What changed in this filing

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Item 1. Business

2026-02-19 compared with 2025-02-19 · 79 added, 132 removed, 161 unchanged (57% of the section changed)

Appian Corporation (together with its subsidiaries, “Appian,” “the Company,” “we,” or “our”) is The Process Company.

We deliver a software platform that helps organizations run better processes that reduce costs, improve customer experiences, and gain a strategic edge.

Committed to client success, we serve many of the world’s largest companies across industries.

We believe processes define each organization.

Processes are how they operate, deliver value, and interact with their customers.

Nothing is more transformative for an organization than improving their processes.

Appian has both the platform and the expertise to enable enterprise transformation.

The Appian Platform

Appian is a leading platform for process orchestration, automation, and intelligence.

Our unified platform provides everything an organization needs to design, automate, and optimize critical processes.

It enables continuous adaptation, allowing organizations to thrive in changing environments.

Appian Corporation (together with its subsidiaries, “Appian,” “the Company,” “we,” or “our”) provides process automation technology.

For over 25 years, our highly reliable and scalable platform has been leveraged by large enterprises and governments.

Combining leading edge process orchestration and intelligence, we provide everything an organization needs to design, automate, and optimize critical processes, facilitating continuous adaptation in changing environments.

The market for process automation is large and growing.

According to IDC, the worldwide Business Automation Platform market was $27.8 billion in 2024 and is expected to grow to approximately $70.2 billion in 2029.

Core Capabilities

Appian provides capabilities to tackle any process challenge.

Appian tightly integrates data fabric;

robotic process automation, or RPA;

intelligent document processing, or IDP;

generative artificial intelligence, or generative AI;

artificial intelligence agents, or AI agents;

low-code design;

application programming interfaces, or APIs;

business rules;

and process intelligence capabilities in a single platform.

These capabilities are unified and scalable, meeting enterprise demands and easy to change as requirements evolve.

• Process Orchestration:

The Appian platform coordinates tasks between AI, automation, and humans to ensure processes run efficiently and intelligently.

RPA enables customers to build bots with low-code to automate repetitive manual tasks.

Appian AI agents extract data, process documents, and initiate processes at scale.

API integration easily connects systems with low-code design tools and hundreds of prebuilt connections.

• Data Fabric:

Appian’s data fabric is an integrated data layer that unifies data across systems without requiring companies to migrate their data.

Appian empowers users to explore data in real-time, build reports, and get AI-powered insights for smarter decision-making.

Our patented data fabric technology supports both analytical and transactional workloads, which allows users to build applications that create and update enterprise data.

It also includes row-level security rules to enforce access controls at every level.

Our data fabric functionality powers and secures our AI offering.

• Process Intelligence:

Process intelligence allows users to gain deep insights into process performance through Appian’s Process HQ.

It also preps data for process mining with just a few clicks, even across multiple sources.

Companies can use AI to monitor processes, identify issues, and get intelligent recommendations for optimization.

• Artificial Intelligence:

We believe the key to unlocking AI’s full potential is embedding it inside a business process.

Process is where business happens.

It’s where companies make decisions, save and spend money, serve customers, and scale business operations.

When AI operates within processes, it gains purpose, governance, and accountability—all essential to delivering value from AI.

Appian can embed AI into every process, which gives AI the context and actions it needs to accelerate outcomes for the enterprise.

Appian delivers six key benefits with our “AI in process” approach:

Process makes AI easy.

Deploying AI in isolated projects is complex and costly.

By embedding AI within a process, enterprises can easily access valuable AI capabilities when and where they need them.

Process gives AI structure.

AI is only as useful as the structure surrounding it.

A process gives AI defined goals in a structured flow of work.

AI can work alongside humans and automation tools, escalating issues so humans always maintain oversight and control.

Process gives AI data.

AI is nothing without data.

But most enterprises struggle to feed AI complete data from across systems, while still ensuring privacy and maintaining access privileges.

By integrating AI into processes, enterprises ensure AI receives quality, real-time data from all systems.

Organizations can enforce privacy controls to prevent unauthorized access and optimize data governance to comply with regulations (such as GDPR, HIPAA, etc.).

Process makes AI safe.

AI is powerful, but no one wants to give AI free reign over their enterprises.

Processes provide crucial safety mechanisms, including human approval steps for high-risk actions and escalation paths to ensure AI errors don’t cause harm.

Additionally, activity logs make auditing and compliance simple for organizations with strict regulatory requirements.

Process makes AI measurable.

For many enterprises, AI is a black box, which can’t be measured for impact.

Appian processes track every AI action, allowing organizations to measure performance, identify bottlenecks, and optimize outcomes.

