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Asana Announces Fourth Quarter and Fiscal Year 2026 Results

businesswire.com

Asana Announces Fourth Quarter and Fiscal Year 2026 Results SAN FRANCISCO--( BUSINESS WIRE)--Asana, Inc. (NYSE: ASAN) (LTSE: ASAN), the system of action where humans and AI run work together, today reported financial results for its fourth quarter and fiscal year ended January 31, 2026.

“FY26 was a year of meaningful progress as we advanced Asana into a multi-product platform and strengthened our position as the foundational system of action layer for the Agentic Enterprise,” said Dan Rogers, Chief Executive Officer of Asana. “We exited Q4 with improving enterprise productivity, strong renewal performance, and rapid adoption of AI Studio. The expected launch of AI Teammates later this quarter marks the next phase of our AI platform, embedding agents directly into the coordinated flow of work. Our Work Graph, task-based system of action, and enterprise governance provide the persistent memory and accountability required to move agents from experimentation to trusted execution at scale.”

“In Q4, we delivered a 9 percent non-GAAP operating margin, representing a 10 percentage point improvement year-over-year, driven by continued productivity and efficiency gains across the organization, and saw continued improvement in NRR driven by strong retention among our largest customers and improving underlying usage trends,” said Sonalee Parekh, Chief Financial Officer of Asana. “Our strong foundation, combined with continued investment in our AI platform and other growth initiatives position us to drive durable, profitable growth and sustained margin expansion as we scale into the emerging Agentic Enterprise opportunity.”

Fourth Quarter Fiscal 2026 Financial Highlights

Fiscal 2026 Financial Highlights

Business Highlights

Additional Highlights

Financial Outlook

For the first quarter of fiscal 2027, Asana expects:

For fiscal 2027, 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.

A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is 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. Asana has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its fourth quarter and 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, our ability to execute on our current strategies, our technology and brand position, expectations regarding product launches and capabilities, our anticipated performance of new personnel, Asana’s outlook for the fiscal quarter ending April 30, 2026 and the full fiscal year ending January 31, 2027, 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, 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 margin, operating income, operating income as a percentage of revenue, operating margin, net income, basic and diluted net income per share, 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 measure of adjusted free cash flow, which is defined as free cash flow plus costs paid related to restructuring. Asana believes adjusted free cash flow is an important liquidity measure of the cash that is available, after capital expenditures and operational expenses, for investment in its business and to make acquisitions. Asana believes that adjusted free cash flow is useful to investors as a liquidity measure because it measures Asana’s ability to generate or use cash. There are a number of limitations related to the use of adjusted free cash flow as compared to net cash from operating activities, including that adjusted free cash flow excludes 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 the system of action where humans and AI run work together so individuals work smarter, teams move faster, and organizations deliver results. Powered by the Work Graph® data model, Asana provides the context and governance that enables AI to operate inside real workflows across teams, processes, and systems. More than 180,000 organizations are building the Agentic Enterprise with Asana—including Accenture, Amazon, Anthropic, and Suzuki—connecting strategy to execution and delivering complex work at scale. Learn more at 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

January 31,

Twelve Months Ended

January 31,

2026

2025

2026

2025

Revenues

$

205,570

$

188,334

$

790,806

$

723,876

Cost of revenues (1)

25,004

19,604

86,759

77,193

Gross profit

180,566

168,730

704,047

646,683

Operating expenses:

Research and development (1)

73,180

84,239

301,496

341,467

Sales and marketing (1)

100,191

102,261

406,952

419,950

General and administrative (1)

41,180

45,819

192,930

152,001

Total operating expenses

214,551

232,319

901,378

913,418

Loss from operations

(33,985

)

(63,589

)

(197,331

)

(266,735

)

Interest income and other income (expense), net

3,566

3,578

16,312

19,647

Interest expense

(793

)

(852

)

(3,148

)

(3,683

)

Loss before provision for income taxes

(31,212

)

