Asana has gotten torched over the last six months - since October 2025, its stock price has dropped 51.3% to $6.47 per share. This might have investors contemplating their next move.

Is there a buying opportunity in Asana, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Do We Think Asana Will Underperform?

Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons you should be careful with ASAN and a stock we'd rather own.

1. Weak Billings Point to Soft Demand

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 year-on-year growth averaged 9.4%. This performance was underwhelming and suggests that increasing competition is causing challenges in acquiring/retaining customers.

2. Customer Churn Hurts Long-Term Outlook

One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time.

Asana’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 95.7% in Q4. This means Asana’s revenue would’ve decreased by 4.3% over the last 12 months if it didn’t win any new customers.

Asana has a weak net retention rate, signaling that some customers aren’t satisfied with its products, leading to lost contracts and revenue streams.

3. Long Payback Periods Delay Returns

The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.

Asana’s recent customer acquisition efforts haven’t yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. This inefficiency partly stems from its focus on enterprise clients who require some degree of customization, resulting in long onboarding periods that delay customer spending.

Final Judgment

We cheer for all companies solving complex business issues, but in the case of Asana, we’ll be cheering from the sidelines. Following the recent decline, the stock trades at 1.7× forward price-to-sales (or $6.47 per share). This valuation multiple is fair, but we don’t have much confidence in the company. There are better stocks to buy right now. We’d recommend looking at the most entrenched endpoint security platform on the market.

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