What is Duolingo's operating income?

Duolingo's total operating income in 2025 was $135.57 million, based on the following breakdown: Total Gross Profit: $749.46 million Total Operating Expenses: $613.89 million

Duolingo (DUOL) Financials

$154.46 -4.36 (-2.75%)

As of 09/4/2026 04:00 PM Eastern

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Annual Income Statements for Duolingo

This table shows Duolingo's income and expenses over time, based on annual financial data. All values are USD millions unless otherwise specified.

Metric	2020	2021	2022	2023	2024	2025
Period end date	12/31/2020	12/31/2021	12/31/2022	12/31/2023	12/31/2024	12/31/2025
Net Income / (Loss) Attributable to Common Shareholders	-16	-60	-60	16	89	414
Consolidated Net Income / (Loss)	-16	-60	-60	16	89	414
Net Income / (Loss) Continuing Operations	-16	-60	-60	16	89	414
Total Pre-Tax Income	-16	-60	-59	18	102	182
Total Operating Income	-16	-60	-65	-13	63	136
Total Gross Profit	116	182	270	389	544	749
Total Revenue	162	251	369	531	748	1,038
Operating Revenue	162	251	369	531	748	1,038
Total Cost of Revenue	46	69	99	142	204	288
Operating Cost of Revenue	46	69	99	142	204	288
Total Operating Expenses	132	242	335	402	482	614
Selling, General & Admin Expense	44	79	119	133	160	184
Marketing Expense	35	59	67	76	90	126
Research & Development Expense	53	104	150	194	235	306
Other Operating Expenses / (Income)	-0.16	-0.32	-0.13	-0.59	-1.27	-3.38
Total Other Income / (Expense), net	0.30	0.05	6.56	31	40	47
Interest & Investment Income	0.23	0.02	7.24	31	43	45
Other Income / (Expense), net	0.07	0.03	-0.68	-0.06	-2.99	1.61
Income Tax Expense	0.07	0.18	0.94	1.71	14	-232
Basic Earnings per Share	($1.24)	($2.57)	($1.51)	$0.39	$2.04	$9.05
Weighted Average Basic Shares Outstanding	-	38.63M	40.64M	42.88M	45.24M	46.95M
Diluted Earnings per Share	($1.24)	($2.57)	($1.51)	$0.35	$1.88	$8.57
Weighted Average Diluted Shares Outstanding	-	38.63M	40.64M	42.88M	45.24M	46.95M
Weighted Average Basic & Diluted Shares Outstanding	-	38.63M	40.64M	42.88M	45.24M	46.95M

This table shows Duolingo's income and expenses over time, based on quarterly financial data. All values are USD millions unless otherwise specified.

Metric	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
Period end date	12/31/2023	3/31/2024	6/30/2024	9/30/2024	12/31/2024	3/31/2025	6/30/2025	9/30/2025	12/31/2025	3/31/2026	6/30/2026
Net Income / (Loss) Attributable to Common Shareholders	12	27	24	23	14	35	45	292	42	43	33
Consolidated Net Income / (Loss)	12	27	24	23	14	35	45	292	42	43	33
Net Income / (Loss) Continuing Operations	12	27	24	23	14	35	45	292	42	43	33
Total Pre-Tax Income	15	26	29	25	22	35	46	46	55	56	45
Total Operating Income	4.80	16	19	14	14	24	33	35	43	45	34
Total Gross Profit	110	122	131	140	151	164	183	197	206	213	217
Total Revenue	151	168	178	193	210	231	252	272	283	292	298
Operating Revenue	151	168	178	193	210	231	252	272	283	292	298
Total Cost of Revenue	41	45	47	52	59	67	70	75	77	79	82
Operating Cost of Revenue	41	45	47	52	59	67	70	75	77	79	82
Total Operating Expenses	106	106	112	127	137	141	149	162	162	169	183
Selling, General & Admin Expense	37	35	37	38	50	43	46	44	50	46	51
Marketing Expense	19	20	20	26	25	27	30	35	34	39	40
Research & Development Expense	50	51	55	63	66	70	74	83	80	83	92
Total Other Income / (Expense), net	10	9.41	10	12	8.47	11	13	11	11	11	11
Interest & Investment Income	9.28	10	11	11	11	10	11	12	12	12	12
Other Income / (Expense), net	1.05	-0.62	-0.71	0.57	-2.23	1.00	1.66	-0.50	-0.55	-0.79	-0.41
Income Tax Expense	3.02	-1.11	4.36	2.03	8.45	-0.13	1.67	-246	13	12	12
Basic Earnings per Share	$0.29	$0.63	$0.56	$0.53	$0.32	$0.78	$0.98	$6.36	$0.93	$0.93	$0.71
Weighted Average Basic Shares Outstanding	42.88M	43.12M	43.54M	43.98M	45.24M	45.45M	45.82M	46.23M	46.95M	46.59M	46.79M
Diluted Earnings per Share	$0.27	$0.57	$0.51	$0.49	$0.31	$0.72	$0.91	$5.95	$0.99	$0.89	$0.66
Weighted Average Diluted Shares Outstanding	42.88M	43.12M	43.54M	43.98M	45.24M	45.45M	45.82M	46.23M	46.95M	46.59M	46.79M
Weighted Average Basic & Diluted Shares Outstanding	42.88M	43.12M	43.54M	43.98M	45.24M	45.45M	45.82M	46.23M	46.95M	46.59M	46.79M

This table details how cash moves in and out of Duolingo's business through operations, investing, and financing, using annual figures. All values are USD millions unless otherwise specified.

