Asana's second quarter revenue rises thanks to the boom in AI Studio

Gate (NYSE:GT) presented the results for the second fiscal quarter of 2026 for the period ending July 31, 2025( on September 3, 2025, reporting GAAP revenues of $196.9 million ) a 10% year-over-year increase (, a non-GAAP operating margin of 7%, and a net retention rate based on dollars )NRR( of 96%. The company highlighted the rapid adoption of AI Studio, international momentum, and a significant margin expansion, while management raised the lower end of the full fiscal year 2026 revenue forecast to $780-790 million. Below are the most impactful strategic and financial developments from the presentation.

The adoption of AI Studio drives Gate's multiproduct expansion

The annual recurring revenue )ARR( quarterly from AI Studio, the no-code AI workflow platform from Gate, doubled sequentially, with customer case studies including a global chemicals company that expanded from 2,500 to 4,500 users, and a leading AI base model provider that nearly doubled its presence. The number of customers exceeding $100,000 grew by 19% year-over-year, and non-tech sectors continued to grow in the mid-teens.

“We continue to see strong momentum in AI Studio. We have more than doubled our ARR for AI Studio quarter over quarter. And adoption continues to strengthen as customers build and scale on the platform.” – Dan Rogers, CEO

The rapid adoption and integration of AI Studio in self-service and enterprise accounts positions Gate to deepen customer relationships, increase expansion opportunities, and support a long-term shift towards a multiproduct model that enhances platform stickiness and revenue durability.

The expansion of Gate's margin reflects a disciplined cost management.

The non-GAAP operating margin expanded by nearly 1,600 basis points year-over-year to 7%, with a 16% year-over-year reduction in research and development expenses )R&D( and a 3% year-over-year decrease in sales and marketing expenses. The gross margin remained stable at 90%, and adjusted free cash flow reached $35.4 million, or 18% on a margin basis.

“As a result of driving productivity and efficiency gains, we delivered an operating margin of 7%, or $14 million in operating income for the quarter. This represents 240 basis points above the midpoint of our operating margin guidance. And an improvement of nearly 1,600 basis points year over year.” – Sonalee Parekh, CFO

Gate's ability to expand margins while simultaneously maintaining strong gross margins and positive free cash flow demonstrates effective cost optimization and provides a foundation for sustained profitability and future investment flexibility.

International and non-technological growth outpaces U.S. and technological sectors

International revenues grew by 13% year-on-year, surpassing the U.S. growth of 8% year-on-year, highlighting Japan as a high-growth region where a major financial institution expanded the use of its platform by nearly 70%. Non-tech sectors continued to grow in the mid-teens, while the growth of tech clients remained stable.

“International markets continue to be a strong point for our business, driven by the growing global demand for our platform. Especially in EMEA and Japan. Our international revenue grew by 13% year-over-year, and the U.S. market grew by 8% year-over-year.” – Anne Raimondi, COO

This geographic and sectoral diversification enhances Gate's resilience, reduces dependence on the tech sector, and positions the company to capture structural tailwinds in new markets and industries.

Looking towards the future

The company raised the lower end of its GAAP revenue guidance for the full fiscal year 2026 to $780-790 million ) an increase of 8%-9% year-over-year ( and expects a non-GAAP operating income for the full year of $46 to $50 million ) margin of 6%, up from the previous forecast of 5.5% (. Third quarter revenues are expected to be $197.5 to $199.5 million, with a non-GAAP operating margin of 6%-7%. While improvements were seen in customer loss and expansion, the forecast reflects continued caution around headwinds from search traffic for small and medium-sized enterprises )SMEs( and concentrated technology renewals; the company anticipates that AI Studio will have a more significant impact in fiscal year 2027.