Appian (NASDAQ: APPN) has released its financial results for the fourth quarter and full-year 2025, showing significant growth in various key metrics compared to the previous periods.
In the fourth quarter of 2025, the cloud subscriptions revenue increased by 18% year-over-year to $117.0 million, contributing to a total subscriptions revenue increase of 19% to $162.3 million. Professional services revenue also saw substantial growth, jumping by 36% to $40.6 million compared to the same period in 2024. Total revenue for the quarter reached $202.9 million, marking a 22% increase from the fourth quarter of 2024.
The company's cloud net annualized recurring revenue (ARR) expansion stood at an impressive 114% as of December 31, 2025. Notably, while the GAAP operating income was reported as a loss of $(0.7) million, the non-GAAP operating income remained robust at $17.4 million.
For the full year 2025, Appian reported cloud subscriptions revenue of $437.4 million, representing a 19% increase over the prior year. Total subscriptions revenue for the year reached $576.5 million, an 18% increase year-over-year, while professional services revenue grew to $150.5 million from $126.5 million in 2024. The total revenue for the full year 2025 was $726.9 million, up 18% from the prior year.
Appian's GAAP operating income for the full year 2025 was $0.6 million, a significant improvement from the $(60.9) million loss reported in 2024. Non-GAAP operating income also surged to $67.1 million, compared to $10.2 million in 2024.
The company's adjusted EBITDA for the full year 2025 was reported at $76.8 million, a substantial increase from the $20.3 million recorded in the previous year. Appian's balance sheet showed total cash, cash equivalents, and investments of $187.2 million as of December 31, 2025, and net cash provided by operating activities was $62.9 million for the full year, compared to $6.9 million in 2024.
Looking ahead, Appian provided guidance for the first quarter of 2026, expecting cloud subscriptions revenue to be between $119.0 million and $121.0 million, representing a 19% to 21% year-over-year growth. The company also provided full-year 2026 guidance, anticipating cloud subscriptions revenue to be between $502.0 million and $510.0 million, with total revenue expected to be between $801.0 million and $817.0 million.
These financial results and outlook demonstrate Appian's continued growth and strong performance in the process automation technology sector, indicating positive momentum for the company moving forward. The market has reacted to these announcements by moving the company's shares -3.51% to a price of $28.62. Check out the company's full 8-K submission here.
