Asana Announces Third Quarter Fiscal 2026 Results
SAN FRANCISCO--( BUSINESS WIRE)--Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading work management platform for human and AI collaboration, today reported financial results for its third quarter fiscal 2026 ended October 31, 2025.
“This was a solid quarter, with continued improvement in NRR and momentum with AI Studio,” said Dan Rogers, Chief Executive Officer of Asana. “Our newly announced AI Teammates bring collaborative, context-aware agents with the right controls and checkpoints to deliver real business outcomes. Early customer results show meaningful productivity gains, which is very encouraging for the long-term potential of the Asana AI platform in the Agentic Enterprise.”
“Q3 was another strong quarter of execution. We exceeded the high end of our revenue guidance, improved our year-to-date GAAP operating margin by 10 percentage points, and year-to-date non-GAAP operating margin by 14 percentage points,” said Sonalee Parekh, Chief Financial Officer of Asana. “The progress we’re making on NRR, the initiatives to strengthen new business acquisition, and the innovation across our AI platform position us well for long-term growth acceleration and continued margin improvement.”
Third Quarter Fiscal 2026 Financial Highlights
Third Quarter Fiscal 2026 Business Highlights
Financial Outlook
For the fourth quarter of fiscal 2026, Asana expects:
For fiscal 2026, Asana expects:
These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause Asana’s actual results to materially differ from these forward-looking statements.
Asana has not provided the corresponding GAAP measure or a reconciliation of non-GAAP outlook measures to corresponding GAAP measures as these are not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may be incurred in the future. However, it is important to note that these costs and expenses could have a significant effect on future GAAP results. Asana has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its third quarter fiscal year 2026 non-GAAP results included in this press release.
Earnings Conference Call Information
Asana will hold a conference call and live webcast today to discuss these results at 1:30 p.m. Pacific Time. A live webcast and replay will be available on the Asana Investor Relations webpage at: https://investors.asana.com.
Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, statements about our market opportunity, the potential and impact of AI, the expected benefits of AI Studio, including our expectations regarding revenue to be generated by AI Studio, the increased accessibility of AI including through AI Studio Plus and Smart Workflow Gallery, our ability to execute on our current strategies, our technology and brand position, expectations regarding product launches, the stock repurchase programs, Asana’s outlook for the fiscal quarter and the full fiscal year ending January 31, 2026 including our revised full-year guidance, Asana’s outlook for the expected benefits of our offerings, and our market position. Forward-looking statements generally relate to future events or Asana’s future financial or operating performance. Forward-looking statements include all statements that are not historical facts and in some cases can be identified by terms such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “continue,” “could,” “potential,” “may,” “will,” “goal,” or similar expressions and the negatives of those terms. However, not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including factors beyond Asana’s control, that may cause Asana’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: Asana’s ability to achieve future growth and sustain its growth rate, Asana’s ability to attract and retain customers and increase sales to its customers, Asana’s ability to develop and release new products and services and to scale its platform, including the successful integration of AI, Asana’s ability to increase adoption of its platform through Asana’s self-service model, Asana’s ability to maintain and grow its relationships with strategic partners, the highly competitive and rapidly evolving market in which Asana participates, Asana’s international expansion strategies, Asana’s capital allocation strategy including its stock repurchase program, and broader macroeconomic conditions. Further information on risks that could cause actual results to differ materially from forecasted results are included in Asana’s filings with the SEC, including Asana’s Annual Report on Form 10-K for the year ended January 31, 2025 and subsequent filings with the SEC. Any forward-looking statements contained in this press release are based on assumptions that Asana believes to be reasonable as of this date. Except as required by law, Asana assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Use of Non-GAAP Financial Measures
To supplement Asana’s consolidated financial statements, which are prepared and presented in accordance with GAAP, Asana utilizes certain non-GAAP financial measures to assist in understanding and evaluating its core operating performance. In this release, Asana’s non-GAAP gross profit, gross margin, operating expenses, operating expenses as a percentage of revenue, operating income, operating margin, net income, net income per share, free cash flow, adjusted free cash flow, and revenues adjusted for the impact of foreign currency are not presented in accordance with GAAP and are not intended to be used in lieu of GAAP presentations of results of operations. These non-GAAP financial measures, which may be different from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of Asana’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures which can be found in the accompanying financial statements included with this press release.
