APPIAN CORP 10-Q

Item 1. FINANCIAL STATEMENTS APPIAN CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share data) As of June 30, 2026 December 31, 2025 (unaudited) Assets Current assets Cash and cash equivalents $ 121,111 $ 135,810 Short-term investments and marketable securities 46,755 51,415 Accounts receivable, net of allowance of $ 3,416 and $ 3,362 , respectively 171,162 255,063 Deferred commissions, current 38,026 35,166 Prepaid expenses and other current assets 32,952 41,970 Total current assets 410,006 519,424 Property and equipment, net of accumulated depreciation of $ 42,933 and $ 40,747 , respectively 30,667 32,087 Goodwill 27,973 28,811 Intangible assets, net of accumulated amortization of $ 7,710 and $ 7,301 , respectively 588 1,246 Right-of-use assets for operating leases 30,437 28,075 Deferred commissions, net of current portion 67,376 65,199 Deferred tax assets 4,857 4,850 Other assets 13,809 11,703 Total assets $ 585,713 $ 691,395 Liabilities and Stockholders’ Deficit Current liabilities Accounts payable $ 8,077 $ 6,655 Accrued expenses 21,662 18,483 Accrued compensation and related benefits 43,035 61,781 Deferred revenue 314,263 341,281 Debt 9,598 9,598 Operating lease liabilities 14,171 13,181 Other current liabilities 1,012 1,128 Total current liabilities 411,818 452,107 Long-term debt 226,429 231,228 Non-current operating lease liabilities 45,128 45,693 Deferred revenue, non-current 7,208 8,962 Other non-current liabilities 311 398 Total liabilities 690,894 738,388 Stockholders’ deficit Class A common stock—par value $ 0.0001 ; 500,000,000 shares authorized as of June 30, 2026 and December 31, 2025 and 43,504,355 and 43,408,828 shares issued as of June 30, 2026 and December 31, 2025, respectively 4 4 Class B common stock—par value $ 0.0001 ; 100,000,000 shares authorized as of June 30, 2026 and December 31, 2025 and 31,087,385 and 31,088,085 shares issued as of June 30, 2026 and December 31, 2025, respectively 3 3 Treasury stock at cost, 2,795,084 and 542,288 shares as of June 30, 2026 and December 31, 2025, respectively ( 70,391 ) ( 16,935 ) Additional paid-in capital 623,090 617,318 Accumulated other comprehensive loss ( 33,624 ) ( 36,462 ) Accumulated deficit ( 624,263 ) ( 610,921 ) Total stockholders’ deficit ( 105,181 ) ( 46,993 ) Total liabilities and stockholders’ deficit $ 585,713 $ 691,395 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 APPIAN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue Subscriptions $ 157,682 $ 132,657 $ 317,993 $ 267,009 Professional services 45,574 37,983 87,443 70,057 Total revenue 203,256 170,640 405,436 337,066 Cost of revenue Subscriptions 25,409 20,707 48,313 39,228 Professional services 33,104 28,247 64,611 53,766 Total cost of revenue 58,513 48,954 112,924 92,994 Gross profit 144,743 121,686 292,512 244,072 Operating expenses Sales and marketing 70,113 62,157 134,732 118,467 Research and development 47,305 42,655 93,629 84,485 General and administrative 32,765 27,858 66,435 52,938 Total operating expenses 150,183 132,670 294,796 255,890 Operating loss ( 5,440 ) ( 10,984 ) ( 2,284 ) ( 11,818 ) Other non-operating expense (income) Other expense (income), net 827 ( 17,564 ) 743 ( 23,280 ) Interest expense 3,780 5,319 7,952 10,637 Total other non-operating expense (income) 4,607 ( 12,245 ) 8,695 ( 12,643 ) (Loss) income before income taxes ( 10,047 ) 1,261 ( 10,979 ) 825 Income tax expense 1,770 1,573 2,363 2,314 Net loss $ ( 11,817 ) $ ( 312 ) $ ( 13,342 ) $ ( 1,489 ) Net loss per Class A and Class B share: Basic and diluted $ ( 0.16 ) $ ( 0.00 ) $ ( 0.18 ) $ ( 0.02 ) Weighted average common shares outstanding: Basic and diluted 72,896 74,202 73,348 74,148 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 APPIAN CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net loss $ ( 11,817 ) $ ( 312 ) $ ( 13,342 ) $ ( 1,489 ) Comprehensive loss, net of income taxes Foreign currency translation adjustments 2,561 ( 19,641 ) 2,968 ( 23,357 ) Unrealized losses on available-for-sale securities ( 11 ) ( 41 ) ( 130 ) ( 58 ) Other comprehensive loss, net of income taxes $ ( 9,267 ) $ ( 19,994 ) $ ( 10,504 ) $ ( 24,904 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 APPIAN CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (unaudited, in thousands, except share data) Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Treasury Stock Total Stockholders' Deficit Common Stock Shares Amount Balance, December 31, 2025 73,954,625 $ 7 $ 617,318 $ ( 36,462 ) $ ( 610,921 ) $ ( 16,935 ) $ ( 46,993 ) Net loss — — — — ( 1,525 ) — ( 1,525 ) Issuance of common stock to directors 5,416 — — — — — — Vesting of restricted stock units 336,372 — ( 8,032 ) — — 9,591 1,559 Exercise of stock options 59,665 — 630 — — — 630 Repurchase of common stock ( 842,896 ) — — ( 21,808 ) ( 21,808 ) Stock-based compensation expense — — 8,882 — — — 8,882 Other comprehensive gain — — — 288 — — 288 Balance, March 31, 2026 