Summary
Asana closed fiscal 2025 with fourth-quarter revenue of $188.3 million, up 10% from the prior-year quarter. Full-year revenue reached $723.9 million, up 11%. GAAP gross profit was $168.7 million in the quarter. GAAP gross margin was 89.6%, a slight decline from the prior-year quarter. The company reported a GAAP operating loss that narrowed to $63.6 million, and GAAP operating margin of -33.8%. GAAP net loss was $62.3 million, essentially flat with the prior-year quarter. Full-year GAAP net loss per share was $1.11.
Cash generation was the clearest bright spot. Operating cash flow was $15.9 million in the quarter and $14.9 million for the full year, both up from the prior-year periods. Free cash flow was $12.3 million for the quarter and $2.6 million for the full year. The company said fiscal 2025 was its first full year of positive operating cash flow and free cash flow. Capital expenditures were $1.5 million in the quarter. Deferred revenue, current portion, rose 13.4% to $300.8 million. Remaining performance obligations rose 23.4% to $430.8 million.
Management pointed to AI Studio as the main growth vector. The company said early traction with AI Studio has been strong, with customer adoption across segments and geographies, rapidly growing credit usage and a multi-million dollar pipeline. The company also highlighted an integration with AWS Q Business, recognition as a Leader in the 2024 Gartner Magic Quadrant for Collaborative Work Management, and recognition as a Leader in the IDC MarketScape for Team Collaboration Applications. Asana hosted Work Innovation Summit events in London and Frankfurt and announced a strategic partnership with Datacom for ANZ customers. Customer metrics were mixed. Core customers, or those spending $5,000 or more on an annualized basis, grew 11% to 24,062, and customers spending $100,000 or more grew 20% to 726. Revenues from Core customers grew 11% in the quarter.
The retention picture is the main soft spot. The overall dollar-based net retention rate was 96%, down from over 100% a year earlier. Core customer net retention was 97%, down from 105%. Net retention for customers spending $100,000 or more was 96%, down from 115%. Management tied the decline to macroeconomic conditions that have affected customers' renewal decisions. The 10-K also lists risks around global IT spending, longer sales cycles, inflation, fluctuating interest rates, tariffs, currency swings and geopolitical unrest. Other risks include competition, the ability to attract and retain customers, the successful integration of AI, growth through the self-service model, partner relationships and international expansion. The company ended the year with 1,819 employees, down 1% from a year earlier, after a fourth-quarter restructuring.
Non-GAAP results showed a much smaller loss. Non-GAAP operating loss was $1.7 million, or 1% of revenues, compared with a non-GAAP operating loss of $15.6 million, or 9% of revenues. For the full year, non-GAAP operating loss was $40.8 million, or 6% of revenues, compared with $58.1 million, or 9% of revenues. The company also reported a fourth-quarter non-GAAP net loss of $0.4 million, compared with a non-GAAP net loss of $10.1 million. Full-year non-GAAP net loss was $29.6 million, compared with $45.1 million. Stock-based compensation expense was $50.6 million in the quarter and $211.3 million for the year.
