What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 195 added, 260 removed, 435 unchanged (51% of the section changed)

3 unchanged sentences

(in thousands, except par value and share data)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Current assets

32 unchanged sentences

Class A common stock—par value $ 0.0001 ;

500,000,000 shares authorized as of September 30, 2025 and December 31, 2024 and 43,369,326 and 42,938,701 shares issued as of September 30, 2025 and December 31, 2024, respectively

500,000,000 shares authorized as of March 31, 2026 and December 31, 2025 and 43,474,509 and 43,408,828 shares issued as of March 31, 2026 and December 31, 2025, respectively

Class B common stock—par value $ 0.0001 ;

100,000,000 shares authorized as of September 30, 2025 and December 31, 2024 and 31,088,085 and 31,090,085 shares issued as of September 30, 2025 and December 31, 2024, respectively

Treasury stock at cost, 639,751 shares as of September 30, 2025

100,000,000 shares authorized as of March 31, 2026 and December 31, 2025 and 31,087,485 and 31,088,085 shares issued as of March 31, 2026 and December 31, 2025, respectively

Treasury stock at cost, 1,048,812 and 542,288 shares as of March 31, 2026 and December 31, 2025, respectively

( 29,152 ) ( 16,935 )

Additional paid-in capital 618,798 617,318

7 unchanged sentences

(unaudited, in thousands, except per share data)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Subscriptions $ 160,311 $ 134,352

14 unchanged sentences

Other income, net

( 84 ) ( 5,716 )

Interest expense 4,172 5,318

Total other non-operating expense (income) 4,088 ( 398 )

Income (loss) before income taxes

Loss before income taxes

( 932 ) ( 436 )

Income tax expense 593 741

Net income (loss) $ 7,825 $ ( 2,100 ) $ 6,336 $ ( 78,615 )

Earnings (loss) per share:

Basic $ 0.11 $ ( 0.03 ) $ 0.09 $ ( 1.08 )

Diluted $ 0.10 $ ( 0.03 ) $ 0.08 $ ( 1.08 )

$ ( 1,525 ) $ ( 1,177 )

Net loss per Class A and Class B share:

Basic and diluted

$ ( 0.02 ) $ ( 0.02 )

Weighted average common shares outstanding:

Basic 74,008 72,396 74,101 72,664

Diluted 74,575 72,396 74,554 72,664

Basic and diluted

73,820 74,094

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

APPIAN CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited, in thousands)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

$ ( 1,525 ) $ ( 1,177 )

Net income (loss) $ 7,825 $ ( 2,100 ) $ 6,336 $ ( 78,615 )

Comprehensive income (loss), net of income taxes

Comprehensive gain (loss), net of income taxes

Foreign currency translation adjustments 407 ( 3,716 )

Unrealized gain on available-for-sale securities 59 142 1 139

Other comprehensive income (loss), net of income taxes

Unrealized losses on available-for-sale securities

( 119 ) ( 17 )

Other comprehensive loss, net of income taxes

$ ( 1,237 ) $ ( 4,910 )

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2 unchanged sentences

(unaudited, in thousands, except share data)

Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Treasury Stock

Total Stockholders' Deficit

Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Treasury Stock Total Stockholders' Deficit

Shares Amount

5 unchanged sentences

Exercise of stock options 59,665 — 630 — — — 630

Stock-based compensation expense — — 8,814 — — — 8,814

Other comprehensive loss — — — ( 3,733 ) — — ( 3,733 )

Balance, March 31, 2025

74,220,200 $ 7 $ 597,086 $ ( 15,507 ) $ ( 613,331 ) $ — $ ( 31,745 )

Net loss — — — — ( 312 ) — ( 312 )

Issuance of common stock to directors 5,686 — — — — — —

Vesting of restricted stock units 77,082 — ( 1,269 ) — — — ( 1,269 )

Exercise of stock options 30,880 — 314 — — — 314

Repurchase of common stock ( 842,896 ) — — ( 21,808 ) ( 21,808 )

Stock-based compensation expense — — 8,882 — — — 8,882

Other comprehensive loss — — — ( 19,682 ) — — ( 19,682 )

Balance, June 30, 2025 74,020,688 $ 7 $ 605,084 $ ( 35,189 ) $ ( 613,643 ) $ ( 10,000 ) $ ( 53,741 )

Net income — — — — 7,825 — 7,825

Issuance of common stock to directors 6,276 — — — — — —

Vesting of restricted stock units 92,669 — ( 1,422 ) — — — ( 1,422 )

Exercise of stock options 24,618 — 248 — — — 248

Repurchase of common stock ( 326,591 ) — — — — ( 10,000 ) ( 10,000 )

Stock-based compensation expense — — 8,578 — — — 8,578

Other comprehensive loss — — — ( 32 ) — — ( 32 )

Balance, September 30, 2025

73,817,660 $ 7 $ 612,488 $ ( 35,221 ) $ ( 605,818 ) $ ( 20,000 ) $ ( 48,544 )

Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Treasury Stock

Total Stockholders' Equity (Deficit)

Shares Amount

Balance, December 31, 2023

Other comprehensive gain

— — — 288 — — 288

Net loss — — — — ( 32,923 ) — ( 32,923 )

Issuance of common stock to directors 4,974 — — — — — —

Vesting of restricted stock units 141,563 — ( 2,862 ) — — — ( 2,862 )

Exercise of stock options 43,460 — 345 — — — 345

Repurchase of common stock ( 1,320,531 ) — — — — ( 50,019 ) ( 50,019 )

Stock-based compensation expense — — 10,606 — — — 10,606

Other comprehensive income — — — 12,847 — — 12,847

Balance, March 31, 2026

73,513,182 $ 7 $ 618,798 $ ( 36,174 ) $ ( 612,446 ) $ ( 29,152 ) $ ( 58,967 )

Net loss — — — — ( 43,592 ) — ( 43,592 )

Issuance of common stock to directors 4,692 — ( 178 ) — — 178 —

Vesting of restricted stock units 77,116 — ( 4,279 ) — — 2,919 ( 1,360 )

Exercise of stock options 25,037 — ( 785 ) — — 948 163

Stock-based compensation expense — — 9,900 — — — 9,900

Other comprehensive loss — — ( 1,104 ) — — ( 1,104 )

Balance, June 30, 2024

Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Deficit

Shares Amount

Balance, December 31, 2024

74,028,786 $ 7 $ 591,281 $ ( 11,774 ) $ ( 612,154 ) $ ( 32,640 )

