Company: APPN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001441683-25-000068
Chunk: 57

Company: APPIAN CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 57
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 of our business. We define adjusted EBITDA as net income (loss) before (1) other income, 

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net, (2) interest expense, (3) income tax expense, (4) depreciation expense and amortization of intangible assets, (5) stock-based compensation expense, (6) Litigation Expense, (7) JPI Amortization, (8) Severance Costs, and (9) Lease Impairment and Lease-Related Charges. The most directly comparable GAAP financial measure to adjusted EBITDA is net income (loss). Users should consider the limitations of using adjusted EBITDA, including the fact this measure does not provide a complete depiction of our operating performance. Adjusted EBITDA is not intended to purport to be an alternative to net income (loss) as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. 

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. 

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The following tables reconcile our non-GAAP measures to their nearest comparable GAAP measures (in thousands, except per share data):

GAAP MeasureStock-Based CompensationLitigation ExpenseJPI AmortizationLease Impairment and Lease-Related ChargesShort-Swing Profit PaymentUnrealized Foreign Exchange Rate Gains and LossesNon-GAAP MeasureThree Months Ended September 30, 2025Subscriptions cost of revenue$17,762 $(224)$— $— $— $— $— $17,538 Professional services cost of revenue27,531 (1,399)— — — — — 26,132 Total cost of revenue45,293 (1,623)— — — — — 43,670 Total operating expense128,597 (8,637)(2,130)(3,153)(1,105)— — 113,572 Operating income 13,114 10,260 2,130 3,153 1,105 — — 29,762 Non-operating (income) expense(1,398)— — — — — 110 (1,288)Income tax impact of