William Blair Predicts Duolingo's Q3 Earnings (NASDAQ:DUOL)

Key Points

• William Blair has revised its Q3 2025 earnings estimate for Duolingo to $0.84 per share, an increase from the previous estimate of $0.66.
• The consensus forecast for Duolingo's full-year earnings is now $2.03 per share, with analysts also projecting $5.00 earnings for FY2026.
• Insiders have sold a total of 50,000 shares over the last quarter, contributing to a significant decrease in ownership by executive Severin Hacker.

Duolingo, Inc. (NASDAQ:DUOL - Free Report) - Stock analysts at William Blair upped their Q3 2025 earnings estimates for shares of Duolingo in a research report issued on Wednesday, August 6th. William Blair analyst R. Schackart now anticipates that the company will earn $0.84 per share for the quarter, up from their previous forecast of $0.66. The consensus estimate for Duolingo's current full-year earnings is $2.03 per share. William Blair also issued estimates for Duolingo's FY2025 earnings at $3.39 EPS, Q2 2026 earnings at $1.27 EPS, Q3 2026 earnings at $1.26 EPS, Q4 2026 earnings at $1.37 EPS and FY2026 earnings at $5.00 EPS.

Duolingo (NASDAQ:DUOL - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.55 by $0.36. The company had revenue of $252.27 million for the quarter, compared to the consensus estimate of $240.84 million. Duolingo had a net margin of 13.24% and a return on equity of 13.32%. The firm's revenue was up 41.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.51 earnings per share.

Other equities analysts also recently issued research reports about the stock. UBS Group reaffirmed an "overweight" rating on shares of Duolingo in a report on Thursday, May 22nd. Evercore ISI lifted their price target on shares of Duolingo from $400.00 to $480.00 and gave the company an "outperform" rating in a report on Friday, May 2nd. Wall Street Zen raised shares of Duolingo from a "hold" rating to a "buy" rating in a report on Saturday. Needham & Company LLC lifted their price target on shares of Duolingo from $400.00 to $460.00 and gave the company a "buy" rating in a report on Friday, May 2nd. Finally, The Goldman Sachs Group lifted their price target on shares of Duolingo from $340.00 to $403.00 and gave the company a "neutral" rating in a report on Monday, May 5th. Five equities research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company's stock. According to MarketBeat, Duolingo presently has a consensus rating of "Moderate Buy" and an average price target of $454.20.

Duolingo Stock Performance

Shares of DUOL traded down $17.66 on Monday, reaching $322.93. The company's stock had a trading volume of 2,612,384 shares, compared to its average volume of 1,001,002. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.81 and a quick ratio of 2.81. The stock has a market capitalization of $14.68 billion, a P/E ratio of 132.89, a PEG ratio of 2.47 and a beta of 0.87. The stock's 50 day simple moving average is $407.17 and its two-hundred day simple moving average is $392.81. Duolingo has a 12-month low of $185.10 and a 12-month high of $544.93.

Insiders Place Their Bets

In related news, insider Severin Hacker sold 10,000 shares of the business's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $344.41, for a total value of $3,444,100.00. Following the sale, the insider owned 72 shares in the company, valued at approximately $24,797.52. The trade was a 99.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders have sold a total of 50,000 shares of company stock valued at $20,939,300 in the last quarter. Insiders own 18.30% of the company's stock.

Institutional Investors Weigh In On Duolingo

Large investors have recently bought and sold shares of the business. Rise Advisors LLC grew its holdings in shares of Duolingo by 43.6% in the first quarter. Rise Advisors LLC now owns 79 shares of the company's stock worth $25,000 after purchasing an additional 24 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in Duolingo by 20.5% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 153 shares of the company's stock worth $48,000 after buying an additional 26 shares during the period. Parallel Advisors LLC lifted its holdings in Duolingo by 16.3% during the second quarter. Parallel Advisors LLC now owns 186 shares of the company's stock worth $76,000 after buying an additional 26 shares during the period. US Bancorp DE lifted its position in shares of Duolingo by 1.4% during the second quarter. US Bancorp DE now owns 1,968 shares of the company's stock valued at $807,000 after buying an additional 28 shares during the last quarter. Finally, Lido Advisors LLC boosted its holdings in shares of Duolingo by 0.3% in the 4th quarter. Lido Advisors LLC now owns 10,104 shares of the company's stock valued at $3,276,000 after buying an additional 30 shares in the last quarter. Institutional investors own 91.59% of the company's stock.

About Duolingo

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.