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AI

Asana, Inc. (ASAN)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue was $188.3M, up 10% YoY; adjusted for FX, revenue was $189.1M (+10.5% YoY) and exceeded the high end of guidance on a constant-currency basis .
  • Non-GAAP operating margin improved 820 bps YoY to -0.9%; GAAP operating margin improved 590 bps YoY to -33.8% .
  • The company achieved positive free cash flow for FY2025 ($2.6M) and generated $12.3M FCF in Q4 (7% margin), marking a cash flow inflection .
  • FY2026 guidance: revenue $782–$790M (+8–9% YoY), non-GAAP operating margin ≥5%, and non-GAAP EPS $0.19–$0.20; Q1 FY2026 guidance implies non-GAAP profitability with $2–$3M operating profit and $0.02 EPS .
  • CEO succession announced: Dustin Moskovitz will transition to Chair upon appointment of successor, focusing on AI strategy—an important narrative catalyst tied to AI Studio momentum .

What Went Well and What Went Wrong

What Went Well

  • AI Studio momentum: “The early momentum with AI Studio has exceeded our expectations… rapidly growing credit usage and a multi-million dollar pipeline.” — Dustin Moskovitz .
  • Profitability trajectory: “We expect to reach non-GAAP profitability in Q1 this year…” — Dustin Moskovitz ; Q4 non-GAAP operating margin improved ~820 bps YoY and beat guidance by >200 bps .
  • Enterprise and international strength: $100K+ customers grew 20% YoY to 726; international revenue grew 14% YoY and accelerated versus prior quarter (per call) .

What Went Wrong

  • Tech vertical headwinds: NRR in tech underperformed overall and saw several large downgrades, dragging the >$100K cohort NRR below core NRR in Q4 .
  • FX and leap year headwinds impacted near-term growth metrics; Q1 FY2026 growth guided to 7–8% but would have been 9–10% adjusting for FX and leap-year comps (prior-year rates) .
  • EBITDA (S&P Global actual) remained negative; consensus expected a smaller loss than reported for Q4 and FY2025, indicating pressured profitability on that basis*.

Values for EBITDA comparison retrieved from S&P Global.*

Financial Results

Revenue, EPS, and Margins vs Prior Periods and Estimates

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Millions)$179.212 $183.882 $188.334
GAAP EPS ($)-$0.31 -$0.25 -$0.27
Non-GAAP EPS ($)-$0.05 -$0.02 $0.00
GAAP Gross Margin (%)88.8% 89.2% 89.6%
Non-GAAP Operating Margin (%)-8.7% -4.1% -0.9%
Estimates vs ActualsQ2 2025Q3 2025Q4 2025
Revenue Estimate ($USD Millions)177.675*180.664*188.126*
Revenue Actual ($USD Millions)179.212 183.882 188.334
Revenue Beat/MissBeat*Beat*Beat*
Primary EPS Estimate ($)-0.0814*-0.0676*-0.0134*
Primary EPS Actual ($)-0.05 -0.02 0.00
EPS Beat/MissBeat*Beat*Beat*

Values retrieved from S&P Global.*

KPIs

KPIQ2 2025Q3 2025Q4 2025
Core Customers (≥$5K)22,948 23,609 24,062
≥$100K Customers649 683 726
Overall Dollar-Based NRR (%)98% 96% 96%
Core Customer NRR (%)99% 98% 97%
≥$100K Customer NRR (%)103% 99% 96%
Free Cash Flow ($USD Millions)$12.760 -$18.181 $12.339

