EPS of $0.00 increased by 99.3% from previous year
Gross margin of 74.3%
Net income of -312.00K
"N/A: Transcript data not available in the provided dataset." - N/A
Appian Corporation (0HGM.L) QQ2 2025 Results: Revenue Up 16.5% YoY to $170.6M; Gross Margin 74.3%; Net Loss Narrowing Amid Balance Sheet Strain
Executive Summary
Overview: Appian delivered a solid top-line progression in QQ2 2025 with revenue of $170.64 million, up 16.5% year over year and 2.5% quarter over quarter, signaling continued demand for its low-code automation platform across enterprise verticals. Gross margin remained robust at approximately 74.3%, reflecting a services mix and subscription backbone, but the company booked an operating loss of $10.98 million and a net loss of $0.31 million, underscoring ongoing investments in go-to-market capacity, R&D, and platform expansion that weigh on near-term profitability.
Liquidity and balance sheet: The company ended the period with $112.21 million in cash and equivalents and $72.55 million in short-term investments (total cash and equivalents around $184.75 million). Total debt stood at $308.49 million, leaving a net debt position of about $196.28 million. Notably, total stockholders’ equity remained negative at approximately $53.74 million, driven by accumulated losses and equity structure. Deferred revenue was substantial at $264.92 million, offering visibility into future revenue recognition and potential operating leverage as revenue is recognized over time. Cash flow remained negative on an annualized basis, with operating cash flow of about $(1.94) million and free cash flow of $(3.09) million, reflecting working-capital dynamics and ongoing reinvestment in product, sales, and marketing.
Outlook: While APPian demonstrates measurable top-line momentum and a resilient gross margin, the path to near-term profitability depends on achieving operating leverage as the company scales sales and expands ARR. The deferred revenue base provides revenue visibility, but continued investment in R&D and GTM activities may exert pressure on cash flow in the near term. Investors should monitor the pace of ARR expansion, customer concentration risk, and the company’s ability to convert backlog into sustainable profitability through improved operating efficiency.
Key Performance Indicators
Revenue
170.64M
QoQ: 2.53% | YoY:16.52%
Gross Profit
126.72M
74.26% margin
QoQ: -0.62% | YoY:20.64%
Operating Income
-10.98M
QoQ: -1 217.03% | YoY:66.03%
Net Income
-312.00K
QoQ: 73.49% | YoY:99.28%
EPS
0.00
QoQ: 73.58% | YoY:99.30%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $170.64 million in QQ2 2025, up 16.5% YoY; QoQ growth of 2.53% (Q1 2025 revenue was $166.43 million).
Net Income and profitability: Net income $(0.312) million; Net income margin: (0.18)%; Earnings per share (diluted): $(0.0042).
- YoY and QoQ context: Revenue and gross profit show positive momentum; operating profitability remains negative due to continued investment in go-to-market activities and R&D. Net income and EPS improvements are limited by higher non-operating or one-off adjustments historically embedded in the period.
Cash and equivalents: $112.21 million; Total cash and short-term investments: $184.75 million.
Financial Highlights
Revenue and profitability
- Revenue: $170.64 million in QQ2 2025, up 16.5% YoY; QoQ growth of 2.53% (Q1 2025 revenue was $166.43 million).
- Gross Profit: $126.719 million; Gross margin: 74.26% (vs. 74.63% YoY implied by data; slight margin stability).
- Operating Income: $(10.984) million; Operating margin: (6.44)%; EBITDA: $9.104 million; EBITDARatio: 5.34%.
- Net Income and profitability: Net income $(0.312) million; Net income margin: (0.18)%; Earnings per share (diluted): $(0.0042).
- YoY and QoQ context: Revenue and gross profit show positive momentum; operating profitability remains negative due to continued investment in go-to-market activities and R&D. Net income and EPS improvements are limited by higher non-operating or one-off adjustments historically embedded in the period.
Balance sheet and liquidity
- Cash and equivalents: $112.21 million; Total cash and short-term investments: $184.75 million.
- Total debt: $308.49 million; Net debt: $196.28 million; Interest-bearing debt remains a meaningful liability.
- Shareholders’ equity: $(53.74) million (negative); Retained earnings: $(613.64) million; accumulated deficit persists.
- Assets and leverage: Total assets $590.75 million; Total liabilities $644.49 million; Current ratio approximately 1.18x (Current assets $411.68 million vs. current liabilities $347.36 million).
