Asana (ASAN) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $201 million, up 9% year-over-year, surpassing the high end of guidance and driven by new paying customers and higher-priced subscription plans.

• Non-GAAP operating income was $16.3 million (8% margin), with adjusted free cash flow of $13.4 million (7% margin); non-GAAP net income was $17.9 million.

• Net retention rate improved to 96% overall, with core customer NRR at 97% and $100,000+ customer NRR at 96%.

• AI Studio and AI Teammates drove product innovation and customer expansion, with strong adoption and positive feedback.

• Leadership changes included COO and CEO transitions, and appointment of a new Chief Product Officer.

Financial highlights

• Gross margin remained strong at 89%; operating margin improved 12 percentage points YoY.

• Deferred revenue ended at $305.1 million, up 8% YoY; RPO was $500.9 million, up 23% YoY.

• Net income was $17.9 million, or $0.07 per diluted share; GAAP net loss was $68.4 million ($0.29 per share), impacted by a $30.7 million impairment charge.

• Free cash flow for the quarter was $13.4 million, a significant improvement from negative $18.2 million a year ago.

• $30.8 million in share repurchases completed in Q3; $97.5 million remains authorized.

Outlook and guidance

• Q4 revenue guidance: $204–$206 million (8–9% YoY growth); non-GAAP operating income: $14–$16 million (7–8% margin).

• Full-year FY26 revenue guidance raised to $789–$791 million (9% YoY growth); non-GAAP operating income expected at $52.5–$54.5 million (7% margin); non-GAAP net income per share expected at $0.25–$0.26.

• Continued investment in AI platform and product development, balancing margin expansion with growth.

• Management believes current liquidity is sufficient for at least the next 12 months.

• Focus on customer health, acquisition, and value to drive long-term growth and net retention rate improvement.