Appian Q3 Revenue Rises 25% as Subscription Sales Grow

Appian (Nasdaq: APPN) reported a 25% year-over-year increase in third-quarter 2026 revenue, supported by stronger subscription sales, while adjusted EBITDA reached $43.4 million. The software company also projected full-year revenue growth of 20% to 21% and cloud subscription growth of 23%.

Revenue for the quarter ended September 30 rose to $234.6 million from $187.0 million a year earlier. Subscription revenue increased 28% to $187.8 million, including cloud subscription revenue of $136.4 million, up 20%. Professional services revenue rose to $46.9 million from $39.8 million.

On a constant-currency basis, total revenue grew 26%, subscription revenue increased 29% and cloud revenue advanced 21%. Cloud net annual recurring revenue expansion, which measures changes within the prior-year customer cohort on a constant-currency basis, reached 120%, compared with 112% in the third quarter of 2025.

Profitability and margins

GAAP operating income increased to $21.3 million from $13.1 million a year earlier. Net income was $12.3 million, or $0.17 per diluted share, compared with $7.8 million, or $0.10 per diluted share, in the prior-year quarter.

Non-GAAP net income rose to $37.1 million, or $0.51 per diluted share, from $24.4 million, or $0.32 per diluted share. Adjusted EBITDA increased to $43.4 million from $32.2 million.

Appian reported a non-GAAP overall gross margin of 74%, unchanged from a year earlier when rounded. The subscription gross margin was 86%, while the professional services margin declined to 24% from 31%. The non-GAAP figures exclude stock-based compensation and certain other adjustments.

For the first nine months of 2026, revenue increased to $640.1 million from $524.1 million. GAAP operating income was $19.0 million, compared with $1.3 million a year earlier, though the company recorded a net loss of $1.0 million versus net income of $6.3 million in the prior-year period. Nine-month adjusted EBITDA rose to $86.2 million from $57.1 million.

The presentation also showed higher go-to-market productivity. The company’s trailing-12-month measure, calculated using revenue, changes in short-term deferred revenue and non-GAAP sales and marketing expense, stood at 3.47 in the third quarter of 2026, compared with 2.70 in the third quarter of 2024.

Fourth-quarter and full-year outlook

For the fourth quarter, management expects cloud subscription revenue of $143 million to $145 million, representing growth of 22% to 24%. Total revenue is projected at $233 million to $237 million, up 15% to 17% year over year.

Fourth-quarter adjusted EBITDA is expected to range from $30 million to $33 million, with non-GAAP diluted earnings of $0.30 to $0.34 per share. The per-share forecast assumes approximately 73.4 million diluted weighted-average shares outstanding.

For full-year 2026, Appian forecast cloud subscription revenue of $536 million to $538 million, or 23% growth, and total revenue of $873 million to $877 million, representing an increase of 20% to 21%. Adjusted EBITDA is expected to be between $116 million and $119 million, while non-GAAP diluted earnings are projected at $1.20 to $1.24 per share.

At the midpoint of the guidance ranges, the company’s presentation indicated approximately $875 million of revenue, $118 million of adjusted EBITDA and non-GAAP earnings of $1.22 per share. Management identified margin expansion, deleveraging and share repurchases as elements of its growth and capital allocation approach.

Balance sheet and risks

Appian ended September with $47.3 million in cash and cash equivalents and $41.6 million in short-term investments and marketable securities. That compared with $135.8 million and $51.4 million, respectively, at the end of 2025. Debt declined to $199.5 million from $240.8 million over the same period. Treasury stock increased to $83.0 million from $16.9 million, while the stockholders’ deficit widened to $97.9 million from $47.0 million.

The outlook remains subject to risks including macroeconomic changes, customer retention and expansion, new customer acquisition, execution of the company’s go-to-market strategy and broader industry trends. Appian also recorded $4.7 million of litigation expense in the third quarter and $17.9 million during the first nine months of 2026; those costs were excluded from its non-GAAP results.