Asana (ASAN) AI Stock Analysis

• Market Cap: $3.28B
• Dividend Yield: N/A
• Average Volume (3M): 3.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: 9.74%
• EPS Growth: 22.36%
• Country: US
• Employees: 1,819
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.06
• Shares Outstanding: 155,760,510
• 10 Day Avg. Volume: 3,883,301
• 30 Day Avg. Volume: 3,710,962
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 4.30
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -18.04
• 1Y Price Target: $16.65
• Price Target Upside: 17.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 62 Neutral
• Price Target: $15.50 ▲(8.92% Upside)

Asana's overall score reflects strong revenue growth and improving cash flow, balanced by significant profitability challenges and a negative P/E ratio. The positive earnings call sentiment and strategic initiatives in AI and international markets are promising, but tech sector headwinds and SEO challenges remain risks.

Positive Factors

Earnings

Results in Q2 were broadly ahead of expectations, with solid RPO and customer addition metrics.

Profitability

Q2 operating margins of 7.1% beat consensus at 4.8%, driven by productivity and efficiency efforts.

Strategic Value

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

Shares are considered overvalued compared to peers due to lower growth and margin profile, challenging market position, and customer downsizing trends.

Net Revenue Retention

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

Revenue Growth

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

Asana Business Overview & Revenue Model

Company Description

Asana, Inc. is a leading work management platform that provides software solutions to help teams organize, track, and manage their work. Founded in 2008, the company operates primarily in the technology sector, focusing on productivity and collaboration tools. Asana's core products include its project management software, which allows users to create tasks, assign responsibilities, set deadlines, and visualize project timelines, thereby enhancing team collaboration and efficiency.

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 revenue growth and improving cash flow metrics, but faces significant profitability challenges with negative net profit and EBIT margins. The balance sheet is stable but requires careful debt management.

Income Statement

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

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

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	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	-256.72M	-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: Positive
• Last Price: 14.23
• 50DMA: Positive
• 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 Positive. The current price of 14.23 is above the 20-day moving average (MA) of 13.96, above the 50-day MA of 14.18, and below the 200-day MA of 16.91, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 49.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASAN.

Asana Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FROG	71 Outperform	$5.59B	―	-11.15%	―	21.97%	-69.32%
GBTG	68 Neutral	$3.88B	―	-4.72%	―	3.61%	-44.99%
FRSH	67 Neutral	$3.84B	―	-5.23%	―	19.78%	47.51%
ZETA	66 Neutral	$4.41B	―	-8.21%	―	40.60%	79.56%
OPFI	63 Neutral	$898.38M	50.49	-209.49%	―	6.79%	-593.75%
ASAN	62 Neutral	$3.28B	―	-80.55%	―	9.74%	22.36%
Sector *	61 Neutral	$35.51B	8.11	-10.49%	1.89%	8.55%	-8.72%

Asana Corporate Events

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.