5 unchanged sentences

Other comprehensive loss — — — ( 3,733 ) — ( 3,733 )

Balance, September 30, 2024

Balance, March 31, 2025

74,220,200 $ 7 $ 597,086 $ ( 15,507 ) $ ( 613,331 ) $ ( 31,745 )

3 unchanged sentences

(unaudited, in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities

Net income (loss) $ 6,336 $ ( 78,615 )

Adjustments to reconcile net income (loss) to net cash provided by (used by) operating activities

$ ( 1,525 ) $ ( 1,177 )

Adjustments to reconcile net loss to net cash provided by operating activities

Stock-based compensation 11,889 10,039

Depreciation expense and amortization of intangible assets 2,273 2,446

Lease impairment charges 779 5,462

Bad debt expense ( 194 ) ( 125 )

1 unchanged sentence

Benefit for deferred income taxes ( 74 ) ( 163 )

Foreign currency transaction (gains) losses, net ( 20,864 ) 2,895

Foreign currency transaction losses (gains), net

1,119 ( 3,989 )

Changes in assets and liabilities

7 unchanged sentences

Operating lease assets and liabilities, net ( 1,005 ) ( 838 )

( 2,583 ) ( 1,788 )

Net cash provided by (used by) operating activities

Net cash provided by operating activities

48,827 44,966

4 unchanged sentences

Net cash used by investing activities ( 5,283 ) ( 24,077 )

( 27,454 ) ( 34,294 )

Cash flows from financing activities

Proceeds from borrowings — 50,000

Payments for debt issuance costs — ( 463 )

Debt repayments ( 2,500 ) ( 2,500 )

Repurchases of common stock ( 21,808 ) —

( 20,000 ) ( 50,019 )

Payments for employee taxes related to the net share settlement of equity awards ( 5,117 ) ( 3,199 )

1 unchanged sentence

Net cash used by financing activities ( 28,795 ) ( 5,509 )

( 30,138 ) ( 8,496 )

Effect of foreign exchange rate changes on cash and cash equivalents ( 534 ) 1,050

Net increase (decrease) in cash and cash equivalents 6,697 ( 50,158 )

Net increase in cash and cash equivalents 14,215 16,430

Cash and cash equivalents at beginning of period 135,810 118,552

118,552 149,351

Cash and cash equivalents at end of period $ 150,025 $ 134,982

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Organization and Description of Business

Appian Corporation (together with its subsidiaries, “Appian,” the “Company,” “we,” or “our”) delivers 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 various industries.

We believe processes define each organization.

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

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

We are headquartered in McLean, Virginia and operate both in the United States and internationally, including Australia, Canada, France, Germany, India, Italy, Japan, Mexico, the Netherlands, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

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.

We are headquartered in McLean, Virginia and operate in the United States and internationally, including Australia, Canada, France, Germany, India, Italy, Japan, Mexico, the Netherlands, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

Accounting Policies

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These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 19, 2026.

Reclassifications

During the fourth quarter of 2025, the Company reclassified certain information technology, cybersecurity, and facility operating expenses from general and administrative expenses to cost of revenue, research and development, and sales and marketing expense.

Amounts for the three months ended March 31, 2025 have been reclassified to conform to the current period presentation.

The revised presentation did not result in any changes to previously reported revenues, operating income (loss), loss before income taxes, net loss, or net loss per share.

Use of Estimates

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Although we believe the estimates we use are reasonable, due to the inherent uncertainty involved in making these estimates, actual results reported in future periods could differ from those estimates.

Significant estimates embedded in the consolidated financial statements include, but are not limited to, revenue recognition, income taxes and the related valuation allowance established against deferred tax assets, the amortization period of deferred commissions, the amortization period of the cost to obtain the judgment preservation insurance policy (as discussed in Note 12), and stock-based compensation.

Revenue Recognition

Refer to Note 3 for a detailed discussion on specific revenue recognition principles related to our major revenue streams.

Concentration of Credit and Customer Risk

Our financial instruments exposed to concentration of credit and customer risk consist primarily of cash, cash equivalents, accounts receivable, and our short-term investments.

Our financial instruments exposed to concentration of credit and customer risk consist primarily of cash, cash equivalents, accounts receivable, and short-term investments and marketable securities.

Deposits held with banks may exceed the amount of insurance provided on such deposits;

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With regard to our customers, credit evaluation and account monitoring procedures are used to minimize the risk of loss.

For the three and nine months ended September 30, 2025, revenue generated from government agencies represented 32.4 % and 33.3 % of total revenue, of which revenue from U.S.

federal government agencies was 25.0 % and 24.9 % of total revenue, respectively.

Additionally, 39.7 % and 38.2 % of our revenue during the three and nine months ended September 30, 2025, respectively, was generated from international customers.

For the three and nine months ended September 30, 2024, revenue generated from government agencies represented 31.0 % and 30.6 % of total revenue, of which revenue from U.S.

federal government agencies was 23.2 % and 22.5 % of total revenue, respectively.

Additionally, 36.3 % and 37.2 % of our revenue during the three and nine months ended September 30, 2024, respectively, was generated from international customers.

No single end-customer accounted for more than 10% of our total revenue in the three and nine months ended September 30, 2025 or 2024.

As of September 30, 2025 and December 31, 2024, we had one reseller whose accounts receivable balance comprised 17.3 % and 17.5 % of total accounts receivable, respectively.

Revenue generated from U.S.

federal government agencies was 25.8 % and 23.9 % of total revenue for the three months ended March 31, 2026 and 2025, respectively.

Additionally, 37.6 % and 36.2 % of our revenue during the three months ended March 31, 2026 and 2025, respectively, was generated from international customers.

No single end-customer accounted for more than 10% of our total revenue in the three months ended March 31, 2026 or 2025.

As of March 31, 2026 and December 31, 2025, we had one reseller whose accounts receivable balance comprised 8.6 % and 13.4 % of total accounts receivable, respectively.

Cash and Cash Equivalents

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The allowance is based on our assessment of the collectability of accounts and incorporates an estimation of expected lifetime credit losses on our receivables.

We regularly review the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness, current economic trends, and reasonable economic forecasts that affect collectability.

We regularly review the composition of the accounts receivable aging, historical bad debts, changes in payment patterns, customer creditworthiness, post-balance sheet date collection activity, and current economic trends that affect collectability.

If the financial condition of our customers were to deteriorate, resulting in their inability to make required payments, additional provisions for expected credit losses would be required and would increase bad debt expense.

