Appen (ASX:APX) has released its full-year financial results for the period ended Dec. 31, 2025, reporting a group operating revenue of $230.8 million.
The figure represents a 4.5% increase compared to the previous financial year.
The company's performance was characterised by a significant divergence between its primary operating segments: Appen China saw a 75% revenue increase to $102.9 million, driven by Large Language Model projects, while Appen Global revenue declined by 21% to $127.9 million, despite a late-year surge in generative AI work.
Financial profitability metrics showed upward movement, with gross margins improving by 100 basis points to reach 40.3%.
Underlying EBITDA (excluding foreign exchange) rose by 251% to $12.2 million, yielding a margin of 5.3%.
Management attributed this growth to a combination of high-value generative AI projects and the successful execution of a $10 million annualised cost-efficiency program involving technology innovation and automation.
As of year-end, Appen maintained a cash balance of US$59.8 million.
Looking ahead to FY26, the company has issued guidance forecasting group revenue between $270 million and $300 million.
It also anticipates an underlying EBITDA margin in the range of 5% to 10%.
CEO Ryan Kolln noted that the results reflect a stabilising revenue trajectory and durable operational improvements.