73,513,182 $ 7 $ 618,798 $ ( 36,174 ) $ ( 612,446 ) $ ( 29,152 ) $ ( 58,967 ) Net loss — — — — ( 11,817 ) — ( 11,817 ) Issuance of common stock to directors 7,776 — — — — — — Vesting of restricted stock units 101,616 — ( 3,992 ) — — 2,689 ( 1,303 ) Exercise of stock options 21,970 — 246 — — — 246 Repurchase of common stock ( 1,847,888 ) — — — — ( 43,928 ) ( 43,928 ) Stock-based compensation expense — — 8,038 — — — 8,038 Other comprehensive gain — — — 2,550 — — 2,550 Balance, June 30, 2026 71,796,656 $ 7 $ 623,090 $ ( 33,624 ) $ ( 624,263 ) $ ( 70,391 ) $ ( 105,181 ) 6 Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Treasury Stock Total Stockholders' Deficit Common Stock Shares Amount Balance, December 31, 2024 74,028,786 $ 7 $ 591,281 $ ( 11,774 ) $ ( 612,154 ) $ — $ ( 32,640 ) Net loss — — — — ( 1,177 ) — ( 1,177 ) Issuance of common stock to directors 4,735 — — — — — — Vesting of restricted stock units 167,726 — ( 3,199 ) — — — ( 3,199 ) Exercise of stock options 18,953 — 190 — — — 190 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 ( 313,160 ) — — — — ( 10,000 ) ( 10,000 ) Stock-based compensation expense — — 8,953 — — — 8,953 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 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 7 APPIAN CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Six Months Ended June 30, 2026 2025 Cash flows from operating activities Net loss $ ( 13,342 ) $ ( 1,489 ) Adjustments to reconcile net loss to net cash provided by operating activities Stock-based compensation 22,449 20,732 Depreciation expense and amortization of intangible assets 4,780 4,970 Bad debt expense 634 550 Amortization of debt issuance costs 300 300 Benefit for deferred income taxes ( 68 ) ( 689 ) Foreign currency transaction losses (gains), net 3,372 ( 20,659 ) Changes in assets and liabilities Accounts receivable 82,946 49,720 Prepaid expenses and other assets 6,991 10,174 Deferred commissions ( 5,037 ) 3,228 Accounts payable and accrued expenses 4,298 7,559 Accrued compensation and related benefits ( 17,348 ) ( 3,811 ) Other current and non-current liabilities ( 538 ) ( 277 ) Deferred revenue ( 26,590 ) ( 25,611 ) Operating lease assets and liabilities, net ( 1,938 ) ( 1,671 ) Net cash provided by operating activities 60,909 43,026 Cash flows from investing activities Proceeds from maturities of investments 49,079 27,985 Purchases of investments ( 44,866 ) ( 59,281 ) Purchases of property and equipment ( 2,491 ) ( 1,797 ) Net cash provided by (used by) investing activities 1,722 ( 33,093 ) Cash flows from financing activities Debt repayments ( 5,000 ) ( 5,000 ) Repurchases of common stock ( 65,736 ) ( 10,000 ) Payments for employee taxes related to the net share settlement of equity awards ( 6,395 ) ( 4,469 ) Proceeds from exercise of common stock options 876 504 Net cash used by financing activities ( 76,255 ) ( 18,965 ) Effect of foreign exchange rate changes on cash and cash equivalents ( 1,075 ) 2,687 Net decrease in cash and cash equivalents ( 14,699 ) ( 6,345 ) Cash and cash equivalents at beginning of period 135,810 118,552 Cash and cash equivalents at end of period $ 121,111 $ 112,207 Supplemental disclosure of cash flow information Cash paid for interest $ 7,338 $ 10,023 Cash paid for income taxes $ 2,542 $ 1,997 Supplemental disclosure of non-cash investing and financing activities Accrued capital expenditures $ 408 $ 54 Operating lease liabilities arising from obtaining right-of-use assets $ 5,370 $ — The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 8 APPIAN CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Organization and Description of Business 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. 2. Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements and footnotes include the accounts of Appian and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial reporting. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ deficit, and cash flows. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the current period are not necessarily indicative of the results for the full year or the results for any future periods. 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 and six months ended June 30, 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 loss, (loss) income before income taxes, net loss, or net loss per share. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the amounts reported in these consolidated financial statements and accompanying notes. 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, and stock-based compensation. 