Executive Summary
Asana reported QQ2 2025 revenue of $179.2 million, up 10% year over year, driven by growth outside the technology vertical and an improving multi-year deal cadence. The quarter highlighted stabilization in retention metrics and a widening pipeline of enterprise deals, supported by early AI-driven offerings and the upcoming Asana AI Studio launch. The company reaffirmed its path toward positive free cash flow by end of Q4, while continuing to invest in AI capabilities and enterprise-grade functionality. Macro headwinds persist, particularly in tech verticals, which modestly weigh on overall growth, but management emphasized the AI-driven consolidation thesis and the portfolio’s potential to reaccelerate as AI adoption deepens across non-tech verticals and geographies.
Key Performance Indicators
QoQ: -16.06% | YoY:-4.65%
QoQ: -13.29% | YoY:-1.09%
Key Insights
Revenue: 179.212m, +10% YoY, +3.92% QoQ; Gross Margin: 88.8% (159.225m gross profit on 179.212m revenue); Operating Loss: -$76.798m, margin -42.85%; Net Income: -$72.189m, margin -40.28%; EPS: -$0.31; RPO: $394.5m, +18% YoY; Deferred Revenue: $289.2m, +11% YoY; Free Cash Flow: +$12.8m, 7% FCF margin; Cash/Investments: $521.6m in cash and marketable securities; Net Debt: $55.8m; Core customers (>$5k ARR): 22,948; $100k+ customers: 649, +17% YoY; Net Retention Rate (NRR): 98% total; Core NR: 99...
Financial Highlights
Revenue: 179.212m, +10% YoY, +3.92% QoQ; Gross Margin: 88.8% (159.225m gross profit on 179.212m revenue); Operating Loss: -$76.798m, margin -42.85%; Net Income: -$72.189m, margin -40.28%; EPS: -$0.31; RPO: $394.5m, +18% YoY; Deferred Revenue: $289.2m, +11% YoY; Free Cash Flow: +$12.8m, 7% FCF margin; Cash/Investments: $521.6m in cash and marketable securities; Net Debt: $55.8m; Core customers (>$5k ARR): 22,948; $100k+ customers: 649, +17% YoY; Net Retention Rate (NRR): 98% total; Core NR: 99%; $100k+ NR: 103%; Shares (weighted avg): 229.8m; Guidance implies moderate near-term reacceleration and durable free cash flow by Q4; Alignment of AI strategy with revenue trajectory remains a key focus.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
179.21M |
10.31% |
3.92% |
| Gross Profit |
159.23M |
8.89% |
2.96% |
| Operating Income |
-76.80M |
-4.65% |
-16.06% |
| Net Income |
-72.19M |
-1.09% |
-13.29% |
| EPS |
-0.31 |
6.06% |
-10.71% |
Key Financial Ratios
operatingProfitMargin
-42.9%
operatingCashFlowPerShare
$0.07
freeCashFlowPerShare
$0.06
priceEarningsRatio
-11.58
Management Commentary
Strategic AI trajectory and product roadmap: Dustin Moskovitz emphasized the strategic importance of AI, noting, “AI, particularly Generative AI, has enormous potential to revolutionize work management and reshape the software industry,” and highlighted Asana AI Studio’s launch in October as a vehicle to scale AI-driven workflows across customers. (Quote under Transcript Quotes) Enterprise-driven expansion: Anne Raimondi underscored the consolidation opportunity and enterprise momentum, citing large deals in energy, manufacturing, and government, and pointing to international growth as a key growth vector with “international-led revenue growth at 12.3%” and strong performance in energy/manufacturing verticals. (Quote: Anne Raimondi) Leadership transition and governance: Tim Wan elaborated on durable guidance despite leadership change, stressing stabilization and the pipeline’s health, while Dustin announced the CFO transition to Sonalee Parekh, signaling a continued commitment to scaling financial infrastructure. (CFO transition quotes and Tim Wan remarks) Customer-centric AI adoption and practical impact: Anne highlighted AI Studio beta engagement with top customers and the preference to embed AI within existing Asana workflows rather than as a siloed tool, aligning with customer demand for integrated AI capabilities. (Anne Raimondi quote)
AI, particularly Generative AI, has enormous potential to revolutionize work management and reshape the software industry.
— Dustin Moskovitz
Customers don't want to introduce another siloed tool for their AI workflows. They want AI embedded where their employees are already managing their work, and that's in Asana.
— Anne Raimondi
Forward Guidance
Near-term guidance remains conservative due to ongoing software macro headwinds, particularly in the technology vertical. For Q3 2025, management guided revenue of $180–$181 million (+8% to +9% YoY) with non-GAAP operating loss of $18–$19 million and EPS around -$0.07, implying ongoing investment in growth and AI capabilities. For FY2025, revenue is guided to $719–$721 million (+10% YoY) with non-GAAP operating loss of $55–$58 million and full-year EPS of -$0.19 to -$0.20. Management expects durable positive free cash flow by end of Q4 and notes stabilization in end-quarter net dollar retention and gross retention rates. The AI Studio launch (October) and potential consumption-based AI revenue are key optionality levers that could accelerate ARR if enterprise pilots translate into material up-sell or usage-based revenues. Key risk factors include: slower-than-expected adoption of AI Studio, prolonged sales cycles in big-ticket deals, and persistent tech-sector weakness. Monitoring points for investors include: AI Studio uptake, seat expansion (core and high-value SKUs), multi-year deal cadence, FedRAMP certification progression, and gross-to-net retention dynamics across verticals and geographies.