Duolingo, Inc. (DUOL) financials
NASDAQ · Technology · Software - Application · 900 employees · CEO Luis Alfonso von Ahn Arellano
- Price
- $131.59 -3.52%
- Market cap
- $6.13B
- Enterprise value
- $5.04B
- Last report
- Q2 '26 filed 2026-08-06
- Next report
- 2026-11-03 EPS est. $0.57
Revenue (TTM)$1.15B+29.4% vs a year agoLast 4 quarters; bars = each quarter
Operating margin (TTM)14.2%+4.5 pp vs a year agoOperating income $162M
Net income (TTM)$411M+250.5% vs a year agoAfter tax, incl. non-operating gains
Free cash flow (TTM)$405M+23.4% vs a year agoCapex $25.4M
Diluted EPS (TTM)$8.34+247.5% vs a year agoSum of the last 4 quarters
Net cash$1.23B+22.6% vs a year agoCash + short-term investments - debt
Valuation & key figures
- Market cap
- $6.13B EV $5.04B
- Revenue
- $1.15B Trailing 12 months
- Revenue growth
- +16% FY2026 consensus
- Profit margin
- 35.9% Net income / revenue, TTM
- P/E
- 14.8× Forward 47.9× (FY2026)
- P/S
- 5.4× Price / sales, TTM
- EV / EBITDA
- 24.4× TTM
- Free cash flow
- $405M Trailing 12 months
- Net income
- $411M Trailing 12 months
- Revenue estimate
- $1.21B FY2026 consensus
- Earnings
- 2026-11-03 Revenue est. $303M
- Dividend
- – No dividend
Key takeaways
Computed from the reported numbers - every statement carries the figure it rests on.
- Last report (2026-08-05): revenue beat by 1.0%, EPS beat by 9.3%Revenue $298M vs $296M expected (+1.0%); EPS $0.66 vs $0.60 (+9.3%).
- Revenue growth slowing: 18.3% year on yearQ2 '26 revenue $298M, against an average of 36.0% over the four quarters before.
- Operating margin 14.2% (TTM), +4.5 pp on a year agoOperating income grew 89.1% while revenue grew 29.4%.
- 19.6% of pre-tax profit is non-operatingPre-tax income $202M vs operating income $162M (TTM). Gains on equity stakes and other one-off items lift net income and EPS - operating income is the cleaner measure of the business.
- Capex 2.2% of revenue (a year ago 0.9%)$25.4M invested in the last 4 quarters (+231.6% on a year earlier). Free cash flow $405M = 98.6% of net income.
- Returned $69.6M to shareholders = 17.2% of free cash flowBuybacks $69.6M (a year earlier $0), dividends $0, stock-based pay $145M (TTM).
- Diluted share count up 2.1% in a year50M diluted shares in Q2 '26, 49M a year earlier.
- Net cash $1.23BCash + short-term investments $1.31B, debt incl. leases $86.1M; a year ago net cash $1B.
Last quarter: Q2 '26
Quarter ended 2026-06-30. Compared with the same quarter a year earlier and with the analyst consensus before the report.
Quarter vs a year ago
| Q2 '26 | Year ago | Change | |
|---|---|---|---|
| Revenue | $298M | $252M | +18.3% |
| Gross margin | 72.6% | 71.8% | +0.8 pp |
| Operating income | $33.9M | $34.1M | -0.3% |
| Operating margin | 11.4% | 13.5% | -2.1 pp |
| Net income | $33.2M | $44.8M | -26.0% |
| Diluted EPS | $0.66 | $0.91 | -27.5% |
| Operating cash flow | $88.3M | $90.7M | -2.7% |
| Capex | $9.63M | $1.2M | +703.8% |
| Free cash flow | $78.6M | $89.5M | -12.1% |
| R&D | $92.2M | $72.8M | +26.6% |
| Stock-based compensation | $38.2M | $34.6M | +10.5% |
Reported vs consensus
2026-08-05| Actual | Consensus | vs consensus | |
|---|---|---|---|
| Revenue | $298M | $296M | +1.0% |
| EPS (as estimated) | $0.66 | $0.60 | +9.3% |
From the report of 2026-08-05 for Q2 '26: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.
EPS vs consensus
last 8 reportsRevenue
Where the money comes from - by business line and by region, quarter by quarter.
Revenue, operating income and growth
quarterlyRevenue by business line
stacked, quarterly| Segment | Q2 '26 | y/y | Share | TTM | TTM y/y | 12 quarters |
|---|---|---|---|---|---|---|
| License and Service | $258M | +22.5% | 86.8% | $981M | +33.7% | |
| Advertising | $21.1M | +2.2% | 7.1% | $82.9M | +23.4% | |
| English Test | $10.1M | +0.2% | 3.4% | $41.4M | -6.6% | |
| In-App Purchases | $8M | -23.0% | 2.7% | – | – | |
| Product And Service, Other Miscellaneous | – | – | – | – | – |
Margins & cost structure
How much of each unit of revenue is left at each level - and where the costs go.