9 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 short-term investments and marketable securities. Deposits held with banks may exceed the amount of insurance provided on such deposits; however, we believe the financial institutions holding our cash deposits are financially sound and, accordingly, minimal credit risk exists with respect to these balances. With regard to our customers, credit evaluation and account monitoring procedures are used to minimize the risk of loss. Revenue generated from U.S. federal government agencies was 26.1 % and 26.0 % of total revenue for the three and six months ended June 30, 2026, respectively. Additionally, 38.2 % and 37.9 % of our revenue during the three and six months ended June 30, 2026, respectively, was generated from international customers. For the three and six months ended June 30, 2025, revenue generated from U.S. federal government agencies was 25.9 % and 24.9 % of total revenue, respectively. Additionally, 38.4 % and 37.3 % of our revenue during the three and six months ended June 30, 2025, respectively, was generated from international customers. No single end-customer accounted for more than 10% of our total revenue in the three and six months ended June 30, 2026 or 2025. As of June 30, 2026 and December 31, 2025, we had one reseller whose accounts receivable balance comprised 14.7 % and 13.4 % of total accounts receivable, respectively. Cash and Cash Equivalents We consider all highly liquid investments with original maturities of three months or less, as well as overnight repurchase agreements, to be cash equivalents. Allowance for Expected Credit Losses Accounts receivable and unbilled revenue are stated at realizable value, net of an allowance for expected credit losses. 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 our 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 $ 3.4 million as of each of June 30, 2026 and December 31, 2025. Deferred Commissions We capitalize costs of obtaining a contract with a customer, which consist of sales commissions paid to our sales team and the associated incremental payroll taxes. These costs are recorded as deferred commissions in the consolidated balance sheets. Costs to obtain a subscription contract for a new customer or upsell an existing customer’s subscription are amortized over an estimated economic life of five years as sales commissions on initial sales are not commensurate with sales commissions on contract renewals. Commissions paid relating to contract renewals are deferred and amortized over the related renewal period. We determine the estimated economic life based on both qualitative and quantitative factors such as expected renewals, product life cycles, contractual terms, and customer attrition. 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 periods 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 $ 12.7 million and $ 24.0 million for the three and six months ended June 30, 2026, respectively. Total commission expense was $ 12.8 million and $ 25.0 million for the three and six months ended June 30, 2025, respectively. 10 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Significant additions or improvements extending the useful life of an asset are capitalized, while repairs and maintenance costs which do not significantly improve the related assets or extend their useful lives are charged to expense as incurred. The estimated useful lives of our property and equipment are generally 3 years for computer software, computer hardware, and internally developed software, 5 years for equipment, and 10 years for office furniture and fixtures. Leasehold improvements have an estimated useful life of the shorter of the useful life of the assets or the lease term. Treasury Stock We account for treasury stock under the cost method. 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 Adopted In the first quarter of 2026, we adopted 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, our results of operations, cash flows, and financial condition. Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires more detailed disclosures of certain categories of expenses such as employee compensation, depreciation, and intangible asset amortization that are components of existing expense captions presented on the face of the income statement. 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. 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. In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software (Subtopic 350-40), which, among other changes, replaces the stage-based capitalization model with a principles-based model clarifying capitalization is to begin when (i) management has authorized and committed to funding a software project and (ii) it is probable the project will be completed and the software will be used to perform the function intended. The new guidance will be effective for our annual and interim period reporting beginning in fiscal year 2028 and can be applied prospectively, retrospectively, or via a modified transition approach. Early adoption is permitted. 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 U.S. 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 our interim periods beginning in the first quarter of 2028. Early adoption is permitted. 