Asana (ASAN)
NYSE:ASAN
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Asana
(NYSE:ASAN)
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Rating:57Neutral
Price Target:
$6.50
▲(4.17% Upside)
Action:ReiteratedDate:03/14/26
The score is driven primarily by improving fundamentals—strong gross margins and a meaningful free-cash-flow inflection—supported by a constructive earnings outlook focused on margin expansion and enterprise/AI momentum. These positives are tempered by balance-sheet leverage and ongoing GAAP losses, while technicals remain decisively bearish with the stock below major moving averages.
Positive Factors
High gross margins
Asana’s sustained high gross margins (~87%–90%) reflect a scalable SaaS cost structure where incremental revenue drops largely to the bottom line. Over 2–6 months this supports durable operating leverage as enterprise adoption grows, enabling reinvestment in product and AI while preserving margin potential.
Negative Factors
Elevated leverage and thin equity cushion
Meaningful leverage and a shrinking equity base reduce Asana’s financial flexibility if macro or execution shocks occur. For a company still transitioning to consistent GAAP profitability, higher debt ratios increase interest and covenant risk and limit the ability to fund opportunistic investments or absorb revenue setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Asana’s sustained high gross margins (~87%–90%) reflect a scalable SaaS cost structure where incremental revenue drops largely to the bottom line. Over 2–6 months this supports durable operating leverage as enterprise adoption grows, enabling reinvestment in product and AI while preserving margin potential.
Read all positive factors
Asana (ASAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend YieldN/A
Average Volume (3M)6.24M
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth9.47%
EPS Growth16.97%
CountryUS
Employees1,819
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.08
Shares Outstanding157,538,310
10 Day Avg. Volume5,112,580
30 Day Avg. Volume6,235,752
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 Cap1.02
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda-9.21
Forecast
1Y Price Target
$10.00Price Target Upside60.26% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)0.36
Revenue Forecast (FY)$854.32M
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 cro...
How the Company Makes Money
Asana primarily makes money by selling subscriptions to its Software-as-a-Service (SaaS) work management platform. Revenue is generated mainly through recurring fees from paid plans, typically priced per user (seat) and billed monthly or annually,...
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 Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 28, 2026
Earnings Call Sentiment Positive
The call highlighted strong execution on profitability, cash flow, enterprise demand, and accelerating AI product traction (AI Studio >$6M ARR and >50% QoQ growth; >200 customers in AI Teammates beta). Management showed disciplined cost management with notable operating margin expansion and improved RPO and deferred revenue. Key risks include persistent PLG/self-serve top-of-funnel headwinds (modeled as a ~2-point ARR drag), NRR remaining below 100% (though improving in-quarter), and limited near-term revenue from AI Teammates. Guidance is cautious but reflects confidence in margin expansion while investing in AI. Overall, positives around enterprise momentum, AI monetization, and margin progress materially outweigh the near-term PLG and retention challenges.Positive Updates
Q4 Revenue Growth
Q4 revenues were $205.6M, up 9% year-over-year.
Negative Updates
PLG / Self-Serve Top-of-Funnel Headwinds
Product-led growth and self-serve SMB acquisition faced headwinds due to LLM-driven changes in search and paid media. Company expects these dynamics to create roughly a 2-percentage-point drag on ARR growth in FY '27 and did not model a recovery in the year.
Read all updates
Q4-2026 Updates
Positive
Negative
Q4 Revenue Growth
Q4 revenues were $205.6M, up 9% year-over-year.