The allowance for doubtful accounts totaled $ 2.9 million and $ 3.4 million as of September 30, 2025 and December 31, 2024, respectively.

The allowance for doubtful accounts totaled $ 3.1 million and $ 3.4 million as of March 31, 2026 and December 31, 2025, respectively.

Deferred Commissions

5 unchanged sentences

We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the estimated economic life.

Costs to obtain a contract for professional services arrangements are expensed as incurred as the contractual period of our professional services arrangements are one year or less.

Costs to obtain a contract for professional services arrangements are expensed as incurred as the contractual period of our professional services arrangements are generally one year or less.

Amortization associated with deferred commissions is recorded to sales and marketing expense in our consolidated statements of operations.

Total commission expense was $ 13.2 million and $ 38.2 million for the three and nine months ended September 30, 2025, respectively.

Total commission expense was $ 12.6 million and $ 35.5 million for the three and nine months ended September 30, 2024, respectively.

Total commission expense was $ 11.3 million and $ 11.7 million for the three months ended March 31, 2026 and 2025, respectively.

Property and Equipment

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We account for treasury stock under the cost method.

We reissue treasury stock to satisfy employee stock option exercises and the vesting of restricted stock units as well as for issuances of common stock to our Board of Directors.

We reissue treasury stock to satisfy the vesting of restricted stock units.

Because we are in an accumulated deficit position, all reissuances of treasury stock were recorded as a decrease to additional-paid-in-capital in our consolidated balance sheets.

Recent Accounting Pronouncements

We have not adopted any new accounting guidance in 2025 that has had a material impact on our consolidated financial statements or disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient allowing companies to assume the conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current classified accounts receivable and contract assets.

Adopting this provision did not impact the calculation of our expected credit loss for our current accounts receivable.

The ASU only impacted our disclosures with no impact to our results of operations, cash flows, and financial condition.

Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Tax (Topic 740):

Improvement to Income Tax Disclosures, which requires public companies to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold.

In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of net income tax payments.

The new guidance will be effective for our annual reporting for fiscal year 2025 on a prospective basis with the option to apply the standard retrospectively.

Early adoption is permitted.

This ASU will only impact our disclosures with no impacts to our results of operations, cash flows, and financial condition.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

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The new guidance will be effective beginning with our annual reporting for fiscal year 2027 and for interim period reporting beginning in fiscal year 2028.

Companies have the option to apply the guidance either on a retrospective or prospective basis, and early adoption is permitted.

We are currently evaluating the impact this standard will have on our financial statement presentation and disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient allowing entities to assume the conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current classified accounts receivable and contract assets.

The new guidance will be effective for our annual and interim period reporting beginning in fiscal year 2026 on a prospective basis.

Early adoption is permitted.

The guidance may be applied either on a retrospective or prospective basis, and early adoption is permitted.

We are currently evaluating the impact this standard will have on our financial statement presentation and disclosures.

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We are currently evaluating the impact this standard will have on our financial statement presentation and disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) Narrow-Scope Improvements, which is intended to improve the navigability of the guidance in ASC 270 - Interim Reporting and clarify when it applies.

Under the amendments, an entity is subject to ASC 270 if it provides interim financial statements and notes in accordance with GAAP.

ASU 2025-11 also addresses the form and content of such financial statements, in addition to interim disclosure requirements.

The guidance also establishes a principle under which companies must disclose events since the end of the last annual reporting period that have a material impact on the entity.

The new guidance will be effective for interim reporting periods with annual reporting periods beginning after December 15,

Early adoption is permitted.

We are currently evaluating the impact this standard will have on our financial statement presentation and disclosures.

Revenue Recognition

We generate subscriptions revenue primarily through the sale of cloud subscriptions bundled with maintenance and support and hosting services as well as term license subscriptions bundled with maintenance and support.

We generate subscriptions revenue primarily through the sale of cloud subscriptions bundled with maintenance and support and hosting services.

Other subscriptions include self-managed license subscriptions and any associated maintenance and support.

We generate professional services revenue from fees for our consulting services, including application development and deployment assistance as well as training related to our platform.

The following table summarizes revenue recorded during the three and nine months ended September 30, 2025 and 2024 (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

The following table summarizes revenue recorded during the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Cloud subscriptions $ 124,511 $ 99,826

Term license subscriptions 24,812 21,265 69,429 62,263

Maintenance and support 8,780 7,781 24,431 22,420

Other subscriptions

35,800 34,526

Total subscriptions 160,311 134,352

4 unchanged sentences

Each category contains one or more performance obligations that are either (1) capable of being distinct (i.e., the customer can benefit from the product or service on its own or together with readily available resources, including those purchased separately from us) and distinct within the context of the contract (i.e., separately identified from other promises in the contract) or (2) a series of distinct products or services that are substantially the same and have the same pattern of transfer to the customer.

Our term license subscriptions are delivered at a point in time while our cloud subscriptions, maintenance and support, and professional services are delivered over time.

Our license subscriptions are delivered at a point in time while our cloud subscriptions, maintenance and support, and professional services are delivered over time.

Subscriptions Revenue

Subscriptions revenue is primarily related to (1) cloud subscriptions bundled with maintenance and support and hosting services and (2) term license subscriptions bundled with maintenance and support.

We generally charge subscription fees on a per-user basis or through non-user-based single application licenses.

We bill customers and collect payment for subscriptions to our platform in advance on an annual, quarterly, or monthly basis.

Our subscription contracts are priced based on the number of users who access and utilize the applications built on our platform, non-user-based single application licenses, or consumption-based pricing.

Our subscription contract terms generally vary from one to three years with most providing for payment in advance on an annual, quarterly, or monthly basis.

In certain instances, our customers have paid their entire contract up front.

Cloud Subscriptions

We generate cloud-based subscriptions revenue primarily from the sales of subscriptions to access our cloud offering, together with related support services to our customers.

We perform all required maintenance and support for our cloud offering.

Revenue is recognized on a ratable basis over the contract term beginning on the date the service is made available to the customer.

We generate cloud subscriptions revenue primarily from the sales of subscriptions to access our cloud offering, together with related support services to our customers.

We perform all required maintenance and support for our cloud offering, and the related revenue is reported as a component of cloud subscriptions revenue.

Cloud subscriptions revenue is recognized on a ratable basis over the contract term beginning on the later of the date the service is made available to the customer or the commencement of the contract term.