(60,863

)

(184,167

)

(250,771

)

Provision for income taxes

1,001

1,436

4,857

4,765

Net loss

$

(32,213

)

$

(62,299

)

$

(189,024

)

$

(255,536

)

Net loss per share:

Basic and diluted

$

(0.14

)

$

(0.27

)

$

(0.80

)

$

(1.11

)

Weighted-average shares used in calculating net loss per share:

Basic and diluted

238,355

231,380

236,823

229,472

(1) Amounts include stock-based compensation expense as follows:

Three Months Ended

January 31,

Twelve Months Ended

January 31,

2026

2025

2026

2025

Cost of revenues

$

523

$

357

$

1,803

$

1,387

Research and development

24,724

27,081

106,174

115,953

Sales and marketing

11,606

15,986

58,089

64,320

General and administrative

12,923

7,145

48,777

29,611

Total stock-based compensation expense

$

49,776

$

50,569

$

214,843

$

211,271

ASANA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

January 31, 2026

January 31, 2025

Assets

Current assets

Cash and cash equivalents

$

199,835

$

184,728

Marketable securities

234,210

282,156

Restricted cash

418

136

Accounts receivable, net

110,312

87,567

Prepaid expenses and other current assets

48,573

46,154

Total current assets

593,348

600,741

Property and equipment, net

88,313

95,836

Operating lease right-of-use assets

133,422

166,545

Other assets

29,005

28,293

Total assets

$

844,088

$

891,415

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

18,822

$

9,922

Accrued expenses and other current liabilities

123,716

83,031

Deferred revenue, current

333,636

300,798

Operating lease liabilities, current

24,846

22,066

Total current liabilities

501,020

415,817

Term loan, net

39,291

Deferred revenue, noncurrent

220

2,005

Operating lease liabilities, noncurrent

183,749

201,733

Other liabilities

4,982

5,046

Total liabilities

689,971

663,892

Stockholders' equity

Common stock

2

2

Additional paid-in capital

2,299,616

2,059,848

Accumulated other comprehensive income (loss)

4,205

(3,851

)

Accumulated deficit

(2,149,706

)

(1,828,476

)

Total stockholders’ equity

154,117

227,523

Total liabilities and stockholders’ equity

$

844,088

$

891,415

ASANA, INC.

SUMMARY OF CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Three Months Ended

January 31,

Twelve Months Ended

January 31,

2026

2025

2026

2025

Cash flows from operating activities

Net loss

$

(32,213

)

$

(62,299

)

$

(189,024

)

$

(255,536

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Allowance for expected credit losses

276

2,165

1,868

3,190

Depreciation and amortization

6,119

4,813

22,037

17,543

Amortization of deferred contract acquisition costs

7,044

6,718

27,849

25,907

Stock-based compensation expense

49,776

50,569

214,843

211,271

Net accretion of discount on marketable securities

(412

)

(864

)

(2,129

)

(5,510

)

Non-cash lease expense

4,577

4,439

18,265

17,967

Impairment of long-lived assets

6,785

30,716

6,785

Amortization of discount on revolving credit facility and term loan issuance costs

31

31

122

122

Changes in operating assets and liabilities:

Accounts receivable

(37,848

)

(25,271

)

(23,472

)

(4,661

)

Prepaid expenses and other current assets

(4,112

)

(4,575

)

(28,823

)

(20,427

)

Other assets

(1,192

)

194

(631

)

(4,400

)

Accounts payable

4,708

(167

)

7,317

4,443

Accrued expenses and other liabilities

8,244

18,012

3,408

6,604

Deferred revenue

28,727

20,661

31,053

31,581

Operating lease liabilities

(6,135

)

(5,356

)

(23,038

)

(19,954

)

Net cash provided by operating activities

27,590

15,855

90,361

14,925

Cash flows from investing activities

Purchases of marketable securities

(18,078

)

(67,820

)

(179,155

)

(234,448

)

