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Asana
(NYSE:ASAN)
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Rating:58Neutral
Price Target:
$7.00
▲(19.86% Upside)
Action:Reiterated
Date:06/13/26
The score is primarily supported by improving cash generation and strong unit economics, reinforced by an earnings call showing better profitability and AI momentum. The main constraints are a weakened balance sheet (higher leverage, declining equity), retention still below 100% with PLG headwinds embedded in guidance, and limited valuation support due to a negative P/E and no dividend.
Positive Factors
High Gross Margins
Asana's exceptionally high TTM gross margin (~89%) reflects durable SaaS unit economics. High gross margins enable operating leverage as revenue scales, support reinvestment into product and AI, and provide a lasting buffer versus competitors on incremental profitability.
Negative Factors
Weakened Balance Sheet
Leverage has increased materially as equity declined, raising the debt-to-equity to roughly 1.53. A thinner equity cushion reduces financial flexibility, increases interest and refinancing risk, and limits the company's ability to invest aggressively or absorb a slowdown without dilutive or costly financing.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Asana's exceptionally high TTM gross margin (~89%) reflects durable SaaS unit economics. High gross margins enable operating leverage as revenue scales, support reinvestment into product and AI, and provide a lasting buffer versus competitors on incremental profitability.
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
$1.70B
Dividend YieldN/A
Average Volume (3M)6.51M
Price to Earnings (P/E)―
Beta (1Y)1.40
Revenue Growth9.47%
EPS Growth31.43%
CountryUS
Employees1,819
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.69
Shares Outstanding160,969,540
10 Day Avg. Volume5,621,385
30 Day Avg. Volume6,508,871
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 Cap1.03
Enterprise Value/Revenue2.15
Enterprise Value/Gross Profit2.43
Enterprise Value/Ebitda-13.46
Forecast
1Y Price Target
$9.00Price Target Upside54.11% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.37
Revenue Forecast (FY)$854.30M
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:Sep 09, 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
52
Neutral
Balance Sheet
43
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 808.63M | 790.81M | 723.88M | 652.50M | 547.21M | 378.44M |
| Gross Profit | 715.69M | 704.05M | 646.68M | 587.98M | 490.65M | 339.54M |
| EBITDA | -129.38M | -145.82M | -229.54M | -235.03M | -388.22M | -258.26M |
| Net Income | -163.41M | -189.02M | -255.54M | -257.03M | -407.77M | -288.34M |
Balance Sheet | ||||||
| Total Assets | 805.51M | 844.09M | 891.41M | 961.96M | 954.96M | 707.03M |
| Cash, Cash Equivalents and Short-Term Investments | 424.64M | 434.05M | 466.88M | 519.46M | 529.30M | 312.03M |
| Total Debt | 248.24M | 249.42M | 268.39M | 277.88M | 271.54M | 255.61M |
| Total Liabilities | 668.53M | 689.97M | 663.89M | 635.56M | 598.39M | 503.19M |
| Stockholders Equity | 136.98M | 154.12M | 227.52M | 326.40M | 356.57M | 203.84M |
Cash Flow | ||||||
| Free Cash Flow | 112.65M | 86.57M | 9.36M | -31.09M | -167.22M | -126.50M |
| Operating Cash Flow | 123.84M | 90.36M | 14.93M | -17.93M | -160.06M | -83.78M |
| Investing Cash Flow | 29.57M | 37.17M | -6.13M | -289.13M | 64.49M | 27.56M |
| Financing Cash Flow | -154.32M | -117.92M | -58.09M | 16.78M | 381.39M | 37.21M |
Asana Technical Analysis
Positive
5.84
Price Trends
7.04
Positive
6.84
Positive
9.84
Negative
Market Momentum
0.05
Negative
53.24
Neutral
58.91
Neutral
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 5.84 is below the 20-day moving average (MA) of 7.11, below the 50-day MA of 7.04, and below the 200-day MA of 9.84, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 58.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.07B | 78.35 | 12.72% | ― | 15.85% | 63.44% | |
71 Outperform | $3.43B | 42.91 | -16.71% | ― | 4.90% | ― | |
70 Outperform | $2.56B | 19.91 | 15.39% | ― | 8.60% | -0.68% | |
69 Neutral | $503.68M | -12.53 | -19.29% | ― | 12.27% | 37.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.70B | 66.30 | 7.70% | ― | 8.12% | -82.54% | |
58 Neutral | $1.70B | -10.62 | -92.84% | ― | 9.47% | 31.43% |
* Technology Sector Average
ASAN
Asana
7.33
-6.55
-47.19%
AGYS
Agilysys
108.98
-4.94
-4.34%
RNG
RingCentral
41.77
14.93
55.63%
ALRM
Alarm
51.50
-3.27
-5.97%
BL
BlackLine
29.13
-24.52
-45.70%
SPT
Sprout Social
8.28
-10.57
-56.07%
Asana Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Asana Announces Board Refresh and Leadership Transition Plans
Neutral
Apr 20, 2026
On April 14, 2026, Asana announced that directors Matt Cohler, Adam D’Angelo, and Lorrie Norrington tendered their resignations from the board, effective at the June 8, 2026 annual meeting of stockholders, as part of an orderly board refresh...
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.