Asana, Inc. (NYSE: ASAN) is a leading enterprise work management platform that empowers organizations to streamline operations and enhance productivity. The company reported financial results for the fourth quarter and fiscal year 2025 with significant metrics indicating a stabilization and positive movement towards profitability.

For the fourth quarter, Asana posted total revenues of $188.3 million, reflecting a 10% year-over-year increase. Adjusting for currency fluctuations using prior year foreign exchange rates, revenues would have been $189.1 million, which translates to a growth of 10.5%. The company had 24,062 core customers, with revenues from these users growing by 11% year-over-year. Customer cohorts spending $100,000 or more annually grew by 20%, reaching 726, an acceleration from previous quarters.

The company’s operating loss for the fourth quarter was recorded at $1.7 million, improving significantly compared to a loss of $15.6 million in the same quarter the previous year. The non-GAAP operating loss margin improved more than 800 basis points year-over-year to 1%. Moreover, Asana achieved free cash flow of $12.3 million during the quarter, representing a notable 7% margin of revenue, alongside full-year positive free cash flow of $2.6 million, improving by $34 million from the prior year.

Asana’s gross margin for the fourth quarter was reported at 90%, while research and development expenses accounted for 29% of revenue at $54.7 million, and sales and marketing expenses represented 45%, totaling $85 million. General and administrative costs were $31.1 million, or 17% of revenue for the fourth quarter.

Looking forward, Asana provided guidance for the first quarter of fiscal year 2026, expecting revenues in the range of $184.5 million to $186.5 million, which would indicate year-over-year growth of 7% to 8%. Non-GAAP operating profitability is estimated between $2 million and $3 million for an operating margin of 1% to 2%. Guidance for the full fiscal year anticipates total revenues between $782 million to $790 million, which aligns with growth rates of 8% to 9%.

The forecast incorporates assumptions about macroeconomic conditions, anticipated impacts of AI adoption, and a focus on resource optimization to drive productivity. Despite challenges in the tech vertical, Asana’s broader diversification strategies in non-tech sectors showed resilience, capturing a growing number of enterprise customers and enhancing overall revenue stability.