11 We are currently evaluating the impact this standard will have on our financial statement presentation and disclosures. 3. Revenue Revenue Recognition 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 six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cloud subscriptions $ 131,667 $ 106,915 $ 256,178 $ 206,741 Other subscriptions 26,015 25,742 61,815 60,268 Total subscriptions 157,682 132,657 317,993 267,009 Professional services 45,574 37,983 87,443 70,057 Total revenue $ 203,256 $ 170,640 $ 405,436 $ 337,066 Performance Obligations and Timing of Revenue Recognition We primarily sell products and services that fall into the categories discussed below. 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 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 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 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. 12 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. Professional Services Revenue Our professional services revenue is comprised of fees for consulting services, including application development and deployment assistance as well as training services related to our platform. Our professional services are considered distinct performance obligations when sold standalone or with other products. Consulting Services We sell consulting services to assist customers in planning and executing the deployment of our software. Customers are not required to use consulting services to fully benefit from the software. Consulting services are regularly sold on a standalone basis and most often as either (1) under a fixed-fee arrangement or (2) on a time and materials basis. We also sell advisory services on a subscription basis to support customers or partners with their development and deployment. Consulting services contracts are considered separate performance obligations because they do not integrate with each other or with other products and services to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other products and services, and do not affect the customer's ability to use other consulting offerings or other products and services. Revenue under consulting contracts is recognized over time as services are delivered. Revenue from subscription-based consulting contracts is recognized ratably over the contract period. For time and materials-based consulting contracts, we have elected the practical expedient of recognizing revenue upon invoicing since the invoiced amount corresponds directly to the value of our service to date. Training Services We sell various training services to our customers. Training services are sold in the form of prepaid training credits that are redeemed based on a fixed rate per course. Training revenue is recognized when the associated training services are delivered. Significant Judgments and Estimates Determining the Transaction Price The transaction price is the total amount of consideration we expect to receive in exchange for the service offerings in a contract and may include both fixed and variable components. 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 six months ended June 30, 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; however, such true-up adjustments are not expected to be material. Allocating the Transaction Price Based on Standalone Selling Prices (“SSP”) We allocate the transaction price to each performance obligation in a contract based on its relative SSP. The SSP is the observable price at which we sell the product or service separately. In the absence of observable pricing, we estimate SSP using the residual approach. We establish SSP as follows: 13 1. 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. 2. 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. 3. 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. 4. 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. Contract Balances Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract liabilities consist of deferred revenue and include payments received in advance of the satisfaction of performance obligations. Deferred revenue is then recognized as the revenue recognition criteria are met. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. The following table sets forth our contract asset and contract liability balances (in thousands): As of June 30, 2026 December 31, 2025 June 30, 2025 December 31, 2024 Contract assets, current * $ 7,788 $ 10,877 $ 10,376 $ 12,933 Contract assets, non-current * 191 208 211 643 Total contract assets $ 7,979 $ 11,085 $ 10,587 $ 13,576 Deferred revenue, current $ 314,263 $ 341,281 $ 264,917 $ 281,760 Deferred revenue, non-current 7,208 8,962 10,798 5,477 Total contract liabilities $ 321,471 $ 350,243 $ 275,715 $ 287,237 * 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 $ 234.8 million and $ 202.8 million for the six months ended June 30, 2026 and 2025, respectively. 