Duolingo Inc (DUOL)
🔔 Watch stock
symbol.quality_heading
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
There is little to argue about on substance: no debt, $1,138.6 million in cash plus $253.3 million in investments as of March 31, 2026, a 67.6 percent equity ratio, a 72.2 percent gross margin and three straight years of rising cash flow. Two operating questions are open, and both are documented. First, quality of earnings: $256.7 million of the $414.1 million profit in 2025 was a one-time tax entry, and income from operations was 13.1 percent of revenue. Second, momentum: bookings up 13.6 percent against revenue up 26.5 percent in the first quarter of 2026, and monthly active users up only 5.8 percent. This is not an existential question — a debt-free company with a billion in cash and positive cash flow does not fail over it. But it is more than a formality. Hence yellow: substance documented, continuation unproven. The decision is yours.
symbol.quality_note
Duolingo crossed the billion-dollar line in 2025: $1,037.6 million in revenue, $414.1 million in net income, 56.5 million people learning every single day. That is exactly why the stock sits in the best-of list of our scanner. The annual report filed on February 27, 2026 also says where that profit came from: $256.7 million of it was a one-time tax entry. And the money actually billed is growing at half the pace of reported revenue. No recommendation — just the question of what is left once the tax entry is used up.
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Stock Watch
This analysis is as of July 26, 2026. Stock Watch will tell you what's changed at DUOL since then.
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Appears in These Scanners
This stock currently matches 19 of our scanner strategies — each hit links to the scanner.
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Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 134.80 $ — 15% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
AI Rating
Sells AIKI ist bei Duolingo unmittelbare Umsatzquelle: Die höher bepreiste Abostufe Duolingo Max wird im Geschäftsbericht ausdrücklich über KI-gestützte Funktionen definiert, und der als KI-gesteuert beschriebene Duolingo English Test brachte 2025 rund 4,0 Prozent des Gesamtumsatzes.
View the full file — quotes, sources, reviewed filings
„Duolingo Max is a premium subscription tier launched in 2023 and offered to a portion of our user base and priced higher than Super Duolingo. It gives learners access to the existing features of Super Duolingo in addition to incremental features and exercises powered by AI technology."
Duolingo Max ist eine 2023 eingeführte Premium-Abostufe, die einem Teil unserer Nutzerbasis angeboten wird und höher bepreist ist als Super Duolingo. Sie gibt Lernenden Zugang zu den bestehenden Funktionen von Super Duolingo sowie zu zusätzlichen Funktionen und Übungen, die von KI-Technologie angetrieben werden.
„The success of the Duolingo English Test, from which we derived approximately 4.0% of our total revenue for the year ended December 31, 2025, depends in part upon the continued recognition and acceptance by schools, governments, and other institutions of technology-based assessment, and the continued utilization of assessment in general."
Der Erfolg des Duolingo English Test, aus dem wir im Geschäftsjahr zum 31. Dezember 2025 rund 4,0 Prozent unseres Gesamtumsatzes erzielten, hängt zum Teil davon ab, dass Schulen, Regierungen und andere Institutionen technologiegestützte Prüfungen weiterhin anerkennen und akzeptieren und dass Prüfungen allgemein weiterhin genutzt werden.
„AI plays an increasingly important role in how we provide effective learning experiences and generate content at scale. For example, Roleplay, Explain My Answer, and Video Call are all AI-powered learning features."
KI spielt eine immer wichtigere Rolle dabei, wie wir wirksame Lernerfahrungen bereitstellen und Inhalte in großem Maßstab erzeugen. Roleplay, Explain My Answer und Video Call sind zum Beispiel allesamt KI-gestützte Lernfunktionen.
„Our development, implementation and use of AI and machine learning technologies, including third-party technologies, may not be successful, which may impair our ability to compete effectively, result in reputational harm and have an adverse effect on our business."
