Work management platform Asana (NYSE:ASAN) met Wall Street’s revenue expectations in Q4 CY2025, with sales up 9.2% year on year to $205.6 million. The company expects next quarter’s revenue to be around $203.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.08 per share was in line with analysts’ consensus estimates.

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Revenue: $205.6 million vs analyst estimates of $205.2 million (9.2% year-on-year growth, in line)

Adjusted EPS: $0.08 vs analyst estimates of $0.07 (in line)

Adjusted Operating Income: $18.17 million vs analyst estimates of $15.34 million (8.8% margin, 18.5% beat)

Revenue Guidance for Q1 CY2026 is $203.5 million at the midpoint, roughly in line with what analysts were expecting

Adjusted EPS guidance for the upcoming financial year 2027 is $0.37 at the midpoint, beating analyst estimates by 2.7%

Operating Margin: -16.5%, up from -33.8% in the same quarter last year

Free Cash Flow Margin: 11.8%, up from 6.7% in the previous quarter

Customers: 25,928 customers paying more than $5,000 annually

Billings: $234.3 million at quarter end, up 12.1% year on year

Market Capitalization: $1.68 billion

“FY26 was a year of meaningful progress as we advanced Asana into a multi-product platform and strengthened our position as the foundational system of action layer for the Agentic Enterprise,” said Dan Rogers, Chief Executive Officer of Asana.

Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE:ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Asana’s 28.4% annualized revenue growth over the last five years was impressive. Its growth beat the average software company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Asana’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 10.1% over the last two years was well below its five-year trend.

This quarter, Asana grew its revenue by 9.2% year on year, and its $205.6 million of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 8.7% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 8.4% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds.

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Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.

Asana’s billings came in at $234.3 million in Q4, and over the last four quarters, its growth was underwhelming as it averaged 9.4% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in acquiring/retaining customers.

This quarter, Asana reported 25,928 enterprise customers paying more than $5,000 annually, an increase of 515 from the previous quarter. That’s quite a bit more contract wins than last quarter but also quite a bit below what we’ve observed over the previous year. This indicates the company is optimizing its go-to-market strategy to reinvigorate growth.

It was great to see Asana’s EPS guidance for next quarter top analysts’ expectations. We were also glad its full-year EPS guidance exceeded Wall Street’s estimates. On the other hand, its revenue guidance for next quarter was in line and its full-year revenue guidance was in line with Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The market seemed to be hoping for more, and the stock traded down 6.2% to $6.85 immediately following the results.

Is Asana an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.