Asana (ASAN) AI Stock Analysis

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Asana

(NYSE:ASAN)

Rating:64Neutral

Price Target:

$16.00

▲(5.82%Upside)

Asana's overall score is driven by strong financial performance in revenue growth and cash flow, significant corporate events, and positive earnings call highlights. However, valuation challenges and technical indicators suggest caution, particularly in the tech segment.

Positive Factors

Profitability and Margins

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

Strategic Deals

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 Competition

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

Revenue Growth

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

Revenue Retention

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

$3.56B

Dividend YieldN/A

Average Volume (3M)3.59M

Price to Earnings (P/E)―

Beta (1Y)1.64

Revenue Growth9.84%

EPS Growth13.74%

CountryUS

Employees1,819

SectorTechnology

Sector Strength91

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.05

Shares Outstanding155,760,510

10 Day Avg. Volume3,458,837

30 Day Avg. Volume3,589,614

Financial Highlights & Ratios

PEG Ratio-1.43

Price to Book (P/B)13.85

Price to Sales (P/S)0.00

P/FCF Ratio221.01

Enterprise Value/Market Cap0.92

Enterprise Value/Revenue1.15

Enterprise Value/Gross Profit4.98

Enterprise Value/Ebitda-3.65

Forecast

1Y Price Target

$16.17

Price Target Upside6.94% Upside

Rating ConsensusHold

Number of Analyst Covering16

Asana Business Overview & Revenue Model

Company DescriptionAsana, 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 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: 0.07%|

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 shows strong revenue growth and improving cash flow metrics, but continues to face profitability challenges with negative net margins and return on equity.

Income Statement

Positive

Asana has demonstrated a strong revenue growth trajectory, with revenue increasing significantly over the years. The TTM revenue growth is robust at 13.2% compared to the previous year. However, the company continues to face profitability challenges with a negative net profit margin of -31.4% and an EBIT margin of -33.1% for the TTM. Despite high gross profit margins at 89.4%, the high operating expenses impact overall profitability.

Balance Sheet

Neutral

The balance sheet shows moderate stability with a debt-to-equity ratio of 1.10, indicating a balanced approach to leveraging. The equity ratio stands at 26.9%, reflecting a moderate level of financial risk. However, the return on equity is negative at -98.1% due to ongoing net losses, highlighting profitability challenges that impact shareholder value.

Cash Flow

Positive

Asana's cash flow statement shows a positive trend with improving free cash flow and operating cash flow. The TTM free cash flow growth rate is 58.7%, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.10, suggesting improved cash conversion despite negative net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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
EBITDA	-229.54M	-235.03M	-388.22M	-256.72M	-154.12M
Net Income	-255.54M	-257.03M	-407.77M	-288.34M	-211.71M
Balance Sheet
Total Assets	891.41M	961.96M	954.96M	707.03M	731.12M
Cash, Cash Equivalents and Short-Term Investments	466.88M	519.46M	529.30M	312.03M	386.27M
Total Debt	268.39M	277.88M	271.54M	255.61M	585.86M
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

Neutral

Last Price15.12

Price Trends

50DMA

15.30

Negative

100DMA

15.43

Negative

200DMA

16.65

Negative

Market Momentum

MACD

0.05

Negative

RSI

57.75

Neutral

STOCH

82.75

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAN, the sentiment is Neutral. The current price of 15.12 is above the 20-day moving average (MA) of 14.12, below the 50-day MA of 15.30, and below the 200-day MA of 16.65, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPFI	75 Outperform	$1.01B	50.49	-47.39%	―	3.82%	-251.96%
FRSH	73 Outperform	$4.27B	―	-6.85%	―	20.46%	39.37%
ZETA	69 Neutral	$3.68B	―	-11.93%	―	40.36%	73.68%
FROG	68 Neutral	$4.85B	―	-10.47%	―	21.66%	-50.24%
GBTG	65 Neutral	$3.19B	―	-3.84%	―	4.82%	73.90%
ASAN	64 Neutral	$3.56B	―	-83.36%	―	9.84%	13.74%
Sector *	51 Neutral	AU$1.67B	2.47	-31.66%	3.57%	16.42%	-7.36%

* Technology Sector Average

Performance Comparison

ASAN

Asana

15.12

0.04

0.27%

FROG

JFrog

41.97

3.74

9.78%

OPFI

OppFi

11.65

7.66

191.98%

GBTG

Global Business Travel Group

6.66

-0.04

-0.60%

ZETA

Zeta Global Holdings Corp

16.56

-3.73

-18.38%

FRSH

Freshworks

14.49

1.25

9.44%

Asana Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Asana Announces New CEO Dan Rogers Appointment

Positive

Jun 25, 2025

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.

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 ChangesShareholder Meetings

Asana Holds Annual Stockholders Meeting on June 16

Neutral

Jun 20, 2025

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.

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.

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.

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.Date of analysis: Jul 09, 2025