14 Transaction Price Allocated to the Remaining Performance Obligations As of June 30, 2026, we had an aggregate transaction price of $ 625.3 million allocated to unsatisfied performance obligations. We expect to recognize $ 428.8 million of this balance as revenue over the next 12 months with the remaining amount recognized thereafter. 4. Leases As of June 30, 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. Lease Costs Expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. We have lease agreements which require payments for lease and non-lease components (i.e., common area maintenance) that are accounted for as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as maintenance costs, utilities, and service charges are not included in right-of-use (“ROU”) assets for operating leases or operating lease liabilities but rather are expensed as incurred and recorded as variable lease expense. 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 six months ended June 30, 2026 and 2025 (in thousands, exclusive of sublease income): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating lease cost $ 2,556 $ 2,615 $ 4,919 $ 5,008 Short-term lease cost 247 282 453 532 Variable lease cost 1,536 1,244 3,197 2,616 Total $ 4,339 $ 4,141 $ 8,569 $ 8,156 Sublease income totaled $ 0.3 million and $ 0.6 million for the three and six months ended June 30, 2026, respectively. Sublease income totaled $ 0.3 million and $ 0.7 million for the three and six months ended June 30, 2025, respectively. 15 Supplemental Lease Information Supplemental balance sheet information related to operating leases as of June 30, 2026 and December 31, 2025 is presented in the following table (in thousands, except for lease term and discount rate): As of June 30, 2026 December 31, 2025 Right-of-use assets for operating leases $ 30,437 $ 28,075 Operating lease liabilities, current $ 14,171 $ 13,181 Operating lease liabilities, net of current portion 45,128 45,693 Total operating lease liabilities $ 59,299 $ 58,874 Weighted average remaining lease term (in years) 5.0 5.5 Weighted average discount rate 9.2 % 9.4 % Supplemental cash flow and expense information related to operating leases for the three and six months ended June 30, 2026 and 2025 is shown below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating cash outflows for operating leases $ 3,414 $ 3,248 $ 6,824 $ 6,441 Amortization of operating lease right-of-use assets 1,211 947 2,254 1,857 Interest expense on operating lease liabilities 1,345 1,466 2,665 2,949 Non-cash operating lease liabilities arising from obtaining right-of-use assets 5,370 — 5,370 — A summary of our future minimum lease commitments under non-cancellable operating leases as of June 30, 2026 is shown below (in thousands): Operating Leases 2026 (excluding the six months ended June 30, 2026) $ 7,633 2027 15,007 2028 14,096 2029 14,098 2030 14,140 Thereafter 10,842 Total lease payments 75,816 Less: imputed interest ( 16,517 ) Total $ 59,299 16 5. Goodwill and Intangible Assets The following table details the changes in goodwill during the six months ended June 30, 2026 and fiscal year ended December 31, 2025 (in thousands): Carrying Amount Balance as of December 31, 2024 $ 25,555 Foreign currency translation adjustments 3,256 Balance as of December 31, 2025 28,811 Foreign currency translation adjustments ( 838 ) Balance as of June 30, 2026 $ 27,973 Intangible assets, net consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands): As of June 30, 2026 December 31, 2025 Developed technology $ 7,318 $ 7,537 Customer relationships 980 1,010 Intangible assets, gross 8,298 8,547 Less: accumulated amortization ( 7,710 ) ( 7,301 ) Intangible assets, net $ 588 $ 1,246 Intangible amortization expense was $ 0.3 million and $ 0.6 million for each of the three and six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the weighted average remaining amortization periods for developed technology and customer relationships were approximately 0.2 years and 4.8 years, respectively. The following table shows the projected annual amortization expense related to amortizable intangible assets as of June 30, 2026 (in thousands): Projected Amortization 2026 (excluding the six months ended June 30, 2026) $ 178 2027 98 2028 98 2029 98 2030 72 Thereafter 44 Total projected amortization expense $ 588 17 6. Property and Equipment, net Property and equipment, net consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands): As of June 30, 2026 December 31, 2025 Leasehold improvements $ 55,558 $ 55,465 Office furniture and fixtures 4,644 4,616 Computer software and hardware 10,111 10,504 Internally developed software 1,341 1,341 Equipment 218 218 Work in process 1,728 690 Property and equipment, gross 73,600 72,834 Less: accumulated depreciation ( 42,933 ) ( 40,747 ) Property and equipment, net $ 30,667 $ 32,087 Depreciation expense totaled $ 2.2 million and $ 4.1 million for the three and six months ended June 30, 2026, respectively. Depreciation expense totaled $ 2.2 million and $ 4.4 million for the three and six months ended June 30, 2025, respectively. We disposed of $ 0.2 million and $ 0.7 million worth of fully depreciated equipment during the three and six months ended June 30, 2026. We had no disposals or retirements during the three and six months ended June 30, 2025. 