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DUOL

Duolingo, Inc.

DUOL

Duolingo, Inc. • NASDAQ
$191.65 ▲ 1.71% (+3.22)
Market Cap $8.86 B
52w High $544.93
52w Low $166.27
Dividend Yield 0%
P/E 24.17
Volume 1.25M
Outstanding Shares 46.23M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $271.713M ▲ $161.752M ▲ $292.195M ▲ 107.538% ▲ $6.36 ▲ $50.002M ▲
Q2-2025 $252.265M ▲ $149.218M ▲ $44.781M ▲ 17.752% ▲ $0.98 ▲ $36.803M ▲
Q1-2025 $230.743M ▲ $140.502M ▲ $35.135M ▲ 15.227% ▲ $0.78 ▲ $27.184M ▲
Q4-2024 $209.55M ▲ $136.743M ▲ $13.907M ▼ 6.637% ▼ $0.31 ▼ $17.543M ▲
Q3-2024 $192.594M $126.84M $23.36M 12.129% $0.49 $16.45M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.121B ▲ $1.886B ▲ $578.099M ▲ $1.308B ▲
Q2-2025 $1.098B ▲ $1.543B ▼ $565.528M ▼ $977.031M ▲
Q1-2025 $999.28M ▲ $2.623B ▲ $1.729B ▲ $893.826M ▲
Q4-2024 $877.645M ▼ $2.403B ▲ $1.579B ▲ $824.55M ▲
Q3-2024 $880.763M $2.278B $1.456B $822.453M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $292.195M ▲ $84.239M ▼ $-51.675M ▼ $2.747M ▼ $35.311M ▼ $79.377M ▼
Q2-2025 $44.781M ▲ $90.675M ▼ $-2.272M ▲ $3.832M ▲ $92.235M ▼ $89.477M ▼
Q1-2025 $35.135M ▲ $105.631M ▲ $-10.549M ▲ $3.123M ▲ $98.205M ▲ $104.322M ▲
Q4-2024 $13.907M ▼ $83.344M ▲ $-110.365M ▼ $-41.597M ▼ $-68.618M ▼ $80.904M ▲
Q3-2024 $23.36M $56.267M $-93.288M $3.19M $-33.831M $51.244M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Advertising
Advertising
 $30.00M ▲$20.00M ▼$20.00M ▲$20.00M ▲
English Test
English Test
 $20.00M ▲$10.00M ▼$10.00M ▲$10.00M ▲
License and Service
License and Service
 $320.00M ▲$190.00M ▼$210.00M ▲$230.00M ▲
Product and Service Other
Product and Service Other
 $110.00M ▲$40.00M ▼$40.00M ▲$40.00M ▲
Product And Service Other Miscellaneous
Product And Service Other Miscellaneous
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Duolingo’s income statement shows a clear shift from “grow at all costs” to “grow and earn.” Revenue has climbed strongly each year, and gross profits have scaled well alongside that growth, suggesting the core business model is working. The company moved from operating losses in its early public years to a solid operating profit more recently, and net income has turned consistently positive. Profitability is still relatively young in the company’s life, but the direction of travel—higher sales, improving margins, and rising earnings per share—is favorable and shows increasing operating discipline.

Balance Sheet

Balance Sheet The balance sheet looks conservative and healthy. Total assets have expanded steadily as the business has grown, with cash and short‑term investments making up a large share. Debt remains very low relative to the company’s size, which reduces financial risk and interest burden. Shareholders’ equity has improved from a slightly negative position before the IPO to a solid positive base, reflecting accumulated profits and capital raised. Overall, Duolingo appears to be in a strong financial position with ample liquidity and minimal leverage, giving it flexibility to invest through different market conditions.

Cash Flow

Cash Flow Cash generation has improved meaningfully over the past five years. Operating cash flow has grown from roughly break‑even levels to clearly positive territory, showing that profits are increasingly backed by real cash, not just accounting gains. Free cash flow has followed the same pattern and is now comfortably positive, helped by modest spending on physical assets. This cash profile suggests the business can fund most of its growth and product development internally, without heavy reliance on borrowing or continual equity raises, as long as current trends persist.

Competitive Edge

Competitive Edge Duolingo holds a leading position in app‑based language learning, supported by a very recognizable brand and a huge global user base. Its gamified, bite‑sized approach appeals to casual learners and drives strong engagement, which is reinforced by network effects: more users generate more data, which improves the AI models and, in turn, the learning experience. The freemium model lowers barriers to adoption and creates a large pool of potential subscribers and test‑takers. Competition remains intense in language learning and broader ed‑tech, and alternatives exist across price points and formats, but Duolingo’s scale, data, and brand give it a meaningful, if not unassailable, edge.

Innovation and R&D

Innovation and R&D Innovation is at the center of Duolingo’s strategy. The platform is increasingly “AI‑first,” using machine learning to personalize lessons, automate content creation, and power premium features like Duolingo Max, which offers generative‑AI tutoring and roleplay. This helps the company expand courses faster and at lower cost. Duolingo is also broadening beyond languages into math, music, and even chess, experimenting with new ways to blend education and entertainment. Its English proficiency test and integration with professional platforms add a more formal, credential‑based angle. The key question is not whether Duolingo can innovate—it clearly can—but how effectively it can turn these innovations into durable revenue and profit streams over time.

Summary

Duolingo has evolved from a fast‑growing but unprofitable app into a scaled, profitable education‑technology platform with a strong balance sheet and improving cash generation. Its competitive strengths come from a powerful brand, massive user base, and deep data advantage, all amplified by heavy use of AI and gamification. The company is pushing beyond language learning into new subjects and premium AI‑driven offerings, which could open additional growth paths but also introduce execution risk. Future performance will hinge on sustaining user growth, successfully monetizing new products like Duolingo Max and non‑language courses, and maintaining its technological edge in a crowded, fast‑moving market.

NEWS

October 8, 2025 · 4:02 PM UTC

Duolingo to Announce Third Quarter 2025 Results on Wednesday November 5, 2025

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September 10, 2025 · 2:51 PM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duolingo, Inc. - DUOL

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September 8, 2025 · 3:30 PM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duolingo, Inc. - DUOL

Read more

September 3, 2025 · 10:00 AM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duolingo, Inc. - DUOL

Read more

September 2, 2025 · 10:00 AM UTC

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duolingo, Inc. - DUOL

Read more