Our cloud-based subscription contracts generally have a term of one to three years in length.

We bill customers and collect payment for subscriptions to our platform in advance, and they are non-cancellable.

Term License Subscriptions

Our term license subscriptions revenue is derived from customers with on-premises installations of our platform.

The majority of our term license contracts are one year in length.

Although term license subscriptions are sold with maintenance and support, the software is fully functional at the beginning of the subscription and is considered a distinct performance obligation.

If a cloud-based subscription includes the right for the customer to take possession of the license, the revenue is treated as a term license.

Revenue from term license subscriptions is recognized when control of the software license has transferred to the customer, which is the later of delivery or commencement of the contract term.

Maintenance and Support

Maintenance and support subscriptions include both technical support and when-and-if-available software upgrades, which are treated as a single performance obligation as they are considered a series of distinct services that are substantially the same and have the same duration and measure of progress.

Other Subscriptions

Our other subscriptions revenue is comprised of both license subscriptions and the related maintenance and support.

Our license subscriptions revenue is derived from customers with self-managed installations of our platform.

The majority of our self-managed license contracts are one year in length.

For self-managed license subscriptions, we account for the software and related support separately as they are distinct performance obligations.

Revenue from the license subscription is recognized when control of the software license has transferred to the customer, which is the later of delivery or commencement of the contract term.

Revenue from maintenance and support is recognized ratably over the contract period, which is the period over which the customer has continuous access to maintenance and support.

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Variable consideration is included in the transaction price to the extent it is probable a significant reversal will not occur.

The amount of variable consideration excluded from the transaction price for the three and nine months ended September 30, 2025 and 2024 was immaterial.

The amount of variable consideration excluded from the transaction price for the three months ended March 31, 2026 and 2025 was immaterial.

Our estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to transaction prices;

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We establish SSP as follows:

Cloud subscriptions - Given the highly variable selling price of our cloud subscriptions, we establish the SSP of our cloud subscriptions using a residual approach after first determining the SSP of consulting and training services.

Cloud subscriptions - Given the highly variable selling price of our cloud subscriptions and the related maintenance and support, we establish the SSP using a residual approach after first determining the SSP of consulting and training services.

We have concluded the residual approach to estimating the SSP of our cloud subscriptions is an appropriate allocation of the transaction price.

Term license subscriptions - Given the highly variable selling price of our term license subscriptions, we have established the SSP of term license subscriptions using a residual approach after first determining the SSP of maintenance and support.

Maintenance and support is sold on a standalone basis in conjunction with renewals of our legacy perpetual software licenses and within a narrow range of the net license fee.

Because an economic relationship exists between the license and maintenance and support, we have concluded the residual approach to estimating the SSP of term license subscriptions is an appropriate allocation of the transaction price.

Maintenance and support - We establish the SSP of maintenance and support as a percentage of the stated net subscription fee based on observable pricing of maintenance and support renewals from our legacy perpetual software licenses.

License subscriptions - Given the highly variable selling price of our license subscriptions, we have established the SSP of license subscriptions using a residual approach after first determining the SSP of the related maintenance and support.

Maintenance and support for license subscriptions is sold on a standalone basis in conjunction with renewals of our legacy perpetual software licenses and within a narrow range of the net license fee.

Because an economic relationship exists between the license and maintenance and support, we have concluded the residual approach to estimating the SSP of license subscriptions is an appropriate allocation of the transaction price.

Maintenance and support - We establish the SSP of maintenance and support for license subscriptions as a percentage of the stated net subscription fee based on observable pricing of maintenance and support renewals from our legacy perpetual software licenses.

Consulting and training services - The SSP of consulting and training services is established based on the observable pricing of standalone sales within each geographic region where the services are sold.

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The following table sets forth our contract asset and contract liability balances (in thousands):

September 30, 2025 December 31, 2024 September 30, 2024 December 31, 2023

March 31, 2026 December 31, 2025 March 31, 2025 December 31, 2024

Contract assets, current *

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* Current and non-current contract assets are reported as components of the ‘Prepaid expenses and other current assets’ and ‘Other assets’ line items, respectively, in our consolidated balance sheets.

Revenue recognized from amounts included in contract liabilities at the beginning of the period totaled $ 263.0 million and $ 213.2 million for the nine months ended September 30, 2025 and 2024, respectively.

Revenue recognized from amounts included in contract liabilities at the beginning of the period totaled $ 134.3 million and $ 118.2 million for the three months ended March 31, 2026 and 2025, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

As of September 30, 2025, we had an aggregate transaction price of $ 577.2 million allocated to unsatisfied performance obligations.

As of March 31, 2026, we had an aggregate transaction price of $ 600.1 million allocated to unsatisfied performance obligations.

We expect to recognize $ 409.6 million of this balance as revenue over the next 12 months with the remaining amount recognized thereafter.

As of September 30, 2025, our lease portfolio consists entirely of operating leases for corporate offices.

As of March 31, 2026, our lease portfolio consists entirely of operating leases for corporate offices.

Our operating leases have remaining lease terms with various expiration dates through 2031, and some leases include options to extend the term for up to an additional 10 years.

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We often receive customary incentives from our landlords such as tenant improvement allowances (“TIAs”) and rent abatement periods, which effectively reduce total lease payments owed for the leases.

The following table sets forth the components of lease expense for the three and nine months ended September 30, 2025 and 2024 (in thousands, exclusive of sublease income):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

The following table sets forth the components of lease expense for the three months ended March 31, 2026 and 2025 (in thousands, exclusive of sublease income):

Three Months Ended March 31,

Operating lease cost $ 2,363 $ 2,393

2 unchanged sentences

Total $ 4,230 $ 4,015

Sublease income totaled $ 0.3 million and $ 1.0 million for each of the three and nine months ended September 30, 2025 and 2024.

Lease Impairment Charges

During the second quarter of 2024, we initiated actions to reduce the footprint of our leased office spaces.

During the three months ended September 30, 2024, we recorded non-cash lease impairment charges of $ 5.5 million within general and administrative expenses in our consolidated statements of operations related to the two ROU assets.

The non-cash lease impairment charges represent the amount the carrying value of the two asset groups exceeded their estimated fair values.

The asset groups represented two separate floors within our corporate headquarters facility.

The fair values of the two asset groups were measured using discounted cash flow models based on market rents and sublease incomes projected over the remaining lease terms.

During the third quarter of 2025, we recognized an incremental $ 0.8 million lease impairment charge related to one of the floors within our corporate headquarters that we ceased use of during the second quarter of 2024.