7. Accrued Expenses Accrued expenses consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands): As of June 30, 2026 December 31, 2025 Hosting costs and license fees $ 7,296 $ 6,570 Legal costs 2,257 1,438 Reimbursable employee expenses 2,118 1,123 Contract labor costs 2,016 2,600 Audit and tax expenses 1,517 1,818 Marketing and tradeshow expenses 1,536 892 Taxes payable 931 1,953 Other accrued expenses 3,991 2,089 Total accrued expenses $ 21,662 $ 18,483 8. Debt Senior Secured Credit Facilities Credit Agreement We have a Senior Secured Credit Facilities Credit Agreement (the “Credit Agreement”) which provides for a five-year term loan facility in an aggregate principal amount of $ 200.0 million and, in addition, up to $ 100.0 million for a revolving credit facility, including a letter of credit sub-facility in the aggregate availability amount of $ 20.0 million and a swingline sub-facility in the aggregate availability amount of $ 10.0 million (as a sublimit of the revolving loan facility). The Credit Agreement matures on November 3, 2027. We have been using the proceeds to fund the growth of our business and support our working capital requirements. 18 Under the agreement, we may elect whether amounts drawn bear interest on the outstanding principal amount at a rate per annum equal to either (a) the higher of the Prime rate or the Federal Funds Effective rate (“Base Rate”) plus 0.5 % or (b) the forward-looking term rate based on the secured overnight financing rate (“Term SOFR”). An additional interest rate margin is added to the elected interest rates. 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. The Credit Agreement also provides for customary events of default, including but not limited to, non-payment, breaches, or defaults in the performance of covenants, insolvency, bankruptcy, and the occurrence of a material adverse effect on us. On August 5, 2026, we entered into a new Senior Secured Credit Agreement providing for aggregate commitments of $ 300.0 million, consisting of a $ 240.0 million revolving credit facility and a $ 60.0 million term loan facility. The proceeds from the new facility, which matures on August 5, 2031, were used to refinance the Company’s existing indebtedness and will provide ongoing liquidity for working capital requirements, general corporate purposes, and other strategic initiatives. In connection with closing, we reduced our cash balance by $ 36.6 million to reduce our indebtedness. As of August 5, 2026, we had used borrowing capacity of $ 140.0 million under our $ 240.0 million revolving credit facility and had $ 60.0 million outstanding on the term loan facility. The foregoing description of the new Senior Secured Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the new Senior Secured Credit Agreement, to be filed as an exhibit to our Quarterly Report on Form 10-Q for the quarter ending September 30, 2026. The following table summarizes outstanding debt balances (in thousands): As of June 30, 2026 December 31, 2025 Borrowings under revolving credit facility $ 62,000 $ 62,000 Secured term loan facility 174,563 179,563 Less: Debt issuance costs (1) ( 536 ) ( 737 ) Total debt, net of debt issuance costs $ 236,027 $ 240,826 Debt, current $ 9,598 $ 9,598 Long-term debt 226,429 231,228 Total debt $ 236,027 $ 240,826 (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 June 30, 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 $ 7.8 million in connection with securing leased office spaces. 19 9. Income Taxes The provision for income taxes is based upon the estimated annual effective tax rates for the year applied to the current period income before tax plus the tax effect of any significant or unusual items, discrete events, or changes in tax law. Our operating subsidiaries are exposed to statutory effective tax rates ranging from zero to approximately 35 %. 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 six months ended June 30, 2026, the actual effective tax rates were ( 17.6 )% and ( 21.5 )%, respectively. For the three and six months ended June 30, 2025, the actual effective tax rates were 124.7 % and 280.5 %, 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 a net loss position in 2026, compared to a breakeven position in 2025. As of June 30, 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. We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. 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. 