Appen Limited posted a 17% year-over-year increase in group revenue to $119.9 million for the first half of fiscal 2026, though the gain was driven entirely by its China operations. Appen China revenue jumped 80.4% to $76.2 million, while Appen Global revenue declined 26.9% to $43.7 million.
Underlying EBITDA before foreign exchange losses improved to $5.3 million, a $7.5 million swing from a $2.2 million loss in the prior period. The group’s EBITDA margin stood at 4.5%, down 30 basis points year-over-year. Net profit after tax rose by $14.9 million, with underlying NPAT up $8.0 million. Gross margin narrowed to 36.7%, reflecting cost pressures.
The company’s cash balance totaled $44.7 million as of June 30, 2026, while operating cash flow was negative $2.7 million. Cash used in investing activities increased by $1.9 million due to product development and new facility investments in China. Financing activities consumed $2.7 million, primarily for lease payments.
Appen China’s annualized revenue run rate surpassed $175 million by the end of June, up from $135 million at year-end 2025. Excluding its largest customer, Appen Global revenue grew 65% quarter-over-quarter in Q2 FY2026. The company also identified $12 million in annualized operational efficiencies within Appen Global, with 70% of the savings expected by the end of FY2026.
Shares of Appen fell 14.14% to AUD 1.25 following the earnings call, extending a broader decline from the prior close of AUD 1.45. The stock remains 36.9% below its 52-week high of AUD 1.98 but 92% above its 52-week low of AUD 0.65. Year-to-date returns stand at 81%, with a 63% gain over the past 12 months. Management reaffirmed full-year guidance for group revenue between $270 million and $300 million, with underlying EBITDA before FX margins projected between 5% and 10%.
Chief Executive Officer Ryan Kolln highlighted Appen China’s performance, noting the segment’s revenue growth and expanded run rate. He also emphasized the identification of $12 million in cost efficiencies without compromising growth in Appen Global. Chief Financial Officer Justin Miles cited the $7.5 million improvement in underlying EBITDA before FX as a key positive.