The impairment charge represents the amount the carrying value of the underlying asset exceeded its estimated fair value, which was determined by utilizing a discounted cash flow approach that incorporated lower than previously expected sublease income assumptions based on current market conditions.

Sublease income totaled $ 0.3 million for each of the three months ended March 31, 2026 and 2025.

Supplemental Lease Information

Supplemental balance sheet information related to operating leases as of September 30, 2025 and December 31, 2024 is presented in the following table (in thousands, except for lease term and discount rate):

September 30, 2025 December 31, 2024

Supplemental balance sheet information related to operating leases as of March 31, 2026 and December 31, 2025 is presented in the following table (in thousands, except for lease term and discount rate):

March 31, 2026 December 31, 2025

Right-of-use assets for operating leases $ 26,992 $ 28,075

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Weighted average discount rate 9.4 % 9.4 %

Supplemental cash flow and expense information related to operating leases for the three and nine months ended September 30, 2025 and 2024 is shown below (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Supplemental cash flow and expense information related to operating leases for the three months ended March 31, 2026 and 2025 is shown below (in thousands):

Three Months Ended March 31,

Operating cash outflows for operating leases $ 3,410 $ 3,193

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Interest expense on operating lease liabilities 1,320 1,483

A summary of our future minimum lease commitments under non-cancellable leases as of September 30, 2025 is shown below (in thousands):

A summary of our future minimum lease commitments under non-cancellable operating leases as of March 31, 2026 is shown below (in thousands):

Operating Leases

2025 (excluding the nine months ended September 30, 2025)

2026 (excluding the three months ended March 31, 2026)

Thereafter 10,543

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Goodwill and Intangible Assets

The following table details the changes in goodwill during the nine months ended September 30, 2025 and fiscal year ended December 31, 2024 (in thousands):

The following table details the changes in goodwill during the three months ended March 31, 2026 and fiscal year ended December 31, 2025 (in thousands):

Carrying Amount

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Foreign currency translation adjustments ( 666 )

Balance as of September 30, 2025

Intangible assets, net consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

Balance as of March 31, 2026

Intangible assets, net consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

Developed technology $ 7,362 $ 7,537

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Intangible assets, net $ 904 $ 1,246

Intangible amortization expense was $ 0.3 million and $ 0.9 million for the three and nine months ended September 30, 2025, respectively.

Intangible amortization expense was $ 0.4 million and $ 1.1 million for the three and nine months ended September 30, 2024, respectively.

As of September 30, 2025, the weighted average remaining amortization periods for developed technology and customer relationships were approximately 0.9 years and 5.6 years, respectively.

The following table shows the projected annual amortization expense related to amortizable intangible assets as of September 30, 2025 (in thousands):

Intangible amortization expense was $ 0.3 million for each of the three months ended March 31, 2026 and 2025.

As of March 31, 2026, the weighted average remaining amortization periods for developed technology and customer relationships were approximately 0.4 years and 5.1 years, respectively.

The following table shows the projected annual amortization expense related to amortizable intangible assets as of March 31, 2026 (in thousands):

Projected Amortization

2025 (excluding the nine months ended September 30, 2025)

2026 (excluding the three months ended March 31, 2026)

Thereafter 43

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Property and Equipment, net

Property and equipment, net consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

Property and equipment, net consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

Leasehold improvements $ 55,381 $ 55,465

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Property and equipment, net $ 30,279 $ 32,087

Depreciation expense totaled $ 2.1 million and $ 6.5 million for the three and nine months ended September 30, 2025, respectively.

Depreciation expense totaled $ 2.2 million and $ 6.4 million for the three and nine months ended September 30, 2024, respectively.

We had no disposals or retirements during the three and nine months ended September 30, 2025.

We disposed of $ 1.0 million and $ 1.3 million worth of fully depreciated equipment during the three and nine months ended September 30, 2024, respectively.

Depreciation expense totaled $ 2.0 million and $ 2.2 million for the three months ended March 31, 2026 and 2025, respectively.

We disposed of $ 0.5 million worth of fully depreciated equipment during the three months ended March 31, 2026.

We had no disposals or retirements during the three months ended March 31, 2025.

Accrued Expenses

Accrued expenses consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

Accrued expenses consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

Hosting costs and license fees $ 6,951 $ 6,570

Legal costs 3,604 1,438

Contract labor costs 2,343 2,600

Audit and tax expenses 1,506 1,029

Reimbursable employee expenses 2,145 1,123

Marketing and tradeshow expenses 1,017 1,728

Legal costs 627 289

Audit and tax expenses 1,733 1,818

Taxes payable 1,266 1,953

Capital expenditures — 66

Marketing and tradeshow expenses 567 892

Other accrued expenses 3,052 2,089

Total $ 20,082 $ 11,388

Total accrued expenses $ 21,661 $ 18,483

Senior Secured Credit Facilities Credit Agreement

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An additional interest rate margin is added to the elected interest rates.

During the first three years of the Credit Agreement, the additional interest rate margin ranges from 1.5 % to 2.5 % in the case of Base Rate advances or from 2.5 % to 3.5 % in the case of Term SOFR advances, depending on our debt to recurring revenue leverage ratio (as defined in the Credit Agreement).

During the final two years of the Credit Agreement, the interest rate margin ranges from 0.5 % to 2.5 % in the case of Base Rate advances and from 1.5 % to 3.5 % in the case of Term SOFR advances, depending on our debt to consolidated adjusted EBITDA leverage ratio (as defined in the Credit Agreement).

Our interest rate margin ranges from 0.5 % to 2.5 % in the case of Base Rate advances and from 1.5 % to 3.5 % in the case of Term SOFR advances, depending on our debt to consolidated adjusted EBITDA leverage ratio as defined in the Credit Agreement.

In addition, the Credit Agreement contains other customary representations, warranties, and covenants, including covenants by us limiting additional indebtedness, guarantees, liens, fundamental changes, mergers and consolidations, dispositions of assets, investments, paying dividends on capital stock or redeeming, repurchasing, or retiring capital stock, prepaying certain junior indebtedness and preferred stock, certain corporate changes, and transactions with affiliates.

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The following table summarizes outstanding debt balances (in thousands):

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Borrowings under revolving credit facility

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(1) Deferred debt issuance costs associated with the term loan facility are recorded net of the debt obligation and amortized to interest expense over the term of the Credit Agreement.