Margins
quarterlyCosts as % of revenue
quarterlyCash flow & capital allocation
Cash generated, what it is spent on, and what reaches shareholders.
Operating cash flow, capex, free cash flow
quarterlyUses of cash vs operating cash flow
fiscal yearsLast 4 quarters
cash flow statement- Operating cash flow
- $431M
- Capex
- -$25.4M
- Buybacks
- -$69.6M
- Dividends
- $0
- Acquisitions
- -$33.1M
- Net debt issued
- $0
- Stock-based compensation
- $145M
- Free cash flow
- $405M
- Returned to shareholders / FCF
- 17.2%
Share count and EPS
quarterly, dilutedBalance sheet
Liquidity, investments and debt at each quarter end.
Cash, investments and debt
quarter endsValuation & returns
Today's multiples against the company's own last five fiscal years; analyst targets and ratings.
Multiples and returns
TTM vs 5 fiscal years| Now | 5y average | Where today sits in the 5-year range | |
|---|---|---|---|
| P/E (TTM) | 14.8× | 275.5× 3 of 5 years | 19.4× – 648.1× |
| EV / EBITDA | 24.4× | 183.2× 3 of 5 years | 36.0× – 395.3× |
| EV / Sales | 4.4× | 12.7× | 6.0× – 18.5× |
| Price / FCF | 15.1× | 185.8× | 21.7× – 727.3× |
| Price / Book | 4.4× | 10.5× | 5.2× – 17.1× |
| FCF yield | 6.6% | 2.0% | 0.1% – 4.6% |
| Return on invested capital | 10.8% | -1.5% | -11.3% – 9.8% |
| Return on equity | 30.1% | 4.2% | -11.7% – 30.7% |
Analysts
Consensus target $141.67 (+7.7%)
range $80.00 – $210.00 · rating Hold
Strong buy0
Buy9
Hold13
Sell2
Strong sell0
Outlook
Analyst consensus for the coming fiscal years and what it implies at today's price.
Consensus estimates
| Fiscal year | Revenue | Growth | EPS | Growth | P/E at today's price | Analysts (EPS) |
|---|---|---|---|---|---|---|
| FY2026 | $1.21B | +16.4% | $2.75 | -68.0% | 47.9× | 10 |
| FY2027 | $1.37B | +13.5% | $3.38 | +23.1% | 38.9× | 10 |
| FY2028 | $1.56B | +13.8% | $4.24 | +25.5% | 31.0× | 12 |
Financial statements
Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.
Every reported line
All 214 figures Duolingo, Inc. tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).
| Line (SEC label) | Latest quarter | Year ago | y/y | Latest FY | Prior FY | y/y |
|---|---|---|---|---|---|---|
| $400K2026-02-26 | – | – | – | – | – | |
| Accounts Payable, Current | $16.2M | $7.73M | +109.5% | $8M | $6.38M | +25.3% |
| Accounts Receivable, after Allowance for Credit Loss, Current | $131M | $113M | +16.0% | $163M | $129M | +26.3% |
| Accounts Receivable, Allowance for Credit Loss | $0 | – | – | – | – | – |
| Accretion (Amortization) of Discounts and Premiums, Investments | $321K | $467K | -31.3% | $1.85M | $551K | +235.9% |
| Accrued Income Taxes, Current | $1.11M | $24K | +4,508.3% | $1.26M | $6.59M | -80.9% |
| Accrued Liabilities, Current | $55.4M | $32.5M | +70.8% | $45.7M | $36.4M | +25.6% |
| Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $24.2M | $19M | +27.6% | $21.6M | $16.4M | +31.5% |
| Additional Paid in Capital | $1.05B | $1.02B | +2.3% | $1.06B | $950M | +11.4% |
| Advertising Expense | $28.2M | $19.6M | +43.5% | $86.9M | $62.4M | +39.3% |
| Amortization of Intangible Assets | $2.89M | $2.1M | +37.3% | – | – | – |
| APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $38.2M | $34.6M | +10.5% | $137M | $110M | +24.4% |
| Asset Impairment Charges | $02026-03-31 | $0 | – | $0 | $0 | – |
| Assets | $2.07B | $1.54B | +34.4% | $1.99B | $1.3B | +53.0% |
| Assets, Current | $1.57B | $1.32B | +18.7% | $1.44B | $1.1B | +30.4% |
| Assets, Fair Value Disclosure | $1.42B | $1.17B | +20.7% | $1.28B | $975M | +30.8% |
| Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments Related to Previous Period | – | – | – | $02024-12-31 | – | – |
| Capital Expenditures Incurred but Not yet Paid | $119K | $665K | -82.1% | $4.45M | $0 | – |
| Capitalized Computer Software, Additions | $2.85M2026-03-31 | $1.31M | +117.8% | $9.17M | $9.02M | +1.6% |
| Capitalized Computer Software, Amortization | $2.84M2026-03-31 | $2.34M | +21.3% | $9.2M | $5.89M | +56.2% |
| Capitalized Computer Software, Gross | $47.7M2026-03-31 | – | – | $44.8M | $35.7M | +25.7% |
| Capitalized Computer Software, Impairments | – | – | – | $238K2024-12-31 | $0 | – |
