A Business at a Glance
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Our mission is to develop the best education in the world and make it universally available. Although education can open the door to economic opportunity, it is also among the principal sources of inequality: the privileged can get the best education in the world, while those with fewer resources, especially in developing countries, may not be able to get even basic schooling. That is why we started Duolingo. We believe that everyone, regardless of how wealthy they are, should have access to high quality education. And today, the technology necessary to enable this is in the hands of billions of people, in the form of a smartphone. At Duolingo, we build products native to the smartphone—bite-sized, on-demand and engaging—to make learning accessible and effective, opening doors for everyone alike. Who We Are Duolingo is a technology company founded by two engineers, Luis von Ahn and Severin Hacker.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.0B | 1.0B | 748M | 531M | 369M | 251M |
| Net Income | 414M | 414M | 89M | 16M | -60M | -60M |
| EPS | $8.57 | $8.57 | $1.88 | $0.35 | $-1.51 | $-2.57 |
| Free Cash Flow | 370M | 370M | 273M | 150M | 48M | 5.6M |
| ROIC | 28.6% | 38.1% | 56.5% | 2.7% | -11.3% | -27.8% |
| Gross Margin | 72.2% | 72.2% | 72.8% | 73.2% | 73.1% | 72.4% |
| Debt/Equity | 0.07 | 0.07 | 0.07 | 0.04 | 0.05 | 0.06 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 136M | 136M | 63M | -13M | -65M | -60M |
| Operating Margin | 13.1% | 13.1% | 8.4% | -2.5% | -17.6% | -23.9% |
| ROE | 30.7% | 38.1% | 12.0% | 2.7% | -11.3% | -27.8% |
| Shares Outstanding | 48M | 48M | 47M | 46M | 39M | 23M |
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM |
|---|---|---|---|---|---|---|---|
| Income Statement | |||||||
| Revenue | 162M | 251M | 369M | 531M | 748M | 1.0B | 1.0B |
| Gross Margin | 71.6% | 72.4% | 73.1% | 73.2% | 72.8% | 72.2% | 72.2% |
| R&D | 53M | 104M | 150M | 194M | 235M | 306M | 306M |
| SG&A | 44M | 79M | 118M | 132M | 156M | 182M | 182M |
| EBIT | -16M | -60M | -65M | -13M | 63M | 136M | 136M |
| Op. Margin | -9.9% | -23.9% | -17.6% | -2.5% | 8.4% | 13.1% | 13.1% |
| Net Income | -16M | -60M | -60M | 16M | 89M | 414M | 414M |
| Net Margin | -9.8% | -24.0% | -16.1% | 3.0% | 11.8% | 39.9% | 39.9% |
| Non-Recurring | 0 | 0 | 0 | -433K | 0 | 0 | 0 |
| Returns on Capital | |||||||
| ROIC | -9.1% | -27.8% | -11.3% | 2.7% | 56.5% | 38.1% | 28.6% |
| ROE | 19.2% | -27.8% | -11.3% | 2.7% | 12.0% | 38.1% | 30.7% |
| ROA | -9.0% | -14.4% | -8.5% | 1.9% | 7.9% | 25.1% | 20.8% |
| Cash Flow | |||||||
| Op. Cash Flow | 18M | 9.2M | 54M | 154M | 286M | 388M | 388M |
| Free Cash Flow | 14M | 5.6M | 48M | 150M | 273M | 370M | 370M |
| Owner Earnings | -1.6M | -34M | -25M | 51M | 164M | 236M | 236M |
| CapEx | 3.4M | 3.6M | 5.6M | 3.2M | 12M | 18M | 18M |
| Maint. CapEx | 2.3M | 2.7M | 4.9M | 7.1M | 11M | 14M | 14M |
| Growth CapEx | 1.1M | 860K | 692K | 0 | 1.3M | 3.7M | 3.7M |
| D&A | 2.3M | 2.7M | 4.9M | 7.1M | 11M | 14M | 14M |
| CapEx/OCF | N/A | 39.1% | 10.4% | 2.1% | 4.2% | 4.7% | 4.7% |
| Capital Allocation | |||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 868K | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | 0.0% | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 17M | 41M | 74M | 95M | 110M | 137M | 137M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||
| Net Debt | -111M | -521M | -580M | -723M | -729M | -935M | -935M |
| Cash & Equiv. | 120M | 554M | 608M | 748M | 786M | 1.0B | 1.0B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | 101M |