Read all positive updates
Company Guidance
The company guided Q1 FY‑2027 revenue of $202.5M–$204.5M (up 8.1%–9.2% YoY) with an approximate 60 bps constant‑currency tailwind, non‑GAAP operating income of $15M–$17M (7.4%–8.3% margin), non‑GAAP net income per share of $0.07–$0.08 (diluted shares ~241M); for full FY‑2027 it expects revenue of $850M–$858M (up 7.5%–8.5% YoY) with ~20 bps CC tailwind, non‑GAAP operating margin of at least 9.5%, non‑GAAP EPS $0.36–$0.37 (diluted shares ~243M), and gross margin to remain in the high‑80s. The outlook assumes only modest NRR improvement, embeds a ~2‑point ARR drag from PLG/top‑of‑funnel dynamics, expects minimal AI Teammates contribution in H1 with a meaningful ramp in Q4, plans ~$10M of incremental AI R&D, and forecasts Asana’s AI offerings to represent roughly 15% of new ARR in FY‑27.Asana Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
46
Neutral
Cash Flow
72
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 790.81M | 723.88M | 652.50M | 547.21M | 378.44M |
| Gross Profit | 704.05M | 646.68M | 587.98M | 490.65M | 339.54M |
| EBITDA | -145.82M | -229.54M | -235.03M | -388.22M | -258.26M |
| Net Income | -189.02M | -255.54M | -257.03M | -407.77M | -288.34M |
Balance Sheet | |||||
| Total Assets | 844.09M | 891.41M | 961.96M | 954.96M | 707.03M |
| Cash, Cash Equivalents and Short-Term Investments | 434.05M | 466.88M | 519.46M | 529.30M | 312.03M |
| Total Debt | 208.59M | 268.39M | 277.88M | 271.54M | 255.61M |
| Total Liabilities | 689.97M | 663.89M | 635.56M | 598.39M | 503.19M |
| Stockholders Equity | 154.12M | 227.52M | 326.40M | 356.57M | 203.84M |
Cash Flow | |||||
| Free Cash Flow | 86.57M | 9.36M | -31.09M | -167.22M | -126.50M |
| Operating Cash Flow | 90.36M | 14.93M | -17.93M | -160.06M | -83.78M |
| Investing Cash Flow | 37.17M | -6.13M | -289.13M | 64.49M | 27.56M |
| Financing Cash Flow | -117.92M | -58.09M | 16.78M | 381.39M | 37.21M |
Asana Technical Analysis
Negative
6.24
Price Trends
8.41
Negative
10.93
Negative
12.49
Negative
Market Momentum
-0.58
Negative
25.55
Positive
13.05
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 6.24 is below the 20-day moving average (MA) of 7.08, below the 50-day MA of 8.41, and below the 200-day MA of 12.49, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 25.55 is Positive, neither overbought nor oversold. The STOCH value of 13.05 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.02B | 83.96 | 10.50% | ― | 17.77% | -76.05% | |
66 Neutral | $3.25B | 27.07 | -8.90% | ― | 5.45% | ― | |
66 Neutral | $2.13B | 19.16 | 16.41% | ― | 7.35% | 2.44% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $332.20M | -15.56 | -22.88% | ― | 13.09% | 32.34% | |
57 Neutral | $1.41B | -12.84 | -94.12% | ― | 9.47% | 16.97% | |
54 Neutral | $2.21B | 168.71 | 6.57% | ― | 7.36% | -40.62% |
* Technology Sector Average
ASAN
Asana
6.05
-9.13
-60.14%
AGYS
Agilysys
71.81
-4.99
-6.50%
RNG
RingCentral
35.69
8.18
29.73%
ALRM
Alarm
42.87
-14.89
-25.78%
BL
BlackLine
37.07
-13.45
-26.62%
SPT
Sprout Social
5.57
-18.83
-77.17%
Asana Corporate Events
Business Operations and StrategyExecutive/Board Changes
Asana Updates Executive Incentives and Appoints New Accounting Chief
Positive
Mar 13, 2026
On March 10, 2026, Asana’s board compensation committee adopted a new Incentive Bonus Plan that enables performance-based cash awards for selected employees, including the CEO and CFO, tied to a wide range of financial, operational and strat...
Executive/Board Changes
Asana Announces CFO Transition and Leadership Succession Plan
Neutral
Mar 2, 2026
Asana, Inc., a work management platform that integrates AI into enterprise workflows, serves more than 180,000 organizations worldwide through its Work Graph model. The company targets large, complex businesses seeking to connect strategy to execu...
Business Operations and StrategyStock BuybackFinancial Disclosures
Asana Expands Stock Buyback Amid Improving Profitability Trends
Positive
Mar 2, 2026
On February 27, 2026, Asana’s board expanded the company’s stock repurchase program by an additional $160 million, lifting the total authorization to about $199.4 million funded from existing cash and cash equivalents. The move, which ...
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.