| Capitalized Contract Cost, Net, Current | $103M | $93.8M | +9.5% | $103M | $80.2M | +28.1% |
| Cash | $185M | $90.5M | +104.3% | $156M | $73.4M | +112.5% |
| Cash Acquired from Acquisition | $02025-12-31 | $0 | – | $0 | $5K | -100.0% |
| Cash and Cash Equivalents, at Carrying Value | $1.18B | $976M | +21.0% | $1.04B | $786M | +31.9% |
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $1.18B | $979M | +20.9% | $1.04B | $789M | +31.8% |
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | $42.3M | $92.2M | -54.1% | $251M | $38.2M | +556.3% |
| Common Stock, Value, Issued | $5K | $4K | +25.0% | $5K | $4K | +25.0% |
| Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $33.2M | $44.8M | -26.0% | $414M | $88.6M | +367.5% |
| Contract with Customer, Liability, Current | $505M | $431M | +17.1% | $496M | $373M | +33.1% |
| Contract with Customer, Liability, Revenue Recognized | $151M | $112M | +33.9% | $372M | $249M | +49.8% |
| Cost of Revenue | $81.7M | $69.7M | +17.3% | $288M | $204M | +41.5% |
| Current Federal Tax Expense (Benefit) | – | – | – | -$6.24M | $10.7M | -158.6% |
| Current Foreign Tax Expense (Benefit) | – | – | – | $1.63M | $284K | +473.9% |
| Current Income Tax Expense (Benefit) | – | – | – | -$4.93M | $13.6M | -136.3% |
| Current State and Local Tax Expense (Benefit) | – | – | – | -$313K | $2.64M | -111.9% |
| Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss | $2.09M | $2.02M | +3.8% | $2.1M | $1.49M | +41.2% |
| Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | $21K | $161K | -87.0% | $435K | $21K | +1,971.4% |
| Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | $655K | $136K | +381.6% | $19K | $571K | -96.7% |
| DebtSecuritiesHeldToMaturityAmortizedCostAfterAllowanceForCreditLossCurrent | $133M | $122M | +9.3% | $104M | $91.9M | +13.3% |
| DebtSecuritiesHeldToMaturityExcludingAccruedInterestCreditLossExpenseReversal | $0 | $0 | – | $0 | $0 | – |
| Deferred Federal Income Tax Expense (Benefit) | – | – | – | -$208M | $0 | – |
| Deferred Foreign Income Tax Expense (Benefit) | – | – | – | -$1.59M | $157K | -1,110.2% |
| Deferred Income Tax Assets, Net | $206M | $675K | +30,424.3% | $227M | $675K | +33,579.9% |
| Deferred Income Tax Expense (Benefit) | $12.8M2025-12-31 | $157K | +8,025.5% | -$227M | $157K | -144,513.4% |
| Deferred Income Tax Liabilities, Net | $242K | $302K | -19.9% | $249K | $291K | -14.4% |
| Deferred Income Taxes and Tax Credits | $11.8M | $0 | – | -$225M | $0 | – |
| Deferred State and Local Income Tax Expense (Benefit) | – | – | – | -$17.6M | $0 | – |
| Deferred Tax Assets, in Process Research and Development | $118M2025-12-31 | $191M | -38.1% | $118M | $191M | -38.1% |
| Deferred Tax Assets, Net | $227M2025-12-31 | $384K | +59,038.0% | $227M | $384K | +59,038.0% |
| Deferred Tax Assets, Net of Valuation Allowance | $252M2025-12-31 | $18.8M | +1,241.6% | $252M | $18.8M | +1,241.6% |
| Deferred Tax Assets, Operating Loss Carryforwards | $27.5M2025-12-31 | $4.49M | +513.2% | $27.5M | $4.49M | +513.2% |
| Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $111M2025-12-31 | – | – | $111M | – | – |
| Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $72.4M2025-12-31 | – | – | $72.4M | – | – |
| Deferred Tax Assets, Other | $516K2025-12-31 | $70K | +637.1% | $516K | $70K | +637.1% |
| Deferred Tax Assets, Tax Credit Carryforwards, General Business | $76.4M2025-12-31 | – | – | $76.4M | – | – |
| Deferred Tax Assets, Tax Credit Carryforwards, Research | $74.9M2025-12-31 | $61.2M | +22.5% | $74.9M | $61.2M | +22.5% |
| Deferred Tax Assets, Tax Deferred Expense | $1.12M2025-12-31 | $674K | +66.8% | $1.12M | $674K | +66.8% |
| Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | $6.88M2025-12-31 | $4.76M | +44.7% | $6.88M | $4.76M | +44.7% |
Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.
Sources
Statements, segment revenue, metrics and estimates are standardised from the company's filings. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-Q 2026-06-30, 10-Q 2026-03-31, 10-K 2025-12-31, 10-Q 2025-09-30, 10-Q 2025-06-30, 10-Q 2025-03-31, 10-K 2024-12-31, 10-Q 2024-09-30, 10-Q 2024-06-30
Data as of 2026-11-02