Asana (ASAN 2.23%), the work administration software program firm recognized for its cloud-based platform that helps groups arrange and monitor tasks, reported its second quarter fiscal 2026 outcomes on Sept. 3, 2025. Crucial information was that income (GAAP) totaled $196.9 million, up 9.9% from the identical interval final yr, beating analyst estimates. Adjusted earnings per share had been $0.06, a swing from a $(0.05) loss in the identical interval final yr, whereas adjusted working margin improved notably to 7.1%.
The corporate additionally raised its full-year steerage, signaling better confidence in Asana’s capacity to drive long-term, sturdy progress and sustained profitability. The quarter confirmed sturdy value self-discipline, increased profitability, and ongoing innovation.
MetricQ2 FY26Q2 FY25Y/Y ChangeAdjusted EPS$0.06($0.05)n/aRevenue$196.9 million$179.2 million9.9percentAdj. working margin7.1%(8.7%)15.8 ppAdj. free money circulate$35.4 million$12.8 million176.6%
Supply: Asana. Be aware: Fiscal 2026’s second quarter ended July 31, 2025. Fiscal 2025’s Q2 ended July 31, 2024.
Enterprise Overview and Current Focus
Asana delivers a cloud-based work administration platform that allows organizations to plan, monitor, and handle duties and tasks throughout groups. The platform helps streamline workflows, break down advanced initiatives, and enhance workforce collaboration in companies of all sizes. Its core performance unites activity administration with progress monitoring, purpose setting, and automation — all delivered by a user-friendly interface.
Just lately, Asana has prioritized increasing its AI-driven function set, deepening safety certifications, and scaling its platform for big enterprises. The corporate has centered on integrating synthetic intelligence to automate duties, present predictive insights, and enhance workflow adaptability, aiming to draw bigger buyer cohorts and deal with advanced enterprise wants. Key success elements embrace driving buyer retention, accelerating adoption of AI-powered choices, and sustaining safety and compliance as extra extremely regulated industries change into prospects.
Key Achievements and Developments within the Quarter
Income grew 9.9% over the prior yr interval, barely outpacing the excessive finish of the corporate’s personal steerage. Asana additionally achieved its highest-ever non-GAAP working margin of seven.1%, marking a pointy enchancment from a destructive 8.7 % a yr earlier. The corporate posted non-GAAP web earnings of $15.1 million, or $0.06 per diluted share, turning round from an $11.1 million non-GAAP web loss within the prior yr and $(0.05) per share within the prior yr. Adjusted free money circulate reached $35.4 million, in comparison with $12.8 million within the prior yr interval.
Bills as a share of gross sales fell throughout core capabilities: analysis and improvement dropped to 24.2% of income from 31.5% final yr (non-GAAP), and gross sales and advertising and marketing dropped to 44.8% from 50.9% (non-GAAP). This tighter value management helped produce each margin growth and a $27.3 million discount in working loss on a GAAP foundation.
Product innovation remained central. Through the quarter, Asana launched the Sensible Workflow Gallery, a collection of prebuilt, AI-powered workflows aimed toward making it simpler for purchasers to embed synthetic intelligence of their day by day work routines. Additional, administration referenced upcoming releases resembling “Teammates” and expanded partnerships, together with Asana’s presence within the Amazon Internet Providers Market. AI Studio, Asana’s software for embedding workflow automation and insights, continued to achieve traction, particularly amongst bigger enterprise shoppers.
On the client facet, massive enterprise buyer momentum endured. The variety of prospects spending $100,000 or extra yearly rose 19% yr over yr to 770, with 42 web additions because the prior quarter. Core prospects, outlined as these spending $5,000 or extra yearly, grew 9% yr over yr to 25,006, and income from this group rose 12% in comparison with the prior yr interval. Regardless of these beneficial properties, administration famous that web retention charges — a measure of buyer renewal and growth — have plateaued at 96%.
Safety and compliance superior as differentiators. Asana achieved “FedRAMP In Course of” designation, signaling its intent to serve extra public sector and controlled business shoppers. Ongoing certifications resembling ISO compliance and annual SOC 2 Sort II reporting had been cited as methods the corporate maintains belief with bigger organizations. Administration additionally referred to as out the combination of Asana’s platform in environments demanding strict safety necessities as a basis for future enterprise growth.
Wanting Forward: Steering and Strategic Concerns
Administration forecast income of $197.5 million to $199.5 million, implying year-over-year progress of seven.4% to eight.5%. Full-year income steerage elevated barely to a spread of $780.0 million to $790.0 million. The complete-year non-GAAP working margin goal was raised to six%. Nonetheless, top-line progress is slowing: administration anticipates income progress slipping to excessive single digits (7% to 9%). Non-GAAP working earnings is anticipated within the $12 million to $14 million vary, with non-GAAP earnings per share of $0.06 to $0.07.
Firm management highlighted that sustaining margin beneficial properties now depends on each continued value self-discipline and enhancements in web retention and growth, as mentioned within the context of non-GAAP outcomes. The corporate’s web retention fee was 96%. Product innovation, particularly in AI, will likely be essential in driving elevated utilization and contract sizes with massive enterprise prospects. Traders ought to monitor adoption of AI Studio options, worldwide growth, buyer cohort progress, and any materials buyer contract renewals or downgrades, as within the $100 million-plus renewal that occurred final quarter.
Income and web earnings introduced utilizing U.S. usually accepted accounting ideas (GAAP) until in any other case famous.
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