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Asana
(NYSE:ASAN)
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Rating:56Neutral
Price Target:
$9.00
▼(-4.66% Downside)
Action:Reiterated
Date:09/06/26
ASAN scores in the mid-range primarily due to materially improved operating/free cash flow and strong gross margins, but the overall rating is held back by continued losses, a weakened equity base with higher leverage risk, and decelerating growth reflected in guidance. Technicals are mixed and valuation is constrained by the negative P/E and lack of dividend support.
Positive Factors
Improving cash generation and high gross margins
Asana’s positive operating and free cash flow indicate materially better operating discipline and improving unit economics. Combined with consistently high gross margins, this provides capacity to fund product investment, absorb execution volatility, and build operating leverage as the subscription business scales.
Negative Factors
Persistent GAAP losses
Asana remains unprofitable on a GAAP basis, so its long-term financial performance still depends on sustaining expense controls and converting strong gross margins into operating earnings. Continued losses can constrain reinvestment flexibility and leave the business more sensitive to slower growth or execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation and high gross margins
Asana’s positive operating and free cash flow indicate materially better operating discipline and improving unit economics. Combined with consistently high gross margins, this provides capacity to fund product investment, absorb execution volatility, and build operating leverage as the subscription business scales.
Read all positive factors
Asana Key Performance Indicators (KPIs)
Any
Customers Over $5K
Tracks the number of customers generating over $5,000 in annual revenue, highlighting Asana's ability to attract and retain mid-sized clients.
Tracks the number of customers generating over $5,000 in annual revenue, highlighting Asana's ability to attract and retain mid-sized clients.
Data provided by:
The Fly
The FlyAsana (ASAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.01B
Dividend YieldN/A
Average Volume (3M)5.47M
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth9.48%
EPS Growth26.94%
CountryUS
Employees1,767
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.66
Shares Outstanding159,441,760
10 Day Avg. Volume6,160,234
30 Day Avg. Volume5,465,996
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)15.75
Price to Sales (P/S)3.07
P/FCF Ratio28.04
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$9.53Price Target Upside0.97% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.37
Revenue Forecast (FY)$861.36M
Asana Business Overview & Revenue Model
Company Description
Asana, Inc., alongside its subsidiaries, offers a comprehensive work management platform designed for individual contributors, team leaders, and top executives across the United States and globally. This platform empowers teams to coordinate diver...
How the Company Makes Money
Asana primarily makes money by selling subscriptions to its cloud-based work management software (software-as-a-service). Revenue is generated from paid plans purchased by organizations, typically priced on a per-user basis and billed monthly or a...
Asana Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Positive
The call presented multiple clear operational and product momentum signals — above-guidance revenue, expanding profitability, improving retention trends, strong AI product adoption, and a strategic acquisition (Stack.ai) that accelerates the AI roadmap. At the same time, management flagged several near-term headwinds (PLG drag, cautious guidance that does not fully assume tech vertical recovery, acquisition margin impact, and SBComp/dilution). On balance the positives (revenue/profit beat, improving NRR trend, AI traction, cash/RPO growth, and strategic M&A) outweigh the lowlights, but the company remains in an early phase of AI monetization with some conservatism reflected in guidance.Positive Updates
Revenue and Profitability Beat
Q1 revenue $205.1M, up 9.5% year-over-year and above the high end of guidance. Non-GAAP operating margin was 11.5% with non-GAAP operating income of $23.6M; company characterized margin performance as a significant year-over-year improvement. GAAP net income $24.4M, $0.10 per diluted share. Adjusted free cash flow $34.4M (17% of revenue).
Negative Updates
NRR Still Below 100% Threshold
Trailing 4-quarter NRR remained at 96% (in-quarter 97%), still below the 100%+ level associated with self-sustaining expansion-led growth; guidance assumes only modest NRR improvement over the year.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue and Profitability Beat
Q1 revenue $205.1M, up 9.5% year-over-year and above the high end of guidance. Non-GAAP operating margin was 11.5% with non-GAAP operating income of $23.6M; company characterized margin performance as a significant year-over-year improvement. GAAP net income $24.4M, $0.10 per diluted share. Adjusted free cash flow $34.4M (17% of revenue).