Unsere Entwicklung, Umsetzung und Nutzung von KI- und Maschinenlern-Technologien, einschließlich Technologien Dritter, ist möglicherweise nicht erfolgreich, was unsere Fähigkeit zum wirksamen Wettbewerb beeinträchtigen, zu Reputationsschäden führen und sich nachteilig auf unser Geschäft auswirken kann.
Filings Reviewed: 10-K 2026-02-27 · 10-K 2025-02-28 · 10-Q 2026-05-05 · 10-Q 2025-11-06 · 10-Q 2025-08-07 · 10-Q 2025-05-02
Rated on July 26, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Analysts & Price Target
The price target sits 14.8% below the current price.
- Consensus
- Sell
- Analyst Ratings
- 23
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 6.69 | 6.60 – 6.75 | 1,208 | -43.2% | 5 |
| 12/31/2027 | 7.85 | 7.39 – 8.07 | 1,377 | 17.3% | 6 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Next Reporting Date
- Expected Earnings per Share
- 0.61 $
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.28 | 13.60 | 210 | 38.80 | 6.60 | 83 | 81 |
| 2025: Q1 | 0.72 | 27.30 | 231 | 37.70 | 15.20 | 106 | 104 |
| 2025: Q2 | 0.91 | 79.30 | 252 | 41.50 | 17.80 | 91 | 90 |
| 2025: Q3 | 5.95 | 1,120.90 | 272 | 41.10 | 107.50 | 84 | 79 |
| 2025: Q4 | 0.84 | 199.90 | 283 | 35.00 | 14.80 | 107 | 97 |
| 2026: Q1 | 0.89 | 22.50 | 292 | 26.50 | 14.90 | 151 | 151 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2019 | 71 | -13 | -14 | -0.38 | 2 | 54 | 95 |
| 2020 | 162 | -16 | -16 | -0.44 | 18 | 102 | 176 |
| 2021 | 251 | 60 | -60 | -1.57 | 9 | 513 | 661 |
| 2022 | 370 | -65 | -60 | -1.51 | 54 | 542 | 747 |
| 2023 | 531 | -13 | 16 | 0.35 | 154 | 656 | 954 |
| 2024 | 748 | 64 | 89 | 1.88 | 286 | 825 | 1,302 |
| 2025 | 1,038 | 141 | 414 | 8.57 | 388 | 1,347 | 1,992 |
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Assessment: Opportunities & Risks
Revenue climbed from $531.1 million in 2023 through $748.0 million in 2024 to $1,037.6 million in 2025 — close to a doubling in two years, with no acquisition. The first quarter of 2026 added another 26.5 percent. 137.8 million people open the app each month, 56.5 million every day; roughly 15 million of them hold a learning streak of more than a year. That habit is the real moat.
As of March 31, 2026 the company held $1,138.6 million in cash and $253.3 million in investments — and not a single line of debt. The only long-term obligation is $91.9 million of operating leases. Equity funded 67.6 percent of the balance sheet, and free cash flow reached $360.4 million in 2025. This company needs nobody to lend it money.
Of the $414.1 million in 2025 net income, $256.7 million came from the one-time release of a tax valuation allowance in the third quarter of 2025. Pre-tax income was $182.4 million — 17.6 percent of the $1,037.6 million in revenue. The operating margin was 13.1 percent in 2025. Anyone computing a P/E of roughly 14 on reported earnings is computing with an item that happened once.
The leading indicator is cooling. In the first quarter of 2026 total bookings rose only 13.6 percent to $308.5 million while reported revenue rose 26.5 percent. Monthly active users grew just 5.8 percent, to 137.8 million from 130.2 million. The installed base is being monetized more deeply — the top of the funnel is drying up.
Apple processed 61.6 percent of 2025 revenue, Google 23.4 percent and Stripe 10.3 percent. So 85 percent of the money runs through two app stores whose operators set the commission, the rules and the visibility — and who are building AI assistants with language features themselves. Add the voting structure: 76.3 percent of the voting power sat with directors, officers and 5 percent stockholders as of December 31, 2025.
