Asana (ASAN) AI Stock Analysis

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Asana

(NYSE:ASAN)

Rating:58Neutral

Price Target:

$15.50

▲(8.01%Upside)

Asana's overall stock score is driven by strong revenue growth and operational improvements, though profitability and technical indicators remain challenging. The first non-GAAP profitability and strategic initiatives in AI provide a positive outlook, yet the bearish technical signals and valuation concerns weigh heavily on the score.

Positive Factors

Profitability and Margin Expansion

Profitability progress was impressive and ahead of expectations, supporting the accelerating margin expansion bull case.

Strategic Value and Contracts

The signing of a $100mn+ TCV three-year renewal deal, the largest subscription agreement in the company’s history, speaks to the strategic value of Asana.

Negative Factors

Market Position and Competition

Partner checks point to intensifying competition, with Asana losing market share to Monday.com and other private companies.

Revenue Growth and Guidance

Revenue growth decelerated to 8.6% year-over-year with further deceleration expected.

Revenue Retention and Customer Downsizing

The company's dollar based net revenue retention rate dipped to 95% and is expected to decline further.

Asana (ASAN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.38B

Dividend YieldN/A

Average Volume (3M)3.39M

Price to Earnings (P/E)―

Beta (1Y)1.72

Revenue Growth9.84%

EPS Growth13.74%

CountryUS

Employees1,819

SectorTechnology

Sector Strength82

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.05

Shares Outstanding155,760,510

10 Day Avg. Volume6,116,142

30 Day Avg. Volume3,385,937

Financial Highlights & Ratios

PEG Ratio-0.30

Price to Book (P/B)8.70

Price to Sales (P/S)0.00

P/FCF Ratio-18.54

Enterprise Value/Market Cap0.84

Enterprise Value/Revenue1.02

Enterprise Value/Gross Profit4.40

Enterprise Value/Ebitda-3.05

Forecast

1Y Price Target

$16.13

Price Target Upside12.40% Upside

Rating ConsensusHold

Number of Analyst Covering16

Asana Business Overview & Revenue Model

Company DescriptionAsana, Inc. (ASAN) is a software company that operates in the technology sector, specializing in work management solutions. It provides a cloud-based platform designed to help teams organize, track, and manage their work. The company's products are used by organizations to improve team collaboration, streamline workflow processes, and enhance productivity. Asana's platform is accessible through web and mobile applications, offering features such as task assignment, project timelines, progress tracking, and integrations with other tools and services.

How the Company Makes MoneyAsana makes money primarily through a subscription-based revenue model. The company offers its platform on a tiered pricing structure, which includes Free, Premium, Business, and Enterprise plans. These plans provide varying levels of features and support depending on the needs of the customer. Revenue is generated from customers who subscribe to the Premium, Business, or Enterprise plans, with the Enterprise plan offering the most advanced features and customization options for larger organizations. Additionally, Asana may engage in partnerships and integrations with other technology providers to expand its ecosystem and enhance its service offerings, though these are not direct revenue streams. Key factors contributing to Asana's earnings include its ability to attract new users, retain existing customers, and upsell higher-tier plans to its user base.

Asana Key Performance Indicators (KPIs)

Any

Customers Over $5K

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.

Chart InsightsAsana's steady increase in customers spending over $5K reflects robust growth, particularly in non-tech verticals like manufacturing and media. Despite challenges in the tech sector and macroeconomic pressures, Asana's strategic focus on AI and channel expansion is driving customer acquisition. The earnings call highlighted a 20% growth in customers spending over $100K, underscoring enterprise traction. However, the decline in net retention for large customers and tech sector headwinds could pose risks. Asana's transition to positive free cash flow and anticipated profitability signal a strategic pivot towards sustainable growth.

Data provided by:

Main Street Data

Asana Earnings Call Summary

Earnings Call Date:Jun 04, 2025

(Q1-2026)

% Change Since: -5.03%|

Next Earnings Date:Sep 09, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with significant achievements including non-GAAP profitability and strong early success of AI Studio, paired with challenges in net retention rates and buyer scrutiny. While growth was strong in non-tech verticals and international markets, there were pressures from downgrade activities and difficulties in the tech segment. Overall, the positive aspects are balanced by the challenges, leading to a neutral sentiment.

Q1-2026 Updates

Positive Updates

Non-GAAP Profitability Achievement

Asana achieved non-GAAP profitability for the first time in Q1 of FY2026, with non-GAAP operating margins improving over 1,300 basis points year over year.

AI Studio's Early Success

AI Studio surpassed $1 million in ARR, showing strong early momentum and demonstrating significant potential for future revenue growth.

Enterprise Customer Growth

Customers spending $100,000 or more grew 20% year over year, and the company closed the largest deal in its history, a $100 million-plus contract renewal.

Revenue and Cash Flow Improvements

Total revenues were up 9% year over year, exceeding guidance, with adjusted free cash flow margin improving by more than 700 basis points, reaching 5%.

