Asana (ASAN) AI Stock Analysis

• Market Cap: $1.68B
• Dividend Yield: N/A
• Average Volume (3M): 5.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 9.47%
• EPS Growth: 16.97%
• Country: US
• Employees: 1,819
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 157,538,310
• 10 Day Avg. Volume: 5,912,925
• 30 Day Avg. Volume: 5,324,958
• 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: 1.04
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: -9.24
• 1Y Price Target: $13.91
• Price Target Upside: 95.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): $857.29M

• Rating: 46 Neutral
• Price Target: $6.50 ▼(-8.45% Downside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is held back primarily by weak technicals (sharp downtrend and bearish momentum) and mixed fundamentals (ongoing losses and higher leverage despite strong gross margins and improving cash flow). The latest earnings call was a relative positive with beats and raised guidance, but retention pressure and market headwinds keep overall risk elevated; valuation support is limited due to negative earnings.

Positive Factors

High gross margins

Asana's ~89% gross margin reflects a highly scalable SaaS cost structure with low incremental hosting and delivery costs. That structural margin advantage supports durable operating leverage as revenue scales, enabling reinvestment in product, R&D and go-to-market without eroding core unit economics.

Improving free cash flow

A 78% TTM free cash flow increase signals stronger cash conversion from operations and reduces dependence on external financing. Sustained FCF gains improve financial flexibility for product investment, acquisitions, and buybacks, and help absorb short-term margin pressure while pursuing growth.

Enterprise expansion & AI adoption

Growth in large customers and adoption of AI features demonstrates rising enterprise traction and product differentiation. Larger accounts raise ARPU and create stickier revenue streams, improving long-term retention potential and enabling higher-margin, subscription-based enterprise sales.

Negative Factors

Elevated leverage

A debt-to-equity ratio of 1.14 indicates significant leverage for a growth software company. Elevated debt increases financial risk if cash flow or margins falter, limits strategic flexibility, raises interest costs and can constrain investment during periods when profitable scaling remains incomplete.

Persistent GAAP unprofitability

Despite high gross margins, Asana reports negative net and EBIT margins, showing operating costs still outpace core profits. Persistent unprofitability limits retained earnings, depresses ROE, and forces reliance on cash reserves or debt, making sustained investments and long-term returns more uncertain.

Retention & SMB headwinds

Net retention around 96% and SMB funnel pressure signal ongoing challenges expanding customer spend. Sub-100% NRR implies revenue churn/downsizing risks and makes long-term revenue growth more dependent on new sales and enterprise expansion, increasing execution risk in a competitive market.

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, offering various pricing tiers that cater to different organizational needs. The company's key revenue streams include its Premium and Business plans, which provide advanced features and capabilities for teams, and its Enterprise plan, which offers custom solutions for larger organizations. Asana also benefits from strategic partnerships and integrations with other software tools, enhancing its platform's value and driving user acquisition. Additionally, the company invests in marketing and sales efforts to expand its customer base and retain existing clients, contributing to its overall earnings.

Asana Financial Statement Overview

Summary

Revenue is growing and gross margin is very strong (~89%), and free cash flow improved sharply (TTM FCF growth +78%). However, profitability remains weak with negative net/EBIT margins, and the balance sheet shows elevated leverage (debt-to-equity 1.14) with negative ROE.

Income Statement

Asana's revenue has shown consistent growth, with a TTM increase of 2.27%. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin remains strong at approximately 89%, indicating efficient cost management relative to revenue. Despite revenue growth, the persistent negative margins highlight ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.14 in the TTM, indicating significant leverage. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is low, pointing to a reliance on debt financing. These factors suggest financial instability and potential risks if the company cannot improve its profitability.

Cash Flow

Asana's cash flow situation shows improvement, with a significant increase in free cash flow growth of 78.20% in the TTM. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net income. However, the free cash flow to net income ratio suggests that while cash flow is improving, profitability remains a challenge. Overall, the cash flow position is strengthening but still requires careful management.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	773.57M	723.88M	652.50M	547.21M	378.44M	227.00M
Gross Profit	692.21M	646.68M	587.98M	490.65M	339.54M	198.26M
EBITDA	-189.88M	-229.54M	-235.03M	-388.22M	-258.26M	-154.12M
Net Income	-219.11M	-255.54M	-257.03M	-407.77M	-288.34M	-211.71M
Balance Sheet
Total Assets	840.43M	891.41M	961.96M	954.96M	707.03M	731.12M
Cash, Cash Equivalents and Short-Term Investments	464.02M	466.88M	519.46M	529.30M	312.03M	386.27M
Total Debt	255.23M	268.39M	277.88M	271.54M	255.61M	585.86M
Total Liabilities	652.07M	663.89M	635.56M	598.39M	503.19M	743.91M
Stockholders Equity	188.36M	227.52M	326.40M	356.57M	203.84M	-12.79M
Cash Flow
Free Cash Flow	72.39M	9.36M	-31.09M	-167.22M	-126.50M	-151.18M
Operating Cash Flow	78.63M	14.93M	-17.93M	-160.06M	-83.78M	-92.87M
Investing Cash Flow	-31.81M	-6.13M	-289.13M	64.49M	27.56M	-158.94M
Financing Cash Flow	-61.98M	-58.09M	16.78M	381.39M	37.21M	201.00M

Asana Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 7.1 is below the 20-day moving average (MA) of 7.98, below the 50-day MA of 10.79, and below the 200-day MA of 13.43, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 29.73 is Positive, neither overbought nor oversold. The STOCH value of 51.75 is Neutral, 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	71 Outperform	$2.03B	67.32	10.68%	―	17.77%	-76.05%
RNG	66 Neutral	$3.12B	75.64	―	―	5.45%	―
ALRM	66 Neutral	$2.38B	19.42	16.84%	―	7.35%	2.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	59 Neutral	$381.90M	-8.72	-23.42%	―	13.09%	32.34%
BL	53 Neutral	$2.10B	91.23	6.29%	―	7.36%	-40.62%
ASAN	46 Neutral	$1.68B	-7.62	-102.48%	―	9.47%	16.97%

Asana Corporate Events

Asana Announces Leadership Changes Amid Strong Q3 Results

On November 30, 2025, Asana announced the resignations of Anne Raimondi as Chief Operating Officer and Eleanor Lacey as General Counsel and Corporate Secretary, both effective December 31, 2025. They will transition to advisory roles until March 31, 2026, with no disagreements cited for their departures. Katie Colendich will succeed Lacey, bringing extensive legal leadership experience from Asana and HP, Inc. Asana also reported strong financial results for Q3 fiscal 2026, with revenues of $201 million, a 9% increase year-over-year, and improved non-GAAP operating margins. The company introduced AI Teammates, enhancing productivity and collaboration, and held significant industry events, positioning itself for long-term growth and innovation in the AI-driven work management sector.

The most recent analyst rating on (ASAN) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Asana stock, see the ASAN Stock Forecast page.