Appian reported higher revenue and profit in the third quarter, with cloud subscriptions revenue up 20% from a year earlier. The software company also raised its full-year outlook figures as it forecast continued growth in cloud subscriptions and total revenue.
Key details
- Revenue rose 25% to $234.6 million. Cloud subscriptions revenue increased 20% to $136.4 million, while total subscriptions revenue rose 28% to $187.8 million. Professional services revenue grew 18% to $46.9 million.
- Existing cloud customers expanded their spending. Cloud net annualized recurring revenue expansion was 120% at September 30. That measure reflects revenue growth from existing customers, including the effects of upgrades and expansions, offset by reductions and cancellations.
- Operating and net income increased. GAAP operating income was $21.3 million, up from $13.1 million a year earlier. GAAP net income rose to $12.3 million from $7.8 million, and diluted earnings per share increased to $0.17 from $0.10.
- Non-GAAP results were also higher. Non-GAAP operating income increased to $40.6 million from $29.8 million, while non-GAAP net income rose to $37.1 million from $24.4 million. Non-GAAP earnings per share was $0.51, compared with $0.32.
- Adjusted EBITDA reached $43.4 million, up from $32.2 million in the third quarter of 2025.
- Operating cash flow moved into negative territory. Appian used $15.4 million of cash in operating activities in the quarter, compared with generating $18.7 million a year earlier.
- Fourth-quarter guidance calls for cloud subscriptions revenue of $143 million to $145 million, representing year-over-year growth of 22% to 24%. Total revenue is forecast at $233 million to $237 million, up 15% to 17%. Appian expects adjusted EBITDA of $30 million to $33 million and non-GAAP earnings per share of $0.30 to $0.34, based on 73.4 million weighted-average shares.
- For full-year 2026, Appian expects cloud subscriptions revenue of $536 million to $538 million, or 23% growth. Total revenue is projected at $873 million to $877 million, up 20% to 21%. The company forecast adjusted EBITDA of $116 million to $119 million and non-GAAP earnings per share of $1.20 to $1.24, based on 73.5 million weighted-average shares.
What the results indicate
Appian’s reported growth spans cloud subscriptions, services and total subscriptions, while both GAAP and non-GAAP profit measures increased from a year earlier. The quarter’s operating cash use contrasts with those earnings gains; the results provided no explanation for the change. The fourth-quarter adjusted EBITDA outlook is below the third quarter’s $43.4 million, while the company expects cloud subscriptions revenue to continue growing year over year.