Metric	2020	2021	2022	2023	2024	2025
Period end date	12/31/2020	12/31/2021	12/31/2022	12/31/2023	12/31/2024	12/31/2025
Net Change in Cash & Equivalents	61	433	54	142	38	251
Net Cash From Operating Activities	18	9.17	54	154	286	388
Net Cash From Continuing Operating Activities	18	9.17	54	154	286	388
Net Income / (Loss) Continuing Operations	-16	-60	-60	16	89	414
Consolidated Net Income / (Loss)	-16	-60	-60	16	89	414
Depreciation Expense	2.26	2.73	4.87	7.10	11	14
Amortization Expense	-	-	0.00	0.00	-0.55	-1.85
Non-Cash Adjustments To Reconcile Net Income	17	41	74	95	110	137
Changes in Operating Assets and Liabilities, net	14	26	35	35	76	-176
Net Cash From Investing Activities	-4.01	-6.21	-14	-14	-217	-108
Net Cash From Continuing Investing Activities	-4.01	-6.21	-14	-14	-217	-108
Purchase of Property, Plant & Equipment	-3.38	-3.59	-5.56	-3.19	-12	-18
Acquisitions	0.00	0.00	-4.05	0.00	-6.60	-33
Purchase of Investments	-	-	0.00	0.00	-193	-163
Sale of Property, Plant & Equipment	-	0.00	0.00	0.10	0.00	0.00
Sale and/or Maturity of Investments	-	-	0.00	0.00	3.71	116
Other Investing Activities, net	-0.64	-2.62	-4.56	-10	-9.02	-9.30
Net Cash From Financing Activities	47	430	15	2.14	-30	-30
Net Cash From Continuing Financing Activities	47	430	15	2.14	-30	-30
Other Financing Activities, net	2.03	12	15	2.14	-30	-30
Cash Income Taxes Paid	0.00	0.13	0.62	2.32	7.62	14

This table details how cash moves in and out of Duolingo's business through operations, investing, and financing, using quarterly figures. All values are USD millions unless otherwise specified.

Metric	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
Period end date	12/31/2023	3/31/2024	6/30/2024	9/30/2024	12/31/2024	3/31/2025	6/30/2025	9/30/2025	12/31/2025	3/31/2026	6/30/2026
Net Change in Cash & Equivalents	49	82	59	-34	-69	98	92	35	25	102	42
Net Cash From Operating Activities	49	84	62	56	83	106	91	84	107	151	88
Net Cash From Continuing Operating Activities	49	84	62	56	83	106	91	84	107	151	88
Net Income / (Loss) Continuing Operations	12	27	24	23	14	35	45	292	42	43	33
Consolidated Net Income / (Loss)	12	27	24	23	14	35	45	292	42	43	33
Depreciation Expense	2.04	2.07	2.24	2.88	3.66	3.59	3.44	3.55	3.81	4.19	4.25
Amortization Expense	-	0.00	-	-	-0.54	-0.55	-0.47	-0.44	-0.39	-0.32	-0.32
Non-Cash Adjustments To Reconcile Net Income	25	25	27	29	30	31	35	36	36	35	39
Changes in Operating Assets and Liabilities, net	10	29	9.05	1.08	36	36	8.33	-247	26	69	12
Net Cash From Investing Activities	-4.15	-5.02	-8.66	-93	-110	-11	-2.27	-52	-43	-17	8.28
Net Cash From Continuing Investing Activities	-4.15	-5.02	-8.66	-93	-110	-11	-2.27	-52	-43	-17	8.28
Purchase of Property, Plant & Equipment	-0.92	-1.41	-5.56	-3.18	-1.96	-1.31	-1.20	-4.86	-11	-0.13	-12
Purchase of Investments	-	0.00	-	-	-112	-27	-22	-51	-64	-56	-19
Sale and/or Maturity of Investments	-	0.00	-	-	-	19	24	40	34	42	37
Net Cash From Financing Activities	3.56	3.61	4.80	3.19	-42	3.12	3.83	2.75	-39	-32	-54
Net Cash From Continuing Financing Activities	3.56	3.61	4.80	3.19	-42	3.12	3.83	2.75	-39	-32	-54
Repurchase of Common Equity	-	-	-	-	-	0.00	-	-	-	-24	-45
Other Financing Activities, net	3.56	3.61	4.80	3.19	-42	3.12	3.83	2.75	-39	-7.52	-8.94
Cash Income Taxes Paid	0.13	0.00	4.93	1.87	0.82	0.09	12	0.00	2.68	0.02	0.75

This table presents Duolingo's assets and liabilities at the end of each period, using annual balance sheet data. All values are USD millions unless otherwise specified.

