Sydney, Jan 30, 2026, 17:22 AEDT — Market closed
- Appen shares surged on Friday, marking their second straight day of gains.
- In the latest quarter, revenue climbed while underlying EBITDA surged, driven by increased AI-related projects.
- Attention now turns to whether momentum carries into next week and the upcoming full-year earnings reports.
Appen Ltd (ASX:APX) shares jumped 24% to close at A$1.75 on Friday, up from A$1.41 the previous day, extending the stock’s rollercoaster two-day comeback. The price swung between A$1.41 and A$1.78 during the session, while volume dropped to around 11.4 million shares from close to 29.1 million on Thursday. 1
The surge is significant because Appen aims to prove its shift toward newer AI projects can deliver cash flow and improved margins, not just top-line growth. Now that the market is closed, the focus turns to whether buyers return after the weekend or if this rally fizzles out quickly.
Appen released its December-quarter update and Appendix 4C on Thursday, reporting revenue of $73.4 million and underlying EBITDA of $13.3 million—both up from a year ago. Its China unit pulled in $32.0 million, exiting December with an annualised run-rate topping $135 million. The Global division brought in $41.4 million, boosted by growing generative AI projects. The company said it hit a roughly $10 million annualised cost-efficiency goal, finished the quarter with $59.8 million in cash, and generated $14.7 million in net operating cash flow. CEO Ryan Kolln described the quarter as “a strong finish to the year.” 2
Appen revealed in a separate investor presentation that generative AI—technology that creates text, images, or code—accounted for 44.1% of its Q4 revenue, up from 34.8% the previous year. The company reported an underlying EBITDA margin of 18.2%. The presentation also highlighted upcoming projects set to begin in early 2026, with anticipated revenue topping $4 million in the first half of FY26.
By midday Friday, the rally was turning heads, Market Index reported, highlighting Appen’s surge of over 60% in just two sessions as traders jumped on the momentum. Such a sharp spike often attracts quick money, but it can flip quickly once liquidity dries up. 3
For investors digging beyond the headline numbers, the real question is whether growth is sustainable. Appen’s latest update highlights gains tied to generative AI projects—often large but sporadic bursts of revenue that can fade quickly.
AI data suppliers face stiff competition from model builders and cloud companies as they roll out new products and ramp up quality controls. Appen finds itself up against a diverse group—from big outsourcers to niche firms like Telus International and Innodata—in a space where contracts can be sizable and pricing constantly shifts.
The latest figures remain unaudited, and timing swings can impact quarterly results despite stricter cost controls. If renewals drag or a few big projects delay, revenue could take a hit—and the stock’s already trading as if that’s the case.
When the ASX reopens Monday, all eyes will be on whether Appen can maintain its recent gains and if there’s fresh commentary on FY26 demand. The next major event is Appen’s full-year report due Feb. 25, where investors will zero in on audited results and insights into cash flow. 4
