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Appen Limited has shown steady recovery as demand for AI data services continues to grow across global markets. Its latest results reflect improving performance driven by new technology trends and better cost management.
Appen Limited (ASX: APX)
Appen Limited announced its FY25 results and FY26 outlook on 25 February 2026. APX has reported total revenue of $230.8 million which is an increase compared to last year. This increase is due to strong demand for AI data services, particularly in China. The margins also increased, reflecting that the business is becoming more efficient. EBITDA has increased sharply by $12.2 million, reflecting good cost discipline and a strong project mix.
Both the global segment and the China segment performed better in Q4, as the levels of revenue and profit were higher compared to earlier in the year. The China segment has also achieved an important milestone, as they have crossed the $100 million mark in terms of annual revenue.
The global division also recovered towards the end, helped by new AI related contracts. This shows that earlier weakness in the year was temporary we are now seeing improvement.
The company is guiding for revenue of $270-300 million for FY26. Appen Ltd is also guiding for an EBITDA margin of 5-10%. The outlook reflects confidence in growing AI adoption worldwide. APX believes demand for large language model projects will continue rising and the company is
positioning itself to benefit from this trend while keeping costs under control.
Other positive signs include strong growth in China where revenue jumped 75% due to LLM projects and dataset sales.
Operational savings of about $10 million were achieved during the year. The global unit also secured major new projects including a large generative AI deal that is continuing into FY26. These factors indicate improving momentum and better scalability going forward.
(Source: Company Report)
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