Asana, Inc. Q2 FY2026 earnings

In June 2025, a flaw in the implementation of the Model Context Protocol feature potentially allowed certain data in the instances of certain customers to be accessible to other users of this feature. The filing also notes prior phishing attempts and fraud activity, and says such incidents could lead to regulatory investigations, litigation, and loss of revenue.

The market for work management solutions is increasingly competitive, and the company's ability to compete depends on rapid technology developments including successful deployment of AI in its products. Competitors may incorporate AI or machine learning more effectively and adopt more aggressive pricing, and the filing says failure to offer or deploy new AI technologies as quickly or effectively as competitors could adversely affect the business.

The MD&A states global macroeconomic events including inflation, fluctuating interest rates, bank failures, supply chain disruptions, currency fluctuations, tariffs, and geopolitical unrest have led to economic uncertainty and are likely to continue to adversely affect IT spending, customer buying patterns, and sales cycles. The risk factors say the company has experienced and may continue to experience longer sales cycles, reduced renewal rates, reduced customer spend, and delayed payments.

Dollar-based net retention rate was 96% as of July 31, 2025 compared with 98% as of July 31, 2024. Core customer net retention rate was 96% compared with 99%, and net retention for customers spending over $100,000 annually was 95% compared with 103% over the same periods.

In July 2025, Daniel Rogers joined as new Chief Executive Officer, and Dustin Moskovitz, who had served as CEO since October 2010, transitioned to solely serving as Chair of the board. The filing says changes in senior management may disrupt operations and harm the business, and the company does not have key person insurance on any employees.

AI, machine learning, and automated decision-making technologies are subject to existing and emerging laws such as the EU AI Act and the 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, and compliance may require changes to business practices and services.

The flagship Asana work management platform currently accounts for substantially all revenue through seat-based licenses, and revenue from add-on AI Studio and future products may depend on licenses to that core platform. Changes in customer preferences may have a disproportionately greater impact than if the company offered multiple products.

In January 2025, the current U.S. administration signed Executive Orders focused on human capital initiatives, including a broad mandate to eliminate certain federal programs and a caution to the private sector to end what may be viewed as illegal human capital initiatives. The filing says these may lead to compliance investigations of private entities, changes to federal contracting regulations, and impacts on hiring or retaining employees.

For the six months ended July 31, 2025, 41% of revenues were generated from customers outside the United States. International operations expose the company to risks including tariffs and changes in trade agreements, global armed conflicts, foreign currency declines, and privacy and data protection laws that may require customer data to be stored in a designated territory.

As the company focuses on larger organizations and higher priced subscription plans such as Enterprise and Enterprise+, sales efforts may require greater customer education, customization, and support, resulting in longer sales cycles, greater competition, and less predictability in completing some sales. The MD&A notes a continued shift in sales mix toward higher priced plans and a largest ever subscription agreement of $100.0 million over a three-year term billed annually.