Guidance covers the next quarter and the full fiscal year. For the first quarter of fiscal 2026, Asana expects revenue growth of 7% to 8%, non-GAAP operating profit of $2.0 million to $3.0 million, a 1% to 2% operating margin, and non-GAAP net income per share of $0.02 on roughly 245 million diluted shares. For the full fiscal year 2026, the company expects revenue growth of 8% to 9%, a non-GAAP operating margin of at least 5%, and non-GAAP net income per share of $0.19 to $0.20 on roughly 247 million diluted shares. The CFO said the company expects an additional 1,000 basis point plus improvement in FY26 non-GAAP operating margin and non-GAAP profitability starting in Q1 FY26. The outlook depends on continued execution in a competitive market and on the company's ability to improve net retention and convert its AI pipeline into recurring revenue.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $188.3M | $183.9M | +2.4% | $171.1M | +10.0% |
| Gross profit | $168.7M | $164.1M | +2.8% | $153.7M | +9.7% |
| Gross margin | 89.6% | 89.2% | +0.4 pp | 89.8% | -0.3 pp |
| Research & development | $84.2M | $83.3M | +1.1% | $83.0M | +1.5% |
| Sales & marketing | $102.3M | $104.7M | -2.3% | $103.9M | -1.6% |
| General & administrative | $45.8M | $36.3M | +26.3% | $34.8M | +31.7% |
| Total operating expenses | $232.3M | $224.3M | +3.6% | $221.7M | +4.8% |
| Operating income (loss) | -$63.6M | -$60.2M | -5.7% | -$67.9M | +6.4% |
| Operating margin | -33.8% | -32.7% | -1.0 pp | -39.7% | +5.9 pp |
| Net income (loss) | -$62.3M | -$57.3M | -8.7% | -$62.4M | +0.2% |
| Net margin | -33.1% | -31.2% | -1.9 pp | -36.5% | +3.4 pp |
| Diluted EPS | -$0.27 | -$0.25 | -$0.02 | -$0.28 | +$0.01 |
| Customers | 24,062 | 580 | +4048.6% | — | — |
| Net retention rate | 96.0% | 96.0% | ±0.0 pp | 100.0% | -4.0 pp |
Risks
Dollar-based net retention rate declined to 96% as of January 31, 2025 from over 100% as of January 31, 2024, Core customer rate declined to 97% from 105%, and customers spending over $100,000 annualized declined to 96% from 115%. Macroeconomic conditions have affected renewal decisions and may continue to lengthen sales cycles and reduce renewal rates.
The work management market is highly competitive with low barriers to entry, and competitors may incorporate AI or machine learning more effectively or adopt aggressive pricing. Asana must successfully deploy AI features, including AI Studio, to maintain its competitive position.
In March 2025, Asana announced the anticipated transition of Dustin Moskovitz from Chief Executive Officer to Chair of the Board when a new CEO is appointed by the Board. The loss or transition of key personnel could disrupt operations and harm growth.
Asana has been impacted by automated or other fraudulent processes designed to circumvent controls to conduct fraud, send spam, or execute account takeover, and anticipates such activity to continue. Security incidents could cause regulatory investigations, litigation, fines, reputational harm, and loss of revenue.
Substantially all revenue comes from the Asana work management platform, and add-on products such as AI Studio depend on licenses to the core platform. A decline in demand for the core platform or changes in customer preferences could disproportionately harm results.
Global macroeconomic events including inflation, fluctuating interest rates, bank failures, tariffs and changes in trade agreements, and geopolitical unrest have led to economic uncertainty. These conditions have and may continue to adversely affect IT spending, customer buying patterns, and sales cycles.
The platform integrates generative AI and machine learning, and the rapid evolution of these technologies requires dedicated resources to test for accuracy, bias, and other variables. This may require costly investment in proprietary datasets and models and could impact profit margin as AI use expands.
Asana is pursuing FedRAMP authorization and sells to U.S. federal, state, and foreign government entities and customers reliant on government funding. Noncompliance with government contract terms can result in criminal liability, False Claims Act liability, and suspension or debarment.
January 2025 Executive Orders focused on human capital initiatives include a broad mandate to eliminate certain federal programs and caution the private sector, with potential compliance investigations of public companies. This may affect hiring, retention, litigation exposure, and employment practices.
For fiscal 2025, 39.8% of revenues were generated outside the United States, exposing Asana to privacy and data localization laws, tariffs, trade agreement changes, and geopolitical conflicts. These risks could harm international revenue growth and operations.
In June 2024, the board authorized a stock repurchase program of up to $150 million; during fiscal 2025 Asana repurchased 6.2 million shares for $78.4 million, leaving $71.6 million available. The program may not enhance long-term stockholder value and reduces cash available for working capital and other investments.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Net Revenue Retention
Non-GAAP gross margin
Paying Customers
Dollar-Based Net Retention Rate (Customers Spending $100,000+, Q4)
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q4 FY2025 (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.