Sales of marketable securities

23,436

23,436

Maturities of marketable securities

40,688

44,996

206,264

240,601

Purchases of property and equipment

(1,188

)

(1,505

)

(3,792

)

(5,569

)

Capitalized internal-use software costs

(2,226

)

(2,011

)

(9,587

)

(6,713

)

Net cash provided by (used in) investing activities

42,632

(26,340

)

37,166

(6,129

)

Cash flows from financing activities

Repayment of term loan

(625

)

(3,750

)

(2,500

)

Repurchases of common stock

(58,023

)

(4,485

)

(132,206

)

(78,354

)

Proceeds from exercise of stock options

2,186

5,217

5,021

9,101

Proceeds from employee stock purchase plan

13,012

13,665

Taxes paid related to net share settlement of equity awards

(5

)

Net cash (used in) provided by financing activities

(55,837

)

107

(117,923

)

(58,093

)

Effect of foreign exchange rates on cash, cash equivalents, and restricted cash

1,990

(1,846

)

5,785

(2,502

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

16,375

(12,224

)

15,389

(51,799

)

Cash, cash equivalents, and restricted cash

Beginning of period

183,878

197,088

184,864

236,663

End of period

$

200,253

$

184,864

$

200,253

$

184,864

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(in thousands, except percentages)

(unaudited)

Three Months Ended

January 31,

Twelve Months Ended

January 31,

2026

2025

2026

2025

Reconciliation of gross profit and gross margin

GAAP gross profit

$

180,566

$

168,730

$

704,047

$

646,683

Plus: stock-based compensation and related employer payroll tax associated with RSUs

531

363

1,849

1,415

Non-GAAP gross profit

$

181,097

$

169,093

$

705,896

$

648,098

GAAP gross margin

87.8

%

89.6

%

89.0

%

89.3

%

Non-GAAP adjustments

0.3

%

0.2

%

0.3

%

0.2

%

Non-GAAP gross margin

88.1

%

89.8

%

89.3

%

89.5

%

Reconciliation of operating expenses

GAAP research and development

$

73,180

$

84,239

$

301,496

$

341,467

Less: stock-based compensation and related employer payroll tax associated with RSUs

(25,260

)

(27,019

)

(108,831

)

(117,916

)

Adjustment for: restructuring costs

(182

)

(2,492

)

(1,130

)

(2,492

)

Non-GAAP research and development

$

47,738

$

54,728

$

191,535

$

221,059

GAAP research and development as percentage of revenue

35.6

%

44.7

%

38.1

%

47.2

%

Non-GAAP research and development as percentage of revenue

23.2

%

29.1

%

24.2

%

30.5

%

GAAP sales and marketing

$

100,191

$

102,261

$

406,952

$

419,950

Less: stock-based compensation and related employer payroll tax associated with RSUs

(11,799

)

(16,035

)

(59,354

)

(65,269

)

Adjustment for: restructuring costs

(331

)

(1,241

)

(1,162

)

(1,241

)

Non-GAAP sales and marketing

$

88,061

$

84,985

$

346,436

$

353,440

GAAP sales and marketing as percentage of revenue

48.7

%

54.3

%

51.5

%

58.0

%

Non-GAAP sales and marketing as percentage of revenue

42.8

%

45.1

%

43.8

%

48.8

%

GAAP general and administrative

$

41,180

$

45,819

$

192,930

$

152,001

Less: stock-based compensation and related employer payroll tax associated with RSUs

(13,217

)

(7,185

)

(49,669

)

(30,089

)

Less: impairment of long-lived assets

(6,785

)

(30,716

)

(6,785

)

Adjustment for: restructuring costs

(837

)

(741

)

(1,275

)

(741

)

Non-GAAP general and administrative

$

27,126

$

31,108

$

111,270

$

114,386

GAAP general and administrative as percentage of revenue

20.0

%

24.3

%

24.4

%

21.0

%

Non-GAAP general and administrative as percentage of revenue

13.2

%

16.5

%

14.1

%

15.8

%

Reconciliation of operating loss and operating margin

GAAP loss from operations

$

(33,985

)