International Revenue Growth

International revenue grew by 11% year over year, driven by strong demand in EMEA and Japan.

New Offerings and Strategic Initiatives

Launched AI Studio Plus tier and Smart Workflow Gallery, enhancing AI capabilities and customer value.

Continued Expansion in Non-Tech Verticals

Non-tech verticals grew mid-teens year over year, now accounting for over 70% of the business.

Negative Updates

Net Retention Rate Pressure

Overall dollar-based net retention rate was 95%, with expected pressure in Q2 due to downgrade activity, particularly in enterprise and tech verticals.

ACV Downgrade in Major Renewal

A $100 million-plus renewal represented a modest ACV downgrade, impacting net retention and the tech vertical.

Increased Buyer Scrutiny and Elongated Sales Cycles

Signs of increased buyer scrutiny and elongation in decision-making processes were observed, particularly in enterprise and corporate customer bases.

Tech Vertical Growth Challenges

While stabilization was noted, the tech vertical continues to drag on overall growth.

Company Guidance

During Asana's fiscal year 2026 Q1 earnings call, the company highlighted several key metrics and strategic initiatives. Asana achieved non-GAAP profitability for the first time, with a total revenue increase of 9% year over year, exceeding the top end of their guidance. Non-GAAP operating margins improved by over 1,300 basis points year over year, shifting from a 9% operating loss to a 4% operating income margin. The adjusted free cash flow margin increased by more than 700 basis points year over year, reaching 5% for the quarter. AI Studio, a significant focus, surpassed $1 million in annual recurring revenue (ARR), showcasing strong early momentum. Asana also reported a 20% year-over-year growth in customers spending $100,000 or more, including a landmark three-year $100 million-plus contract renewal with one of the largest employers globally. Despite a stable in-quarter net retention rate, the company anticipates pressure in Q2 due to continued downgrades, particularly in the tech and enterprise segments. Asana's strategic priorities for fiscal year 2026 include driving customer health, accelerating acquisition, and enhancing customer value through product innovation, particularly with AI. For Q2, Asana projects revenues between $192 million and $194 million, with a non-GAAP operating income of $8 million to $10 million and a non-GAAP net income per share of 4¢ to 5¢. The full-year revenue guidance has been updated to a range of $775 million to $790 million, representing 7% to 9% growth year over year.

Asana Financial Statement Overview

Summary

Asana's financial performance shows strong revenue growth and gross margins but continues to face profitability challenges due to high operating expenses and leverage. The recent improvement in cash flows is a positive sign.

Income Statement

Positive

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

Neutral

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

Positive

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.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
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

Negative

Last Price14.35

Price Trends

50DMA

16.24

Negative

100DMA

17.52

Negative

200DMA

16.44

Negative

Market Momentum

MACD

-0.58

Positive

RSI

32.90

Neutral

STOCH

1.78

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 14.35 is below the 20-day moving average (MA) of 16.99, below the 50-day MA of 16.24, and below the 200-day MA of 16.44, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 32.90 is Neutral, neither overbought nor oversold. The STOCH value of 1.78 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 58 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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPFI	77 Outperform	$1.23B	50.49	-47.39%	―	3.82%	-251.96%
FRSH	71 Outperform	$4.69B	―	-6.85%	―	20.46%	39.37%
FROG	68 Neutral	$4.84B	―	-10.47%	―	21.66%	-50.24%
ZETA	66 Neutral	$3.28B	―	-11.93%	―	40.36%	73.68%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
GBTG	58 Neutral	$3.15B	―	-3.84%	―	4.82%	73.90%
ASAN	58 Neutral	$3.38B	―	-83.36%	―	9.84%	13.74%

* Technology Sector Average

Performance Comparison

ASAN

Asana

14.14

0.82

6.16%

FROG

JFrog

41.96

7.66

22.33%

OPFI

OppFi

13.90

10.63

325.08%

GBTG

Global Business Travel Group

6.49

-0.10

-1.52%

ZETA

Zeta Global Holdings Corp

12.85

-4.53

-26.06%

FRSH

Freshworks

15.63

2.98

23.56%

Asana Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures

Asana Expands Share Repurchase Program by $100 Million

Positive

Jun 3, 2025

On May 30, 2025, Asana‘s Board of Directors approved an increase to its share repurchase program, allowing for an additional $100 million in stock repurchases and removing the program’s expiration date. This move reflects Asana’s strategic financial management and commitment to enhancing shareholder value. In its first quarter fiscal 2026 results, Asana reported a significant financial turnaround with its first positive non-GAAP operating margin and a 9% increase in revenue year-over-year. The launch of AI Studio contributed over $1 million in ARR, showcasing Asana’s potential for long-term growth in AI innovation and strengthening its market position. The company also achieved notable customer growth and received several industry recognitions, highlighting its leadership in the digital workplace solutions sector.

The most recent analyst rating on (ASAN) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on Asana stock, see the ASAN Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy

Asana Appoints Marc Boroditsky to Board of Directors

Positive

Apr 17, 2025

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.

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.