10-Q · May 7, 2026
Appian Corporation reported Q1 2026 revenue of $202.18 million, a 21.5% increase compared to $166.43 million in Q1 2025, with EPS decreasing to $(0.02) from $(0.02) in the prior year. Management focuses on expanding…
Earnings analysis · 10-Q
APPN earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Appian delivered a strong Q3 2026 operating performance, with revenue of $234.6 million, approximately 25.4% year-over-year growth, operating income of $21.3 million, and diluted EPS of $0.17. Cloud subscriptions…
Read full summary
Appian delivered a strong Q3 2026 operating performance, with revenue of $234.6 million, approximately 25.4% year-over-year growth, operating income of $21.3 million, and diluted EPS of $0.17. Cloud subscriptions revenue grew 20% to $136.4 million, while profitability improved materially from the prior quarter. However, negative operating cash flow of $15.4 million, $47.3 million of cash against $199.5 million of debt, and meaningful interest-rate and foreign-exchange sensitivity temper the positive earnings trend. The 10-Q reports no material changes to previously disclosed risk factors and provides no standalone numeric guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.17
- Operating margin
- 9.1%
- Segment
- Cloud subscriptions: $136.4 million, up 20% year over year
What stood out
-
Revenue Accelerated
Revenue was $234.6 million, up from $203 million in Q2 2026 and $187 million in Q3 2025, representing sequential growth of approximately 15.6% and year-over-year growth of approximately 25.4%.
-
Operating Profitability Improved
GAAP operating income was $21.3 million, implying an operating margin of approximately 9.1%, versus a 2.7% operating loss margin in Q2 2026 and a 7.0% operating margin in Q3 2025.
-
EPS Rebounded
GAAP diluted EPS was $0.17, improving from a loss of $0.16 per diluted share in Q2 2026 and increasing from $0.10 in Q3 2025.
-
Cloud Subscriptions Drove Growth
Cloud subscriptions revenue reached $136.4 million, increasing 20% year over year and serving as the principal disclosed growth driver.
-
Controls Remained Effective
Disclosure controls and procedures were assessed as effective at the reasonable assurance level as of September 30, 2026, and management reported no material change in internal control over financial reporting.
What to watch
-
Leverage and Interest Expense
Cash and cash equivalents were $47.3 million as of September 30, 2026, compared with outstanding principal debt of $199.5 million. A one-percentage-point increase in interest rates would increase annual interest expense by approximately $2.0 million.
-
Negative Operating Cash Flow
Operating cash flow was negative $15.4 million for the quarter, reversing the $10 million of free cash flow reported in Q2 2026 and creating a risk that reported earnings will not translate into cash generation.
-
Foreign-Exchange Exposure
A 10% change in foreign-currency exchange rates for the nine months ended September 30, 2026 would have affected total revenue by approximately $22.9 million and net income by approximately $1.1 million; the company has not engaged in foreign-currency hedging to date.
-
Inflation Could Pressure Margins
Management stated that persistent inflation in personnel, third-party service, subcontracting, professional-fee, and overhead costs could pressure gross profit margin; no material inflation impact had occurred to date.
-
Buybacks Amid Elevated Debt
The company repurchased 549,688 shares for an aggregate authorization balance of $17.1 million remaining at September 30, 2026, while carrying $199.5 million of outstanding principal debt.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance or a change versus prior outlook. Quantitative outlook was provided separately in the November 5, 2026 earnings release.
Earlier filings 4
10-K · February 19, 2026
Appian emphasizes a unified AI + process automation platform anchored by a patented data fabric and partner-led go-to-market. The company increased high-value customers (140 customers paying >$1M ARR at end of 2025),…
10-Q · May 8, 2025
Appian reported quarterly revenue of $166.426M (up $16.591M or 11.1% YoY) with subscriptions driving growth to $134.352M. Gross margin expanded to 76.6% and operating loss narrowed to $0.834M (operating margin -0.5%),…
10-K · February 19, 2025
Appian positions itself as a unified "AI in process" platform for process orchestration, automation, and intelligence, emphasizing embedded AI, a patented data fabric, and partner-led go-to-market. The company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.