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Duolingo, Inc. DUOL AI

Technology · Software - Application · United States
https://www.duolingo.com
Company Profile ↓
$131.22
-65.14% 1Y
Mkt Cap$5.28B
P/E15.01
P/B4.32
52W High$390.84
52W Low$90.03
Book Value$29.71
EPS (TTM)$8.74

Company Overview

Duolingo, Inc. operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers 250 language courses, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.

Why Investors Should Care

Strong Return on Equity

Generates a return on equity of 37.0%, reflecting efficient use of shareholder capital.

Steady Revenue Expansion

Revenue has grown at a 45.0% CAGR over the past five years.

Reasonable Valuation

Trades at a P/E of 15.0, below the sector median of 34.7.

Healthy Margins

Maintains a net profit margin of 38.4%.

Conservative Balance Sheet

Carries low leverage with a debt-to-equity ratio of 0.07.

Positive Free Cash Flow

Generates positive free cash flow, funding growth and shareholder returns internally.

Recent Developments

  • Dec 2025 Revenue of $1.04B (+38.7% YoY); net profit $414.06M.
  • Trailing 12 Months Year-on-year growth — revenue +26.5%, earnings +23.6%.
  • 5-Year Trend Long-term compounding — revenue CAGR 45.0%.

Growth & Price Performance

Compounded Sales Growth

5 Years:45.03%
1 Year:26.50%

Compounded Profit Growth

5 Years:-
1 Year:23.60%

Stock Price Performance

1 Year:-65.14%
6 Months:-18.87%
3 Months:+43.47%
1 Month:+7.00%

Highlights auto-generated from reported financials and price data; not investment advice. Verify with official filings before acting.

AI Exposure AI AI Consumer
Core Focus

Duolingo Max (GPT-powered conversational tutor); video calls with Lily AI character.

Key Initiatives
  • AI-powered language learning Duolingo uses GenAI to generate lessons, exercises and feedback at scale, dramatically lowering content-creation cost.
  • Duolingo Max & Video Call Its premium Max tier uses GPT-based features (explain-my-answer, AI roleplay/Video Call) to monetise advanced learners.
  • AI-driven personalisation Machine-learning personalises difficulty and retention to boost engagement and conversion.
Why Investors Should Care
  • AI both cuts content costs and powers a premium tier — net margin ~38%, ROE ~37%.
  • Strong ~27% revenue growth with high engagement and improving monetisation.
  • GenAI lets Duolingo expand into new subjects (math, music) cheaply.
  • Premium valuation prices in continued rapid growth; competition from free AI tutors is a risk.
AI InvestmentOpenAI API spend; in-house model fine-tuning.
AI RevenueMax tier highest ARPU; growing fast.
ROI (Now)FCF margin ~30%.
ROI (Expected)Max attach + math/music subjects to expand TAM.

Curated from public filings and analyst commentary; figures are illustrative.

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Price Chart

Robinhood TradingView

Fundamental Growth Charts

Interactive charts for Revenue, Net Income, EBITDA, Free Cash Flow, EPS, ROE, ROCE, Gross/Net/Operating Margin and more — switch metric and period using the dropdowns above. CAGR is computed across the displayed window (quarterly CAGR is annualised). Visual growth charts make it easy to spot multi-year compounding trends at a glance — far faster than reading raw numbers in a table.

PROS

  • Strong return on equity of 37.0%.
  • Excellent profit margin of 38.4%.
  • Compounding revenue at 45.0% over 5 years.
  • Generates positive free cash flow.

CONS

  • Trading 66.4% below its 52-week high.
  • In a downtrend (50-DMA below 200-DMA).

* The pros and cons are auto-generated from financial metrics.

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Valuation

Stock P/E
15.01
Industry PE
34.66
Forward P/E
16.73
PEG Ratio
-
Book Value
$29.71
Price to Book
4.32
P/S
5.44
EV/EBITDA
27.17
Dividend Yield
0.00%

Growth (CAGR)

Revenue 5Y
45.03%
Profit 5Y
-
Revenue (YoY)
26.50%
Earnings (YoY)
23.60%

Profitability & Returns

ROCE
9.41%
ROE
36.96%
ROA
5.87%
Profit Margin
38.44%
Op Margin
15.37%
Gross Margin
72.67%
EPS (Latest Qtr)
$0.89
EPS (TTM)
$8.74

Balance Sheet & Liquidity

Debt/Equity
0.07
Quick Ratio
2.41
Current Ratio
2.62
Debt
$91.87M
Total Assets
$2.06B
Current Assets
-
Working Capital
-

Ownership

Promoter Holding
1.53%
Chg in Prom Hold
-
FII / Inst Holding
98.75%
Chg in FII Hold
0.18%

Financial Snapshot

Enterprise Value
$5.28B
Total Revenue (TTM)
$1.10B
EBITDA
$177.40M
Free Cash Flow
$312.47M
Operating Cash Flow
$432.96M
Shares Outstanding
40.24M
Gross Margin
72.67%
Payout Ratio
0.00%

Peer comparison

Peer companies in the same sector (Technology).