- Deferred revenue: $264.92 million, signaling a large backlog of unrecognized revenue that could support future profitability as revenue is realized over time.
- Free cash flow: $(3.09) million; Operating cash flow: $(1.94) million; Capital expenditures: $(1.15) million.
Cash flow and investment activity
- Net cash provided by operating activities: $(1.94) million, reflecting working-capital movements (receivables and other working capital components).
- Investing activities: Purchases of investments and property, plant, and equipment contributed to net cash outflows; free cash flow remains negative as growth investments continue.
- Financing activities: Net cash used in financing activities about $(13.46) million, including stock repurchases of $(10.00) million and debt-related movements.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
170.64M
16.52%
2.53%
Gross Profit
126.72M
20.64%
-0.62%
Operating Income
-10.98M
66.03%
-1 217.03%
Net Income
-312.00K
99.28%
73.49%
EPS
0.00
99.30%
73.58%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: The QQ2 2025 earnings transcript or management comments were not provided in the data set. As a result, this section cannot quote or summarize verbatim management statements. The analyst notes below are aligned with the reported financials and typical management themes observed in technology software earnings calls. N/A due to unavailable transcript data.
N/A: Transcript data not available in the provided dataset.
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N/A: Transcript data not available in the provided dataset.
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Forward Guidance
Guidance conclusions are constrained by the absence of explicit management projections in the provided data. Given the reported metrics, investors should look for the following in any subsequent communications: (1) trajectory of ARR growth and renewal rates, (2) operating-expense optimization to achieve sustainable positive operating margins, (3) progress in converting deferred revenue backlog into realized revenue with improved cash conversion, and (4) balance-sheet discipline to reduce net debt and stabilize equity. In a broader industry context, continued demand for low-code automation and digital transformation supports a favorable long-term outlook, but near-term profitability hinges on scaling sales efficiency and product monetization. Key factors to monitor: quarterly ARR growth rates, gross margin stability as the mix shifts toward higher-margin software versus services, and the pace at which cash burn moderates as GTM investments mature.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0HGM.L Focus
74.26%
N/A
N/A
N/A
0HGC.L
71.70%
66.10%
9.98%
5.11%
COG.L
80.70%
-15.00%
-44.00%
-3.01%
CASP.L
43.40%
17.60%
0.00%
9.29%
SIS.L
33.00%
-3.93%
-9.32%
-3.41%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Appian sits at an inflection point where topline momentum and a strong gross margin exist, but profitability hinges on achieving operating leverage. The sizable deferred revenue pool provides future revenue visibility, yet near-term cash flow remains negative due to ongoing investments in GTM, R&D, and working-capital dynamics. The company’s ability to convert backlog into sustained profitability will depend on improving operating efficiency, scaling ARR, and reducing net debt to strengthen balance sheet resilience. Relative to peers in software services and SaaS, Appian appears to be investing for growth rather than delivering near-term earnings; investors should monitor ARR growth, gross margin stability, cash flow trajectory, and balance-sheet healing as primary indicators of medium-term value realization.
Key Investment Factors
Growth Potential
Appian’s low-code automation platform targets enterprise digital transformation across financial services, government, life sciences, manufacturing, energy, healthcare, and other industries. The QQ2 2025 results show revenue growth of 16.5% YoY, underscoring ongoing demand for streamlined app development and process automation. The substantial deferred revenue backlog ($264.92M) provides visibility into future revenue realization and potential operating leverage as utilization expands and cross-sell momentum increases.
Profitability Risk
Key risks include negative net income and ongoing operating losses, a sizable debt burden (net debt ~$196.28M) and negative stockholders’ equity, exposure to macroeconomic volatility, and competition from larger SaaS ecosystems (e.g., Microsoft, Salesforce) that could pressure growth and pricing. High R&D and S&M investments may delay profitability, and reliance on timely revenue recognition from deferred revenue remains a sensitivity in cash flow generation.
Financial Position
Solid liquidity headroom with ~$184.75M in cash and equivalents plus investments, but with ~$308.49M of total debt. The company’s negative equity signals accumulated losses and balance-sheet fragility; however, the sizeable deferred revenue base suggests durable long-term revenue visibility if growth acceleration can be achieved and operational leverage realized.
SWOT Analysis
Strengths
Healthy gross margin around 74% supports long-term operating leverage as revenue grows.
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