Executive Summary
Asana reported a solid close to fiscal 2025 with revenue of $188.3 million in Q4 2025, up 10% year over year (YoY), and a first-time achievement of positive free cash flow for the full year. Non-GAAP operating margins improved by more than 800 basis points YoY, narrowing the quarterly operating loss to approximately 1% of revenue and signaling meaningful progress toward profitability. Management emphasized the strategic transition to a multi-product company anchored by AI Studio, aiming to transform Asana into the essential coordination layer for humans and AI at scale, while continuing to optimize go-to-market efficiency and cost structure. This quarter also showcased continued expansion in non-tech verticals, a stabilizing net retention environment, and a robust balance sheet that supports sustained investments in AI Studio, channel development, and international growth.
Looking ahead, the company provided cautious but constructive guidance for FY2026, projecting revenue of $782–$790 million (8–9% YoY), with a non-GAAP operating margin of at least 5% and non-GAAP diluted EPS of $0.19–$0.20. Management highlighted AI Studio as a modest but meaningful growth contributor in FY2026, with larger earnings upside as adoption accelerates and the self-serve channel scales. ARR is expected to outpace revenue growth in FY2026, aided by disciplined cost management, operating leverage from a high gross margin base, and continued efficiency initiatives. The leadership transition to a board chair–led model for the CEO role is under way, signaling a sustained focus on AI strategy and product execution while preserving a strong culture and innovation trajectory.
Key Performance Indicators
Key Insights
Revenue: $188.334 million in Q4 2025, up 10% YoY (currency-adjusted: $189.1 million, up 10.5% YoY).
Gross profit: $168.73 million; gross margin: 89.59%.
Operating expenses: R&D $54.7 million (29% of revenue); S&M $85.0 million (45% of revenue); G&A $31.1 million (17% of revenue).
GAAP operating loss: $63.589 million; GAAP operating margin: -33.76%.
Non-GAAP operating loss: approximately $1.88 million (implied non-GAAP operating margin around -1%);
Net income (GAAP): -$62.299 million;...
Financial Highlights
Revenue: $188.334 million in Q4 2025, up 10% YoY (currency-adjusted: $189.1 million, up 10.5% YoY).
Gross profit: $168.73 million; gross margin: 89.59%.
Operating expenses: R&D $54.7 million (29% of revenue); S&M $85.0 million (45% of revenue); G&A $31.1 million (17% of revenue).
GAAP operating loss: $63.589 million; GAAP operating margin: -33.76%.
Non-GAAP operating loss: approximately $1.88 million (implied non-GAAP operating margin around -1%);
Net income (GAAP): -$62.299 million; diluted EPS: -$0.27.
Weighted average shares: 231.38 million.
Free cash flow (line items): Q4 FCF $12.3 million; FY2025 FCF $2.6 million (vs. prior-year positive free cash flow milestone achieved); full-year FCF margin: not disclosed as positive but was achieved.
Cash and investments: cash at end of period $184.864 million; cash and marketable securities $466.884 million; total debt $268.389 million; net debt $78.362 million.
RPO: $430.8 million, up 23% YoY; 81% of RPO to be recognized in the next 12 months.
Deferred revenue: $302.8 million, up 12% YoY.
Customers: 24,062 core customers (spending $5,000+ annually); 726 customers spending $100k+; core revenues represented 75% of Q4 revenue; net retention rate (overall) 96%; core NRR 97%; $100k+ NRR 96%.