#NameCMP $P/E Mkt CapDiv Yld % ROCE %ROE % Rev CAGR 5Y %Profit CAGR 5Y %
1 DUOL Duolingo, Inc. AI 131.22 15.01 $5.28B 0.00% 9.41% 36.96% 45.03% -
2 NVDA NVIDIA Corporation NDXSPXAI 212.50 32.59 $5.15T 0.47% 74.66% 114.29% 24.64% 32.12%
3 AAPL Apple Inc. NDXSPX 327.50 39.60 $4.81T 0.37% 68.72% 141.47% 1.81% 3.92%
4 MSFT Microsoft Corporation NDXSPXAI 395.63 23.96 $2.94T 0.95% 26.90% 34.01% 9.48% 10.85%
5 TSM Taiwan Semiconductor Manufacturing Company Limited AI 419.48 36.41 $2.18T 0.90% 30.20% 36.21% 18.94% 19.57%
6 AVGO Broadcom Inc. NDXSPXAI 394.28 64.96 $1.88T 0.68% 16.70% 37.28% 24.38% 26.24%
7 MU Micron Technology, Inc. NDXSPXAI 904.28 20.44 $1.02T 0.05% 13.69% 66.64% 13.68% 26.02%
8 AMD Advanced Micro Devices, Inc. NDXSPXAI 529.14 172.36 $862.82B 0.00% 6.33% 8.06% 13.64% 48.64%
9 ASML ASML Holding N.V. NDXAI 1,815.27 59.79 $699.64B 0.51% 42.97% 52.24% 15.55% 19.55%
Financial Statements Quarterly Results · Profit & Loss · Balance Sheet · Cash Flows · Ratios

Quarterly Results

Figures in USD.

Metric Jun 2020Sep 2020Mar 2021Jun 2021Sep 2021Mar 2022Jun 2022Sep 2022Mar 2023Jun 2023Sep 2023Mar 2024Jun 2024Sep 2024Mar 2025Jun 2025Sep 2025Mar 2026
Revenue 40.01M45.30M55.36M58.80M63.59M81.22M88.39M96.06M115.66M126.84M137.62M167.55M178.33M192.59M230.74M252.26M271.71M291.97M
Gross Profit 28.20M32.20M40.34M42.67M45.52M59.73M64.52M69.76M84.17M93.05M101.37M122.36M130.98M140.41M164.10M182.58M196.91M213.10M
Operating Income 82.00K-3.07M-13.41M-478.00K-28.70M-11.85M-15.03M-20.16M-8.52M-4.87M-4.67M16.44M18.70M13.57M23.59M33.36M35.16M44.53M
Net Income 40.00K-3.18M-176.00K-176.00K-28.97M-12.15M-15.04M-18.45M-2.58M3.73M2.81M26.96M24.35M23.36M35.13M44.78M292.19M43.46M
Diluted EPS 0.00-0.25-1.04-0.01-0.98-0.31-0.38-0.46-0.060.080.060.570.510.490.720.915.950.89
R&D Expense 12.11M15.89M22.53M21.94M29.34M29.78M34.22M41.98M45.84M47.95M50.30M50.88M55.15M62.88M70.39M73.67M82.71M82.97M

Profit & Loss (Annual)

Figures in USD.

Metric Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Revenue 161.70M250.77M369.50M531.11M748.02M1.04B
Gross Profit 115.71M181.59M270.06M389.00M544.38M749.46M
Operating Income -16.01M-60.01M-65.19M-13.26M62.59M135.57M
Net Income -15.78M-60.13M-59.57M16.07M88.57M414.06M
Diluted EPS -1.24-2.57-1.510.351.888.57
R&D Expense 53.02M103.83M150.44M194.35M235.30M306.32M

Balance Sheet (Annual)

Figures in USD.

