Asana (ASAN) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: N/A
• Average Volume (3M): 4.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• 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: 3,619,055
• 30 Day Avg. Volume: 4,190,368
• 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: 0.97
• Enterprise Value/Revenue: 4.30
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -18.04
• 1Y Price Target: $17.05
• Price Target Upside: 22.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 51 Neutral
• Price Target: $14.00 ▲(0.79% Upside)

Asana's overall stock score is primarily influenced by its financial performance, which highlights strong gross margins but significant profitability challenges. The positive sentiment from the earnings call, with improved margins and growth in AI and international markets, provides some optimism. However, valuation concerns and neutral technical indicators temper the overall outlook.

Positive Factors

Revenue Growth

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

AI Studio Performance

The rapid growth in AI Studio ARR suggests successful innovation and adoption, potentially driving future revenue and market leadership.

International Growth

Strong international growth highlights Asana's expanding global footprint, diversifying revenue streams and reducing dependency on the US market.

Negative Factors

Profitability Challenges

Ongoing profitability issues, with negative net income, suggest challenges in cost management and achieving sustainable financial health.

SEO Challenges

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

Tech Sector Headwinds

Tech sector headwinds may slow growth, as sector-wide challenges can impact demand and competitive positioning.

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: 13.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 13.89 is below the 20-day moving average (MA) of 13.94, below the 50-day MA of 14.16, and below the 200-day MA of 16.79, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.56 is Neutral, neither overbought nor oversold. The STOCH value of 56.74 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
ALRM	74 Outperform	2.63B	22.19	16.24%	―	7.81%	20.84%
AGYS	73 Outperform	2.93B	211.35	4.95%	―	17.91%	-86.60%
RNG	65 Neutral	2.78B	-227.58	4.24%	―	6.47%	90.60%
SPT	62 Neutral	826.33M	-14.80	-37.20%	―	14.79%	27.52%
BL	61 Neutral	3.27B	42.51	21.25%	―	7.99%	-28.47%
ASAN	51 Neutral	$3.35B	―	-80.55%	―	9.74%	22.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.

Asana Announces New CEO Dan Rogers Appointment

On June 25, 2025, Asana announced the appointment of Dan Rogers as the new CEO, effective July 21, 2025, succeeding co-founder Dustin Moskovitz, who will remain as Board Chair. Rogers, with a strong background in leading high-growth technology companies, is expected to drive Asana’s next phase of growth and innovation, particularly in AI, as the company continues to be a major player in the enterprise work management industry.

Asana Holds Annual Stockholders Meeting on June 16

On June 16, 2025, Asana, Inc. held its Annual Meeting of Stockholders, where three key proposals were voted on. Stockholders elected three Class II directors to serve until 2028, ratified PricewaterhouseCoopers LLP as the independent accounting firm for the fiscal year ending January 31, 2026, and approved the compensation of the company’s named executive officers. These decisions reflect the company’s ongoing governance and financial management strategies.