Company: APPN
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001441683-25-000053
Chunk: 22

Company: APPIAN CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 22
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”) 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, 2025 and 2024 (in thousands, exclusive of sublease income):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Operating lease cost$2,615 $2,410 $5,008 $4,821 Short-term lease cost282 433 532 765 Variable lease cost1,244 1,335 2,616 2,648 Total$4,141 $4,178 $8,156 $8,234 

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Sublease income totaled $0.3 million and $0.7 million for the three and six months ended June 30, 2025, respectively. Sublease income totaled $0.3 million and $0.6 million for the three and six months ended June 30, 2024, respectively. Lease Impairment Charges There were no lease impairment charges during the three and six months ended June 30, 2025.During the second quarter of 2024, we initiated actions to reduce the footprint of our leased office spaces. During the three months ended June 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.Supplemental Lease InformationSupplemental balance sheet information related to operating leases as of June 30, 2025 and December 31, 2024 is presented in the following table (in thousands, except for lease term and discount rate):As ofJune 30, 2025December 31, 2024Right-of-use assets for operating leases$30,951$31,081Operating lease liabilities, current$13,052$12,378Operating lease liabilities, net of current portion49,81052,189Total operating lease liabilities$62,862$64,567Weighted average remaining lease term (in years)6.06.