AI must be context-aware and embedded where teams already collaborate. We are building the future of the agentic enterprise, where organizations can deploy prebuilt or custom agents embedded in structured workflows with the right context and guardrails.
— Dan Rogers
03Detailed Report
ASAN
Company ASAN
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
Asana delivered a solid QQ2 2026 performance highlighted by 10% year-over-year revenue growth to $196.9 million, a gross margin of 89.7%, and a non-GAAP operating margin of 7%—an almost 1,600 basis point year-over-year expansion. The quarter showcased meaningful progress in AI Studio adoption, with AI-powered workflows and AI Studio ARR growth more than doubling QoQ, reinforcing management’s view that AI-enabled workflows are becoming a core driver of operating efficiency and customer value. Despite near-term macro and SMB demand headwinds, Asana maintained strong balance-sheet health, generated $35.4 million of adjusted free cash flow (18% margin), and executed a disciplined capital allocation program including $27.8 million of share repurchases.
Management also guided for a constructive second half, with Q3 revenue guidance of $197.5–$199.5 million and full-year revenue guidance raised to $780–$790 million, implying 8–9% growth on a reported basis. Non-GAAP operating income is guided to $46–$50 million for the full year (6% margin), with non-GAAP EPS of $0.23–$0.25. The guidance acknowledges ongoing SMB top-of-funnel pressure and potential downgrades, but also reflects the company’s confidence in AI Studio-driven expansion, cross-sell within existing customers, and a stronger international contribution. Overall, the QQ2 results position Asana to execute on its AI-first product strategy while continuing to scale profitable growth, supported by a robust cash position and high-quality ARR backlog (RPO).
Key Performance Indicators
Revenue
Increasing
196.94M
QoQ: 5.16% | YoY: 9.89%
Gross Profit
Increasing
176.72M
89.73% margin
QoQ: 5.16% | YoY: 10.98%
Operating Income
Increasing
-49.46M
QoQ: -12.65% | YoY: 35.60%
Net Income
Increasing
-48.36M
QoQ: -20.85% | YoY: 33.01%
EPS
Increasing
-0.20
QoQ: -17.65% | YoY: 35.48%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and gross profitability
- QQ2 2026 revenue: $196.936 million, up 10% YoY and 5.16% QoQ (currency-adjusted growth ~9.4% YoY).
- Gross profit: $176.715 million; gross margin 89.73% (already near the high end of SaaS peers).
- Operating performance: non-GAAP operating income margin 7.0% (GAAP operating income -$49.456 million; GAAP operating margin -25.11%). Adjusted for hiring timing, margin expansion remains a key driver of profitability.
Cost structure and efficiency
- R&D: $79.376 million (19.9–24% of revenue range); down 16% YoY as a share of revenue, signaling efficiency improvements.
- Sales and marketing: $106.677 million (about 54% of revenue) reflecting disciplined GTM investments amid AI scaling.
- G&A: $41.118 million (~21% of revenue).
- Adjusted free cash flow: $35.4 million (18% of revenue), underscoring strong cash generation in a growth phase.
Customer and product momentum
- Core customers (spending $5k+ annually): 25,000+, up in mid-single digits; 76% of revenue from this cohort.
- 100k+ customers: 770, up 19% YoY.
- Net revenue retention (NRR): 96% trailing four-quarter, up from 95% prior quarter; in-quarter NRR improvements were observed across overall and core cohorts, with a modest downgrade impact within the $100k+ cohort.
- AI Studio traction: more than doubled AI Studio ARR QoQ; AI Studio Plus self-serve launched with ~40% of buyers in self-serve channel; nearly 20% of AI Studio workflows created via the Smart Workflows Gallery.
Liquidity and capital structure
- Cash, cash equivalents, and marketable securities: ~$475.2 million.
- Remaining Performance Obligation (RPO): $507.3 million, up 29% YoY; current RPO represents a near-term revenue recognition profile (roughly 75% of RPO recognized within the next 12 months, per commentary).
- Deferred revenue: $313.6 million, up 8% YoY.
- Net debt: approximately $31.38 million (net cash position implied by the reported cash and debt mix).
- Buybacks: $27.8 million repurchased in the quarter at an average price of $14.20; $128 million remaining on authorization as of 7/31.
Guidance and outlook
- Q3 FY2026 guidance: Revenue $197.5–$199.5 million; non-GAAP operating income $12–$14 million (6–7% margin); non-GAAP EPS $0.06–$0.07 (assuming ~244 million diluted shares).
- Full-year FY2026 guidance: Revenue $780–$790 million (8–9% YoY growth, currency tailwinds ~50 bps); non-GAAP operating income $46–$50 million (about 6% margin); non-GAAP EPS $0.23–$0.25 (assuming ~243 million diluted shares).
- Commentary underscores continued SMB top-of-funnel pressure and potential downgrades, but anticipates sequential margin expansion and AI-driven consumption growth in the back half.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
196.94M
9.89%
5.16%
Gross Profit
176.72M
10.98%
5.16%
Operating Income
-49.46M
35.60%
-12.65%
Net Income
-48.36M
33.01%
-20.85%
EPS
-0.20
35.48%
-17.65%
Key Financial Ratios
Management Insights Available for Members
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