Operating cash flow jumped 85.2% to $86.3 million in Asana's six months ended July 31. The odd part is that the company still lost money, and $92.6 million of stock-based compensation sat inside that cash-flow bridge.
The filing shows a split-screen business: revenue is growing and losses are narrowing, but the cash number gets a substantial assist from an expense that does not leave the bank account.
Revenue rose 9.9% to $216.4 million from the comparable six-month period. Gross profit grew only 5.3%, bringing gross margin down 3.7 percentage points to 86.0%, while the operating loss narrowed to $41.2 million from $49.5 million.
Asana says the sales increase came from more paying customers and a shift toward its higher-priced Enterprise+ plans.
"The increase in revenues was primarily due to the addition of new paying customers and a continued shift in our sales mix toward our higher priced Enterprise+ subscription plans."
Asana 10-Q, filed September 3, 2026
The filing offers a straightforward growth receipt, but not a matching explanation for the lower gross margin. The company added sales and improved operating leverage, yet each incremental dollar produced less gross profit than in the comparable period.
The cash-flow detail is the more consequential wrinkle. Asana's operating cash flow was $46.6 million a year earlier, when it reported a larger net loss and $110.3 million of stock compensation. This year's smaller non-cash compensation charge still exceeded the reported operating loss by a wide margin.
"Net cash provided by operating activities of $86.3 million for the six months ended July 31, 2026 reflects our net loss of $53.6 million, adjusted by non-cash items such as stock-based compensation expense of $92.6 million, amortization of deferred contract acquisition costs of $13.9 million, depreciation and amortization of $12.7 million, non-cash lease expense of $9.9 million, and provision for expected credit losses of $1.3 million, partially offset by net accretion of discount on marketable securities of $0.4 million, and net cash inflows of $9.7 million from changes in our operating assets and liabilities."
Asana 10-Q, filed September 3, 2026
In plain English, Asana generated real cash from operations, but the reported total was lifted by reversing non-cash expenses. Cash still rose 19.2% to $219.6 million, giving the balance sheet more room even as the business remains unprofitable.
The other operating details are small beside that accounting bridge. Accounts receivable grew 13.6%, faster than revenue, while capital spending more than doubled to $4.3 million, though it remained about 1% of revenue. Diluted shares fell 2.3% in the six-month comparison, reversing some of the annual dilution seen through January.
Asana's longer trajectory supplies the backdrop rather than a second story. Annual revenue growth has slowed from 66.7% in fiscal 2022 to 9.2% in fiscal 2026, while operating margin improved from -70.1% to -25.0%. The latest six-month period continues both lines: slower top-line expansion, better operating margins, and no operating profit yet.
At the latest close, Asana's shares were $9.82, nearly unchanged on September 2. The company carried a $2.3 billion market capitalization and a 2.7x enterprise-value-to-sales multiple, so the unresolved market question is tied less to whether sales are still rising than to how much of the cash-generation story survives without stock compensation in the bridge.
The business is growing, but its cash strength and its earnings strength are not the same thing.
Source: Asana's Form 10-Q filed September 3, 2026, for the six months ended July 31, 2026.