Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 143

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 143
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%, in the nine months ended September 30, 2025 compared to the same period in 2024. This change is primarily attributable to a $1.6 million increase in 

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research and development personnel costs and a $1.5 million increase in information technology costs. Although research and development headcount remained consistent period over period, overall personnel costs increased due to higher bonus expense and stock compensation, partially offset by a reduction in salaries expense. Information technology costs increased primarily due to higher spend on cloud computing services and computer software.

General and Administrative Expense

Nine Months Ended September 30,20252024$ Change% Change(dollars in thousands)General and administrative$107,586$108,327$(741)(0.7)%% of revenue20.5 %24.1 %

General and administrative expense decreased $0.7 million, or 1%, in the nine months ended September 30, 2025 compared to the same period in 2024 primarily due to a $3.5 million decrease in rent expense and a $3.5 million decrease in insurance expense driven by lower amortization expense associated with our judgment preservation insurance policy. Rent expense decreased due to $0.8 million of lease impairment charges in the nine months ended September 30, 2025 as compared to $5.5 million of lease impairment charges recorded in the prior year period. These decreases were partially offset by increases of $2.0 million in general and administrative personnel costs, $1.8 million in professional fees, and $1.7 million in information technology spending. Personnel costs increased due to an increase in headcount from September 30, 2024 to September 30, 2025 coupled with higher bonus expense and a $1.1 million increase in stock compensation expense. Professional fees increased primarily due to a $2.9 million increase in expenses related to litigation with Pegasystems, while information technology spending increased due to higher spend on computer software and cloud computing.

Other Income, Net

Nine Months Ended September 30,20252024$ Change% Change(dollars in thousands)Other income, net$(24,678)$(5,882)$(18,796)***% of revenue(4.7)%(1.3)%

*** Indicates a percentage that is not meaningful.

Other income, net was $24.7 million in the nine months ended September 30, 2025 compared to other income, net of $5.9 million in the