| Debt/Equity | -0.11 | 0.06 | 0.05 | 0.04 | 0.07 | 0.07 | 0.07 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Equity | -81M | 513M | 542M | 656M | 825M | 1.3B | 1.3B |
| Total Assets | 176M | 661M | 747M | 954M | 1.3B | 2.0B | 2.0B |
| Total Liabilities | 74M | 148M | 205M | 298M | 477M | 645M | 645M |
| Intangibles | N/A | 4.6M | 8.5M | 16M | 20M | 28M | 28M |
| Retained Earnings | -111M | -171M | -230M | -214M | -126M | 288M | 288M |
| Working Capital | 93M | 500M | 515M | 620M | 679M | 885M | 885M |
| Current Assets | 158M | 619M | 697M | 898M | 1.1B | 1.4B | 1.4B |
| Current Liabilities | 66M | 119M | 182M | 277M | 422M | 551M | 551M |
| Per Share Data | |||||||
| EPS | -1.24 | -2.57 | -1.51 | 0.35 | 1.88 | 8.57 | 8.57 |
| Owner EPS | -0.12 | -1.47 | -0.63 | 1.12 | 3.48 | 4.88 | 4.88 |
| Book Value | -6.34 | 21.93 | 13.74 | 14.28 | 17.50 | 27.88 | 27.88 |
| Cash Flow/Share | 1.39 | 0.39 | 1.36 | 3.35 | 6.06 | 8.03 | 8.87 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 12.7M | 23.4M | 39.5M | 45.9M | 47.1M | 48.3M | 48.3M |
| Valuation | |||||||
| P/E Ratio | N/A | N/A | N/A | 666.0 | 177.3 | 21.2 | 10.7 |
| P/FCF | N/A | 453.0 | 53.6 | 71.1 | 57.4 | 23.7 | 12.0 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | 25.7 |
| Price/Book | N/A | 4.9 | 4.8 | 16.3 | 19.0 | 6.5 | 3.3 |
| Price/Sales | N/A | 13.5 | 9.5 | 12.6 | 14.7 | 15.8 | 4.3 |
| FCF Yield | N/A | 0.2% | 1.9% | 1.4% | 1.7% | 4.2% | 8.4% |
| Market Cap | N/A | 2.5B | 2.6B | 10.7B | 15.7B | 8.8B | 4.4B |
| Avg. Price | N/A | 144.60 | 88.97 | 145.83 | 232.66 | 338.66 | 91.46 |
| Year-End Price | N/A | 108.11 | 65.38 | 233.09 | 333.34 | 181.66 | 91.46 |
Duolingo, Inc. passes 5 of 9 quality checks, suggesting mixed fundamentals.
Duolingo, Inc. trades at 10.7x trailing earnings, compared to its 15-year median P/E of 21.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 10.0x vs a median of 55.5x. The company's 5-year average ROIC is 11.6% with a gross margin of 72.8%. At current prices, the estimated annualized return to fair value is +100.8%.
Duolingo, Inc. (DUOL) has a current P/E ratio of 10.7, compared to its historical median P/E of 21.2. The stock is currently considered Cheap based on its historical valuation range.
Duolingo, Inc. (DUOL) has a 5-year average return on invested capital (ROIC) of 11.6%. This indicates solid capital allocation.
Duolingo, Inc. (DUOL) has a market capitalization of $4.4B. It is classified as a mid-cap stock.
Duolingo, Inc. (DUOL) does not currently pay a regular dividend.
Based on historical P/E analysis, Duolingo, Inc. (DUOL) appears cheap. The current P/E of 10.7 is 50% below its historical median of 21.2. The estimated fair value CAGR (P/E method) is 100.3%.
Duolingo, Inc. (DUOL) operates in the Services-Prepackaged Software industry, within the Technology sector.
Duolingo, Inc. (DUOL) reported annual revenue of $1.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Duolingo, Inc. (DUOL) has a net profit margin of 39.9%. This is a strong margin indicating high profitability.
Duolingo, Inc. (DUOL) generated $370 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Duolingo, Inc. (DUOL) has a debt-to-equity ratio of 0.07. This indicates a conservatively financed balance sheet.
Duolingo, Inc. (DUOL) reported earnings per share (EPS) of $8.57 in its most recent fiscal year.
Duolingo, Inc. (DUOL) has a return on equity (ROE) of 38.1%. This indicates the company generates strong returns for shareholders.
Duolingo, Inc. (DUOL) has a 5-year average gross margin of 72.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 6 years of financial data for Duolingo, Inc. (DUOL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Duolingo, Inc. (DUOL) has a book value per share of $27.88, based on its most recent annual SEC filing.