0001477720-26-000039
SEC filingRevenue grew 10% YoY driven by new customers and Enterprise+ mix, with operating loss narrowing significantly.
For the three months ended April 30, 2026, Asana reported revenue of $205.1 million, a 10% increase from $187.3 million in the prior-year period. The growth was primarily driven by the addition of new paying customers and a continued shift in sales mix toward the higher-priced Enterprise+ subscription plan. Gross profit rose to $179.7 million from $168.0 million, though gross margin contracted slightly to 87.6% from 89.7%, reflecting higher hosting and infrastructure costs.
Operating expenses declined 8% to $194.9 million, driven by reductions in research and development (-12%), sales and marketing (-7%), and general and administrative (-2%) expenses. The decreases were largely due to lower personnel-related costs, including stock-based compensation, which fell from $48.2 million to $36.3 million. As a result, loss from operations narrowed significantly to $15.2 million from $43.9 million, and net loss improved to $14.4 million from $40.0 million.
On a non-GAAP basis, income from operations was $23.6 million, up from $8.1 million, and non-GAAP net income was $24.4 million versus $12.0 million. Free cash flow surged to $34.4 million from $4.0 million, driven by improved collections and lower operating cash outflows.
Asana's customer segmentation highlights strong momentum in higher-value accounts. Core customers (those spending over $5,000 on an annualized basis) grew 7% to 26,103 and contributed 76% of revenue, up from 75% a year ago. Customers spending over $100,000 annually increased 12% to 817. Dollar-based net retention rates improved across the board: overall to 96% (from 95%), Core customers to 97% (from 96%), and $100K+ customers to 96% (from 95%). These trends indicate successful expansion within existing accounts and a favorable mix shift toward larger, more committed customers.
Management expects revenue growth to continue, driven by new customer acquisition and the Enterprise+ plan shift. Operating expenses are anticipated to increase in dollar amount but decrease as a percentage of revenue over time, particularly in R&D and sales & marketing. The company highlighted ongoing macroeconomic uncertainty and the impact of AI-assisted technologies on customer discovery, but noted modest recovery in traffic and conversion from small and midsize businesses. The acquisition of StackAI on May 28, 2026 is expected to accelerate the AI platform strategy. Asana's liquidity position remains strong with $424.6 million in cash, cash equivalents, and marketable securities, and $78.3 million available under its credit facility. The stock repurchase program has $154.5 million remaining, with no specified expiration date.
As of April 30, 2026, Asana held $193.7 million in cash and cash equivalents and $231.0 million in marketable securities, totaling $424.6 million. Total debt was $38.3 million (term loan), with no revolver borrowings. Stockholders' equity was $137.0 million, down from $154.1 million at year-end due to stock repurchases and net loss.
The company has a significant purchase commitment with AWS for hosting services: $189.8 million remaining under a contract through November 2029, with annual minimums of $21.8M (rest of FY2027), $54.0M (FY2028), $56.0M (FY2029), and $58.0M (FY2030). Operating lease commitments total $286.6 million undiscounted, partially offset by $16.1 million in sublease income. Additionally, Asana has $21.7 million in standby letters of credit for leases.
Asana operates as a single segment. Geographic revenue: United States $120.3 million (59%), International $84.8 million (41%). Long-lived assets (property and leased assets) primarily in the U.S. ($201.6 million vs. $23.5 million international).
Despite a net loss of $14.4M (vs $40.0M prior year), operating cash flow turned strongly positive at $40.2M, driven by large non-cash charges: stock-based compensation of $36.3M, depreciation and amortization of $6.1M, and deferred contract cost amortization of $6.8M. Working capital provided a net $10.3M boost, notably a $36.5M decrease in accounts receivable partially offset by decreases in deferred revenue and accrued expenses. Capex intensity remained low: total capital expenditures (property and equipment plus capitalized software) of $5.9M represented only 15% of CFO. Free cash flow (though not explicitly stated) would be $34.3M, more than covering no dividends but falling short of the $45.0M in share repurchases, which were partly funded by cash on hand and borrowing (term loan repayment of $2.5M). Net cash used in financing activities of $41.9M reflects the repurchases and minor equity proceeds. Overall, the cash flow statement shows improved operational cash generation, but heavy buybacks reduced cash reserves by $5.9M.