Appian(US:APPN) ZACKS·2026-02-20 19:05Core Insights - Appian (APPN) reported fourth-quarter 2025 non-GAAP earnings of 15 cents per share, exceeding the Zacks Consensus Estimate by 59.57% but down 16.7% year over year [1] - Revenues reached $202.9 million, marking a 22% increase year over year and surpassing the consensus mark by 7.28% [1] - Appian shares increased by 2% at the time of reporting, although they have declined by 29.2% over the past 12 months, underperforming the Zacks Computer & Technology sector's 19% return [1] Revenue Breakdown - Subscription revenues, which account for 80% of total revenues, amounted to $162.3 million, reflecting a 19% year-over-year increase [2] - Professional Services revenues, making up 20% of total revenues, rose 36% year over year to $40.6 million [2] Operating Performance - Appian reported a non-GAAP gross margin of 73.4%, down 370 basis points year over year [3] - Non-GAAP research and development expenses were $42.1 million, up 16.1% year over year [3] - Non-GAAP sales and marketing expenses increased by 21.5% year over year to $66.9 million [3] - Non-GAAP general and administrative expenses surged 22% year over year to $22.5 million [3] - The non-GAAP operating margin was 8.6%, down 260 basis points year over year [4] Balance Sheet & Cash Flow - As of December 31, 2025, Appian had cash, cash equivalents, and short-term investments totaling $187.2 million, a slight decrease from $191.6 million as of September 30 [5] - Cash generated by operating activities was $1.1 million in the reported quarter, down from $18.7 million in the previous quarter [5] Guidance - For Q1 2026, Appian expects cloud subscriptions revenues between $119 million and $121 million, indicating year-over-year growth of 19% to 21% [6] - Total revenues are anticipated to be between $189 million and $193 million, reflecting a year-over-year increase of 14% to 16% [6] - Adjusted EBITDA is projected to be between $19 million and $22 million, with adjusted earnings expected to range from 16 cents to 20 cents per share [6] - For the full year 2026, cloud subscriptions revenues are expected to be between $502 million and $510 million, indicating year-over-year growth of 15% to 17% [7] - Total revenues for 2026 are anticipated to be between $801 million and $817 million, reflecting a year-over-year increase of 10% to 12% [7] - Adjusted EBITDA for 2026 is expected to be between $89 million and $99 million, with adjusted earnings projected to be between 82 cents and 96 cents per share [7] Market Position - Appian currently holds a Zacks Rank 3 (Hold) [9] - Other stocks in the Zacks Computer and Technology sector with better rankings include Micron Technology (MU), MongoDB (MDB), and Credo Technology Group (CRDO) [9]