Asana (ASAN) AI Stock Analysis

• Market Cap: $3.93B
• Dividend Yield: N/A
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• Revenue Growth: 10.94%
• EPS Growth: 4.54%
• Country: US
• Employees: 1,819
• Sector: Technology
• Sector Strength: 69
• Industry: Software - Application
• EPS (TTM): -1.11
• Shares Outstanding: 147,663,350
• 10 Day Avg. Volume: 1,862,980
• 30 Day Avg. Volume: 2,716,853
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.33
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.33
• Price Target Upside: -5.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

Asana's overall score reflects its strong revenue growth and strategic initiatives in AI and non-tech verticals. However, ongoing profitability challenges, technical bearish trends, and valuation concerns weigh on the stock. The positive earnings call and strategic corporate events are key strengths, but high leverage and macroeconomic impacts are notable risks.

Positive Factors

Financial Performance

ASAN reported 4Q25 results that beat consensus on revenue (by 0.1%) and adjusted operating income (by $4.3mn).

Operational Efficiency

New CFO Sonalee Parekh has a strong track record of expense management and is focused on greater efficiency through sales and marketing, research and development, and general and administrative expenses.

Product Innovation

Asana offers a differentiated collaboration solution for the enterprise that can orchestrate work across multiple AI agents and human teams.

Negative Factors

Leadership Changes

Co-founder, CEO and Chair of Asana, Dustin Moskovitz, will retire from the CEO position upon the appointment of a successor.

Market Conditions

Investors likely question the forward growth trajectory given all of the moving parts of the business and the macro backdrop.

Revenue Guidance

FY26 revenue growth guidance fell short of consensus.

Asana Business Overview & Revenue Model

Company Description

Asana, Inc., together with its subsidiaries, operates a work management platform for individuals, team leads, and executives in the United States and internationally. The company's platform enables teams to orchestrate work from daily tasks to cross-functional strategic initiatives; and manages product launches, marketing campaigns, and organization-wide goal settings. It serves customers in industries, such as technology, retail, education, non-profit, government, healthcare, media, and financial services. The company was formerly known as Smiley Abstractions, Inc. and changed its name to Asana, Inc. in July 2009. Asana, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

How the Company Makes Money

Asana makes money primarily through a subscription-based revenue model. The company offers several pricing tiers, including Basic, Premium, Business, and Enterprise, each with a different set of features tailored to the needs of different organizations. Users can access the Basic plan for free, while the Premium, Business, and Enterprise plans require a monthly or annual subscription fee. The pricing structure is based on the number of users within an organization, allowing Asana to scale its revenue with its clients' growth. Additionally, Asana collaborates with various technology partners to enhance its platform capabilities and expand its reach, further contributing to its revenue streams. Factors such as the increasing demand for remote work solutions and digital transformation initiatives across industries have also positively impacted Asana's earnings.

Asana Financial Statement Overview

Summary

Asana shows strong revenue growth and gross margins but faces profitability challenges with negative net and EBIT margins. The balance sheet reflects high leverage, but cash flow management is improving, turning positive in recent periods.

Income Statement

Asana's revenue has shown consistent growth over the years, with a TTM revenue of $723.9 million, a 10.9% increase from the previous year. The gross profit margin remains strong at 89.3% TTM, indicating efficient cost management. However, the company continues to operate at a loss, with a net profit margin of -35.3% TTM, primarily due to high operating expenses. The negative EBIT and EBITDA margins at -36.8% and -32.9% respectively, highlight ongoing profitability challenges.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 0.98 TTM, which is relatively high and indicates significant leverage. The equity ratio stands at 25.5% TTM, showing moderate reliance on equity. Return on equity is negative at -112.3% TTM, reflecting the company's unprofitable operations. Despite these challenges, the company maintains a healthy cash position with $466.9 million in cash and equivalents.