ARR and guidance: ARR growth expected to outpace revenue growth in FY2026; AI Studio contribution modeled as modest in FY2026; Q1 FY2026 revenue guidance of $184.5–$186.5 million (7–8% YoY, or 9–10% currency-adjusted with leap-year effects); full-year FY2026 revenue guidance of $782–$790 million (8–9% YoY, 9–10% currency-adjusted).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
188.33M |
10.05% |
2.42% |
| Gross Profit |
168.73M |
9.75% |
2.83% |
| Operating Income |
-63.59M |
6.42% |
-5.66% |
| Net Income |
-62.30M |
0.16% |
-8.67% |
| EPS |
-0.27 |
3.57% |
-8.00% |
Key Financial Ratios
operatingProfitMargin
-33.8%
operatingCashFlowPerShare
$0.07
freeCashFlowPerShare
$0.06
priceEarningsRatio
-19.81
Management Commentary
AI Studio momentum and enterprise traction dominate management commentary. Dustin Moskovitz highlighted the AI Studio progress: "Hundreds of our largest customers are now actively running smart workflows powered by AI Studio... thousands of customers have enabled AI Studio, with particularly strong adoption in the EMEA region." He also described AI Studio as a strategic, long-term, high-beta opportunity with potential for exponential growth as self-serve adoption accelerates and credit-based consumption expands. Anne Raimondi stressed go-to-market optimization and vertical specialization, noting rapid expansion in non-tech verticals and the importance of channel partnerships for scale: "The strategic investments we've made... strengthening our enterprise footprint are delivering meaningful impact... non-tech verticals grew in the mid-teens and accounted for over 70% of our business." Sonalee Parekh emphasized disciplined cost management and a clear path to margin expansion, including a roughly 1,000 basis point non-GAAP operating-margin uplift planned for FY2026, supported by hiring efficiency, vendor consolidation, and AI Studio deployment across the organization. Critical operational themes included: (i) pricing and packaging optimization to better align value with price, including planned self-serve pricing changes later in the year; (ii) channel expansion with new systems integrators and a partner academy launching in Q1; (iii) international growth, with international revenue up 14% YoY; and (iv) ongoing leadership transition and long-term AI strategy under the board chair plan. A few concrete quotes include: (1) Dustin: "Hundreds of our largest customers are now actively running smart workflows powered by AI Studio... thousands of smart workflows already running across our customer base"; (2) Anne: "This includes both reallocating resources and making investments in channel, AI Studio specialists, and vertically focused teams to drive increased productivity, expand our reach, and scale our AI Studio motion."
"Hundreds of our largest customers are now actively running smart workflows powered by AI Studio... thousands of customers have enabled AI Studio, with particularly strong adoption in the EMEA region."
— Dustin Moskovitz
"This includes both reallocating resources and making investments in channel, AI Studio specialists, and vertically focused teams to drive increased productivity, expand our reach, and scale our AI Studio motion.",
— Anne Raimondi
Forward Guidance
Near-term outlook remains modestly constructive with focused profitability upside. Key guidance details:
- Q1 FY2026 revenue expected at $184.5–$186.5 million, up 7–8% YoY (9–10% on a currency-adjusted basis accounting for leap year and FX).
- Q1 FY2026 non-GAAP operating profit (NOPAT) targeted at $2–$3 million, implying 1–2% non-GAAP operating margin for the quarter.
- FY2026 revenue guidance of $782–$790 million, up 8–9% YoY (9–10% currency-adjusted).
- FY2026 non-GAAP operating margin of at least 5% and non-GAAP diluted EPS of $0.19–$0.20 (assuming ~247 million diluted shares).
- ARR growth is expected to outpace revenue growth in FY2026, aided by AI Studio and new add-ons (e.g., resource management), with cost efficiency initiatives fully realized by Q4 FY2026.
- AI Studio contribution is acknowledged as modest in FY2026, but the company expects higher impact in subsequent years as adoption broadens and the self-serve channel scales.
- The company anticipates continuing margin expansion, targeting exit FY2026 well above the 5% press guidance, supported by a high gross margin base (~90%), ongoing workforce optimization (including offshoring and efficiency measures), and vendor consolidation.
- Currency risk remains a headwind; stronger USD (vs EUR/JPY) reduced annualized recurring revenue and impacted near-term guidance; the company hedges through pricing and geographic mix strategies.
Investors should monitor: AI Studio adoption rates and unit economics (per-credit usage, potential whale customers, and channel-driven demand), ARR progression versus revenue, the ramp of the self-serve pricing strategy, and channel partner effectiveness in expanding enterprise penetration and geographic reach.