As of September 30, 2025, we were in compliance with all covenants contained in the Credit Agreement.

As of March 31, 2026, we were in compliance with all covenants contained in the Credit Agreement.

In addition, we had $ 62.0 million outstanding under our $ 100.0 million revolving credit facility, and we had outstanding letters of credit totaling $ 7.9 million in connection with securing leased office spaces.

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Fluctuations in the distribution of pre-tax income among our operating subsidiaries can lead to fluctuations of the effective tax rate in the consolidated financial statements.

For the three and nine months ended September 30, 2025, the actual effective tax rates were 15.0 % and 36.8 %, respectively.

For the three and nine months ended September 30, 2024, the actual effective tax rates were ( 168.9 )% and ( 0.9 )%, respectively.

The change in the effective tax rates for each period as compared to the same period in the prior year were primarily due to a near pre-tax break-even position in 2025.

As of September 30, 2025, our net unrecognized tax benefits totaled $ 7.8 million, which if recognized would result in no net effect on the effective tax rate due to a valuation allowance.

For the three months ended March 31, 2026 and 2025, the actual effective tax rates were ( 63.6 )% and ( 170.0 )%, respectively.

The change in the effective tax rates for each period as compared to the same period in the prior year was primarily due to near pre-tax break-even positions in both years.

As of March 31, 2026, our net unrecognized tax benefits totaled $ 8.8 million, which if recognized would result in no net effect on the effective tax rate due to a valuation allowance.

The amount of reasonably possible unrecognized tax benefits that could decrease over the next 12 months due to the expiration of certain statutes of limitations or settlements of tax audits is not material to our consolidated financial statements.

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federal jurisdiction and in various state and foreign jurisdictions.

Due to our net operating loss carryforwards, the tax years 2016 through 2024 remain open to examination by the major taxing jurisdictions to which we are subject.

Due to our net operating loss carryforwards, the tax years 2016 through 2026 remain open to examination by the major

taxing jurisdictions to which we are subject.

There are no open examinations that would have a meaningful impact on our consolidated financial statements.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law, which makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation.

We have analyzed the impact of the provisions of the OBBBA and determined there was no material impact to our consolidated financial statements in the three and nine months ended September 30, 2025 nor do we anticipate the provisions of OBBBA to materially impact our current year effective income tax rate.

Stock-Based Compensation

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We account for forfeitures of our stock-based awards as they occur rather than estimating expected forfeitures.

As of September 30, 2025, the total compensation cost related to unvested stock options not yet recognized, which relates exclusively to the 2022 CEO option grant, was $ 2.1 million and will be recognized over a weighted average period of 0.6 years.

As of March 31, 2026, the total compensation cost related to unvested stock options not yet recognized, which relates exclusively to the 2022 CEO option grant, was $ 0.4 million and will be recognized over a weighted average period of 0.3 years.

Total unrecognized compensation cost related to unvested RSUs was approximately $ 53.9 million, which will be recognized over a weighted average period of 1.8 years.

In 2025, we changed our annual bonus program to provide eligible employees with the option to receive all or a portion of their earned annual bonuses for 2025, otherwise payable in cash, in the form of RSUs.

The RSUs will be granted by our Board of Directors during the first quarter of 2026 and will be fully vested upon grant.

Our annual bonus program provides eligible employees with the option to receive all or a portion of their earned annual bonuses, otherwise payable in cash, in the form of RSUs.

The RSUs are granted by our Board of Directors during the first quarter of the following year and are fully vested upon grant.

The portion of the annual bonus to be paid in the form of RSUs is recorded as stock-based compensation expense while the related obligations are recorded as liabilities in the ‘Accrued compensation and related benefits’ line item on our consolidated balance sheets.

During the three and nine months ended September 30, 2025, we recognized $ 1.4 million and $ 4.3 million of stock-based compensation related to this program, respectively.

The following table summarizes the components of our stock-based compensation expense for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

During the three months ended March 31, 2026 and 2025, we recognized $ 2.8 million and $ 1.2 million of stock-based compensation related to this program, respectively.

The following table summarizes the components of our stock-based compensation expense for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Cost of revenue

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Total stock-based compensation expense $ 11,889 $ 10,039

Basic and Diluted Earnings (Loss) per Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period.

Diluted earnings (loss) per share is computed similar to basic, except the weighted average number of common shares outstanding is increased to include additional

outstanding shares from the assumed exercise of stock options and vesting of RSUs, if dilutive.

The dilutive effect, if any, of convertible shares is calculated using the treasury stock method.

The following table is a reconciliation of weighted average number of shares outstanding used to compute basic and diluted earnings (loss) per share (in thousands):

Three months ended September 30,

Nine months ended September 30,

2025 2024 2025 2024

Net income (loss) 7,825 ( 2,100 ) 6,336 ( 78,615 )

Weighted average number of shares outstanding - basic 74,008 72,396 74,101 72,664

Effect of dilutive securities

Basic and Diluted Loss per Common Share

Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the reporting period.

Diluted loss per share is computed similar to basic, except the weighted average number of common shares outstanding is increased to include additional outstanding shares from the assumed exercise of stock options and vesting of stock awards, if dilutive.

The dilutive effect, if any, of convertible

shares is calculated using the treasury stock method.

As we reported net losses for all periods presented, all outstanding shares would be considered antidilutive if they were to be assumed as vested or exercised.

The following outstanding securities, prior to the use of the treasury stock method, have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been antidilutive to loss per share:

Three months ended March 31,

Stock options

Restricted stock units 380 — 254 —

Performance share units

Weighted average number of shares outstanding - diluted 74,575 72,396 74,554 72,664

Earnings (loss) per share - basic $ 0.11 $ ( 0.03 ) $ 0.09 $ ( 1.08 )

Earnings (loss) per share - diluted $ 0.10 $ ( 0.03 ) $ 0.08 $ ( 1.08 )

For the three and nine months ended September 30, 2025, approximately 929,000 and 1,161,000 outstanding common stock equivalents, respectively, were excluded from the computation of diluted earnings per share because their effect would have been antidilutive.

As we reported net losses for three and nine months ended September 30, 2024, all outstanding shares would be considered antidilutive if they were to be assumed as vested or exercised.

888,041 1,036,576

Non-vested restricted stock units

2,375,901 1,259,321

Commitments, Contingencies, and Other Matters

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The agreement, which originated in July 2021 and was amended in October 2024, currently contains minimum annual spending requirements of $ 44.0 million from November 2024 to October 2029.