At a market capitalization of roughly $5.7 billion (data as of July 24, 2026), reported 2025 earnings give a price-to-earnings ratio of about 14 — excluding the tax benefit it is about 36. Free cash flow of $360.4 million implies 15.8 times; deduct the $137.4 million of stock-based compensation and it is 25.5 times. The mean analyst price target of $113.24 sits below the implied share price of roughly $122.
Duolingo is an unusually good product in an unusually unsettled moment. The business works: $1,037.6 million in 2025 revenue, $360.4 million of free cash flow, $1,138.6 million in cash, zero debt and 56.5 million people who come back voluntarily every day. Against that stand a profit that came almost two thirds from a one-time tax entry, a leading indicator growing at half the pace of revenue, and 85 percent of the money running through somebody else's till. Buying here does not buy the 2025 profit; it buys the question of whether habit still converts into revenue once every chatbot speaks Spanish. Not investment advice.
- Duolingo reached our research list through our in-house stock scanner: the stock sits in the U.S. selection of the list Fundamental Rank (A / A+), which sorts companies by the quality of their numbers (as of July 26, 2026; 38 U.S. names meet the criteria and the page shows the first 25). On the same date DUOL appeared in 16 lists at once, among them Buffett criteria, Peter Lynch PEG below 1, quality stocks and high revenue growth. The lists are recalculated daily.
- Recency: this analysis is based on the annual report 10-K for 2025 (filed February 27, 2026), the quarterly report 10-Q for the quarter ended March 31, 2026 (filed May 5, 2026) and the annual report 10-K for 2024 (filed February 28, 2025). Every filing submitted afterwards was reviewed — the 8-K of June 5, 2026 (annual meeting results), the SCHEDULE 13G/A filings of May 6 and May 14, 2026, and Forms 4 through July 14, 2026. None of them changes the picture; the next quarterly report is expected in early August 2026.
- One trap in the metrics: some data providers list only the 40,237,065 Class A shares as outstanding. In fact 6,356,052 Class B shares come on top (cover page of the quarterly report, as of May 1, 2026), for 46,593,117 in total. The market capitalization of roughly $5.7 billion quoted here (data as of July 24, 2026) uses the full share count; the cross-check of 46,593,117 shares times the implied price of $122.24 confirms it. Analyses are evergreen; a daily price is not a reason to buy.
About the Company
Duolingo, Inc. betreibt eine mobile Lernplattform in den USA, dem Vereinigten Königreich und international.
| Employees | 900 |
|---|---|
| Headquarters | Pittsburgh, PA |
| Address | 5900 Penn Avenue, 15206 Pittsburgh, United States |
| Phone | 412 567 6602 |
| Website | duolingo.com |
| IPO Date | 28. Jul 2021 |
| ISIN | US26603R1068 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Luis Alfonso von Ahn Arellano Ph.D. | Co-Founder, Chairman of the Board, President & CEO | 1979 |
| Gillian Munson | Chief Financial Officer | 1971 |
| Stephen Chen | General Counsel | 1975 |
| Matthew Skaruppa | Advisor | 1982 |
| Robert Meese | Chief Business Officer | 1978 |
| Natalie Glance Ph.D. | Chief Engineering Officer | 1969 |
| Severin Benedict Hacker Ph.D. | Co-Founder, CTO & Director | 1986 |
| Deborah Belevan CPA | VP of Investor Relations | – |
| Sam Dalsimer | Global Head of Communications | – |
| Manu Orssaud | Chief Marketing Officer | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Insider Transactions
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 10. Jul 2026 | Shelton James H | Director | Other | 120 | 124.76 | 14,971 |
| 10. Jul 2026 | Bohutinsky Amy | Director | Other | 130 | 124.76 | 16,219 |
| 10. Jul 2026 | Schlosser Mario | Director | Other | 140 | 124.76 | 17,466 |
| 10. Jul 2026 | Lilly III John Osborne | Director | Other | 118 | 124.76 | 14,722 |
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
View all insider transactions →Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.