Process makes AI enterprise-grade.

A process provides the necessary infrastructure to scale AI use.

The right tooling puts AI to work with security certifications, enterprise scalability, and other capabilities such as process orchestration, automation, and intelligence.

Processes take AI from a collection of disconnected pilots to an enterprise-wide capability.

Appian’s unified approach delivers all the capabilities leading organizations need to orchestrate their business processes in one place.

It empowers enterprises to transform their processes and improve business outcomes.

Committed to Customer Success

At Appian, we do more than deliver a platform;

we are invested in our customers’ success.

Our Customer Success team partners with enterprises every step of the way.

From strategic guidance to hands-on support, we strive to ensure their process transformation delivers measurable, lasting value.

The world’s most innovative organizations trust Appian to solve their critical process challenges, achieve operational excellence, and drive sustainable growth.

With Appian, we believe businesses are equipped to thrive in a world where process is everything.

• Comprehensive Automation Platform.

The Appian platform provides a complete set of features and tools, allowing our customers to apply the right tool to each step of their process.

Our capabilities include business rules engines, pre-built connections, Application Program Interface (API) integrations, intelligent document processing (IDP), robotic process automation (RPA), and artificial intelligence (AI).

• Unified Data Fabric.

Appian’s patented data fabric is an integrated layer that unifies data across the enterprise without requiring companies to migrate their data, eliminating the need for additional systems and tools and accelerating time to insight.

Our data fabric allows every worker, system, and agent to have the context it needs to act with confidence.

• Enterprise-Grade Controls.

Appian delivers best-in-class security, auditability, and enterprise guardrails to support even the most mission critical workloads and most sensitive and confidential data.

In addition, Appian provides process mining functionality that allows organizations to identify bottlenecks and compliance risks.

• Interactive Design.

Our visual design tools allows business users, technical experts, and implementation specialists to collaborate on the automation, improvement, and streamlining of existing processes, assisted by AI.

This iterative process continues after the initial implementation, allowing our customers to seamlessly evolve and optimize their processes over time.

• Implementation Excellence.

Appian has an elite team of implementation and process specialists with a 25-year track record of partnering with our customers to ensure the success of their applications.

Approach to AI

Advances in AI offer the promise of unprecedented innovation in business productivity.

Despite this potential, currently most business implementations of AI fail, and the technology is frequently sidelined as an assistant rather than integrated as a digital worker within core business operations.

This presents a unique opportunity for Appian, since we provide the process framework that organizations need to drive value from AI investments.

We believe that in order to fully realize the value of AI, organizations need to embed AI capabilities directly into workflows.

To be effective, AI requires strict controls and defined guardrails that eliminate errors and hallucinations, ensuring AI activities are guided by organizational policies and regulations.

As a leader in process automation, we provide the tools and guardrails necessary for AI to deliver repeatable and scalable business value.

The impact of AI also depends on data.

Without proprietary data, AI lacks the internal context necessary to help solve specific business problems.

Most enterprises today struggle to provide AI with relevant data across

systems, while still ensuring privacy and maintaining access privileges.

Our data fabric is designed to provide the data AI needs, grant secure and performant access to information from across the enterprise, and obviate the need for complex and slow data migrations.

Go-to-Market Strategy

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We sell our software almost exclusively as subscriptions.

We grow our revenue by adding new customers, increasing the product usage of existing customers, and expanding product usage across new business processes and applications.

Our strategic partners work with organizations undergoing digital transformation projects, and when they recognize an opportunity for our platform, they often introduce us to potential customers.

We grow our revenue by adding new customers, increasing the user base of existing customers, and expanding product usage across customers through new business processes and applications.

Our strategic partners work with organizations undergoing process automation projects, and when they recognize an opportunity for our platform, they often introduce us to potential customers.

Many of our customers begin by building a single application and grow to create dozens of applications on our platform, which implicitly increases their return on investment.

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Every additional application an organization creates on our platform increases the value of our platform for that organization because it further integrates people, processes, and data and facilitates knowledge sharing.

Applications built on our platform may be used only on our platform and only while customers have active subscriptions, creating a substantial incentive for customers to avoid the difficulties and costs

associated with moving to a different software platform.

At the same time, our industry-leading Customer Success team helps customers build and deploy applications on our platform to achieve their digital transformation goals more quickly.

At the same time, our industry-leading professional services team helps customers build and deploy applications on our platform to achieve their process automation goals more quickly.

Our Growth Strategy

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• Grow revenue from key industry verticals.

While our platform is industry-agnostic, we continue to make investments to enhance the expertise of our sales and marketing organization within our key industry verticals of financial services, government, life sciences, and insurance.

