Duolingo
DUOL Nasdaq Education Services Financials FY2020–FY2025
Duolingo's revenue rose 38.7% to $1.0 billion in fiscal 2025. Its operating margin was 13.1%, up from 8.4% a year earlier. Free cash flow was $370 million, up 35.2%. The diluted share count rose 2.6%.
About these figures. Duolingo reports no borrowings, so debt is counted as zero.
What Duolingo does
Duolingo makes a phone app for learning languages through short, game-like lessons. It offers over 250 language courses, plus courses in math, music and chess. Anyone can use the app for free; free users see ads after lessons, while paying subscribers get no ads and extra features, some of them powered by AI. It also runs the Duolingo English Test, an online English exam that over 6,100 education programs accept for international student admissions.
At the end of 2025 it had more than 130 million monthly active users, and about 12.2 million of them paid for a subscription. Subscriptions are its main source of money, bringing in $873.4 million in 2025; ads, the English test and other sales brought in $164.1 million. Most payments come through Apple's and Google's app stores, and US customers made up 38% of revenue. It competes with other online and app-based language programs, classes and other offline ways of learning, and, in its newer subjects, with other math, music and chess learning products.
Duolingo was founded by Luis von Ahn and Severin Hacker, who met at Carnegie Mellon University. It had more than 900 employees at the end of 2025, more than 430 of them engineers.
- Legal name
- Duolingo, Inc.
- Fiscal year ends
- December 31, 2025
- Latest annual report
- 10-K · Feb 27, 2026
- Accession · CIK
- 0001628280-26-012494
0001562088
Revenue and margins
Duolingo had $1.0B of revenue in fiscal 2025, up 38.7% on the year before.
Net income and earnings per share
Loss periods are shown in red.
Returns on capital
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Cash flow
Free cash flow was $370M in fiscal 2025, 35.6% of revenue. Cash from operations minus capital spending.
Dividends, buybacks and share count
Duolingo returned $0.0M to shareholders in fiscal 2025, 0% of free cash flow. The diluted share count rose 2.6%.
Value Duolingo yourself
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.
Discounted cash flow
Value per share
—
Adds net cash of $1.0B and divides by 48.3M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.
Earnings multiple
Value per share
—
Reference multiples: today 16.9x · peers 16.7x · sector 17.9x.
Balance sheet
Cash, debt and the ratios that show how comfortably Duolingo can carry it.
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | $554M | $608M | $748M | $786M | $1.0B |
| Debt incl. finance leases | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Net debt / EBITDA | — | — | — | −10.7x | −6.9x |
| Debt / equity | 0.0x | 0.0x | 0.0x | 0.0x | 0.0x |
| Current ratio | 5.2x | 3.8x | 3.2x | 2.6x | 2.6x |
| Quick ratio | 5.2x | 3.8x | 3.2x | 2.6x | 2.6x |
| Total assets | $661M | $747M | $954M | $1.3B | $2.0B |
| Total liabilities | $148M | $205M | $299M | $477M | $645M |
| Shareholders' equity | $513M | $542M | $656M | $825M | $1.3B |
| Net debt (− = net cash) | −$554M | −$608M | −$748M | −$786M | −$1.0B |
Insider trades
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.
