0001477720-25-000200
SEC filingRevenue grew 10% YoY driven by new customers and mix shift to higher-tier plans, with gross margin expanding to 90%.
For the three months ended July 31, 2025, Asana reported revenue of $196.9 million, a 10% increase compared to $179.2 million in the same period last year. The growth was primarily attributed to the addition of new paying customers and a continued shift in sales mix toward higher-priced subscription plans, such as Enterprise and Enterprise+. Gross profit rose to $176.7 million, yielding a gross margin of 90%, up from 89% in the prior year quarter. The margin expansion was driven by increased revenue from new customers and the mix shift to higher-tier plans, partially offset by higher amortization of capitalized software costs and professional services costs.
Operating expenses decreased 4% year-over-year to $226.2 million, driven by a 13% reduction in research and development expenses (down $11.8 million) and a 2% decline in sales and marketing expenses (down $2.0 million). The R&D decrease was primarily due to lower personnel-related costs and increased capitalization of internal-use software. General and administrative expenses increased 11% to $40.1 million, mainly due to higher stock-based compensation. As a result, loss from operations improved to $49.5 million from $76.8 million in the prior year, and net loss narrowed to $48.4 million from $72.2 million.
Asana does not report segment-level financials in its MD&A. However, key business metrics provide insight into customer mix and momentum. As of July 31, 2025, the company had 25,006 Core customers (spending over $5,000 annually), up 9% from 22,948 a year earlier. These customers contributed 76% of revenue in the quarter, compared to 75% in the prior year. Customers spending over $100,000 annually grew to 770 from 649, a 19% increase. Dollar-based net retention rate for all customers was 96%, down from 98% in the prior year, reflecting macroeconomic pressure on renewals. For Core customers, net retention was 96% (vs. 99% prior), and for $100K+ customers it was 95% (vs. 103% prior). The company also noted a landmark $100 million, three-year subscription agreement with a global technology leader during the quarter.
Management did not provide quantitative forward guidance in this MD&A. However, they indicated expectations for continued investment in innovation and AI integration, with R&D expenses expected to increase in dollar amount but decrease as a percentage of revenue over time. Sales and marketing expenses are expected to remain the largest operating expense in dollar terms, with ongoing strategic investments. The company highlighted macroeconomic uncertainty (inflation, interest rates, geopolitical unrest) as likely to continue affecting customer buying patterns and sales cycles. Asana believes its current cash, cash equivalents, marketable securities ($475.2 million), and available credit facility ($78.3 million undrawn) are sufficient to meet working capital and capital expenditure needs for at least the next 12 months.
As of July 31, 2025, Asana holds $184.1M in cash and equivalents and $291.1M in marketable securities, totaling $475.2M in liquid assets. Total debt (term loan net carrying amount) is $42.1M, with no other borrowings. The company has $78.3M available under its revolving credit facility. Stockholders' equity stands at $224.6M, reflecting a net loss of $88.4M in the first half of FY2026 and $43.4M in stock repurchases.
The most significant commitment is the November 2024 AWS hosting contract requiring $255.0M in spending from December 2024 to November 2029. As of July 31, 2025, $233.4M remains, with $20.4M due within one year, $99.0M in years 2-3, and $114.0M thereafter. Additionally, operating lease obligations total $304.1M undiscounted ($215.5M on-balance-sheet), and $21.7M in standby letters of credit support these leases. No other material purchase commitments are disclosed.
Asana's board authorized an additional $100.0M for stock repurchases on May 30, 2025, bringing total authorization to $250.0M (original $150.0M). In the first half of FY2026, $43.4M was used to repurchase 2.992M shares at a weighted-average price of $14.51. Remaining authorization is $128.2M. The company did not pay dividends. Debt repayment totaled $2.5M in the period, with $39.4M principal due in FY2027. Capital expenditures (including capitalized software) were $7.2M, or 1.9% of revenue.
Asana operates as a single reportable segment in the work management platform market. Geographic revenue breakdown is provided: U.S. revenue was $228.0M (59.3%) and international $156.2M (40.7%) for the six months ended July 31, 2025. Long-lived assets (property, equipment, and operating lease ROU assets) are primarily in the U.S. ($242.3M vs. $14.3M international). No further segment detail is disclosed.
Operating cash flow (CFO) of $46.6M significantly exceeded the net loss of $88.4M, indicating strong cash generation relative to accounting losses. The primary non-cash add-back was stock-based compensation ($110.3M), which more than offset the net loss. Working capital provided a net positive contribution of $11.7M, led by accounts receivable collections ($17.8M) and deferred revenue growth ($10.8M), partially offset by declines in accrued expenses and operating lease liabilities.
Capex intensity (capex / CFO) was 15.5%, up from 39.2% in the prior period but still moderate. Free cash flow (CFO minus capex) was $39.4M, though not explicitly stated. Share repurchases of $43.4M nearly consumed the entire operational cash flow, leaving minimal net cash after financing activities. The company also repaid $2.5M of term loan.
Anomalies: The $4.0M positive foreign exchange effect contrasts with a $0.2M loss last year. No dividends were paid. Overall, cash flow quality is high, with operational improvements driving a 234% YoY increase in CFO.