Asana is presenting these non-GAAP financial measures because it believes that these non-GAAP financial measures provide useful information about its financial performance, enhance the overall understanding of Asana’s past performance and future prospects, facilitate period-to-period comparisons of operations against other companies in Asana’s industry, and allow for greater transparency with respect to important metrics used by Asana’s management for financial and operational decision-making.
Asana believes the following adjustments and exclusions from its non-GAAP financial measures are useful to investors and others in assessing Asana’s operating performance due to the following factors:
There are a number of limitations related to the use of non-GAAP financial measures as compared to GAAP financial measures, including that the non-GAAP financial measures exclude stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in Asana’s business and an important part of its compensation strategy.
In addition to the non-GAAP financial measures outlined above, Asana also uses the non-GAAP financial measures of free cash flow, which is defined as net cash from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs, and adjusted free cash flow, which is defined as free cash flow plus costs paid related to restructuring. Asana believes free cash flow and adjusted free cash flow are important liquidity measures of the cash that is available, after capital expenditures and operational expenses, for investment in its business and to make acquisitions. Asana believes that free cash flow and adjusted free cash flow are useful to investors as liquidity measures because they measure Asana’s ability to generate or use cash. There are a number of limitations related to the use of free cash flow and adjusted free cash flow as compared to net cash from operating activities, including that free cash flow and adjusted free cash flow exclude capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.
Definitions of Business Metrics
Customers spending $5,000 or more on an annualized basis, or Core customers
We define customers spending $5,000 or more, which we also refer to as Core customers, as those organizations on a paid subscription plan that had $5,000 or more in annualized GAAP revenues in a given quarter, inclusive of discounts.
Customers spending $100,000 or more on an annualized basis
We define customers spending $100,000 or more as those organizations on a paid subscription plan that had $100,000 or more in annualized GAAP revenues in a given quarter, inclusive of discounts.
Dollar-based net retention rate
Asana’s reported dollar-based net retention rate equals the simple arithmetic average of its quarterly dollar-based net retention rate for the four quarters ending with the most recent fiscal quarter. Asana calculates its dollar-based net retention rate by comparing its revenues from the same set of customers in a given quarter, relative to the comparable prior-year period. To calculate Asana’s dollar-based net retention rate for a given quarter, Asana starts with the revenues in that quarter from customers that generated revenues in the same quarter of the prior year. Asana then divides that amount by the revenues attributable to that same group of customers in the prior-year quarter. Current period revenues include any upsells and are net of contraction or attrition over the trailing 12 months, but exclude revenues from new customers in the current period. Asana expects its dollar-based net retention rate to fluctuate in future periods due to a number of factors, including the expected growth of its revenue base, the level of penetration within its customer base, its ability to retain its customers, and the macroeconomic environment.
About Asana
Asana is a leading work management platform for human and AI collaboration. Over 170,000 customers like Accenture, Amazon, Anthropic, and Suzuki rely on Asana to align teams and accelerate organizational impact. Whether it’s managing strategic initiatives, cross-functional programs, or company-wide goals, Asana helps organizations bring clarity to complexity—turning plans into action with AI working alongside teams every step of the way. To learn more, visit www.asana.com.
Disclosure of Material Information
Asana announces material information to its investors using SEC filings, press releases, public conference calls, and on its investor relations page of Asana’s website at https://investors.asana.com. Asana uses these channels, as well as social media, including its X (formerly Twitter) account (@asana), its blog ( blog.asana.com), its LinkedIn page ( www.linkedin.com/company/asana), its Instagram account (@asana), its Facebook page ( www.facebook.com/asana/), Threads profile (@asana) and TikTok account (@asana), to communicate with investors and the public about Asana, its products and services and other matters. Therefore, Asana encourages investors, the media and others interested in Asana to review the information it makes public in these locations, as such information could be deemed to be material information.
