Highlights
- Appen Q4 FY25 revenue reached USD 73.4m, up 10% YoY and 33% QoQ.
- Underlying EBITDA grew to USD 13.3m, showing a 182% increase versus prior year.
- Appen China’s annualised revenue run-rate exceeded USD 135m in December 2025.
Appen Limited (ASX:APX) reported its Q4 FY25 results for the quarter ended 31 December 2025. Group revenue increased to USD 73.4m, marking a 10% rise compared to Q4 FY24 and a 33% growth from Q3 FY25. Full-year revenue for FY25 stood at USD 230.8m, a slight decrease of 1.5% compared to FY24. The revenue growth was supported by contributions from Appen China and the expansion of generative AI-related projects globally.
Underlying EBITDA Gains
The company’s underlying EBITDA (before FX) reached USD 13.3m in Q4 FY25, a 182% increase over the prior corresponding period and a USD 12.3m improvement on the previous quarter. FY25 underlying EBITDA stood at USD 12.2m, compared to USD 3.5m in FY24. These gains were largely driven by higher-margin generative AI projects, cost efficiencies from technology and automation initiatives, and operational leverage in Appen China.
Appen China Segment
Appen China recorded Q4 FY25 revenue of USD 32.0m, an 81% increase YoY, and achieved an annualised revenue run-rate exceeding USD 135m in December. The division reported underlying EBITDA of USD 4.3m, representing the seventh consecutive quarter of positive EBITDA and a USD 1m improvement from the prior quarter. EBITDA margins expanded due to higher-margin generative AI projects and tight operational expense management.
Appen Global Segment
Appen Global, covering all operations outside China, delivered revenue of USD 41.4m in Q4 FY25, representing 56% growth compared to Q3 FY25 but a 16% decline YoY. Underlying EBITDA improved 80% YoY to USD 10.2m, driven by new generative AI project wins and partial benefits from previously announced annualised cost efficiencies of approximately USD 10m. Cost initiatives included technology innovation, automation, and selective talent upgrades to enhance technical capabilities.
Cash and Operational Highlights
Cash on hand at 31 December 2025 was USD 59.8m (AUD 89.5m), up from USD 50.9m at 30 September 2025. Net cash from operating activities was USD 14.7m for the quarter, an improvement from Q3 FY25, primarily due to customer receipts and reduced large supplier payments. Net investing outflows totaled USD 4.9m, primarily related to facility expansions in China and capitalised intellectual property investments.
Stock Performance
APX shares rose sharply, closing at AUD 1.42, up 31.67% on the ASX.
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