Asana, Inc. (ASAN) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This summary covers Asana, Inc.'s unaudited financial results for the quarterly period ended July 31, 2026. Asana operates a work management platform designed for human and AI coordination. The company reported a net loss for the quarter but demonstrated revenue growth and improved operating efficiency compared to the prior year.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YoY Change |
|---|---|---|---|
| Revenue | $216.4 million | $196.9 million | +10% |
| Gross Profit | $186.1 million | $176.7 million | +5% |
| Gross Margin | 86% | 90% | -400 bps |
| Operating Loss | $(41.2) million | $(49.5) million | -17% (Improvement) |
| Net Loss | $(39.2) million | $(48.4) million | -19% (Improvement) |
| Free Cash Flow | $40.0 million | $35.4 million | +13% |
| Cash & Marketable Securities | $339.9 million | N/A | N/A |
| Debt Outstanding | $36.9 million | N/A | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 10% year-over-year, driven by new customer acquisition and a shift toward higher-priced Enterprise+ subscription plans.
- Cost of Revenues: Increased 50% to $30.3 million, primarily due to higher third-party hosting costs ($4.1M increase), infrastructure costs, and amortization of acquired StackAI technology.
- Operating Expenses: Total operating expenses remained relatively flat (+1%) at $227.3 million. Sales and marketing expenses decreased 2%, while R&D increased 3%.
- Acquisition Impact: The company acquired Eigen Inc. ("StackAI") on May 27, 2026, for $74.6 million in cash. This resulted in $56.6 million of goodwill and $18.2 million of intangible assets. StackAI contributed an immaterial amount of revenue in the quarter.
- Stock Repurchases: The company repurchased 7.4 million shares for $51.5 million during the quarter. As of July 31, 2026, $102.9 million remained available under the repurchase program.
Guidance, Outlook, and Risks
- Outlook: Management continues to focus on long-term growth and AI integration. The company expects to remain unprofitable in the near term as it invests in R&D and sales expansion.
- Key Metrics: Dollar-based net retention rate was 97% (up from 96% in Q2 2025). Core customers (spending >$5k annually) contributed 77% of revenue.
- Liquidity: The company holds $339.9 million in cash, cash equivalents, and marketable securities. It has a $150 million credit facility with $78.3 million available borrowing capacity.
- Risks:
- AI Costs & Margins: Consumption-based AI billing introduces revenue variability and potential margin pressure from third-party AI service costs.
- Macroeconomics: Global economic uncertainty, inflation, and interest rates may lengthen sales cycles and impact IT spending.
- Competition: Intense competition in the work management space and rapid AI advancements by competitors.
- Regulatory: Evolving regulations regarding AI, data privacy (GDPR, EU AI Act), and data security.
Investor Verification Checklist
- Verify the sustainability of the 10% revenue growth rate given the 50% increase in cost of revenues.
- Monitor the integration progress and revenue contribution of the StackAI acquisition.
- Assess the impact of consumption-based AI billing on revenue predictability and gross margins.
- Review the remaining $102.9 million stock repurchase authorization and its impact on cash reserves.
- Confirm compliance with the financial covenants of the November 2022 Senior Secured Credit Facility (adjusted quick ratio and minimum cash adjusted EBITDA).