Appen Surges with 81% China Revenue Growth and $13.3M EBITDA in Q4 FY25
Appen Limited delivered a robust Q4 FY25, driven by explosive growth in its China segment and strong gains in generative AI projects globally, boosting revenue and profitability significantly.
- Q4 revenue up 10% year-on-year to $73.4 million
- Underlying EBITDA soars 182% year-on-year to $13.3 million
- Appen China revenue jumps 81%, annualised run-rate exceeds $135 million
- Appen Global revenue grows 56% quarter-on-quarter, driven by generative AI projects
- Achieved $10 million annualised cost efficiencies through technology and automation
Strong Finish to FY25
Appen Limited has closed out the 2025 financial year with a compelling performance in its fourth quarter, showcasing significant momentum across its global operations. The company reported a 10% increase in quarterly revenue to $73.4 million compared to the same period last year, alongside a striking 182% jump in underlying EBITDA to $13.3 million. This surge reflects both operational improvements and strategic wins in the rapidly evolving artificial intelligence data services market.
China Segment Leads the Charge
The standout contributor to Appen’s growth was its China business, which posted an 81% year-on-year revenue increase to $32 million for the quarter. This segment’s annualised revenue run-rate surpassed $135 million by December, underscoring its accelerating scale. Notably, Appen China has now achieved seven consecutive quarters of positive underlying EBITDA, reaching $4.3 million in Q4, a $1 million improvement on the prior quarter. This profitability gain is attributed to a higher mix of lucrative generative AI projects, expanding gross margins, and disciplined operating expense management.
Global Business Rebounds on AI Projects
Meanwhile, Appen’s Global division experienced a 56% quarter-on-quarter revenue increase to $41.4 million, driven by new project wins including a previously announced generative AI contract exceeding $10 million. Despite a 16% decline compared to the prior year, the division’s underlying EBITDA surged 80% year-on-year to $10.2 million, reflecting improved margins and cost efficiencies. The company’s focus on technology innovation and automation has delivered on a $10 million annualised cost efficiency target, offsetting increased investment in technical talent.
Financial Health and Outlook
Appen ended the quarter with a strong cash position of $59.8 million, up from $50.9 million in the previous quarter, supported by positive operating cash flow of $14.7 million. The company’s CEO, Ryan Kolln, expressed confidence in Appen’s positioning to capture further growth opportunities as AI adoption expands globally. With a robust balance sheet and a clear strategy focused on revenue growth and sustained profitability, Appen appears well placed to navigate the dynamic AI data services landscape in FY26 and beyond.
Bottom Line?
Appen’s Q4 momentum, led by China’s rapid expansion and global AI project wins, sets the stage for a promising FY26.
Questions in the middle?
- How sustainable is the rapid growth in Appen China’s generative AI projects?
- What impact will ongoing investments in technical talent have on future margins?
- Can Appen maintain its cost efficiency gains while scaling globally?