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q4 FY2025$187.5–$188.5 Actual: $188.334 In-line; exceeded high end on CC
Non-GAAP Operating Loss ($USD Millions)Q4 FY2025$6.5–$5.5 Actual: $1.728 loss Raised vs guide (better than expected)
Non-GAAP EPS ($)Q4 FY2025-$0.02 to -$0.01 Actual: $0.00 Beat
Revenue ($USD Millions)Q1 FY2026—$184.5–$186.5 New
Non-GAAP Operating Profit ($USD Millions)Q1 FY2026—$2.0–$3.0 (1–2% margin) New
Non-GAAP EPS ($)Q1 FY2026—$0.02 (≈245M diluted shares) New
Revenue ($USD Millions)FY2026—$782.0–$790.0 New
Non-GAAP Operating Margin (%)FY2026—≥5% New
Non-GAAP EPS ($)FY2026—$0.19–$0.20 (≈247M diluted shares) New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
AI/Technology InitiativesQ2: AI teammates launched; AI tools GA in July . Q3: AI Studio launched; multi-product positioning .AI Studio momentum with thousands of smart workflows, strong EMEA adoption, pipeline in the millions; credit-based monetization with Basic/Pro tiers .Accelerating
Pricing & PackagingOngoing optimization; focus on enterprise transition .Align price to value across segments; self-serve pricing tests positive; Basic/Pro tiers for AI Studio .Evolving/Positive
Channel StrategyGrowing partner ecosystem; early wins .Underpenetrated channel; expanded systems integrators; partner program revamp; channel-sourced revenue focus .Strengthening
Macro & FXQ3 outlook raised; pursuing FedRAMP .FX and leap-year headwind to Q1/FY26; tech vertical softness persists; ARR expected to outpace revenue .Mixed; FX headwind
Enterprise/VerticalsNon-tech verticals mid-teens growth; record multi-year deals .Non-tech grew ~15% YoY; $100K+ customers +20% YoY; international +14% YoY; record multiyear deals .Stable to improving
R&D Execution & EfficiencyMargin improvement trend underway .5 levers for margin expansion; >1,000 bps FY26 non-GAAP op margin expansion expected; workforce reduction ~5% .Improving
Leadership & GovernanceNew CFO appointed in Q3 .CEO succession plan (Moskovitz to Chair), focus on AI vision and strategy .Transition catalyst

Management Commentary

  • “We delivered solid Q4 results… Non-GAAP operating margins improved more than 800 basis points YoY… We expect to reach non-GAAP profitability in Q1 this year.” — Dustin Moskovitz .
  • “AI Studio… hundreds of our largest customers are now actively running smart workflows… with millions in pipeline and GA launching later in Q1…” — Dustin Moskovitz .
  • “FY25 was a pivotal year… positive free cash flow for the full year… enabling us to reinvest in high-growth areas like AI Studio… drive long-term growth acceleration.” — Sonalee Parekh .
  • “We set a new record for multiyear deals this quarter… non-tech verticals… mid-teens growth… over 70% of our business.” — Anne Raimondi .
  • “We announced that I plan to transition… to Board Chair… to focus on our AI product vision and strategy.” — Dustin Moskovitz .

Q&A Highlights

  • Estimates and NRR: Guidance embeds FX/leap-year headwinds; ARR growth expected to outpace revenue growth in FY2026; NRR stabilization with tech vertical downgrades weighing on ≥$100K cohort .
  • AI Studio impact and monetization: High-beta opportunity with potential “whales” consuming most credits; self-serve launch midyear; cautious guide until usage patterns clarify .
  • Margin trajectory: Sequential operating margin improvement through FY2026 with exit margin “significantly higher” than 5% .
  • Channel strategy: Single-digit revenue contribution today; significant growth potential; expanded SI network and program revamp .
  • Macro baseline: Guide assumes no material change from recent quarters; tech sector upsell/NRR pressure persists .

Estimates Context

  • Q4 FY2025 revenue beat consensus: $188.3M actual vs $188.1M estimate; Primary EPS beat: $0.00 actual vs -$0.013 estimate. Q3 and Q2 also beat on revenue and Primary EPS.*
  • FY2026 consensus revenue at ~$786.3M aligns with company’s $782–$790M guidance; FY2025 actual revenue slightly above consensus.*
  • EBITDA on S&P Global basis remained more negative than consensus across Q2–Q4 and FY2025, reflecting GAAP expenses and restructuring/impairments not captured by operating leverage in non-GAAP metrics.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Non-GAAP profitability inflection: Q1 FY2026 guide to positive operating profit and EPS signals a durable margin expansion trajectory .
  • AI Studio is the growth vector: Early adoption across segments, consumption-based monetization, and channel enablement could unlock outsized upside as cohorts scale .
  • Enterprise durability: Record multiyear deals, $100K+ customers +20% YoY, and international acceleration support revenue resilience despite tech vertical drag .
  • FX and calendar effects matter: Reported growth masked 200 bps headwind from FX/leap year in Q1 guide—monitor currency sensitivity in European/Japanese exposures .
  • Margin playbook: Efficiency levers (labor, program spend, vendor consolidation, offshore mix, AI-driven productivity) underpin >1,000 bps non-GAAP op margin expansion in FY2026 .
  • CEO succession with AI focus: Moskovitz’s transition to Chair concentrates leadership on AI strategy while preserving continuity—watch for successor appointment timing and messaging .
  • Near-term setup: Modest FY2026 contribution from AI Studio in guidance leaves room for upside if adoption concentrates into high-consumption “whales” and channel-sourced deals ramp .