Amidst a growing shift towards digital transformation, companies are increasingly investing in automation technologies to streamline operations and boost efficiency. This trend has placed companies like Appian Corporation (NASDAQ:APPN) in the spotlight, as they continue to leverage their innovative platforms to meet rising demand.
Appian stock gained on Thursday after reporting fiscal fourth-quarter 2025 revenue growth of 22% year-over-year (Y/Y) to $202.867 million, beating the analyst consensus estimate of $188.996 million.
Adjusted EPS of 15 cents topped the analyst consensus estimate of 9 cents.
Key Segments And Profit
Appian generates revenue primarily through cloud-based subscriptions for its low-code automation platform. Subscription revenue is the primary driver of growth, while professional services support customer adoption.
Total subscription revenue increased 19% Y/Y to $162.3 million. Professional services revenue was $40.6 million, up by 36% Y/Y.
Fourth quarter cloud subscriptions revenue increased 18% year-over-year to $117.0 million. Cloud net annualized recurring revenue (ARR) expansion was 114% as of December 31, 2025.
The quarterly adjusted operating income of $17.4 million, compared to $18.7 million for the fourth quarter of 2024.
Adjusted EBITDA was $19.7 million, compared to $21.2 million a year ago.
Appian ended the quarter with cash and equivalents of $187.2 million. The company generated a net operating cash flow of $1.1 million from operating activities, down from $13.9 million Y/Y.
Outlook
Appian expects fiscal first-quarter 2026 revenue of $189.00 million to $193.00 million, up 14% to 16% Y/Y, versus the analyst consensus estimate of $187.885 million.
It projects an adjusted EPS of 16 cents to 20 cents versus the 15 cents analyst consensus estimate.
The company expects fiscal 2026 revenue of $801.0 million to $817.0 million, up by 10% and 12% Y/Y, against the analyst consensus estimate of $799.480 million.
It projects an adjusted EPS range of 82 cents to 96 cents, above the analyst consensus estimate of 77 cents.
APPN Price Action: Appian shares were up 0.73% at $24.23 at the time of publication on Thursday, according to Benzinga Pro data.
Photo via Shutterstock