Metric Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Total Assets -175.74M661.31M747.35M953.96M1.30B1.99B
Total Equity -83.98M-80.69M513.06M542.08M655.50M824.55M1.35B
Cash & Equivalents -120.49M553.92M608.18M747.61M785.79M1.04B
Total Liabilities -73.82M148.25M205.27M298.46M477.18M645.18M
Current Liabilities -65.69M119.13M181.77M277.36M422.23M551.15M

Cash Flows (Annual)

Figures in USD.

Metric Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Operating Cash Flow 17.71M9.17M53.66M153.61M285.51M387.82M
Investing Cash Flow -4.01M-6.21M-14.17M-13.58M-217.33M-107.68M
Financing Cash Flow 46.95M430.47M14.78M2.13M-30.00M-29.55M
Capital Expenditure -3.38M-3.59M-5.56M-3.19M-12.12M-18.10M
Free Cash Flow 14.33M5.58M48.09M150.42M273.40M369.73M
Share Buybacks 0868.00K00--

Ratios (Annual)

Figures in %.

Metric Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Gross Margin % 71.6%72.4%73.1%73.2%72.8%72.2%
Operating Margin % -9.9%-23.9%-17.6%-2.5%8.4%13.1%
Net Margin % -9.8%-24.0%-16.1%3.0%11.8%39.9%
ROE % 19.6%-11.7%-11.0%2.5%10.7%30.7%
ROCE % -14.5%-11.1%-11.5%-2.0%7.1%9.4%

Shareholding Pattern

Insiders
1.53%
Institutions
98.75%
Public Float
100.29%

Top Institutional Holders

#Holder% HeldSharesValue
1 BAILLIE GIFFORD & CO 12.12% 4.88M $625.81M
2 Blackrock Inc. 9.91% 3.99M $511.66M
3 Vanguard Capital Management LLC 4.28% 1.72M $221.16M
4 Vanguard Portfolio Management LLC 4.06% 1.63M $209.55M
5 FIL LTD 4.03% 1.62M $208.29M
6 Two Sigma Investments, LP 3.47% 1.40M $179.12M
7 Bank of America Corporation 3.31% 1.33M $171.00M
8 Federated Hermes, Inc. 3.11% 1.25M $160.83M
9 STATE OF MICHIGAN RETIREMENT SYSTEM 2.97% 1.19M $153.16M
10 State Street Corporation 2.94% 1.18M $151.92M

Analyst View

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Latest News

Recent headlines for DUOL

Google News ue, 14 Jul 2026

NOW, TEAM, DUOL Stocks Hit 52-Week Lows: What's Driving The Selloff? - Stocktwits

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Google News Wed, 15 Jul 2026

Duolingo (DUOL) Stock Still Looks Expensive As Growth Must Carry The Case - simplywall.st

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Google News ue, 14 Jul 2026

Duolingo, Inc. (DUOL) Stock Dips While Market Gains: Key Facts - Yahoo Finance

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Google News ue, 14 Jul 2026

Duolingo (DUOL) director takes fully vested RSU award instead of cash fees - Stock Titan

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Google News ue, 14 Jul 2026

Jefferies Financial Group Forecasts Strong Price Appreciation for Duolingo (NASDAQ:DUOL) Stock - MarketBeat

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Google News hu, 25 Jun 2026

$DUOL stock is down 10% today. Here's what we see in our data. - Quiver Quantitative

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DUOL — Frequently Asked Questions

What is the current share price of Duolingo, Inc. (DUOL)?

As of 2026-07-15 16:51 PDT, Duolingo, Inc. (DUOL) trades at $131.22 on NasdaqGS. Its 52-week range is $90.03 to $390.84.

What is the market capitalisation of DUOL?

Duolingo, Inc. (DUOL) has a market capitalisation of $5.28B on NasdaqGS.

What is the P/E ratio of DUOL?

DUOL trades at a trailing price-to-earnings (P/E) ratio of 15.01. The industry average P/E is 34.66. Its price-to-book (P/B) ratio is 4.32.

What is the return on equity (ROE) of DUOL?

DUOL has a return on equity (ROE) of 36.96%. Its return on capital employed (ROCE) is 9.41%.

Is DUOL a good stock to buy?

This page provides a data-driven analysis of Duolingo, Inc. (DUOL), including valuation ratios, profitability, growth trends, auto-generated pros and cons, peer comparison and AI exposure. Review these fundamentals alongside your own research and risk tolerance. This is informational content, not investment advice.

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