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…
Earnings analysis · 10-Q
ASAN earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $-0.17
- Segment
- Asana operates as a single operating and reportable segment; total revenue was $216.429 million for the quarter ended July 31, 2026.
What stood out
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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.
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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.
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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.
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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.
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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%.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.