Read all positive updates
Company Guidance
Asana guided Q2 FY27 revenue of $213.0–$215.0 million (growth 8.2%–9.2% YoY) with ~50 basis points of that growth from the Stack.ai acquisition and an immaterial FX impact; Q2 non‑GAAP operating income of $18–$20 million (8.5%–9.3% margin) and non‑GAAP net income per share of $0.08–$0.09 assuming ~237 million diluted shares. For full‑year FY27 management expects revenue of $855.5–$863.5 million (8.2%–9.2% YoY) including ~50 bps from Stack.ai and an approximate 20 bps constant‑currency tailwind, a non‑GAAP operating margin of at least 9.75%, and non‑GAAP net income of $0.37 per share assuming ~239 million diluted shares. They reiterated key assumptions: PLG remains a ~2‑point drag on ARR growth, only modest NRR improvement is modeled, tech vertical improvement is not assumed in the guide, FY27 AI product bookings are targeted to be ~15% of net‑new ARR (Q1 was 17%), Stack.ai is expected to be roughly a 1 percentage‑point drag on operating margins in Q2 and H2 (fully reflected), and management expects Q4 exit operating margin above the full‑year guidance; cash after the acquisition is projected to remain >$350 million and ~$155 million remains available under the share repurchase program.Asana Financial Statement Overview
Summary
Income Statement
47
Neutral
Balance Sheet
38
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 828.13M | 790.81M | 723.88M | 652.50M | 547.21M | 378.44M |
| Gross Profit | 725.08M | 704.05M | 646.68M | 587.98M | 490.65M | 339.54M |
| EBITDA | -121.06M | -145.82M | -229.54M | -235.03M | -388.22M | -258.26M |
| Net Income | -154.24M | -189.02M | -255.54M | -257.03M | -407.77M | -288.34M |
Balance Sheet | ||||||
| Total Assets | 816.15M | 844.09M | 891.41M | 961.96M | 954.96M | 707.03M |
| Cash, Cash Equivalents and Short-Term Investments | 339.85M | 434.05M | 466.88M | 519.46M | 529.30M | 312.03M |
| Total Debt | 258.33M | 249.42M | 268.39M | 277.88M | 271.54M | 255.61M |
| Total Liabilities | 711.83M | 689.97M | 663.89M | 635.56M | 598.39M | 503.19M |
| Stockholders Equity | 104.32M | 154.12M | 227.52M | 326.40M | 356.57M | 203.84M |
Cash Flow | ||||||
| Free Cash Flow | 117.28M | 86.57M | 9.36M | -31.09M | -167.22M | -126.50M |
| Operating Cash Flow | 130.05M | 90.36M | 14.93M | -17.93M | -160.06M | -83.78M |
| Investing Cash Flow | 81.24M | 37.17M | -6.13M | -289.13M | 64.49M | 27.56M |
| Financing Cash Flow | -175.91M | -117.92M | -58.09M | 16.78M | 381.39M | 37.21M |
Asana Technical Analysis
Negative
9.44
Price Trends
8.48
Negative
7.68
Positive
8.78
Negative
Market Momentum
0.15
Positive
39.74
Neutral
15.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAN, the sentiment is Negative. The current price of 9.44 is below the 20-day moving average (MA) of 9.47, above the 50-day MA of 8.48, and above the 200-day MA of 8.78, indicating a bearish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 39.74 is Neutral, neither overbought nor oversold. The STOCH value of 15.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASAN.
Asana Risk Analysis
Asana disclosed 60 risk factors in its most recent earnings report. Asana reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Asana Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.75B | 23.11 | 13.87% | ― | 8.72% | -9.22% | |
72 Outperform | $3.05B | 69.35 | 13.46% | 2.49% | 14.38% | 203.15% | |
70 Outperform | $633.61M | -20.26 | -14.05% | ― | 11.85% | 47.54% | |
68 Neutral | $1.75B | 50.09 | 10.84% | ― | 8.62% | -58.32% | |
65 Neutral | $5.86B | 53.98 | -20.59% | 0.39% | 5.22% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $2.01B | -12.49 | -105.68% | ― | 9.48% | 26.94% |
* Technology Sector Average
ASAN
Asana
8.25
-5.03
-37.88%
AGYS
Agilysys
106.10
-2.05
-1.90%
RNG
RingCentral
69.64
39.17
128.58%
ALRM
Alarm
54.99
-0.23
-0.42%
BL
BlackLine
29.47
-24.19
-45.08%
SPT
Sprout Social
10.13
-3.74
-26.96%
Asana Corporate Events
Business Operations and StrategyExecutive/Board Changes
Asana Expands Finance Leadership With New Accounting Role
Neutral
Aug 28, 2026
On August 26, 2026, Asana, Inc.’s board of directors appointed Aziz Megji as the company’s Principal Accounting Officer, adding to his existing roles as Chief Financial Officer and Principal Financial Officer. The company noted that th...
Executive/Board Changes
Asana Announces Upcoming Chief Accounting Officer Resignation
Neutral
Jul 17, 2026
On July 13, 2026, Asana, Inc. announced that Veronica Sosa has tendered her resignation as Chief Accounting Officer and Principal Accounting Officer, effective August 7, 2026, and will remain in her roles until that date. The company stated there ...
Executive/Board ChangesShareholder Meetings
Asana Shareholders Approve Directors, Auditor and Executive Pay
Positive
Jun 12, 2026
On June 8, 2026, Asana held its 2026 Annual Meeting of Stockholders, at which shareholders voted on board elections, auditor ratification, and executive compensation matters. Stockholders elected three Class III directors—Krista Anderson-Cop...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.