In 2024, we generated over 77% of our subscriptions revenue from customers in these verticals.

We believe focusing on the digital transformation needs of organizations within these industry verticals helps drive adoption of our platform.

In 2025, we generated approximately 80% of our subscriptions revenue from customers in these verticals.

In addition, we offer pre-built solutions in certain of these industries to facilitate customer use cases.

• Continue to innovate and enhance our platform .

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As we continue to increase the functionality of our platform and further reduce the amount of developer skill required to quickly deliver value for our customers, we believe we have the potential to expand the use of our platform.

• Offer industry solutions to accelerate customer usage .

Our platform enables our customers to build applications quickly.

We, along with our partners, offer pre-built solutions in certain of our key industries such as financial services, government, and insurance to give our customers an even faster start.

Every Appian solution is built on our platform and designed to be standardized, upgradeable, and compatible with each other.

• Expand our international footprint.

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Appian Cloud meets the data residency requirements of our global customers by operating in 16 countries across 39 regions and 123 availability zones.

In 2024, 37% of our total revenue was generated from customers outside of the United States.

In 2025, approximately 38% of our total revenue was generated from customers outside of the United States.

We believe we have a significant opportunity to continue to grow our international footprint.

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• Leverage our partner base.

We have a number of strategic partnerships with companies, including Accenture, Capgemini, Deloitte, EY, KPMG, PwC, and TCS.

These partners work with organizations undergoing digital transformation projects.

When they recognize an opportunity for our platform, they introduce us to potential customers.

We have a number of strategic partnerships with companies, including Accenture, Capgemini, Deloitte, Indra Group, KPMG, and PwC.

These partners work with organizations undergoing process automation projects.

When they recognize an opportunity for our platform, they

introduce us to potential customers.

Additionally, they often go to market with their own pre-built solutions using our platform, delivering software license revenue to Appian.

We intend to further leverage our base of partners to provide broader customer coverage and solution delivery capabilities.

• Accelerate adoption of AI.

O ur customers are looking to generate tangible business value from their investment in AI and are increasingly turning to Appian to achieve that goal.

We offer them a range of AI capabilities, ranging from AI-enhanced document processing to autonomous agents capable of acting in dynamic environments.

In addition, our professional services organization provides our customers with expertise in AI implementation, in an effort to ensure that their AI applications achieve desired accuracy and security goals.

By utilizing our organizational capacity, we will leverage AI to drive increased usage of our platform.

Human Capital Resources and Management

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We promote an inclusive environment where our employees can contribute their unique perspectives to help create transformative solutions for our customers.

Our culture was purposefully cultivated by our four founders, who are still heavily involved in operating our business, including recruiting, interviewing, and educating new employees at Appian.

Our culture was purposefully cultivated by our four founders, who are still heavily involved in operating our business.

Led by Matt Calkins, Founder and Chief Executive Officer, we have grown our business organically by employing a unified team to maximize the cohesion and simplicity of our platform and our company.

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Excellence and Intensity.

Every hiring decision, every promotion, and every public commendation is based on these values.

Every hiring decision, promotion, and public commendation is based on these values.

Excellence means we have high standards, and we live up to them.

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We sell to enterprises across a range of industries, including government, financial services, insurance, and life sciences.

Our sales organization includes enterprise account executives, solution consultants, and customer success representatives and is supported by a robust partner ecosystem of global systems integrators, technology partners, and resellers.

We are dedicated to the success of Appian customers, investing in robust post-sales customer success initiatives to ensure adoption, satisfaction, and expanded use over time.

Our sales organization includes enterprise account executives, solution consultants, and professional services representatives and is supported by a robust partner ecosystem of global systems integrators, technology partners, and resellers.

We are dedicated to the success of Appian customers, investing in post-sales professional services initiatives to ensure adoption, satisfaction, and expanded use over time.

To drive awareness and adoption of our platform, we execute a comprehensive marketing strategy that includes digital marketing, customer advocacy programs, industry analyst and press relations, thought leadership initiatives, digital events, industry conferences, tradeshows, and regional events.

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Additionally, we engage with our developer community through our Appian Community as well as hackathons, user groups, and technical education programs designed to accelerate application development and foster platform expertise.

As of December 31, 2024, we lease our headquarters office in McLean, Virginia, and we also have five leased offices in cities outside the United States.

In addition to our leased offices, we occupied nine flexible workspaces.

As of December 31, 2025, we lease our headquarters office in McLean, Virginia, and we also have six leased offices in cities outside the United States.

In addition to our leased offices, we occupied eight flexible workspaces.

