Summary
Asana finished fiscal 2026 with fourth quarter revenue of $205.6 million, up 9% from the prior-year quarter. Gross profit was $180.6 million, up 7.0%. Gross margin slipped to 87.8% from 89.6%, down 1.8 percentage points. The profit story improved sharply below the gross line. GAAP operating loss narrowed to $34.0 million from $63.6 million, and GAAP operating margin improved to negative 16.5% from negative 33.8%. GAAP net loss was $32.2 million, narrowed from $62.3 million a year earlier. Non-GAAP results flipped positive, with non-GAAP operating income of $18.2 million, or 9% of revenue, against a non-GAAP operating loss of $1.7 million in the prior-year quarter.
For the full fiscal year, revenue was $790.8 million, up 9.2%. Gross profit was $704.0 million, up 8.9%, and gross margin was 89.0%, down from 89.3%. The full-year GAAP operating loss narrowed to $197.3 million from $266.7 million, with operating margin of negative 25.0% versus negative 36.8%. GAAP net loss was $189.0 million, narrowed from $255.5 million, and diluted net loss per share was $0.80 compared with $1.11. Cash generation was the standout. Operating cash flow was $27.6 million in the quarter, up from $15.9 million, and $90.4 million for the fiscal year, up from $14.9 million. Adjusted free cash flow, a non-GAAP measure that adds back restructuring payments, was $25.7 million in the quarter and $84.5 million for the year. Capital expenditures fell to $1.19 million in the quarter from $1.50 million.
Customer metrics held up. Core customers, defined as accounts spending $5,000 or more annualized, grew 8% year over year to 25,928, and revenue from those customers rose 10%. Accounts spending $100,000 or more annualized grew 13% to 817. Overall dollar-based net retention was 96%, 97% for Core customers and 96% for the largest accounts. Deferred revenue, current, was $333.6 million, up 10.9% from the prior-year quarter, and remaining performance obligations were $524.8 million, up 21.8%. Both are building faster than reported revenue.
Management pointed to AI Studio adoption and the expected launch of AI Teammates later in the current quarter as the next phase of the platform. Earlier releases included Asana Gov, a FedRAMP-in-process offering for government and regulated industries, integrations such as the Asana app in Claude, and timesheets and budgets add-ons. The company named a new chief marketing officer, Prachi Gore, and a new chief revenue officer, Kevin Knieriem. Headcount stood at 1,767 as of January 31, 2026, down 3% from a year earlier, which helps explain the operating leverage.
Guidance points to slower top-line growth. For the first quarter of fiscal 2027, management guided to year over year growth of 8.1% to 9.2%, non-GAAP operating profit of $15 million to $17 million, which works out to 7.4% to 8.3% non-GAAP operating margin, and non-GAAP net income per share of $0.07 to $0.08 on roughly 241 million diluted shares. For the full fiscal year 2027, the outlook is year over year growth of 7.5% to 8.5%, a non-GAAP operating margin of at least 9.5%, and non-GAAP net income per share of $0.36 to $0.37 on about 243 million diluted shares.
Capital return and risk fill out the picture. The board authorized an additional $160 million for share repurchases, bringing the total available to roughly $200 million, and the company retired 9.7 million shares for $132.2 million during fiscal 2026. Liquidity included $434.0 million in cash, cash equivalents and marketable securities, alongside an accumulated deficit of $2,149.7 million, $40.6 million outstanding on the term loan and $78.3 million of remaining revolver capacity. Commitments include $288.4 million of operating lease obligations and $234.5 million of purchase commitments. General and administrative expense rose 27% for the year, driven in part by $24.0 million of impairment charges on subleased office space. Management also flagged that AI-assisted technologies have changed how small and midsize businesses discover software, and said those dynamics should weigh on fiscal 2027 along with macroeconomic uncertainty and a competitive market.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $205.6M | $201.0M | +2.3% | $188.3M | +9.2% |
| Gross profit | $180.6M | $178.7M | +1.0% | $168.7M | +7.0% |
| Gross margin | 87.8% | 88.9% | -1.1 pp | 89.6% | -1.8 pp |
| Research & development | $73.2M | $73.8M | -0.9% | $84.2M | -13.1% |
| Sales & marketing | $100.2M | $100.2M | -0.1% | $102.3M | -2.0% |
| General & administrative | $41.2M | $74.7M | -44.8% | $45.8M | -10.1% |
| Total operating expenses | $214.6M | $248.7M | -13.7% | $232.3M | -7.6% |
| Operating income (loss) | -$34.0M | -$70.0M | +51.4% | -$63.6M | +46.6% |
| Operating margin | -16.5% | -34.8% | +18.3 pp | -33.8% | +17.2 pp |
| Net income (loss) | -$32.2M | -$68.4M | +52.9% | -$62.3M | +48.3% |
| Net margin | -15.7% | -34.0% | +18.4 pp | -33.1% | +17.4 pp |
| Diluted EPS | -$0.14 | -$0.29 | +$0.15 | -$0.27 | +$0.13 |
| Customers | 25,928 | 683 | +3696.2% | 24,062 | +7.8% |
| Net retention rate | 96.0% | 96.0% | ±0.0 pp | 96.0% | ±0.0 pp |
Risks
The filing states competition requires successful deployment of AI in products, and developments in AI-enabled software development tools may lower R&D costs for new entrants and let customers build internal work management solutions. MD&A notes AI Teammates and AI Studio are consumption-based and not yet material to the consolidated financial statements.
