Summary
Asana reported third quarter fiscal 2026 revenue of $201.0 million, up 9.3% from a year earlier. Gross margin slipped to 88.9%, down 0.3 percentage points. The GAAP picture stayed weak. Operating loss widened to $70.0 million, operating margin was -34.8%, down 2.1 percentage points, and net loss widened to $68.4 million. Diluted loss per share was $0.29, a wider loss than a year earlier. Non-GAAP results looked much better. Non-GAAP operating income was $16.3 million, or 8% of revenues, compared with a non-GAAP operating loss of $7.6 million in the prior-year quarter. Non-GAAP net income was $17.9 million, and non-GAAP diluted net income per share was $0.07. The wide gap between GAAP and non-GAAP results comes from stock-based compensation and related adjustments. That pattern is not new for Asana, but the size of the GAAP loss still matters for a company that is trying to show operating leverage.
Cash generation improved sharply. Operating cash flow was $16.2 million, turning positive from a year earlier. Adjusted free cash flow was $13.4 million. Capital expenditures were $0.7 million, down 51.2% year over year. The balance sheet showed current deferred revenue of $304.6 million, up 9.0% from a year earlier. Remaining performance obligations rose 23.5% to $500.9 million. Those figures suggest billings and backlog are still growing even as GAAP losses persist. For the first nine months of fiscal 2026, revenue rose 9.3% to $585.2 million. The year-to-date GAAP operating loss narrowed to $163.3 million, and the year-to-date net loss narrowed to $156.8 million. Diluted loss per share for the nine months was $0.66.
Customer metrics were mixed. Core customers, defined as those spending $5,000 or more on an annualized basis, grew to 25,413, up 8% from a year earlier. Customers spending $100,000 or more on an annualized basis grew to 785, up 15%. Core customer revenue grew 10% year over year. Overall dollar-based net retention rate was 96%, Core customer net retention rate was 97%, and net retention for customers spending $100,000 or more was 96%. Core customers contributed about 76% of third quarter revenue. Those retention figures show that existing customers are not expanding aggressively, which puts more pressure on new customer acquisition. The company announced AI Teammates, collaborative agents designed to execute complex tasks alongside human teams. It appointed Arnab Bose as Chief Product Officer. Asana also held Work Innovation Summit events in London and New York with over 1,600 attendees, released its 2025 Global State of AI at Work Report, launched an AI Maturity Assessment, and was named a Leader in two Gartner Magic Quadrant reports.
Guidance points to continued revenue growth and non-GAAP profitability. For the fourth quarter of fiscal 2026, Asana expects revenue of $204.0 million to $206.0 million, representing 8% to 9% year-over-year growth. It expects non-GAAP operating income of $14.0 million to $16.0 million, a 7% to 8% operating margin, and non-GAAP net income per share of $0.07 on roughly 244 million diluted shares. For the full fiscal year 2026, the company expects revenue of $789.0 million to $791.0 million, 9% growth, non-GAAP operating income of $52.5 million to $54.5 million, a 7% operating margin, and non-GAAP net income per share of $0.25 to $0.26 on roughly 243 million diluted shares. Management raised the high end of both its fiscal 2026 revenue and non-GAAP operating income guidance ranges. The main risks are macroeconomic uncertainty, inflation, fluctuating interest rates, bank failures, supply chain disruptions, currency swings, tariffs, trade agreement changes, and geopolitical unrest. Those factors could pressure IT spending and lengthen sales cycles. Asana also faces competition, execution risk around AI product integration, challenges in attracting and retaining customers, international expansion risk, and capital allocation risk tied to its stock repurchase program. The company has not provided a reconciliation of non-GAAP outlook measures to GAAP because it says the items are not available on a forward-looking basis without unreasonable effort.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2026 | Q2 FY2026 | QoQ | Q3 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $201.0M | $196.9M | +2.1% | $183.9M | +9.3% |
| Gross profit | $178.7M | $176.7M | +1.1% | $164.1M | +8.9% |
| Gross margin | 88.9% | 89.7% | -0.8 pp | 89.2% | -0.3 pp |
