Press release·09/04/2026 01:10:54

Overview

Asana is a leading work management platform that enables organizations to coordinate work across human and AI team members. The company offers a core work management product, AI Teammates, and Asana AI Studio to meet the diverse needs of its customers. Asana employs a hybrid go-to-market approach, combining a product-led model, direct sales, and channel partners.

Financial Performance

Asana reported strong financial results for the three and six months ended July 31, 2026, with revenues increasing 10% year-over-year for both periods. This growth was driven by the addition of new paying customers and a continued shift toward the company’s higher-priced Enterprise+ subscription plan.

Table 1: Key Financial Metrics

Metric	Q3 2026	Q3 2025	Change
Revenues	$216.4 million	$196.9 million	+10%
Cost of Revenues	$30.3 million	$20.2 million	+50%
Gross Profit	$186.1 million	$176.7 million	+5%
Gross Margin	86%	90%	-4 pts
Net Loss	$(39.2) million	$(48.4) million	-19%
Non-GAAP Net Income	$23.8 million	$15.1 million	+58%
Free Cash Flow	$40.0 million	$35.4 million	+13%

However, the company’s gross margin declined from 90% to 86% year-over-year, primarily due to increased costs associated with third-party hosting, infrastructure, personnel, and amortization of capitalized software development. This resulted in a 50% increase in cost of revenues compared to the prior year period.

On the bottom line, Asana reported a net loss of $39.2 million, an improvement from the $48.4 million net loss in the prior year period. This was driven by a 58% increase in non-GAAP net income to $23.8 million, reflecting the company’s focus on operational efficiency and cost management.

The company also generated strong free cash flow of $40.0 million, up 13% year-over-year, demonstrating its ability to convert revenue growth into cash.

Key Business Metrics

Asana tracks several key metrics to measure the health and growth of its business:

Paying Customers: As of July 31, 2026, Asana had 26,778 customers spending over $5,000 annually, up from 25,006 in the prior year period. These “Core” customers contributed approximately 77% and 76% of revenues in Q3 2026 and the first half of fiscal 2027, respectively.

The company also had 890 customers spending over $100,000 annually as of July 31, 2026, up from 770 in the prior year period.

Dollar-Based Net Retention Rate: Asana’s dollar-based net retention rate was 97% as of July 31, 2026, up from 96% in the prior year period. For Core customers, the rate was 98%, and for customers spending over $100,000, the rate was also 98%.

These metrics demonstrate Asana’s ability to retain and expand within its existing customer base, a key driver of the company’s growth.

Strengths and Weaknesses

Strengths:

• Strong revenue growth driven by new customer acquisition and expansion within the existing base
• Healthy gross margins, despite some compression, indicating the scalability of the platform
• Robust free cash flow generation, providing financial flexibility
• Successful integration of the StackAI acquisition, expanding Asana’s AI capabilities

Weaknesses:

• Declining gross margin, indicating the need to better manage cost of revenues
• Continued net losses, though improving, reflecting the company’s investment in growth
• Potential impact of macroeconomic conditions and shifts in customer buying patterns on future performance

Outlook and Future Prospects

Asana is well-positioned to capitalize on the growing demand for work management and AI-powered productivity solutions. The company’s investments in product innovation, including the integration of AI, and its go-to-market strategy are expected to drive continued growth.

However, the company will need to carefully manage its cost structure to maintain healthy profitability and cash flow as it scales. The impact of macroeconomic factors, such as inflation, interest rate fluctuations, and changes in customer buying behavior, will also be crucial to monitor.

Overall, Asana’s strong financial performance, robust key business metrics, and strategic initiatives suggest a promising outlook for the company’s future growth and profitability.