10. Stock-Based Compensation Compensation expense related to stock-based awards is accounted for using the estimated fair value of the award on the grant date. We calculate the fair value of stock options containing only a service condition using the Black-Scholes option pricing model. The fair value of restricted stock units (“RSUs”) is based on the closing market price of our common stock on the Nasdaq Global Market on the date of grant. For service-based awards such as RSUs, stock-based compensation expense is recognized on a straight-line basis over the requisite service period. In June 2022, our Board of Directors granted to our Chief Executive Officer (“CEO”) a stock option award that is eligible to vest based on the achievement of various stock price appreciation targets. This option grant (the “2022 CEO option grant”) is our only outstanding stock-based award that vests based on the achievement of market conditions. For awards with market-based conditions, compensation expense is measured using a Monte Carlo simulation, and expense is recognized using the accelerated attribution method over the derived service period based on the expected market performance as of the grant date. We account for forfeitures of our stock-based awards as they occur rather than estimating expected forfeitures. As of June 30, 2026, the total compensation cost related to unvested stock options not yet recognized, which relates exclusively to the 2022 CEO option grant, was $ 0.1 million and will be recognized over a weighted average period of 0.1 years. Total unrecognized compensation cost related to unvested RSUs was approximately $ 46.9 million, which will be recognized over a weighted average period of 1.7 years. 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 six months ended June 30, 2026, we recognized $ 2.1 million and $ 4.9 million of stock-based compensation related to this program, respectively. During the three and six months ended June 30, 2025, we recognized $ 1.7 million and $ 2.9 million of stock-based compensation related to this program, respectively. 20 The following table summarizes the components of our stock-based compensation expense for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of revenue Subscriptions $ 497 $ 418 $ 1,056 $ 916 Professional services 1,520 1,400 3,158 2,856 Operating expenses Sales and marketing 1,963 2,087 4,366 4,333 Research and development 3,382 3,357 7,117 6,371 General and administrative 3,198 3,431 6,752 6,256 Total stock-based compensation expense $ 10,560 $ 10,693 $ 22,449 $ 20,732 11. 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 and six months ended June 30, 2026 2025 Stock options 862,331 1,005,696 Non-vested restricted stock units 2,335,627 1,401,959 12. Commitments, Contingencies, and Other Matters Minimum Purchase Commitments We have a non-cancellable cloud hosting arrangement with Amazon Web Services (“AWS”) that contains provisions for minimum purchase commitments. Specifically, purchase commitments under the agreement total $ 220.0 million over five years . 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 six months ended June 30, 2026 totaled $ 17.2 million and $ 33.4 million, respectively. Spending under this agreement for the three and six months ended June 30, 2025 totaled $ 12.9 million and $ 23.3 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. 21 Pegasystems Litigation Trade Secrets Case On May 29, 2020, we filed a civil complaint against Pegasystems, Inc. (“Pegasystems”) and Youyong Zou, a Virginia resident, in the Circuit Court for Fairfax County, Virginia. Appian Corp v. Pegasystems Inc. & Youyong Zou, No. 2020-07216 (Fairfax Cty. Ct.). On May 10, 2022, we announced the jury awarded us $ 2.036 billion in damages for misappropriation of our trade secrets and $ 1 in damages for violating the Virginia Computer Crimes Act. Pegasystems filed several post-trial motions seeking relief in the form of reducing the damages award or setting aside the jury’s verdict and either granting a new trial or entering judgment in Pegasystems’ favor. 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. 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 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. On August 29, 2024, Appian submitted a petition to the Supreme Court of Virginia seeking to reverse the Court of Appeals decision and reinstate the full judgment against Pegasystems. Pegasystems filed an opposition to the petition and cross-issues for appeal on October 21, 2024. 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 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 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 $ 2.0 million and $ 4.0 million for the three and six months ended June 30, 2026, respectively. JPI amortization expense was $ 3.1 million and $ 6.2 million for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, $ 6.9 million of the unamortized balance is classified as ‘Prepaid expenses and other current assets’ while the remaining $ 12.0 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. v. Appian Corporation, 1:23-cv-11776-LTS (D. Mass.) . The complaint asserts claims for defamation, trade libel, and violations of the Lanham Act, 15 U.S.C. § 1125(a). 