Risk Factors cite the EU AI Act, Colorado Artificial Intelligence Act, and California AI Transparency Act, with non-compliance under the EU AI Act potentially subject to administrative fines of up to 35 million Euros or 7% of total worldwide annual turnover. Compliance may require adapting business practices, contractual arrangements, and services.
The filing discloses that in June 2025 a flaw in the implementation of the Model Context Protocol feature potentially led to certain data in certain customers' instances being accessible to other users of the feature. It also notes past account takeover and automated fraudulent process activity and expects such activity to continue.
MD&A states global macroeconomic events including inflation, fluctuating interest rates, bank failures, supply chain disruptions, currency exchange rate fluctuations, tariffs and changes in trade agreements, and geopolitical unrest have led to economic uncertainty and are likely to continue adverse effects on global IT spending, customer buying patterns, and sales cycles. Management also says macroeconomic conditions affected renewal decisions, with dollar-based net retention rate at 96% as of January 31, 2026 and 2025.
The filing states substantially all revenue comes from a single software solution, the Asana collaborative work management platform, through seat-based licenses. Add-on products and future services may depend on licenses to this core work management platform.
Risk Factors and MD&A highlight longer sales cycles, particularly as the company focuses on larger organizations that may require enterprise-wide decisions, greater customer education, and more customization and support. MD&A states current economic conditions have adversely affected the length of sales cycles and may continue to do so.
MD&A says the introduction and acceptance of AI-assisted technologies has impacted traditional search engine user discovery of the products, particularly by small and midsize businesses. Although the company saw modest quarter-over-quarter traffic recovery and improvements in web conversion and retention, it expects these shifting dynamics to continue to impact it throughout fiscal year 2027.
MD&A reports dollar-based net retention rate was 96% as of January 31, 2026 and 2025, and 96% for customers spending over $100,000 on an annualized basis for the same periods. The filing states macroeconomic conditions have affected customers' renewal decisions and that subscription customers are not obligated to renew and may renew on less favorable terms.
The platform and internal tools rely on Amazon Web Services for cloud infrastructure under a 60-month contract, and purchase commitments were $234.5 million within total contractual obligations of $522.9 million as of January 31, 2026. Any significant disruption, limitation of access, or unfavorable pricing change by AWS could harm operations.
Risk Factors warn that prior growth rates may not be indicative of future growth. MD&A reports revenue growth of 9% for fiscal 2026 compared with 11% for fiscal 2025, while total revenue was $790.8 million for fiscal 2026, up 9.2% from the prior-year year-to-date period.
The company generated net losses of $189.0 million and $255.5 million for fiscal years ended January 31, 2026 and 2025, respectively, and had an accumulated deficit of $2,149.7 million as of January 31, 2026. Management does not expect to be profitable in the near future.
Risk Factors highlight the loss of key personnel, noting that in July 2025 Daniel Rogers became Chief Executive Officer and Dustin Moskovitz transitioned to solely serving as Chair of the board. The company had 1,767 employees as of January 31, 2026, a decrease of 3% since January 31, 2025, and past or future restructuring efforts may affect its ability to attract and retain employees.
General and administrative expenses increased 27% during fiscal 2026 compared to fiscal 2025, primarily due to a $24.0 million increase in impairment charges related to subleased office space. Operating lease commitments were $288.4 million as of January 31, 2026.
The November 2022 Senior Secured Credit Facility terminates on November 7, 2026, and as of January 31, 2026 there was $40.6 million outstanding under the term loan. Cash, cash equivalents, and marketable securities were $434.0 million as of January 31, 2026, and the company may need to refinance or repay the facility.
Gross margin was 87.8% for FY2026 Q4, down 1.8 percentage points from the prior-year quarter, and 89.0% for FY2026 year to date, down 0.3 percentage points from the prior-year year-to-date period. Risk Factors warn competitive pricing pressure may reduce gross profit and gross margin.
Risk Factors state that sensitive information input into a third-party generative AI platform could be leaked or disclosed to others, including if sensitive information is used to train the third party's AI model. Privacy laws also regulate automated decision-making and may make it harder to use AI and machine learning technologies.
On February 27, 2026, the board authorized the repurchase of an additional $160 million of Class A common stock, leaving $199.4 million available for future repurchases after the amendment. Risk Factors state repurchases reduce cash available for working capital, capital expenditures, strategic acquisitions, and other corporate projects, and there is no assurance the program will enhance long-term stockholder value.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Net Revenue Retention
Non-GAAP gross margin
Paying Customers
Adjusted free cash flow
Non-GAAP operating income
Summary, forecast, risks and KPIs are extracted from Asana, Inc.'s SEC filings for Q4 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.