Appian Stock Earnings Reports

Key points for investors: Appian reported strong Q3 2025 results with total revenue of $187.0M (up 21% YoY) and cloud subscription revenue of $113.6M (up 21% YoY). Adjusted EBITDA was $32.2M, materially above guide, driven by stronger revenue and timing of expenses. Management highlighted continued improvements in go-to-market efficiency (productivity ratio up to 3.5, ninth consecutive increase) and a weighted Rule of 40 score of 39. AI adoption is a major growth driver: >25% of customers now pay for Appian AI, nearly half of those use Appian IDP, and the company saw a >50% increase in new 7-figure software deals year-over-year. Appian will launch Agent Studio (code-free agent configuration) imminently, expected to increase AI monetization via the AI advanced tier plus consumption-based elements. Notable customer wins include a global pharma, a U.S. military command, a large insurer, and major public sector deals (ProcureSight adoption and additional federal contracts). Professional services revenue rose 29% with higher services margins (34%)—management views services as a strategic differentiator that accelerates adoption and ARR. International revenue mix increased to 40%, helped partly by FX and strong AI-driven adoption overseas. Guidance: Q4 cloud subscriptions $115–$117M (growth 16–18% YoY), total revenue $187–$191M (12–15% YoY), adjusted EBITDA $10–$13M. Full-year 2025 guidance raised: cloud subscriptions $435–$437M (18–19% YoY), total revenue $711–$715M (15–16% YoY), adjusted EBITDA $67–$70M (~10% margin midpoint). Management noted a potential downside of up to $10M to revenue/EBITDA in a prolonged U.S. government shutdown scenario, but expects the shutdown to be temporary. Overall: strong top-line growth, accelerating upmarket/AI traction, improving profitability and operational efficiency, with continued investment planned (including returning to sales headcount growth) to build a sustainable growth engine.