Cash Flow

Asana's cash flow is improving, with a positive operating cash flow of $14.9 million TTM compared to negative cash flows in previous years. The free cash flow has also turned positive at $6.57 million TTM, indicating improving cash management. The company's operating cash flow to net income ratio is -0.06 TTM, showing a small but positive trend in operational efficiency.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
723.88M	652.50M	547.21M	378.44M	227.00M
	Gross Profit
646.68M	587.98M	490.65M	339.54M	198.26M
	EBIT
-266.74M	-270.00M	-407.83M	-265.18M	-175.57M
	EBITDA
-229.54M	-235.03M	-388.22M	-256.72M	-154.12M
	Net Income Common Stockholders
-255.54M	-257.03M	-407.77M	-288.34M	-211.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
466.88M	519.46M	529.30M	312.03M	386.27M
	Total Assets
891.41M	961.96M	954.96M	707.03M	731.12M
	Total Debt
263.09M	277.88M	271.54M	255.61M	585.86M
	Net Debt
78.36M	41.22M	-255.02M	15.20M	325.98M
	Total Liabilities
663.89M	635.56M	598.39M	503.19M	743.91M
	Stockholders Equity
227.52M	326.40M	356.57M	203.84M	-12.79M
Cash Flow		Free Cash Flow
9.36M	-31.09M	-167.22M	-126.50M	-151.18M
	Operating Cash Flow
14.93M	-17.93M	-160.06M	-83.78M	-92.87M
	Investing Cash Flow
-6.13M	-289.13M	64.49M	27.56M	-158.94M
	Financing Cash Flow
-58.09M	16.78M	381.39M	37.21M	201.00M

Asana Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAN, the sentiment is Positive. The current price of 16.27 is above the 20-day moving average (MA) of 15.33, above the 50-day MA of 15.85, and above the 200-day MA of 15.99, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 85.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASAN.

Asana Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPFI	73 Outperform	$858.00M	51.69	33.59%	―	2.71%	―
FRSH	70 Neutral	$4.34B	―	-6.85%	―	20.46%	39.37%
FROG	68 Neutral	$3.95B	―	-9.53%	―	22.47%	-5.48%
ZETA	66 Neutral	$3.23B	―	-11.93%	―	38.02%	66.18%
ASAN	63 Neutral	$3.93B	―	-92.26%	―	10.94%	4.54%
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
GBTG	55 Neutral	$3.29B	―	-12.22%	―	5.81%	17.19%

Asana Corporate Events

Asana Appoints Marc Boroditsky to Board of Directors

On April 16, 2025, Asana appointed Marc Boroditsky to its Board of Directors as a Class I director, expanding the board to nine members. Boroditsky, known for his expertise in scaling revenue operations at SaaS companies like Twilio and Cloudflare, is expected to contribute significantly to Asana’s growth as it advances its platform for AI and human coordination. His appointment is seen as a strategic move to enhance Asana’s market position and operational capabilities, leveraging his experience in transforming go-to-market strategies and driving enterprise sales growth.

Spark’s Take on ASAN Stock

According to Spark, TipRanks’ AI Analyst, ASAN is a Neutral.

Asana’s strong revenue growth and strategic focus on AI are promising, but ongoing profitability challenges and technical bearish trends weigh on the stock. The CEO transition is a positive strategic move, but valuation concerns remain with a negative P/E ratio. Overall, the stock presents a mixed outlook with significant potential, but also substantial risks.

To see Spark’s full report on ASAN stock, click here.

Asana CEO Transition: Moskovitz to Chair Board

On March 10, 2025, Asana announced that its Co-Founder and CEO, Dustin Moskovitz, will transition to the role of Chair of the Board once a new CEO is appointed. The Board has initiated a search for a successor, and Moskovitz will continue to focus on AI strategy and maintain his significant shareholdings in the company. This transition is part of Asana’s plan to usher in a new era of growth and profitability, leveraging its strong track record of innovation and recent AI advancements. Moskovitz, who co-founded Asana in 2008, has been instrumental in its growth, with the company now serving over 150,000 customers worldwide and generating over $700 million in annual revenue.