"Q1 was a milestone quarter. We achieved non‑GAAP profitability for the first time and AI Studio reached general availability in Q1, surpassing $1 million in ARR, demonstrating powerful early momentum."
— Dustin Moskovitz
03Detailed Report
ASAN
Company ASAN
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 21, 2026
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Executive Summary
Asana reported a transformative QQ1 2026, marked by the first non‑GAAP profitability in the company’s history and AI Studio reaching over $1 million in ARR. Revenue rose 9% YoY to $187.3 million, with non‑GAAP operating margin turning positive (4%) versus a prior operating loss and free cash flow margin improving to 5%. The results underscore the company’s leverage in AI‑driven workflows embedded in Asana, a robust enterprise and international growth trajectory, and visible long‑term profitability dynamics as AI Studio transitions from a product line to a growth engine. Management highlighted meaningful enterprise wins, accelerated AI adoption, and a differentiated approach to AI with human‑in‑the‑loop controls and deep work graph context, while also signaling near‑term NRR headwinds tied to a large multi‑year renewal and macro‑related downgrades. The guide for FY2026 reflects an improving but cautious macro backdrop, with revenue growth guided to 7–9% for the year and non‑GAAP operating margin raised to at least 5.5%, contingent on execution and macro stability. The company’s strategic bets center on expanding AI Studio adoption, growing the channel, and delivering price‑to‑value alignment through foundational service plans and tiered AI Studio offerings.
Key Performance Indicators
Revenue
Increasing
187.27M
QoQ: -0.57% | YoY: 8.59%
Gross Profit
Increasing
168.04M
89.73% margin
QoQ: -0.41% | YoY: 8.66%
Operating Income
Increasing
-43.90M
QoQ: 30.96% | YoY: 33.65%
Net Income
Increasing
-40.02M
QoQ: 35.76% | YoY: 37.20%
EPS
Increasing
-0.17
QoQ: 37.04% | YoY: 39.29%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $187.3 million in Q1 FY2026, up 9% YoY; guided Q2 revenue $192–$194 million (+7% to +8% YoY); full‑year revenue guidance raised to $775–$790 million (+7% to +9%).
- Gross margin: ~89.7% (GAAP gross margin ≈ 0.8973).
- Profitability: Q1 non‑GAAP operating income of about $8.1 million (non‑GAAP margin ~4%), versus GAAP operating income of −$43.9 million; net income of −$40.0 million; GAAP EPS −$0.17; non‑GAAP EPS guidance 4–5 cents for Q2, and FY2026 net income per share of $0.22 (diluted).
- Cash flow: Adjusted free cash flow of $9.9 million (5% margin); operating cash flow $6.764 million; net change in cash +$9.216 million; cash balance ~ $194 million at period end; total debt $259.3 million; cash and cash equivalents ~$194 million; net debt ≈ $65.5 million.
- Balance sheet health: Total assets $877.1 million; total liabilities $640.8 million; stockholders’ equity $236.3 million; RPO $420.7 million (up 11% YoY); CRPO 83% of RPO; pro forma RPO ~$521 million (up 37% YoY).
- Customer metrics: 24,297 core customers; 728 customers spending $100k+; core revenue 75% of total; dollar‑based net retention rate (NRR) 95% (core NRR 96%, $100k+ NRR 95%).
- AI Studio: AI Studio ARR > $1 million; cross‑vertical demand with early wins in manufacturing, retail, technology, financial services, and healthcare; AI Studio ARR sometimes exceeding seat‑based ARR; Smart Workflow Gallery launched; AI Studio Plus tier introduced; three‑tier pricing (Basic, Plus, Pro).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
187.27M
8.59%
-0.57%
Gross Profit
168.04M
8.66%
-0.41%
Operating Income
-43.90M
33.65%
30.96%
Net Income
-40.02M
37.20%
35.76%
EPS
-0.17
39.29%
37.04%
Key Financial Ratios
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