Asana (ASAN) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: N/A
• Average Volume (3M): 3.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 9.74%
• EPS Growth: 22.36%
• Country: US
• Employees: 1,819
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.06
• Shares Outstanding: 156,685,240
• 10 Day Avg. Volume: 2,531,418
• 30 Day Avg. Volume: 3,365,874
• PEG Ratio: 3.74
• Price to Book (P/B): 21.52
• Price to Sales (P/S): 6.76
• P/FCF Ratio: 523.40
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 4.30
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -18.04
• 1Y Price Target: $16.50
• Price Target Upside: 25.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $14.50 ▲(10.69% Upside)

Asana's overall stock score is primarily influenced by its financial performance, which shows strong gross margins but significant profitability challenges. The earnings call provided a positive outlook with revenue growth and improved margins, which partially offsets the negative valuation and mixed technical indicators. The absence of dividends and negative P/E ratio weigh on the valuation score.

Positive Factors

Revenue Growth

Asana's 10% YoY revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion potential.

Operating Margin Improvement

Significant improvement in operating margins reflects enhanced cost efficiency and profitability, strengthening Asana's financial health.

AI Studio Performance

Rapid growth in AI Studio ARR suggests successful product innovation and adoption, positioning Asana well in the evolving tech landscape.

Negative Factors

Profitability Challenges

Ongoing losses and negative margins highlight profitability issues, potentially limiting Asana's ability to reinvest and grow sustainably.

SEO Challenges

SEO challenges affecting traffic could hinder customer acquisition and growth, particularly in the competitive SMB segment.

Negative Return on Equity

A negative ROE indicates inefficiency in generating returns from equity, raising concerns about long-term shareholder value creation.

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 generates revenue primarily through a subscription-based model. The company offers different pricing tiers for its software, including a free version with limited features and several paid plans that provide more advanced functionalities targeted at businesses of varying sizes. Key revenue streams include monthly and annual subscriptions from individual users as well as large enterprise clients, who pay for enhanced features, security, and support. Asana also benefits from partnerships with other software providers and integrations with popular tools like Slack, Microsoft Teams, and Google Workspace, which can drive additional user acquisition and retention. Moreover, Asana's focus on customer success and retention helps ensure a stable revenue flow as existing customers renew their subscriptions.

Asana Financial Statement Overview

Summary

Asana shows strong gross margins but faces profitability challenges with negative net income and EBIT margins. While leverage is moderate, the company struggles with negative returns on equity. Cash flow improvements are notable, yet the company needs to address its profitability issues to enhance financial health.

Income Statement

Asana's income statement shows a strong gross profit margin of approximately 89.6% TTM, indicating efficient cost management relative to revenue. However, the company is experiencing negative net profit and EBIT margins, reflecting ongoing losses. Revenue growth has slowed to 2.4% TTM, suggesting challenges in accelerating top-line growth.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.96 TTM, indicating manageable leverage. However, the negative return on equity of -89.7% TTM highlights significant profitability challenges. The equity ratio stands at 25.4% TTM, suggesting a reasonable level of equity financing relative to assets.

Cash Flow

Cash flow analysis shows a substantial improvement in free cash flow growth of 173.7% TTM, indicating better cash generation. The operating cash flow to net income ratio is 0.11 TTM, reflecting limited cash flow relative to net losses. The free cash flow to net income ratio of 0.85 TTM suggests improved cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	756.42M	723.88M	652.50M	547.21M	378.44M	227.00M
Gross Profit	677.57M	646.68M	587.98M	490.65M	339.54M	198.26M
EBITDA	-180.11M	-229.54M	-235.03M	-388.22M	-258.26M	-154.12M
Net Income	-208.00M	-255.54M	-257.03M	-407.77M	-288.34M	-211.71M
Balance Sheet
Total Assets	883.16M	891.41M	961.96M	954.96M	707.03M	731.12M
Cash, Cash Equivalents and Short-Term Investments	475.22M	466.88M	519.46M	529.30M	312.03M	386.27M
Total Debt	257.62M	268.39M	277.88M	271.54M	255.61M	585.86M
Total Liabilities	658.60M	663.89M	635.56M	598.39M	503.19M	743.91M
Stockholders Equity	224.56M	227.52M	326.40M	356.57M	203.84M	-12.79M
Cash Flow
Free Cash Flow	40.62M	9.36M	-31.09M	-167.22M	-126.50M	-151.18M
Operating Cash Flow	47.56M	14.93M	-17.93M	-160.06M	-83.78M	-92.87M
Investing Cash Flow	434.00K	-6.13M	-289.13M	64.49M	27.56M	-158.94M
Financing Cash Flow	-84.89M	-58.09M	16.78M	381.39M	37.21M	201.00M

Asana Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 13.1 is below the 20-day moving average (MA) of 14.03, below the 50-day MA of 14.01, and below the 200-day MA of 15.68, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 7.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASAN.

Asana Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	76 Outperform	$3.42B	141.99	8.74%	―	17.77%	-76.05%
ALRM	68 Neutral	$2.42B	20.07	17.95%	―	7.81%	20.84%
BL	67 Neutral	$3.49B	45.79	23.79%	―	7.99%	-28.47%
RNG	63 Neutral	$2.49B	193.00	―	―	5.45%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	59 Neutral	$600.91M	―	-32.50%	―	13.09%	32.34%
ASAN	52 Neutral	$3.11B	-14.65	-80.55%	―	9.74%	22.36%

Asana Corporate Events

Asana Subleases Office Space, Faces Impairment Expenses

On September 5, 2025, Asana, Inc. subleased a portion of its headquarters office space in San Francisco, amounting to approximately 55,513 square feet. This sublease is set to commence in October 2025 and last until September 2029. The company’s management has determined that this sublease will lead to impairment expenses estimated between $29 million and $32 million for the period ending October 31, 2025. These figures are preliminary and subject to change following the completion of financial statements and audits for the fiscal year ending January 31, 2026. However, Asana does not anticipate significant cash expenditures related to these impairment charges.

The most recent analyst rating on (ASAN) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Asana stock, see the ASAN Stock Forecast page.

Asana, Inc. Earnings Call: Strong Growth Amid Challenges

Asana, Inc. recently held its earnings call, presenting a generally positive outlook characterized by solid revenue growth, improved operating margins, and strong performances in AI Studio and international markets. Despite these positive indicators, the company acknowledged ongoing challenges within the tech sector and evolving search dynamics, which could potentially impact growth among small and medium-sized businesses (SMBs).

Asana Reports Strong Q2 Results and Raises Guidance

Asana, Inc. is a prominent work management platform that facilitates collaboration between humans and AI, serving a diverse range of clients across various industries. In its latest earnings report for the second quarter of fiscal 2026, Asana announced a revenue of $196.9 million, surpassing the high end of its guidance and marking a 10% increase year over year. The company also reported significant improvements in its operating margins, with a GAAP operating margin improvement of 18 percentage points and a non-GAAP operating margin improvement of 16 percentage points compared to the previous year.