Duolingo, Inc.DUOL
Duolingo, Inc. Leases Disclosure
LEASES
The Company has entered into various operating leases for its office space expiring between fiscal 2025 and 2036. Certain lease agreements contain an option for the Company to renew a lease for a term of up to five years. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a lease-by-lease basis.
In February 2024, the Company signed a lease with Bullitt Center LLC for 7,940 square feet of office space in Seattle, Washington. The term of the lease is 63 months beginning on March 1, 2024 and expiring on May 31, 2029.
In March 2024, the Company entered into the First and Second Amendments (the “Amendments”) to the Office Lease Agreement with 5704 Penn Office, LLC (the "Landlord") for office space located at Liberty East (the “Premise”) at 141 South Saint Clair Street, Pittsburgh, Pennsylvania, which, among other things, increased the leased square footage by 110,008 square feet to a total of 148,266 square feet beginning when construction of the leasehold improvements commences in the first half of 2025, with an expiration date of April 30, 2036. Under the terms of the Amendments, the Landlord will provide the Company with an improvement allowance of up to approximately $6,800 for costs relating to the design, permitting, and construction of improvements to the Premise.
In May 2024, the Company signed a lease with Beijing Hengshi Huarong Holding Co., Ltd. for 16,314 square feet of office space in Beijing, China. The term of the lease is 39 months beginning on May 20, 2024 and expiring on July 15, 2027.
In May 2025, the Company entered into an amendment (the “Third Amendment”) to the Office Lease Agreement with 5704 Penn Office, LLC (the "Landlord") for office space located at Liberty East (the “Premise") at 141 South Saint Clair Street, Pittsburgh, Pennsylvania. The Third Amendment grants the Company access to and control of the expansion space to begin tenant improvement work as of the effective date in May 2025.
As a result of obtaining control of the Premise, the lease was recognized on the Company’s balance sheet in the second quarter of 2025 in accordance with ASC 842. $35,592 was recognized as a right-of-use-asset and $38,964 was recognized as a lease liability as part of the amendment on the Company’s Consolidated. Under the terms of the Third Amendment, the Landlord provided the Company with a tenant improvement allowance for costs related to the design, permitting, and construction of improvements to the Premise. As of December 31, 2025, $6,809 related to this allowance was recognized within Consolidated Balance Sheet within Other Assets. The full lease term extends through April 30, 2036, and includes approximately 148,266 square feet of leased space.
The following represents the components of lease cost for the year ended December 31, 2025 and 2024 along with supplemental disclosures of cash flow information, lease term and discount rate:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease cost | $ | 12,071 | $ | 9,982 | $ | 7,459 | |||||||||||
| Short term lease cost | 365 | 83 | 48 | ||||||||||||||
| Variable lease cost | 418 | 468 | 252 | ||||||||||||||
| Total lease cost | $ | 12,854 | $ | 10,533 | $ | 7,759 | |||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | $ | 4,598 | $ | 5,727 | $ | 7,512 | |||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 39,202 | $ | 33,039 | $ | — | |||||||||||
Right of use assets disposed or adjusted, modifying operating leases liabilities | $ | — | $ | 1,302 | $ | 2,024 | |||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Weighted-average remaining lease term | 9 years | 9 years | 9 years | ||||||||||||||
| Weighted-average discount rate | 6.91 | % | 7.16 | % | 7.38 | % | |||||||||||
The following table reconciles future minimum undiscounted rental commitments for operating leases to operating lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2025:
| Fiscal year | |||||
| 2026 | $ | 13,931 | |||
| 2027 | 15,969 | ||||
| 2028 | 14,606 | ||||
| 2029 | 15,053 | ||||
| 2030 | 14,217 | ||||
| Thereafter | 64,042 | ||||
| Total undiscounted lease payments | $ | 137,818 | |||
| Present value adjustment | (36,835) | ||||
| Operating lease liabilities | $ | 100,983 | |||
Current lease liabilities of $7,204 and $2,581 are presented within while non-current lease liabilities of $93,779 and $54,656 are presented within Long-term obligation under operating leases on the Consolidated Balance Sheets as of December 31, 2025 and Consolidated Balance Sheet as of December 31, 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 4, 2022 | |
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.