Our use of flexible workspaces is dependent upon our current business needs.

We believe our facilities are adequate to meet our ongoing needs, including substantial rights to expand within certain properties we lease.

we require additional space in the future, we believe we will be able to obtain additional facilities on commercially reasonable terms.

If we require additional space in the future, we believe we will be able to obtain additional facilities on commercially reasonable terms.

We have historically experienced seasonality in terms of when we enter into agreements with customers.

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Our customers operate in various industries, including financial services, government, life sciences, insurance, manufacturing, energy, healthcare, telecommunications, and transportation.

As of December 31, 2024, we had over 1,000 customers.

Generally, our sales team targets its efforts to organizations with over 2,000 employees and $2 billion in annual revenue.

The number of customers paying us in excess of $1 million of annual recurring revenue has grown from 110 at the end of 2023 to 126 at the end of 2024.

In 2025, we refined our definition of a customer to better align with revenue-generating units.

Commercial customers are now aggregated at the ultimate parent level, U.S.

governmental entities are aggregated at the cabinet plus one level, and non-U.S.

governmental entities are aggregated at the cabinet or ministry level.

Prior period customer counts have been recasted for consistency purposes.

Under our new methodology, the number of customers paying us in excess of $1 million of annual recurring revenue has grown from 115 at the end of 2024 to 140 at the end of 2025.

No single end customer accounted for more than 10% of our total revenue in 2025, 2024, or 2023.

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(1) providers of custom software solutions that address, or are developed to address, some of the use cases that applications developed on our platform target;

(2) providers of low-code development platforms;

(2) providers of development platforms;

(3) providers of one or more automation technologies, including business process management, case management, process mining, and robotic process automation;

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We believe we generally compete favorably with our peer group with respect to the features, security, and performance of our platform, the ease of integration of our applications, and the relatively low total cost of ownership of our applications.

We feel this is validated by the fact Gartner ranked Appian #1 for the use case of Complex Internal Applications in the 2024 Gartner ® Critical Capabilities for Enterprise Low-Code Application

Platforms (LCAP) as well as positioned Appian as a Leader in the 2024 Gartner Magic Quadrant™ for Enterprise LCAP.

Intellectual Property

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The information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our website are intended to be inactive textual references only.

1 Gartner, Magic Quadrant for Enterprise Low-Code Application Platforms 16 October 2024, Oleksandr Matvitskyy, Kyle Davis, Akash Jain

Gartner, Critical Capabilities for Enterprise Low-Code Application Platforms 21 October 2024, Akash Jain, Kyle Davis, Oleksandr Matvitskyy

Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation.

Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact.

Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner, Inc.

and/or its affiliates in the U.S.

and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc.

and/or its affiliates and are used herein with permission.

The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc.

("Gartner"), and is not a representation of fact.

Gartner Content speaks as of its original publication date (and not as of the date of this 10-K), and the opinions expressed in the Gartner Content are subject to change without notice.

Forward-Looking Statements

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• Our market opportunity and the expansion of our core software markets in general;

• The opportunity and competitive impact of AI;

• The opportunity and disruptive impact of AI;

• The effects of increased competition as well as innovations by new and existing competitors in our market;

• Our ability to adapt to technological change and effectively enhance, innovate, and scale our platform and professional services;

• Our ability to effectively manage or sustain our growth and to achieve profitability;

• Our ability to effectively manage or sustain our growth and to maintain profitability;

• Potential acquisitions and integration of complementary businesses and technologies;

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• The anticipated expansion of the usage of partners to perform professional services;

• General macroeconomic conditions, including rising interest rates and inflation, slower growth or recession, and geopolitical turmoil;

• General macroeconomic conditions, including fluctuating interest rates and inflation, slower growth or recession, and geopolitical turmoil;

• Future revenue, hiring plans, expenses, capital expenditures, capital requirements, and stock performance;

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• The timing of revenue recognition under license and cloud arrangements;

• Our expectation that subscriptions revenue as a percentage of total revenue will continue to increase;

• Our expectation that professional services as a percentage of total revenue will continue to decrease;

• Our backlog of license, maintenance, cloud, and services agreements and the timing of future cash receipts from committed license and cloud arrangements;

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• Our ability to stay abreast of new or modified laws and regulations that currently apply or become applicable to our business both in the United States and internationally;

• Our ability to collect on the judgment against Pegasystems or the judgment preservation insurance;

• Our ability to collect on the judgment preservation insurance;

• Our ability to maintain, protect, and enhance our intellectual property;

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These statements represent the beliefs and assumptions of our management based on information currently available to us.