Spending under this agreement for the three and nine months ended September 30, 2025 totaled $ 14.3 million and $ 37.6 million, respectively.

Spending under this agreement for the three and nine months ended September 30, 2024 totaled $ 10.8 million and $ 31.8 million, respectively.

Spending under this agreement for the three months ended March 31, 2026 and 2025 totaled $ 16.2 million and $ 10.4 million, respectively.

The timing of payments under the agreement may vary, but we expect to meet our minimum annual spending requirement during the term of the arrangement.

Exclusive of the AWS contract, we have other non-cancellable agreements for subscription software products that contain provisions stipulating minimum purchase commitments.

However, the annual purchase commitments under these contracts are, individually and in the aggregate, immaterial to our consolidated financial statements.

Pegasystems Litigation

Trade Secrets Case

On May 29, 2020, we filed a civil complaint against Pegasystems, Inc.

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All of these motions were denied, and final judgment was entered by the Court on September 15, 2022.

The final judgment

reaffirmed the $ 2.036 billion in damages and also ordered Pegasystems to pay Appian $ 23.6 million in attorney's fees associated with the case as well as statutory post-judgment interest on the judgment at an annual rate of 6 %, or approximately $ 122.0 million per year.

The final judgment reaffirmed the $ 2.036 billion in damages and also ordered Pegasystems to pay Appian $ 23.6 million in attorney's fees associated with the case as well as statutory post-judgment interest on the judgment at an annual rate of 6 %, or approximately $ 122.0 million per year.

Defendant Youyong Zou has satisfied the judgment of $ 5,000 (plus interest) against him in lieu of appealing that judgment.

On September 15, 2022, Pegasystems filed a notice of appeal to the Court of Appeals of Virginia.

On July 30, 2024, the Court of Appeals of Virginia issued a decision reversing the judgment against Pegasystems and remanding for a new trial.

On July 30, 2024, the Court of Appeals of Virginia issued a decision reversing the judgment against Pegasystems and remanding the case for a new trial.

The decision rejected Pegasystems’ argument that Appian had not presented evidence that trade secrets were misappropriated but reversed the judgment on the basis of evidentiary and damages rulings made by the trial court.

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Pegasystems filed an opposition to the petition and cross-issues for appeal on October 21, 2024.

On March 7, 2025, the Supreme Court of Virginia granted Appian’s petition and agreed to hear Appian’s appeal as well as Pegasystems’ cross-issues for appeal.

Appian’s argument on the appeal was heard on October 28, 2025.

The timeline for deciding Appian’s appeal is solely in the control of the Supreme Court, and we cannot predict the outcome of any appeals or the exact time it will take to resolve them.

Appian's petition was heard on February 11, 2025.

On January 6, 2026, the Supreme Court of Virginia issued an opinion affirming the opinion rendered by the Court of Appeals on both sides and remanding the case for a retrial.

On May 7, 2026,

the Circuit Court set the retrial to begin on January 11, 2027.

We cannot predict the outcome of any further appeals or any retrial or the exact time it will take to resolve them.

Judgment Preservation Insurance

On September 1, 2023, we entered into a Judgment Preservation Insurance (“JPI”) policy in connection with our $ 2.036 billion judgment against Pegasystems.

On September 1, 2023, we obtained a judgment preservation insurance (“JPI”) policy in connection with our $ 2.036 billion judgment against Pegasystems.

The total cost of the policy was $ 57.3 million and is comprised of the premium, a one-time broker fee, and Virginia lines tax.

The policy provides up to $ 500.0 million of coverage.

The total cost of the policy was capitalized and is being amortized on a straight-line basis over the estimated length of the appeals process.

We currently estimate the total length of the appeals process (solely for amortization purposes) to be approximately four years .

This estimate is reviewed each reporting period.

The total cost of the policy was capitalized and is being amortized on a straight-line basis over the estimated period to obtain a final and unappealable judgment.

Amortization expense associated with the JPI premium is recorded to general and administrative expenses in our consolidated statements of operations.

JPI amortization expense was $ 3.2 million and $ 9.4 million for the three and nine months ended September 30, 2025, respectively.

JPI amortization expense was $ 3.6 million and $ 12.6 million for the three and nine months ended September 30, 2024, respectively.

As of September 30, 2025, $ 12.5 million of the unamortized balance is classified as ‘Prepaid expenses and other current assets’ while the remaining $ 13.6 million is classified as 'Other assets’ on our consolidated balance sheets.

JPI amortization expense was $ 2.1 million and $ 3.1 million for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, $ 8.3 million of the unamortized balance is classified as ‘Prepaid expenses and other current assets’ while the remaining $ 12.5 million is classified as 'Other assets’ on our consolidated balance sheets.

Defamation Case

On August 2, 2023, Pegasystems filed a complaint against the Company in the U.S.

District Court for the District of Massachusetts.

Pegasystems Inc.

Appian Corporation, 1:23-cv-11776-LTS (D.

The complaint asserts claims for defamation, trade libel, and violations of the Lanham Act, 15 U.S.C.

On February 20, 2024, the Company answered the complaint, asserted counterclaims against Pegasystems for defamation, trade libel, violations of the Lanham Act, 15 U.S.C.

§ 1125(a), and violations of Mass.

93A §§ 2 and 11 and sought a declaratory judgment that Pegasystems was not entitled to the recovery sought in its claims.

The parties exchanged opening expert reports in March 2026.

Pegasystems claims up to $ 41.9 million in damages resulting from its claims, while the Company claims up to $ 109.5 million in damages from competitive situations related to the counterclaims and up to $ 2.33 billion in damages from Pegasystems' total profits derived from the conduct at issue in the counterclaims.

Motions for summary judgment are due in June 2026, and a jury trial is currently scheduled for November 2026.

While the Company believes strongly in its claims and defenses, we are unable to reasonably estimate the likelihood of success for either party or the range of any possible gain or loss to the Company given the uncertainty as to the likelihood, amount, and timing of any potential gain or loss related to our counterclaims or Pegasystems’ claims.

Other Legal Matters

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Share Repurchase Program

In May 2025, our Board of Directors authorized a program to repurchase up to $ 10.0 million of our common stock from May 2025 to December 2025.

In June 2025, we repurchased 0.3 million shares under this program at an average share price of $ 31.91 , totaling an aggregate cost of $ 10.0 million.

In August 2025, our Board of Directors authorized a second program to repurchase up to an additional $ 10.0 million of our common stock from August 2025 to August 2027.

