ASAN earnings analysis
What we found in ASAN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Asana delivered 10% year-over-year revenue growth to $216.429 million, improved GAAP operating margin by approximately 6 percentage points to negative 19%, and expanded free cash flow to $40.012 million. Customer scale and retention improved, with 26,778 Core customers and 97% dollar-based net retention, while liquidity remained significant at $339.9 million including marketable securities. The principal offsets are continued GAAP losses, gross-margin pressure from higher hosting and infrastructure costs, the November 7, 2026 debt-facility maturity, and elevated AI integration and cybersecurity risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 10% year over year
- Revenue increased 10% year over year to $216.429 million from $196.936 million, driven primarily by new paying customers and a continued shift toward the higher-priced Enterprise+ plan.
- Operating margin materially improved
- GAAP gross margin declined to 86% from 90% year over year as cost of revenues rose 50% to $30.325 million, but operating margin improved to negative 19% from negative 25% as operating expenses increased only 1% to $227.323 million.
- GAAP loss per share improved
- GAAP diluted loss per share improved to negative $0.17 from negative $0.20, while net loss narrowed to $39.189 million from $48.360 million.
- Cash generation strengthened
- Free cash flow increased to $40.012 million from $35.382 million year over year, and six-month operating cash flow rose to $86.290 million from $46.599 million.
- Enterprise customer metrics improved
- Core customers increased to 26,778 from 25,006, while customers spending at least $100,000 annually rose to 890 from 770. Dollar-based net retention improved to 97% from 96%, and Core customer retention rose to 98% from 96%.
- Liquidity remains substantial
- Cash, cash equivalents, and marketable securities totaled $339.9 million as of July 31, 2026. The company also had $78.3 million of available revolving borrowing capacity and reported compliance with all financial covenants.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Near-term credit facility maturity
- The November 2022 Senior Secured Credit Facility terminates on November 7, 2026. As of July 31, 2026, $36.9 million was outstanding under the term loan, and management cautioned that additional financing may not be available on favorable terms or at all after expiration.
- StackAI integration and AI execution risk
- The filing adds significant exposure from the StackAI acquisition and related AI execution risks: Asana paid $74.6 million in cash consideration, recorded $56.645 million of goodwill, and incurred $1.4 million of acquisition-related costs in the quarter, while StackAI contributed an immaterial amount of revenue through July 31, 2026.
- Cybersecurity and AI regulatory exposure
- The filing highlights an expanded cybersecurity and AI-data risk following a June 2025 Model Context Protocol implementation flaw that potentially exposed certain customer data to other users. AI-related regulatory exposure is also increasing; the EU AI Act permits fines of up to €35 million or 7% of worldwide annual turnover, whichever is higher.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.17
- Gross margin
- 86.0%
- Operating margin
- -19.0%
- Segment
- Asana operates as a single operating and reportable segment; total revenue was $216.429 million for the quarter ended July 31, 2026.
What they said about what is next.
The 10-Q does not provide explicit numeric revenue or EPS guidance. It states that remaining performance obligations were $522.0 million as of July 31, 2026, with approximately 81% expected to be recognized as revenue over the next 12 months; management also expects current liquidity to be sufficient for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · May 28, 2026
- Asana reported a strong Q1 fiscal 2027 with revenues of $205.1 million, exceeding expectations, and a notable EPS improvement to -$0.06 from -$0.17 in the prior quarter. Management remains optimistic for continued…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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