$

(63,589

)

$

(197,331

)

$

(266,735

)

Plus: stock-based compensation and related employer payroll tax associated with RSUs

50,807

50,602

219,703

214,689

Plus: impairment of long-lived assets

6,785

30,716

6,785

Adjustment for: restructuring costs

1,350

4,474

3,567

4,474

Non-GAAP income (loss) from operations

$

18,172

$

(1,728

)

$

56,655

$

(40,787

)

GAAP operating margin

(16.5

)%

(33.8

)%

(25.0

)%

(36.8

)%

Non-GAAP adjustments

25.3

%

32.9

%

32.2

%

31.2

%

Non-GAAP operating margin

8.8

%

(0.9

)%

7.2

%

(5.6

)%

ASANA, INC.

Reconciliation of GAAP to Non-GAAP Data

(in thousands, except percentages and per share data)

(unaudited)

Three Months Ended

January 31,

Twelve Months Ended

January 31,

2026

2025

2026

2025

Reconciliation of net income (loss)

GAAP net loss

$

(32,213

)

$

(62,299

)

$

(189,024

)

$

(255,536

)

Plus: stock-based compensation and related employer payroll tax associated with RSUs

50,807

50,602

219,703

214,689

Plus: impairment of long-lived assets

6,785

30,716

6,785

Adjustment for: restructuring costs

1,350

4,474

3,567

4,474

Non-GAAP net income (loss)

$

19,944

$

(438

)

$

64,962

$

(29,588

)

Reconciliation of net income (loss) per share

GAAP net loss per share, basic

$

(0.14

)

$

(0.27

)

$

(0.80

)

$

(1.11

)

Non-GAAP adjustments to net loss

0.22

0.27

1.07

0.98

Non-GAAP net income (loss) per share, basic

$

0.08

$

$

0.27

$

(0.13

)

Weighted-average shares used in GAAP per share calculation, basic and diluted and non-GAAP per share calculation, basic

238,355

231,380

236,823

229,472

GAAP net loss per share, diluted

$

(0.14

)

$

(0.27

)

$

(0.80

)

$

(1.11

)

Non-GAAP adjustments to net loss

0.22

0.27

1.07

0.98

Non-GAAP net income (loss) per share, diluted

$

0.08

$

$

0.27

$

(0.13

)

Weighted-average shares used in non-GAAP per share calculation, diluted

242,613

231,380

242,575

229,472

Three Months Ended

January 31,

Twelve Months Ended

January 31,

2026

2025

2026

2025

Computation of free cash flow and adjusted free cash flow

Net cash provided by (used in) investing activities

$

42,632

$

(26,340

)

$

37,166

$

(6,129

)

Net cash (used in) provided by financing activities

$

(55,837

)

$

107

$

(117,923

)

$

(58,093

)

Net cash provided by operating activities

$

27,590

$

15,855

$

90,361

$

14,925

Less: purchases of property and equipment

(1,188

)

(1,505

)

(3,792

)

(5,569

)

Less: capitalized internal-use software costs

(2,226

)

(2,011

)

(9,587

)

(6,713

)

Free cash flow

$

24,176

$

12,339

$

76,982

$

2,643

Plus: restructuring costs paid

1,549

7,493

Adjusted free cash flow

$

25,725

$

12,339

$

84,475

$

2,643

Three Months Ended

January 31,

Twelve Months Ended

January 31,

2026

2025

2026

2025

Computation of revenue adjusted for impact of foreign currency

GAAP revenue

$

205,570

$

188,334

$

790,806

$

723,876

Adjustment for: impact of foreign currency

(1,571

)

735

(2,822

)

624

Revenue adjusted for impact of foreign currency

$

203,999

$

189,069

$

787,984

$

724,500