Such forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements.

implied by such forward-looking statements.

Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section titled “Risk Factors” included under Part I, Item 1A.

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These risks are discussed more fully in the section titled “Risk Factors.” Material risks that may affect our business, financial condition, results of operations, and trading price of our Class A common stock include, but are not necessarily limited to, the following:

• If we are unable to sustain our revenue growth rate, we may not achieve or maintain profitability in the future.

• If we are unable to sustain our revenue growth rate, we may not be able to achieve or maintain profitability in the future.

• We may not be able to scale our business quickly enough to meet our customers’ growing needs, and if we are not able to grow efficiently, our operating results could be harmed.

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• We currently face significant competition.

• Our recent corporate growth may not be indicative of our future growth and, if we continue to grow, we may not be able to manage our growth effectively.

• In the past, we have experienced significant corporate growth, which may not be indicative of our future growth and, if we grow in the future, we may not be able to manage our growth effectively.

• If our security measures are actually or perceived to have been breached, or if unauthorized access to our platform or customer data occurs, our platform may be perceived as not being secure, and customers may reduce the use of or stop using our platform, and we may incur significant liabilities.

• We derive a material portion of our revenue from a limited number of customers, and the loss of one or more of these customers could materially and adversely impact our business, results of operations, and financial condition.

• We derive a significant portion of our revenue from a limited number of customers, and the loss of one or more of these customers could materially and adversely impact our business, results of operations, and financial condition.

• A portion of our revenue is generated from subscriptions sold to governmental entities and heavily regulated organizations, which are subject to a number of challenges and risks.

• We have experienced losses in the past, and we may not achieve or sustain profitability in the future.

• We have experienced losses in the past, and we may not be able to sustain profitability in the future.

• AI is a disruptive set of technologies that may affect the markets for our software dramatically and in unpredictable ways.

• We rely on the performance of highly skilled personnel, including senior management and our engineering, professional services, sales, and technology professionals, and if we are unable to retain or motivate key personnel or hire, retain, and motivate qualified personnel, our business would be harmed.

• We rely on the performance of highly skilled personnel, including senior management and our engineering, professional services, sales, and technology professionals;

if we are unable to retain or motivate key personnel or hire, retain, and motivate qualified personnel, our business would be harmed.

• If we do not continue to innovate and provide a platform that is useful to our customers, we may not remain competitive, and our revenue and operating results could suffer.

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• Because we generally recognize revenue from cloud subscriptions ratably over the term of the subscription agreement, near-term changes in sales may not be reflected immediately in our operating results.

• We may not achieve market acceptance of our pre-built solutions, which may adversely affect our financial results.

• We may not continue to achieve market acceptance of our pre-built solutions, which may adversely affect our financial results.

• If our platform fails to perform properly or there are defects or disruptions in the rollout of our platform updates or enhancements, our reputation could be adversely affected, our market share could decline, and we could be subject to liability claims.

• We rely upon Amazon Web Services, or AWS, to operate our cloud offering;

• We rely upon AWS to operate our cloud offering;

any disruption of or interference with our use of AWS would adversely affect our business, results of operations, and financial condition.

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• If we do not or cannot maintain the compatibility of our platform with third-party applications that our customers use in their businesses, our revenue will decline.

• Because we collect and store personal information, domestic and international privacy concerns could result in additional costs and liabilities to us or inhibit sales of our software, and subject us to complex and evolving federal, state, and foreign laws and regulations regarding privacy, data protection, and other related matters.

• If our platform fails to function in a manner that allows our customers to operate in compliance with regulations and/or industry standards, our revenue and operating results could be harmed.

• Because we collect and store personal information, domestic and international privacy and security concerns could result in additional costs and liabilities to us, inhibit sales of our software, and subject us to complex and evolving federal, state, and foreign laws and regulations regarding privacy, data protection, and other related matters.

• If our platform fails to function in a manner allowing our customers to operate in compliance with regulations and/or industry standards, our revenue and operating results could be harmed.

• We are subject to governmental export and import controls and economic and trade sanctions that could impair our ability to conduct business in international markets and subject us to liability if we are not in compliance with applicable laws and regulations.

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• Our ability to use net operating losses to offset future taxable income may be subject to certain limitations.

• The dual class structure of our common stock and the existing ownership of capital stock by Matt Calkins, our founder and Chief Executive Officer, have the effect of concentrating voting control with Mr.

• The dual class structure of our common stock and the existing ownership of capital stock by Matt Calkins, our founder and Chief Executive Officer, has the effect of concentrating voting control with Mr.

Calkins for the foreseeable future, which will limit the ability of others to influence corporate matters.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business