In September 2025, we repurchased 0.3 million shares under this program at an average share price of $ 30.60 , totaling an aggregate cost of $ 10.0 million.

As of September 30, 2025, shareholders’ equity included 73.8 million shares outstanding, net of 0.6 million shares of common stock held in treasury.

On February 17, 2026, the Board of Directors authorized a program to repurchase up to $ 50.0 million of our common stock (the “Share Repurchase Program”), effective February 2026 through February 2028.

In the first quarter of 2026, we repurchased 0.8 million shares under this program at an average share price of $ 25.85 , totaling an aggregate cost of $ 21.8 million.

As of March 31, 2026, shareholders’ equity included 73.5 million shares outstanding, net of 1.0 million shares of common stock held in treasury.

On May 5, 2026, the Board of Directors approved an additional $ 50.0 million for the Share Repurchase Program, bringing the total aggregate authorization under the program to $ 100.0 million.

All other terms and conditions of the Share Repurchase Program remain unchanged.

Segment and Geographic Information

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We have one operating and one reportable segment, representing our consolidated business that helps organizations design, automate, and optimize important business processes from start to finish.

We generate revenue from customers primarily through the sale of cloud and term subscriptions bundled with maintenance and support as well as professional services revenue from fees for our consulting services and training related to our platform.

We generate revenue from customers primarily through the sale of cloud and other subscriptions bundled with maintenance and support as well as professional services revenue from fees for our consulting services and training related to our platform.

Our reportable segment determination is based on our management and internal reporting structure, the nature of the subscriptions and services we offer, and the financial information evaluated regularly by our CODM.

The CODM uses operating income (loss) and net income (loss) reported on the consolidated statements of operations to assess performance for the segment and decide how to allocate resources.

The CODM uses operating income (loss) and net loss reported on the consolidated statements of operations to assess performance for the segment and decide how to allocate resources.

In addition, the CODM reviews the expense categories presented on the consolidated statements of operations to manage the Company’s operations.

Operating income (loss) and net income (loss) are used to evaluate profitability trends in the business, and the CODM considers budget-to-actual variances for both profit measures when making decisions about allocating capital and resources.

Significant segment expenses, which are the expenses included in operating income (loss) and net income (loss), as well as other segment items such as other income, net and income tax expense are included in the consolidated statements of operations.

Operating income (loss) and net loss are used to evaluate profitability trends in the business, and the CODM considers budget-to-actual variances for both profit measures when making decisions about allocating capital and resources.

Significant segment expenses, which are the expenses included in operating income (loss) and net loss, as well as other segment items such as other income, net and income tax expense are included in the consolidated statements of operations.

The CODM does not review any significant segment expense information that differs from the expense presented in the consolidated statements of operations.

Further, the measure of segment assets is total assets as reported on the consolidated balance sheets.

The following table summarizes revenue by geography for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

The following table summarizes revenue by geography for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Domestic $ 126,144 $ 106,193

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With respect to geographic information, revenue is attributed to respective geographies based on the contracting address of the customer.

The value of our long-lived assets, which are comprised of property and equipment, intangible assets with finite lives, and right-of-use assets, held in the United States and internationally as of September 30, 2025 were $ 50.2 million and $ 13.6 million, respectively.

The value of our long-lived assets, which are comprised of property and equipment, intangible assets with finite lives, and right-of-use assets, held in the United States and internationally as of March 31, 2026 were $ 47.4 million and $ 10.8 million, respectively.

As of December 31, 2025, our long-lived assets held in the United States and internationally were $ 49.0 million and $ 12.4 million, respectively.

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Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs.

There were no instruments measured at fair value on a recurring basis using significant unobservable inputs as of September 30, 2025 and December 31, 2024.

There were no instruments measured at fair value on a recurring basis using significant unobservable inputs as of March 31, 2026 and December 31, 2025.

The valuation techniques that may be used to measure fair value are as follows:

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• Cost approach - Based on the amount that currently would be required to replace the service capacity of an asset (i.e., replacement cost).

The carrying amounts of our accounts receivable, accounts payable, and accrued expenses approximate fair value as of September 30, 2025 and December 31, 2024 because of the relatively short duration of these instruments.

Additionally, the carrying value of our debt associated with the term loan facility approximates fair value because the interest rates are variable and reset on relatively short durations to the then market rates.

The carrying amounts of our accounts receivable, accounts payable, and accrued expenses approximate fair value as of March 31, 2026 and December 31, 2025 because of the relatively short duration of these instruments.

Our investment portfolio consists largely of debt investments classified as available-for-sale.

Changes in the fair value of available-for-sale securities, excluding other-than-temporary impairments, have been recorded in ‘Accumulated other comprehensive loss’ in our consolidated balance sheets.

The components of our cash, cash equivalents, and investments as of September 30, 2025 are as follows (in thousands):

As of September 30, 2025

The components of our cash, cash equivalents, and investments as of March 31, 2026 are as follows (in thousands):

As of March 31, 2026

Fair Value Measurement Balance Sheet Classification

Fair Value Level Cost Basis Unrealized Gains

Fair Value Level Cost Basis Unrealized Losses

Cash and Cash Equivalents Short-Term Investments and Marketable Securities

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Total investments $ 187,183 $ 42 $ 187,225 $ 135,810 $ 51,415

We did not hold any Level 3 assets at any point during the three and nine months ended September 30, 2025.

Additionally, there were no transfers between Levels 1 and 2 during the nine months ended September 30, 2025.

Interest income on our investments, which is recorded within ‘Other income, net’ on our consolidated statements of operations, totaled $ 1.7 million and $ 5.3 million for the three and nine months ended September 30, 2025, respectively.

Interest income on our investments totaled $ 1.5 million and $ 5.2 million for the three and nine months ended September 30, 2024, respectively.

The contractual maturities of our debt securities as of September 30, 2025 and December 31, 2024 were all one year or less.

We did not hold any Level 3 assets at any point during the three months ended March 31, 2026.

Additionally, there were no transfers between Levels 1 and 2 during the three months ended March 31, 2026.

Interest income on our investments, which is recorded within ‘Other income, net’ on our consolidated statements of operations, totaled $ 1.5 million and $ 1.6 million for the three months ended March 31, 2026 and 2025, respectively.

The contractual maturities of our debt securities as of March 31, 2026 and December 31, 2025 were all one year or less.

Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay certain obligations.

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-Q

Item 1. Financial Statements