ASANA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Revenues
$
201,033
$
183,882
$
585,236
$
535,542
Cost of revenues (1)
22,307
19,798
61,755
57,589
Gross profit
178,726
164,084
523,481
477,953
Operating expenses:
Research and development (1)
73,813
83,286
228,316
257,228
Sales and marketing (1)
100,243
104,708
306,761
317,689
General and administrative (1)
74,656
36,270
151,750
106,182
Total operating expenses
248,712
224,264
686,827
681,099
Loss from operations
(69,986
)
(60,180
)
(163,346
)
(203,146
)
Interest income and other income (expense), net
3,609
4,949
12,746
16,069
Interest expense
(767
)
(934
)
(2,355
)
(2,831
)
Loss before provision for income taxes
(67,144
)
(56,165
)
(152,955
)
(189,908
)
Provision for income taxes
1,289
1,161
3,856
3,329
Net loss
$
(68,433
)
$
(57,326
)
$
(156,811
)
$
(193,237
)
Net loss per share:
Basic and diluted
$
(0.29
)
$
(0.25
)
$
(0.66
)
$
(0.84
)
Weighted-average shares used in calculating net loss per share:
Basic and diluted
237,790
229,624
236,307
228,830
_______________
(1) Amounts include stock-based compensation expense as follows:
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cost of revenues
$
439
$
354
$
1,280
$
1,030
Research and development
26,109
28,087
81,450
88,872
Sales and marketing
13,560
15,837
46,483
48,334
General and administrative
14,638
7,677
35,854
22,466
Total stock-based compensation expense
$
54,746
$
51,955
$
165,067
$
160,702
ASANA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
October 31, 2025
January 31, 2025
Assets
Current assets
Cash and cash equivalents
$
183,470
$
184,728
Marketable securities
280,146
282,156
Restricted cash
408
136
Accounts receivable, net
72,296
87,567
Prepaid expenses and other current assets
51,096
46,154
Total current assets
587,416
600,741
Property and equipment, net
87,555
95,836
Operating lease right-of-use assets
137,667
166,545
Other assets
27,792
28,293
Total assets
$
840,430
$
891,415
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$
13,158
$
9,922
Accrued expenses and other current liabilities
78,491
83,031
Deferred revenue, current
304,596
300,798
Operating lease liabilities, current
24,702
22,066
Total current liabilities
420,947
415,817
Term loan, net
35,576
39,291
Deferred revenue, noncurrent
534
2,005
Operating lease liabilities, noncurrent
189,686
201,733
Other liabilities
5,325
5,046
Total liabilities
652,068
663,892
Stockholders' equity
Common stock
2
2
Additional paid-in capital
2,246,005
2,059,848
Accumulated other comprehensive income (loss)
1,825
(3,851
)
Accumulated deficit
(2,059,470
)
(1,828,476
)
Total stockholders’ equity
188,362
227,523
Total liabilities and stockholders’ equity
$
840,430
$
891,415
ASANA, INC.
SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cash flows from operating activities
Net loss
$
(68,433
)
$
(57,326
)
$
(156,811
)
$
(193,237
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Allowance for expected credit losses
399
653
1,592
1,025
Depreciation and amortization
5,809
4,437
15,918
12,730
Amortization of deferred contract acquisition costs
7,036
6,696
20,805
19,189
Stock-based compensation expense
54,746
51,955
165,067
160,702
Net accretion of discount on marketable securities
(439
)
(1,090
)
(1,717
)
(4,646
)
Non-cash lease expense
4,566
4,640
13,688
13,528
Impairment of long-lived assets
30,716
—
30,716
—
Amortization of discount on revolving credit facility and term loan issuance costs
31
30
91
91
Changes in operating assets and liabilities:
Accounts receivable
(3,391
)
(2,304
)
14,376
20,610
Prepaid expenses and other current assets
(4,532
)
(2,254
)
(24,711
)
(15,852
)
Other assets
287
(1,513
)
561
(4,594
)
Accounts payable
(3,652
)
(1,759
)
2,609
4,610
Accrued expenses and other liabilities
7,334
(5,035
)
(4,836
)
(11,408
)
Deferred revenue
(8,494
)
(7,050
)
2,326
10,920
Operating lease liabilities
(5,811
)
(4,970
)
(16,903
)
(14,598
)
Net cash provided by (used in) operating activities
16,172
(14,890
)
62,771
(930
)
Cash flows from investing activities
Purchases of marketable securities
(56,981
)
(59,502
)
(161,077
)
(166,628
)
Maturities of marketable securities
69,000
104,309
165,576
195,605
Purchases of property and equipment
(669
)
(1,372
)
(2,604
)
(4,064
)
Capitalized internal-use software costs
(2,074
)
(1,919
)
(7,361
)
(4,702
)
Net cash provided by (used in) investing activities
9,276
41,516
(5,466
)
20,211
Cash flows from financing activities
Repayment of term loan
(1,250
)
(625
)
(3,750
)
(1,875
)
Repurchases of common stock
(30,785
)
(54,847
)
(74,183
)
(73,869
)
Proceeds from exercise of stock options
762
1,755
2,835
3,884
Proceeds from employee stock purchase plan
5,266
4,799
13,012
13,665
Taxes paid related to net share settlement of equity awards
—
(1
)
—
(5
)
Net cash used in financing activities
(26,007
)
(48,919
)
(62,086
)
(58,200
)
Effect of foreign exchange rates on cash, cash equivalents, and restricted cash
(235
)
(474
)
3,795
(656
)
Net decrease in cash, cash equivalents, and restricted cash
(794
)
(22,767
)
(986
)
(39,575
)
Cash, cash equivalents, and restricted cash
Beginning of period
184,672
219,855
184,864
236,663
End of period
$
183,878
$
197,088
$
183,878
$
197,088
ASANA, INC.
Reconciliation of GAAP to Non-GAAP Data
(in thousands, except percentages)
(unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Reconciliation of gross profit and gross margin
GAAP gross profit
$
178,726
$
164,084
$
523,481
$
477,953
Plus: stock-based compensation and related employer payroll tax associated with RSUs
449
361
1,318
1,052
Non-GAAP gross profit
$
179,175
$
164,445
$
524,799
$
479,005
GAAP gross margin
88.9
%
89.2
%
89.4
%
89.2
%
Non-GAAP adjustments
0.2
%
0.2
%
0.3
%
0.2
%
Non-GAAP gross margin
89.1
%
89.4
%
89.7
%
89.4
%
Reconciliation of operating expenses
GAAP research and development
$
73,813
$
83,286
$
228,316
$
257,228
Less: stock-based compensation and related employer payroll tax associated with RSUs
(26,536
)
(28,419
)
(83,571
)
(90,897
)
Adjustment for: restructuring costs
—
—
(948
)
—
Non-GAAP research and development
$
47,277
$
54,867
$
143,797
$
166,331
GAAP research and development as percentage of revenue
36.7
%
45.3
%
39.0
%
48.0
%
Non-GAAP research and development as percentage of revenue
23.5
%
29.8
%
24.6
%
31.1
%
GAAP sales and marketing
$
100,243
$
104,708
$
306,761
$
317,689
Less: stock-based compensation and related employer payroll tax associated with RSUs