| Research & development | $73.8M | $79.4M | -7.0% | $83.3M | -11.4% |
| Sales & marketing | $100.2M | $106.7M | -6.0% | $104.7M | -4.3% |
| General & administrative | $74.7M | $40.1M | +86.1% | $36.3M | +105.8% |
| Total operating expenses | $248.7M | $226.2M | +10.0% | $224.3M | +10.9% |
| Operating income (loss) | -$70.0M | -$49.5M | -41.5% | -$60.2M | -16.3% |
| Operating margin | -34.8% | -25.1% | -9.7 pp | -32.7% | -2.1 pp |
| Net income (loss) | -$68.4M | -$48.4M | -41.5% | -$57.3M | -19.4% |
| Net margin | -34.0% | -24.6% | -9.5 pp | -31.2% | -2.9 pp |
| Diluted EPS | -$0.29 | -$0.20 | -$0.09 | -$0.25 | -$0.04 |
| Customers | 683 | 649 | +5.2% | 580 | +17.8% |
| Net retention rate | 96.0% | 96.0% | ±0.0 pp | 96.0% | ±0.0 pp |
Risks
The filing emphasizes that rapid advancements in AI and machine learning are changing how people work and that competitors may incorporate AI more effectively, with failure to deploy AI features as quickly or effectively as competitors adversely affecting the business. It also notes competition from larger companies with greater financial, technical, and marketing resources that may adopt more aggressive AI pricing.
The filing discloses that in June 2025 Asana suffered a flaw in the implementation of its Model Context Protocol feature that potentially led to certain data in the instances of certain customers being accessible to other users of the feature. It also notes ongoing phishing and account takeover attempts, and says such incidents could lead to regulatory investigations, litigation, fines, reputational harm, and loss of revenue.
MD&A states that global macroeconomic events including inflation, fluctuating interest rates, bank failures, supply chain disruptions, tariffs and changes in trade agreements, and geopolitical unrest have led to economic uncertainty and are likely to continue to have adverse effects on global IT spending, customer buying patterns, and sales cycle length. The filing also says these conditions have affected renewal decisions, and the dollar-based net retention rate for customers spending over $100,000 was 96% as of October 31, 2025 versus 99% as of October 31, 2024.
The filing states that substantially all revenue is derived from a single software solution, the Asana collaborative work management platform, through seat-based licenses, and that 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 Asana offered multiple products.
The platform integrates generative AI and machine learning, and the filing states that AI technologies face new and emerging laws such as the EU AI Act, Colorado Artificial Intelligence Act, and California AI Transparency Act. Under the EU AI Act, non-compliant companies may be subject to 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 filing highlights that in July 2025 Daniel Rogers joined as Chief Executive Officer and Dustin Moskovitz, who had served in that role since October 2010, transitioned to solely serving as Chair of the board, and that the loss of key personnel may disrupt operations. It also states that competition for executive, engineering, sales, and other key personnel in the San Francisco Bay Area and other locations is intense and that equity awards may be less effective as retention incentives.
MD&A reports that general and administrative expenses increased $38.4 million, or 106%, in the quarter ended October 31, 2025 compared to the prior-year quarter, primarily due to $30.7 million in impairment charges, with the same $30.7 million impairment of long-lived assets recorded for the nine months. Further impairments could affect results.
The filing states that Asana is pursuing FedRAMP authorization and has achieved a FedRAMP In Process designation, and that selling to government entities and customers reliant on government funding involves more competitive, expensive, and time-consuming sales, non-negotiable terms, compliance with Executive Orders, and exposure to public sector budgetary cycles. Current revenue impact is not significant, but reliance could increase exposure.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Non-GAAP gross margin
Adjusted free cash flow
Customers Spending $100,000+ (annualized)
Dollar-Based Net Retention Rate (Core customers)
Dollar-Based Net Retention Rate (Overall)
Total Customers
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q3 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.