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. Gen. Laws ch. 93A §§ 2 and 11 and sought a declaratory judgment that Pegasystems was not entitled to the recovery sought in its claims. 22 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. A hearing on summary judgment motions was held on July 24, 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 From time to time, we are subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of business. Other than as disclosed elsewhere in this Quarterly Report, we are not presently a party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. Share Repurchase Program 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. 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. In the second quarter of 2026, we repurchased 1.8 million shares under this program at an average share price of $ 23.75 , totaling an aggregate cost of $ 43.9 million. As of June 30, 2026, shareholders’ equity included 71.8 million shares outstanding, net of 2.8 million shares of common stock held in treasury. 13. Segment and Geographic Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. We have determined our CODM is our CEO. 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 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 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 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 loss and net loss, as well as other segment items such as other expense (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. 23 The following table summarizes revenue by geography for the three and six months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Domestic $ 125,535 $ 105,193 $ 251,679 $ 211,386 International 77,721 65,447 153,757 125,680 Total $ 203,256 $ 170,640 $ 405,436 $ 337,066 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 June 30, 2026 were $ 47.5 million and $ 14.2 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. 14. Investments and Fair Value Measurements Fair Value Measurements U.S. GAAP establishes a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: • Level 1 - Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 - Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 - Unobservable inputs for which there is little or no market data and which require us to develop our own estimates and assumptions reflecting those that a market participant would use. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. 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 June 30, 2026 and December 31, 2025. The valuation techniques that may be used to measure fair value are as follows: • Market approach - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities; • Income approach - Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts; and • 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 June 30, 2026 and December 31, 2025 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 current market rates. 24 Investments 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 June 30, 2026 are as follows (in thousands): As of June 30, 2026 Fair Value Measurement Balance Sheet Classification Fair Value Level Cost Basis Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments and Marketable Securities Cash Level 1 $ 110,660 $ — $ 110,660 $ 110,660 $ — Money market fund Level 1 10,451 — 10,451 10,451 — U.S. Treasury bonds Level 2 28,418 ( 57 ) 28,361 — 28,361 Commercial paper Level 2 4,250 ( 3 ) 4,247 — 4,247 Corporate bonds Level 2 14,175 ( 28 ) 14,147 — 14,147 Total investments $ 167,954 $ ( 88 ) $ 167,866 $ 121,111 $ 46,755 At December 31, 2025, our investments consisted of the following (in thousands): As of December 31, 2025 Fair Value Measurement Balance Sheet Classification Fair Value Level Cost Basis Unrealized Gains Fair Value Cash and Cash Equivalents Short-Term Investments and Marketable Securities Cash Level 1 $ 118,297 $ — $ 118,297 $ 118,297 $ — Money market fund Level 1 17,513 — 17,513 17,513 — U.S. Treasury bonds Level 2 26,627 22 26,649 — 26,649 Commercial paper Level 2 6,147 4 6,151 — 6,151 Corporate bonds Level 2 18,599 16 18,615 — 18,615 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 six months ended June 30, 2026. Additionally, there were no transfers between Levels 1 and 2 during the six months ended June 30, 2026. Interest income on our investments, which is recorded within ‘Other expense (income), net’ on our consolidated statements of operations, totaled $ 1.5 million and $ 3.0 million for the three and six months ended June 30, 2026, respectively. Interest income on our investments totaled $ 2.0 million and $ 3.6 million for the three and six months ended June 30, 2025, respectively. The contractual maturities of our debt securities as of June 30, 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. 25