Duolingo (NASDAQ:DUOL) Posts Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• Duolingo reported quarterly EPS of $0.54, missing the $0.57 consensus estimate by $0.03, while revenue of $309.01 million topped estimates of $303.22 million.
• Shares fell 5.4% to $128 during Tuesday trading after the results.
• Analysts’ consensus rating is Hold, with an average price target of $127.19; insiders sold about 250,740 shares worth $37.7 million over the past 90 days.

Duolingo (NASDAQ:DUOL - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $0.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by ($0.03), FiscalAI reports. Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The firm had revenue of $309.01 million during the quarter, compared to analyst estimates of $303.22 million.

Duolingo Stock Down 5.4%

Shares of DUOL stock traded down $7.27 during trading hours on Tuesday, hitting $128.00. 2,371,393 shares of the company were exchanged, compared to its average volume of 1,759,633. Duolingo has a 52 week low of $87.89 and a 52 week high of $268.97. The company has a current ratio of 2.72, a quick ratio of 2.72 and a debt-to-equity ratio of 0.06. The business has a 50 day moving average of $145.02 and a two-hundred day moving average of $124.24. The company has a market capitalization of $5.99 billion, a PE ratio of 15.17, a PEG ratio of 1.11 and a beta of 1.05.

Insider Activity at Duolingo

In related news, CEO Luis van Ahn sold 110,046 shares of the business's stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $151.70, for a total value of $16,693,978.20. Following the sale, the chief executive officer directly owned 110,046 shares of the company's stock, valued at approximately $16,693,978.20. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Natalie Glance sold 1,539 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $137.80, for a total transaction of $212,074.20. Following the completion of the transaction, the insider directly owned 169,111 shares of the company's stock, valued at approximately $23,303,495.80. The trade was a 0.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 250,740 shares of company stock valued at $37,685,893. 16.62% of the stock is owned by insiders.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. DA Davidson reiterated a "buy" rating and set a $175.00 target price on shares of Duolingo in a report on Tuesday, September 29th. Compass Point assumed coverage on Duolingo in a report on Tuesday, August 18th. They issued a "buy" rating for the company. Truist Financial increased their price target on Duolingo from $100.00 to $120.00 and gave the stock a "hold" rating in a report on Thursday, August 6th. Morgan Stanley reaffirmed a "neutral" rating and set a $140.00 price target on shares of Duolingo in a research report on Friday, October 9th. Finally, Wells Fargo & Company initiated coverage on Duolingo in a report on Tuesday, August 18th. They set an "overweight" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $127.19.

Trending Headlines about Duolingo

Here are the key news stories impacting Duolingo this week:

• Neutral Sentiment: A recent earnings-watch article highlights a GF Value model estimate suggesting substantial upside. This is a valuation-model projection, not company guidance or a guarantee. Earnings To Watch: Duolingo Inc (DUOL) Q3 2026
• Negative Sentiment: Several law firms publicized a pending securities class action covering investors who bought Duolingo Class A shares from May 2, 2025, through February 26, 2026. The suit alleges the company’s disclosures failed to reflect concerns about growth prospects, monetization friction and AI-generated lessons; one notice contrasts reported 49% user growth with an alleged outlook of about 20%. Investors have until December 7, 2026, to seek lead-plaintiff status. The claims could add legal and reputational uncertainty, although they remain unproven. Levi & Korsinsky notice

Duolingo Company Profile

Duolingo, Inc develops technology-based learning products designed to make education accessible and engaging. Its flagship Duolingo mobile and web platform offers gamified courses in languages including Spanish, English, French, German and Japanese, among others. Lessons incorporate interactive exercises, personalized practice and achievement-based features intended to support regular learning.

The company also operates the Duolingo English Test, an online English-proficiency assessment that can be taken remotely and is accepted by educational institutions and other organizations.

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