Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 24

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 24
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 to recognize $382.2 million of this balance as revenue over the next 12 months with the remaining amount recognized thereafter.

4. LeasesAs of September 30, 2025, 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 CostsExpense 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 nine months ended September 30, 2025 and 2024 (in thousands, exclusive of sublease income):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Operating lease cost$3,407 $2,356 $8,415 $7,177 Short-term lease cost259 481 791 1,246 Variable lease cost1,300 1,324 3,916 3,972 Total$4,966 $4,161 $13,122 $12,395 

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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