Duolingo vs Strategic Education
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The short version
- Strategic Education is the larger business, with $1.3B of revenue in fiscal 2025 against $1.0B for Duolingo.
- Duolingo grew revenue faster (38.7%, against 4.0%).
- Strategic Education kept more of each dollar of sales as operating profit (13.7% operating margin, against 13.1%).
- Duolingo turned more of its sales into free cash flow (35.6% FCF margin, against 12.1%).
- Duolingo earned a higher return on the capital invested in it (77.6%, against 8.4%).
- Investors pay more for each dollar of Duolingo’s earnings: a P/E of 16.9x against 13.6x for Strategic Education.
| Latest fiscal year | DUOL · FY25 | STRA · FY25 |
|---|---|---|
| Size | ||
| Market cap | $7.2B | $1.8B |
| Revenue | $1.0B | $1.3B |
| Free cash flow | $370M | $154M |
| Net income | $414M | $127M |
| Growth | ||
| Revenue growth | 38.7% | 4.0% |
| 5-year growth | 45.0% | 4.3% |
| Share count change | 2.6% | −3.1% |
| Profitability | ||
| Gross margin | 72.2% | — |
| Operating margin | 13.1% | 13.7% |
| Net margin | 39.9% | 10.0% |
| FCF margin | 35.6% | 12.1% |
| Return on capital | 77.6% | 8.4% |
| Return on equity | 38.1% | 7.7% |
| Balance sheet | ||
| Net debt | −$1.0B | −$148M |
| Net debt / EBITDA | −6.9x | −0.7x |
| Dividends and buybacks | $0.0M | $196M |
| Valuation & quality | ||
| P/E | 16.9x | 13.6x |
| Piotroski F-score | 4 | 6 |
Revenue
FY16
DUOL —
STRA $441M
FY17
DUOL —
STRA $455M
FY18
DUOL —
STRA $634M
FY19
DUOL —
STRA $997M
FY20
DUOL $162M
STRA $1.0B
FY21
DUOL $251M
STRA $1.1B
FY22
DUOL $370M
STRA $1.1B
FY23
DUOL $531M
STRA $1.1B
FY24
DUOL $748M
STRA $1.2B
FY25
DUOL $1.0B
STRA $1.3B
DUOL
STRA
Operating margin
FY16
DUOL —
STRA 13.0%
FY17
DUOL —
STRA 11.5%
FY18
DUOL —
STRA −3.6%
FY19
DUOL —
STRA 11.1%
FY20
DUOL −9.9%
STRA 10.6%
FY21
DUOL −23.9%
STRA 6.5%
FY22
DUOL −17.6%
STRA 6.6%
FY23
DUOL −2.5%
STRA 8.4%
FY24
DUOL 8.4%
STRA 12.8%
FY25
DUOL 13.1%
STRA 13.7%
DUOL
STRA
Free cash flow
FY16
DUOL —
STRA $31.4M
FY17
DUOL —
STRA $38.1M
FY18
DUOL —
STRA $19.3M
FY19
DUOL —
STRA $163M
FY20
DUOL $14.3M
STRA $96.1M
FY21
DUOL $5.6M
STRA $131M
FY22
DUOL $48.1M
STRA $82.9M
FY23
DUOL $150M
STRA $80.2M
FY24
DUOL $273M
STRA $129M
FY25
DUOL $370M
STRA $154M
DUOL
STRA
Return on capital
FY16
DUOL —
STRA —
FY17
DUOL —
STRA —
FY18
DUOL —
STRA —
FY19
DUOL —
STRA —
FY20
DUOL —
STRA 6.1%
FY21
DUOL —
STRA 3.3%
FY22
DUOL —
STRA 3.1%
FY23
DUOL —
STRA 4.4%
FY24
DUOL —
STRA 7.3%
FY25
DUOL 77.6%
STRA 8.4%
DUOL
STRA
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.