%

27.1%

25.6%

20.4%

Add back:

Non-GAAP adjustments to professional services gross margin

4.0%

3.6%

3.7%

4.6%

Non-GAAP professional services gross margin

28.7%

22.8%

30.7%

29.3%

25.0%

The following table reconciles our GAAP sales and marketing expense to our non-GAAP sales and marketing expense. The non-GAAP adjustment represents adding back the impact of stock-based compensation expense and severance costs recorded to "Sales and marketing expense" within our consolidated income statements.

in thousands

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

Q1 2024

GAAP sales and marketing expense

64,619

69,145

53,574

62,157

56,310

57,073

52,710

68,535

60,136

Subtract:

Sales and marketing stock compensation

(2,403)

(2,219)

(1,882)

(2,087)

(2,246)

(1,991)

(1,827)

(2,088)

(2,620)

Sales and marketing severance costs

(3,937)

Non-GAAP sales and marketing expense

62,216

66,926

51,692

60,070

54,064

55,082

50,883

62,510

57,516

Disclaimer

Appian Corporation published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:32 UTC.