The Motley Fool·Jun 26, 2026
The Duolingo Rally Is Finally StartingDuolingo has been expanding into other subjects to offer a broader learning experience. The company has used AI to create more courses and enhance its subscription plans.
Duolingo, Inc.(DUOL)Earnings, Financials & Key Ratios
DUOL•NASDAQ
$131.95
15.4× P/E·Price updated Jul 7, 2026
AboutDuolingo, Inc. develops a language-learning website and mobile app in the United States and China. The company offers courses in 40 different languages, including Spanish, English, French, Japanese, German, Italian, Chinese, Portuguese, and others. It also provides a digital language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.Show more
- Revenue$1.04B+38.7%
- EBITDA$150M+104.2%
- Net Income$414M+367.5%
- EPS (Diluted)8.57+355.9%
- Gross Margin72.23%-0.7%
- EBITDA Margin14.45%+47.2%
- Operating Margin13.07%+56.1%
- Net Margin39.91%+237.0%
- ROE38.14%+218.6%
DUOL Price & Volume
Duolingo, Inc. (DUOL) stock price & volume — 10-year historical chart
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Subscription Scaling Drives Robust Cash Flow Generation
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Decelerating
Profitability:Moderate
Financial:Fortress
Cash Flow:Robust
Primary Risk:Platform fee dependency
Key Thesis Takeaways
- Duolingo has successfully transitioned to a self-sustaining growth model, evidenced by a shift from negative retained earnings in 2023Q4 to a positive $331.7M balance by 2026Q1.
- While revenue growth has normalized to 26.5% as of 2026Q1, the company's ability to scale operating margins to 15.3% suggests effective cost management despite the persistent 72-73% gross margin ceiling imposed by app store fees.
- Investors should monitor the impact of $34.6M in quarterly stock-based compensation on long-term dilution against the company's strong $1.1B cash position.
Verdict Logic
while the company demonstrates robust cash generation with a 51.6% FCF margin, the forward P/E of 42.86 suggests that much of the future growth is already priced into the current valuation.
DUOL Growth Metrics
Duolingo, Inc. (DUOL) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years45.03%
3 Years41.08%
TTM35.45%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM336.57%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM332.34%
Return on Capital
10 Years-6.47%
5 Years-0.86%
3 Years3.5%
Last Year7.92%
DUOL Recent Earnings
Duolingo, Inc. (DUOL) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 11/12 qtrs (92%)●Beat Revenue 9/12 qtrs (75%)
Q2 2026Latest
May 4, 2026Metric
Actual
Est
EPS
$0.89+12.7%
$0.79
Rev
$292M+1.2%
$289M
Q1 2026
Feb 26, 2026Metric
Actual
Est
EPS
$0.94+19.0%
$0.79
Rev
$283M+2.5%
$276M
Q4 2025
Nov 5, 2025Metric
Actual
Est
EPS
$0.95+25.2%
$0.76
Rev
$272M+4.4%
$260M
Q3 2025
Aug 6, 2025Metric
Actual
Est
EPS
$0.91+65.5%
$0.55
Rev
$252M-1.9%
$257M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 4, 2026 | $0.89vs $0.79+12.7% | $292Mvs $289M+1.2% |
| Q1 2026 | Feb 26, 2026 | $0.94vs $0.79+19.0% | $283Mvs $276M+2.5% |
| Q4 2025 | Nov 5, 2025 | $0.95vs $0.76+25.2% | $272Mvs $260M+4.4% |
| Q3 2025 | Aug 6, 2025 | $0.91vs $0.55+65.5% | $252Mvs $257M-1.9% |
Based on last 12 quarters of dataView full earnings history →
Latest DUOL News
Recent stock market news and headlines for Duolingo, Inc. (DUOL)
Zacks Investment Research·Jun 25, 2026
Duolingo, Inc. (DUOL) Suffers a Larger Drop Than the General Market: Key InsightsThe latest trading day saw Duolingo, Inc. (DUOL) settling at $119.94, representing a -9.24% change from its previous close.
The Motley Fool·Jun 23, 2026
Adobe vs. Duolingo: Which Technology Stock Is a Better Buy in 2026?Adobe remains a dominant force in creative software, generating nearly $9.9 billion in annual free cash flow. Duolingo is expanding rapidly beyond languages into math and music with a highly profitable freemium business model.
The Motley Fool·Jun 23, 2026
Bargain Hunters: These 3 Growth Stocks Haven't Been This Cheap in Years. Here's Why They Could Be Good Contrarian BuysThe stocks on this list trade at discounts to the S&P 500 average. They have been struggling, and their shares are down more than 48% in just the past year.
Zacks Investment Research·Jun 17, 2026
Duolingo, Inc. (DUOL) Dips More Than Broader Market: What You Should KnowIn the latest trading session, Duolingo, Inc. (DUOL) closed at $123.39, marking a -3.65% move from the previous day.
Peers Comparison
Key metrics vs top competitors for Duolingo, Inc. (DUOL)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $131.95 | $6.15B | 15.40 | 38.71% | 39.91% | 38.14% | — | |
| $0.94 | $105.11M | -0.98 | -38.97% | -26.89% | -62.94% | — | |
| $5.80 | $982.02M | -18.71 | 9.04% | -8.23% | -10.06% | — | |
| $4.63 | $677.28M | 180.16 | 0.42% | -0.9% | -3.21% | — | |
| $130.60 | $17.89B | 5856.50 | 2.72% | 3.46% | 2.79% | — | |
| $35.16 | $2.2B | 14.53 | 24.2% | 19.91% | 17.21% | — |
Compare DUOL vs Peers
Duolingo, Inc. (DUOL) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
DUOL SEC Filings & Documents
Duolingo, Inc. (DUOL) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 4, 2026·SEC
Material company update
Feb 26, 2026·SEC
Material company update
Jan 12, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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DUOL Frequently Asked Questions
Duolingo, Inc. (DUOL) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Duolingo, Inc.'s revenue?
Duolingo, Inc. (DUOL) reported $1.10B in revenue for fiscal year 2025. This represents a 1453% increase from $70.8M in 2019.
How fast is Duolingo, Inc. growing?
Duolingo, Inc. (DUOL) grew revenue by 38.7% over the past year. This is strong growth.
Is DUOL profitable?
Yes, Duolingo, Inc. (DUOL) is profitable, generating $422.4M in net income for fiscal year 2025 (39.9% net margin).
Dividend & Returns
What is DUOL's return on equity?
Duolingo, Inc. (DUOL) has a return on equity (ROE) of 38.1%. This is excellent, indicating efficient use of shareholder capital.
What is Duolingo, Inc.'s free cash flow?
Duolingo, Inc. (DUOL) generated $423.1M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.