Asana, Inc.ASAN
Asana, Inc. Leases Disclosure
Leases
The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal 2034. The Company has no lease agreements that are classified as finance leases.
The components of lease costs, lease term, and discount rate for operating leases are as follows:
| Year Ended January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Operating lease costs (in thousands) | $ | 38,534 | $ | 39,681 | $ | 40,897 | |||||||||||
| Short-term lease costs (in thousands) | 1,364 | 1,842 | 3,488 | ||||||||||||||
| Variable lease costs (in thousands) | 4,760 | (491) | 2,663 | ||||||||||||||
| Total lease costs | $ | 44,658 | $ | 41,032 | $ | 47,048 | |||||||||||
| Weighted-average remaining lease term (in years) | 7.1 | 7.9 | 8.8 | ||||||||||||||
| Weighted-average discount rate | 9.4 | % | 9.5 | % | 9.5 | % | |||||||||||
Supplemental cash flow information related to operating leases are as follows (in thousands):
| Year Ended January 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 43,184 | $ | 41,621 | $ | 41,389 | |||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 6,886 | $ | 8,534 | $ | 29,887 | |||||||||||
| Right-of-use reductions related to operating lease impairments | $ | 22,679 | $ | 6,708 | $ | 4,900 | |||||||||||
Future minimum lease payments under non-cancelable operating leases with initial lease terms in excess of one year included in the Company’s total operating lease liabilities as of January 31, 2026, are as follows (in thousands):
| Fiscal year ending January 31, | Operating Lease Payments | ||||
| 2027 | $ | 42,817 | |||
| 2028 | 41,196 | ||||
| 2029 | 37,867 | ||||
| 2030 | 34,253 | ||||
| 2031 and thereafter | 132,233 | ||||
| Total undiscounted operating lease payments | 288,366 | ||||
| Less: imputed interest | (79,771) | ||||
| Total operating lease liabilities | $ | 208,595 | |||
As of January 31, 2026, the Company has commitments of $2.3 million for an operating lease that has not yet commenced, and therefore is not included in the ROU asset or operating lease liabilities. The foregoing operating lease will commence in the first quarter of fiscal 2027, with a lease term of seven years. Subsequent to January 31, 2026, the Company entered into three agreements to lease additional space and to extend the term of existing leases.
The Company expects to pay $10.7 million in additional rent payments over the terms of these leases, which expire between fiscal 2033 and fiscal 2034.
During the years ended January 31, 2026, 2025, and 2024, the Company executed subleases for a portion of its corporate office space in San Francisco, California. The Company evaluated the associated asset group for impairment, which included the ROU assets and underlying property and equipment for the lease. The Company compared the expected future undiscounted cash flows to the carrying value and determined the respective asset group was not recoverable. The Company calculated the fair value based on the present value of the cash flows from the subleases for the remaining lease terms and compared the estimated fair value to its carrying value, which resulted in a $30.7 million, $6.8 million, and $5.0 million consolidated impairment charge during the years ended January 31, 2026, 2025, and 2024, respectively. Of the $30.7 million total impairment charge recorded during the year ended January 31, 2026, $22.7 million was attributed to the operating lease ROU asset and $8.0 million was attributed to property and equipment associated with the lease. The impairment charge attributed to property and equipment associated with the leases were not material for the years ended January 31, 2025 and 2024. The fair value of the operating lease ROU assets and associated property and equipment was estimated as of the sublease execution date using level 3 inputs based on an income approach by converting future sublease cash inflows and outflows to a single present value. Estimated cash flows were discounted at a rate commensurate with the inherent risks associated with the asset group to arrive at an estimate of fair value. The impairment charges are included in general and administrative expenses in the consolidated statements of operations.
The Company has subleased certain office spaces to third parties and has classified the subleases as operating leases. The subleases have lease terms ranging from to five years. Sublease income was $3.4 million, $1.8 million, and $0.8 million for the years ended January 31, 2026, 2025, and 2024, respectively. The Company recognizes sublease income as a reduction of lease expense in the Company’s consolidated statements of operations.
Operating lease amounts in the table above do not include sublease payments to be received of $16.8 million. As of January 31, 2026, the future total minimum sublease payments to be received were as follows (in thousands):
| Fiscal year ending January 31, | Sublease Payments to be Received | ||||
| 2027 | $ | 5,045 | |||
| 2028 | 5,524 | ||||
| 2029 | 4,620 | ||||
| 2030 | 1,628 | ||||
| Total sublease payments to be received | $ | 16,817 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 13, 2026 | Showing above |
| 2025 | Mar 18, 2025 | |
| 2024 | Mar 14, 2024 | |
| 2023 | Mar 24, 2023 | |
| 2022 | Mar 24, 2022 | |
| 2021 | Mar 30, 2021 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.