Bought, 12 months
$0.0M
0 insiders
Sold, 12 months
$38.1M
5 insiders
Of sales under plans
99%
$37.8M
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Oct 7, 2026 | Ahn Luis vonPresident & CEO, Co-Founder, Director, 10% owner | Sold plan | 110,046 | $151.70 | $16.7M | Form 4 |
| Sep 24, 2026 | Ahn Luis vonPresident & CEO, Co-Founder, Director, 10% owner | Sold plan | 46,682 | $150.63 | $7.0M | Form 4 |
| Sep 22, 2026 | Ahn Luis vonPresident & CEO, Co-Founder, Director, 10% owner | Sold plan | 3,614 | $151.91 | $0.5M | Form 4 |
| Sep 21, 2026 | Ahn Luis vonPresident & CEO, Co-Founder, Director, 10% owner | Sold plan | 37,366 | $150.53 | $5.6M | Form 4 |
| Sep 16, 2026 | Ahn Luis vonPresident & CEO, Co-Founder, Director, 10% owner | Sold plan | 28,292 | $150.22 | $4.3M | Form 4 |
| Sep 14, 2026 | Stephen C. ChenGeneral Counsel | Sold plan | 8,072 | $149.33 | $1.2M | Form 4 |
| Sep 8, 2026 | William B GordonDirector | Sold plan | 10,000 | $145.67 | $1.5M | Form 4 |
| Aug 18, 2026 | Natalie GlanceChief Engineering Officer | Sold plan | 1,539 | $137.81 | $0.2M | Form 4 |
| Aug 17, 2026 | Natalie GlanceChief Engineering Officer | Sold plan | 2,751 | $129.13 | $0.4M | Form 4 |
| Aug 17, 2026 | Robert MeeseChief Business Officer | Sold | 1,354 | $129.13 | $0.2M | Form 4 |
| Aug 17, 2026 | Stephen C. ChenGeneral Counsel | Sold | 1,024 | $129.13 | $0.1M | Form 4 |
| May 18, 2026 | Natalie GlanceChief Engineering Officer | Sold plan | 3,360 | $113.59 | $0.4M | Form 4 |
Piotroski F-score
Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | ✓ | ✓ | ✓ |
| Cash from operations is positive | ✓ | ✓ | ✓ |
| Return on assets rose | ✓ | ✓ | ✓ |
| Cash from operations exceeds net income | ✓ | ✓ | ✕ |
| Debt fell relative to assets | ✕ | ✕ | ✕ |
| Current ratio rose | ✕ | ✕ | ✕ |
| Share count didn't rise | ✕ | ✕ | ✕ |
| Gross margin rose | ✓ | ✕ | ✕ |
| Revenue rose relative to assets | ✓ | ✓ | ✓ |
| F-score | 6 / 9 | 5 / 9 | 4 / 9 |
| Accruals ratio | −16.2% | −17.5% | 1.6% |
| Altman Z'' | 5.75 | 5.25 | 6.04 |
Similar companies
Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score | |
|---|---|---|---|---|---|---|---|---|
| Duolingo DUOL | $7.2B | 38.7% | 13.1% | 35.6% | 77.6% | 17.0x | 4 | |
| Grand Canyon Education LOPE | $4.3B | 7.1% | 24.0% | 21.6% | 45.3% | 19.8x | 4 | Compare → |
| Strategic Education STRA | $1.8B | 4.0% | 13.7% | 12.1% | 8.4% | 13.7x | 6 | Compare → |
| Perdoceo Education PRDO | $2.2B | 24.2% | 23.2% | 25.6% | — | 12.3x | — | Compare → |
| Universal Technical Institute UTI | $1.2B | 14.1% | 10.0% | 6.6% | 24.0% | 35.8x | 6 | Compare → |
6 years of figures
US$ millions unless stated. Hover a ratio's name for its definition.