(13,784
)
(16,001
)
(47,555
)
(49,234
)
Adjustment for: restructuring costs
—
—
(831
)
—
Non-GAAP sales and marketing
$
86,459
$
88,707
$
258,375
$
268,455
GAAP sales and marketing as percentage of revenue
49.9
%
56.9
%
52.4
%
59.3
%
Non-GAAP sales and marketing as percentage of revenue
43.0
%
48.2
%
44.1
%
50.1
%
GAAP general and administrative
$
74,656
$
36,270
$
151,750
$
106,182
Less: stock-based compensation and related employer payroll tax associated with RSUs
(14,840
)
(7,768
)
(36,452
)
(22,904
)
Less: impairment of long-lived assets
(30,716
)
—
(30,716
)
—
Adjustment for: restructuring costs
—
—
(438
)
—
Non-GAAP general and administrative
$
29,100
$
28,502
$
84,144
$
83,278
GAAP general and administrative as percentage of revenue
37.1
%
19.7
%
25.9
%
19.8
%
Non-GAAP general and administrative as percentage of revenue
14.5
%
15.5
%
14.4
%
15.6
%
Reconciliation of operating loss and operating margin
GAAP loss from operations
$
(69,986
)
$
(60,180
)
$
(163,346
)
$
(203,146
)
Plus: stock-based compensation and related employer payroll tax associated with RSUs
55,609
52,549
168,896
164,087
Plus: impairment of long-lived assets
30,716
—
30,716
—
Adjustment for: restructuring costs
—
—
2,217
—
Non-GAAP income (loss) from operations
$
16,339
$
(7,631
)
$
38,483
$
(39,059
)
GAAP operating margin
(34.8
)%
(32.7
)%
(27.9
)%
(37.9
)%
Non-GAAP adjustments
42.9
%
28.6
%
34.5
%
30.6
%
Non-GAAP operating margin
8.1
%
(4.1
)%
6.6
%
(7.3
)%
ASANA, INC.
Reconciliation of GAAP to Non-GAAP Data
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Reconciliation of net income (loss)
GAAP net loss
$
(68,433
)
$
(57,326
)
$
(156,811
)
$
(193,237
)
Plus: stock-based compensation and related employer payroll tax associated with RSUs
55,609
52,549
168,896
164,087
Plus: impairment of long-lived assets
30,716
—
30,716
—
Adjustment for: restructuring costs
—
—
2,217
—
Non-GAAP net income (loss)
$
17,892
$
(4,777
)
$
45,018
$
(29,150
)
Reconciliation of net income (loss) per share
GAAP net loss per share, basic
$
(0.29
)
$
(0.25
)
$
(0.66
)
$
(0.84
)
Non-GAAP adjustments to net loss
0.37
0.23
0.85
0.71
Non-GAAP net income (loss) per share, basic
$
0.08
$
(0.02
)
$
0.19
$
(0.13
)
Weighted-average shares used in GAAP per share calculation, basic and diluted and non-GAAP per share calculation, basic
237,790
229,624
236,307
228,830
GAAP net loss per share, diluted
$
(0.29
)
$
(0.25
)
$
(0.66
)
$
(0.84
)
Non-GAAP adjustments to net loss
0.36
0.23
0.85
0.71
Non-GAAP net income (loss) per share, diluted
$
0.07
$
(0.02
)
$
0.19
$
(0.13
)
Weighted-average shares used in non-GAAP per share calculation, diluted
242,927
229,624
242,523
228,830
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Computation of free cash flow and adjusted free cash flow
Net cash provided by (used in) investing activities
$
9,276
$
41,516
$
(5,466
)
$
20,211
Net cash used in financing activities
$
(26,007
)
$
(48,919
)
$
(62,086
)
$
(58,200
)
Net cash provided by (used in) operating activities
$
16,172
$
(14,890
)
$
62,771
$
(930
)
Less: purchases of property and equipment
(669
)
(1,372
)
(2,604
)
(4,064
)
Less: capitalized internal-use software costs
(2,074
)
(1,919
)
(7,361
)
(4,702
)
Free cash flow
$
13,429
$
(18,181
)
$
52,806
$
(9,696
)
Plus: restructuring costs paid
—
—
5,944
—
Adjusted free cash flow
$
13,429
$
(18,181
)
$
58,750
$
(9,696
)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Computation of revenue adjusted for impact of foreign currency
GAAP revenue
$
201,033
$
183,882
$
585,236
$
535,542
Adjustment for: impact of foreign currency
(726
)
(462
)
(1,251
)
(111
)
Revenue adjusted for impact of foreign currency
$
200,307
$
183,420
$
583,985
$
535,431