Summary
Asana reported first quarter fiscal 2026 revenue of $187.3 million, up from $172.4 million in the prior-year quarter. Gross profit was $168.0 million and gross margin held at 89.7%. The GAAP operating loss narrowed to $43.9 million from $66.2 million. Operating margin improved to -23.4% from -38.4%. Net loss narrowed to $40.0 million from $63.7 million. Diluted net loss per share was -$0.17, compared with -$0.28.
Cash generation turned positive. Operating cash flow was $6.8 million, compared with negative $1.9 million in the prior-year quarter. Capital expenditures were $0.6 million, down from $1.0 million. Free cash flow was $4.0 million, compared with negative $4.3 million. Adjusted free cash flow was $9.9 million, compared with negative $4.3 million. On a non-GAAP basis, operating income was $8.1 million, a 4% operating margin, compared with a non-GAAP operating loss of $15.8 million and a negative 9% margin in the prior-year quarter. Non-GAAP net income was $12.0 million, or $0.05 per share, compared with non-GAAP net loss of $13.3 million, or negative $0.06 per share. Deferred revenue was $289.0 million, down 1.1% year over year. Remaining performance obligations were $420.7 million, up 10.7%.
Customer metrics were mixed. Core customers grew to 24,297, up 10% year over year. Customers spending $100,000 or more grew to 728, up 20%. Overall dollar-based net retention rate was 95%, down from 100% a year earlier. Core customers had a 96% retention rate, down from 102%. Customers spending $100,000 or more had a 95% retention rate, down from 108%. AI Studio exceeded $1 million in ARR in its first quarter of general availability. In May, after quarter end, Asana signed the largest subscription agreement in its history, a $100 million plus renewal over a three-year term. The board also increased the share repurchase authorization by $100 million and removed the program's expiration date. As of April 30, $56 million remained under the prior authorization, for a total of $156 million available for future repurchases.
Operational highlights included a new partner program and several industry recognitions. Asana was named a Leader in The Forrester Wave Collaborative Work Management Tools, Q2 2025 report, with the highest score for strategy. It received a 4.5 out of 5 rating in Gartner's Voice of the Customer report for Adaptive Project Management and Reporting. The company hosted more than 15 AI Studio Sessions globally with 4,000 customers. It also appointed Marc Boroditsky to its board of directors.
Guidance points to slower sequential growth but continued margin improvement. For the second quarter of fiscal 2026, Asana expects revenue of $192.0 million to $194.0 million, up 7% to 8% year over year. It expects non-GAAP operating income of $8.0 million to $10.0 million, a 4% to 5% operating margin, and non-GAAP net income per share of $0.04 to $0.05. For the full fiscal year 2026, the company expects revenue of $775.0 million to $790.0 million, up 7% to 9% year over year, non-GAAP operating margin of at least 5.5%, and non-GAAP net income per share of $0.22. Both guidance ranges assume diluted weighted average shares outstanding of approximately 243 million.
Risks remain. Macro uncertainty, inflation, fluctuating interest rates, tariffs, and geopolitical unrest continue to pressure global IT spending and customer buying patterns. The dollar-based net retention rate has fallen across all reported cohorts. Deferred revenue declined year over year. The company still reported GAAP net and operating losses. Competition in work management is intense, and Asana must keep attracting new customers and expanding within existing accounts. The company also faces execution risk around AI adoption and international expansion. Guidance assumes the company can drive durable profitable growth despite these headwinds.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $187.3M | $188.3M | -0.6% | $172.4M | +8.6% |
| Gross profit | $168.0M | $168.7M | -0.4% | $154.6M | +8.7% |
| Gross margin | 89.7% | 89.6% | +0.1 pp | 89.7% | +0.0 pp |
| Research & development | $75.1M | $84.2M | -10.8% | $82.8M | -9.3% |
| Sales & marketing | $99.8M | $102.3M | -2.4% | $104.3M | -4.3% |
| General & administrative | $37.0M | $45.8M | -19.3% | $33.7M | +9.8% |
| Total operating expenses | $211.9M | $232.3M | -8.8% | $220.8M | -4.0% |
| Operating income (loss) | -$43.9M | -$63.6M | +31.0% | -$66.2M | +33.6% |
| Operating margin | -23.4% | -33.8% | +10.3 pp | -38.4% | +14.9 pp |
| Net income (loss) | -$40.0M | -$62.3M | +35.8% | -$63.7M | +37.2% |
| Net margin | -21.4% | -33.1% | +11.7 pp | -37.0% | +15.6 pp |
| Diluted EPS | -$0.17 | -$0.27 | +$0.10 | -$0.28 | +$0.11 |
| Customers | 607 | 24,062 | -97.5% | 510 | +19.0% |
| Net retention rate | 95.0% | 96.0% | -1.0 pp | 100.0% | -5.0 pp |
Risks
Dollar-based net retention rate was 95% as of April 30, 2025 compared with 100% as of April 30, 2024. Core customer net retention rate declined to 96% from 102%, and customers spending over $100,000 declined to 95% from 108%, which MD&A ties to macroeconomic conditions and renewal decisions.
Global macroeconomic events including inflation, fluctuating interest rates, bank failures, tariffs and changes in trade agreements, and geopolitical unrest have led to economic uncertainty and adverse effects on IT spending. The filing states these conditions have resulted in longer sales cycles, reduced renewal rates, reduced customer spend, and delayed payments.
The work management market is highly competitive and rapidly evolving, and the company must successfully deploy AI in its products to compete. Failure to offer or deploy new AI, machine learning, or automated decision-making technologies as quickly or effectively as competitors could harm business.
In March 2025, the company announced the anticipated transition of Dustin Moskovitz from CEO to Chair of the board when a new CEO is appointed. The loss of Mr. Moskovitz or other key personnel could disrupt operations, and he beneficially owned a majority of voting power as of April 30, 2025.
AI features are subject to privacy, data protection, and security laws plus emerging regulations such as the EU AI Act and Colorado Artificial Intelligence Act. The EU AI Act can impose administrative fines of up to 35 million Euros or 7% of total worldwide annual turnover, whichever is higher.
The company is pursuing FedRAMP authorization and sells to government entities. January 2025 Executive Orders direct federal agencies to evaluate current actions including spending, creating uncertainty for U.S. government business; government contracts carry risks including criminal liability, civil False Claims Act liability, and suspension or debarment.
As the company focuses on larger enterprise organizations, sales require more sophisticated and costly efforts, resulting in longer sales cycles, greater competition, and less predictability. Macroeconomic conditions have further lengthened sales cycles and may reduce renewal rates.
Substantially all revenue is derived from the Asana work management platform through seat-based licenses, and AI Studio depends on licenses to that core platform. Changes in customer preferences may disproportionately impact the company compared with a multi-product offering.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Net Revenue Retention
Adjusted free cash flow
Customers Spending $100,000+ (annualized)
Dollar-Based Net Retention Rate (Core customers)
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.