| Fiscal year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| Revenue | $162M | $251M | $370M | $531M | $748M | $1.0B |
| Gross profit | $116M | $182M | $270M | $389M | $544M | $750M |
| Research and development | $53.0M | $104M | $150M | $194M | $235M | $306M |
| Operating income | −$16.0M | −$60.0M | −$65.2M | −$13.3M | $62.6M | $136M |
| Interest expense | $0.0M | $0.0M | $0.0M | $0.0M | — | — |
| Pretax income | −$15.7M | −$60.0M | −$58.6M | $17.8M | $102M | $182M |
| Income tax | $0.1M | $0.2M | $0.9M | $1.7M | $13.7M | −$232M |
| Net income | −$15.8M | −$60.1M | −$59.6M | $16.1M | $88.6M | $414M |
| Diluted EPS | −$1.24 | −$2.57 | −$1.51 | $0.35 | $1.88 | $8.57 |
| Diluted shares | 0.01B | 0.02B | 0.04B | 0.05B | 0.05B | 0.05B |
| Cash flow | ||||||
| Cash from operations | $17.7M | $9.2M | $53.7M | $154M | $286M | $388M |
| Capital expenditure | $3.4M | $3.6M | $5.6M | $3.2M | $12.1M | $18.1M |
| Free cash flow | $14.3M | $5.6M | $48.1M | $150M | $273M | $370M |
| Depreciation and amortization | $2.3M | $2.7M | $4.9M | $7.1M | $10.9M | $14.4M |
| Stock-based compensation | $17.0M | $40.8M | $73.8M | $95.2M | $111M | $137M |
| Acquisitions | $0.0M | $0.0M | $4.0M | $0.0M | $6.6M | $33.1M |
| Share buybacks | $0.0M | $0.9M | $0.0M | $0.0M | $0.0M | $0.0M |
| Dividends paid | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Dividends and buybacks | $0.0M | $0.9M | $0.0M | $0.0M | $0.0M | $0.0M |
| Balance sheet | ||||||
| Cash and short-term investments | $121M | $554M | $608M | $748M | $786M | $1.0B |
| Total debt | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Finance lease liabilities | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Current assets | $158M | $619M | $697M | $898M | $1.1B | $1.4B |
| Current liabilities | $65.7M | $119M | $182M | $277M | $422M | $551M |
| Inventory | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Property and equipment, net | $6.4M | $8.2M | $13.0M | $11.8M | $18.9M | $36.3M |
| Total assets | $176M | $661M | $747M | $954M | $1.3B | $2.0B |
| Total liabilities | $73.8M | $148M | $205M | $299M | $477M | $645M |
| Shareholders' equity | −$80.7M | $513M | $542M | $656M | $825M | $1.3B |
| Margins | ||||||
| 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% |
| EBITDA margin | −8.5% | −22.8% | −16.3% | −1.2% | 9.8% | 14.5% |
| Net margin | −9.8% | −24.0% | −16.1% | 3.0% | 11.8% | 39.9% |
| FCF margin | 8.9% | 2.2% | 13.0% | 28.3% | 36.6% | 35.6% |
| Returns | ||||||
| Return on capital | — | — | — | — | — | 77.6% |
| Return on capital employed | — | −18.4% | −11.8% | −2.1% | 8.1% | 11.7% |
| Return on equity | — | −27.8% | −11.3% | 2.7% | 12.0% | 38.1% |
| Return on assets | — | −14.4% | −8.5% | 1.9% | 7.9% | 25.1% |
| Growth | ||||||
| Revenue growth | — | 55.1% | 47.3% | 43.7% | 40.8% | 38.7% |
| Net income growth | — | — | — | — | 451.3% | 367.5% |
| EPS growth | — | — | — | — | 437.1% | 355.9% |
| FCF growth | — | −61.0% | 761.3% | 212.8% | 81.8% | 35.2% |
| Share count change | — | 84.0% | 68.4% | 17.9% | 1.2% | 2.6% |
| Financial health | ||||||
| Net debt / EBITDA | — | — | — | — | −10.7x | −6.9x |
| Debt / equity | — | 0.0x | 0.0x | 0.0x | 0.0x | 0.0x |
| Current ratio | 2.4x | 5.2x | 3.8x | 3.2x | 2.6x | 2.6x |
| Quick ratio | 2.4x | 5.2x | 3.8x | 3.2x | 2.6x | 2.6x |
| Capital allocation | ||||||
| Capex / revenue | 2.1% | 1.4% | 1.5% | 0.6% | 1.6% | 1.7% |
| Stock comp / revenue | 10.5% | 16.3% | 20.0% | 17.9% | 14.8% | 13.3% |
| Payouts / FCF | 0.0% | 15.5% | 0.0% | 0.0% | 0.0% | 0.0% |
| Quality scores | ||||||
| Piotroski F-score | — | — | 4.0 | 6.0 | 5.0 | 4.0 |
| Altman Z'' | −0.4 | 7.1 | 5.7 | 5.8 | 5.3 | 6.0 |
| Accruals ratio | — | −16.6% | −16.1% | −16.2% | −17.5% | 1.6% |
Source: SEC EDGAR XBRL filings (CIK 0001562088). Data updated October 9, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.