Are Appen Shares Making a Comeback as AI Demand Surges?
Source: Kapitales Research
Highlights:
Strong share price surge: Appen Ltd (ASX: APX) jumped around 32% to $1.43, at the time of writing, after releasing its quarterly update.
Revenue rebound: The company reported Q4 FY2025 revenue of $73.4 million, at the time of writing, up 10% year-on-year and 33% quarter-on-quarter.
Earnings momentum: Underlying EBITDA rose to $13.3 million, at the time of writing, marking a 182% increase compared to the prior corresponding period.
ASX AI Stock Jumps on Strong Quarterly Update
Appen Ltd (ASX: APX) shares surged sharply on Thursday after the artificial intelligence data services company delivered a stronger-than-expected quarterly performance. At the time of writing, Appen’s share price was up around 32% to $1.43, making it one of the top-performing stocks on the Australian market for the day. The rally followed the release of Appen’s fourth-quarter FY2025 update, which highlighted a solid rebound in revenue and earnings, driven largely by rising demand for generative AI services.
Revenue Growth Signals Business Recovery
For the three months ended December, Appen reported revenue of $73.4 million, at the time of writing. This represented a 10% increase compared to the same period last year and a 33% jump from the previous quarter. The result suggests that Appen’s turnaround efforts may be gaining traction after a challenging period for the company. The improvement was supported by strong performances across both its major operating segments: Appen China and Appen Global.
China Business Leads the Charge
Appen revealed that Appen China generated $32 million in revenue, at the time of writing, marking an 81% rise year-on-year. Management said the business is now operating at an annualised revenue run rate of more than $135 million, reflecting strong demand from generative AI projects. These projects include supporting Chinese technology firms as they expand internationally, a trend that appears to be accelerating.
Earnings Surge Impresses Investors
On the profitability front, Appen reported underlying EBITDA of $13.3 million, at the time of writing. This represented a 182% rise compared to the same period last year and a strong uplift from the previous quarter. Appen Global also delivered encouraging results, with revenue of $41.4 million, supported by new project wins, including a previously announced generative AI contract worth more than $10 million.
Overall, investors seem to be betting that Appen’s renewed focus on high-growth AI projects could mark the start of a more sustainable recovery phase for the once-struggling ASX tech stock.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
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Are Appen Shares Making a Comeback as AI Demand Surges?
Highlights:
ASX AI Stock Jumps on Strong Quarterly Update
Appen Ltd (ASX: APX) shares surged sharply on Thursday after the artificial intelligence data services company delivered a stronger-than-expected quarterly performance. At the time of writing, Appen’s share price was up around 32% to $1.43, making it one of the top-performing stocks on the Australian market for the day. The rally followed the release of Appen’s fourth-quarter FY2025 update, which highlighted a solid rebound in revenue and earnings, driven largely by rising demand for generative AI services.
Revenue Growth Signals Business Recovery
For the three months ended December, Appen reported revenue of $73.4 million, at the time of writing. This represented a 10% increase compared to the same period last year and a 33% jump from the previous quarter. The result suggests that Appen’s turnaround efforts may be gaining traction after a challenging period for the company. The improvement was supported by strong performances across both its major operating segments: Appen China and Appen Global.
China Business Leads the Charge
Appen revealed that Appen China generated $32 million in revenue, at the time of writing, marking an 81% rise year-on-year. Management said the business is now operating at an annualised revenue run rate of more than $135 million, reflecting strong demand from generative AI projects. These projects include supporting Chinese technology firms as they expand internationally, a trend that appears to be accelerating.
Earnings Surge Impresses Investors
On the profitability front, Appen reported underlying EBITDA of $13.3 million, at the time of writing. This represented a 182% rise compared to the same period last year and a strong uplift from the previous quarter. Appen Global also delivered encouraging results, with revenue of $41.4 million, supported by new project wins, including a previously announced generative AI contract worth more than $10 million.
Overall, investors seem to be betting that Appen’s renewed focus on high-growth AI projects could mark the start of a more sustainable recovery phase for the once-struggling ASX tech stock.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au