Metric	2020	2021	2022	2023	2024	2025
Period end date	12/31/2020	12/31/2021	12/31/2022	12/31/2023	12/31/2024	12/31/2025
Total Assets	176	661	747	954	1,302	1,992
Total Current Assets	158	619	697	898	1,102	1,437
Cash & Equivalents	120	554	608	748	786	1,036
Short-Term Investments	-	-	-	0.00	92	104
Accounts Receivable	20	33	47	89	129	163
Prepaid Expenses	3.86	7.97	7.23	7.28	15	17
Current Deferred & Refundable Income Taxes	-	-	-	-	0.03	14
Other Current Assets	14	24	35	54	80	103
Plant, Property, & Equipment, net	6.43	8.21	13	12	19	36
Total Noncurrent Assets	11	34	37	44	181	519
Long-Term Investments	-	-	-	0.00	98	135
Goodwill	-	0.00	4.05	4.05	11	35
Intangible Assets	2.30	4.57	8.50	16	20	28
Noncurrent Deferred & Refundable Income Taxes	-	0.00	0.63	0.77	0.68	227
Other Noncurrent Operating Assets	8.64	29	24	24	52	93
Total Liabilities & Shareholders' Equity	176	661	747	954	1,302	1,992
Total Liabilities	74	148	205	298	477	645
Total Current Liabilities	66	119	182	277	422	551
Accounts Payable	2.20	7.82	1.18	2.45	6.38	8.00
Accrued Expenses	8.63	13	22	25	36	46
Current Deferred Revenue	55	98	158	249	373	496
Current Deferred & Payable Income Tax Liabilities	0.07	0.11	1.07	0.79	6.59	1.26
Total Noncurrent Liabilities	8.13	29	24	21	55	94
Noncurrent Deferred & Payable Income Tax Liabilities	-	-	-	0.00	0.29	0.25
Other Noncurrent Operating Liabilities	8.13	29	24	21	55	94
Commitments & Contingencies	0.00	0.00	0.00	0.00	0.00	0.00
Total Equity & Noncontrolling Interests	-81	513	542	656	825	1,347
Total Preferred & Common Equity	-81	513	542	656	825	1,347
Total Common Equity	-81	513	542	656	825	1,347
Common Stock	30	684	773	870	950	1,059
Retained Earnings	-111	-171	-230	-214	-126	288
Other Equity Adjustments	-	-	-	-	-	0.00

This table presents Duolingo's assets and liabilities at the end of each period, using quarterly balance sheet data. All values are USD millions unless otherwise specified.

Metric	Q1 2023	Q2 2023	Q3 2023	Q1 2024	Q2 2024	Q3 2024	Q1 2025	Q2 2025	Q3 2025	Q1 2026	Q2 2026
Period end date	3/31/2023	6/30/2023	9/30/2023	3/31/2024	6/30/2024	9/30/2024	3/31/2025	6/30/2025	9/30/2025	3/31/2026	6/30/2026
Total Assets	790	835	871	1,069	1,139	1,220	1,403	1,543	1,886	2,058	2,074
Total Current Assets	741	785	819	977	1,042	1,058	1,220	1,324	1,367	1,506	1,571
Cash & Equivalents	641	679	702	830	888	854	884	976	1,012	1,139	1,181
Short-Term Investments	-	-	-	-	-	26	115	122	110	113	133
Accounts Receivable	53	53	62	76	78	94	114	113	124	125	131
Prepaid Expenses	7.50	7.79	9.53	11	12	16	17	19	17	20	21
Current Deferred & Refundable Income Taxes	-	2.36	-	-	-	-	-	-	9.89	5.09	2.71
Other Current Assets	40	43	46	60	63	67	90	94	95	105	103
Plant, Property, & Equipment, net	13	13	12	13	18	19	19	20	25	37	43
Total Noncurrent Assets	36	37	40	78	80	142	164	199	494	515	460
Long-Term Investments	-	-	-	-	-	55	83	75	99	140	103
Goodwill	4.05	4.05	4.05	4.05	4.05	11	11	11	35	35	35
Intangible Assets	8.48	10	14	19	21	22	19	20	28	28	28
Noncurrent Deferred & Refundable Income Taxes	0.63	0.63	0.63	0.77	0.84	0.84	0.68	0.68	240	218	206
Other Noncurrent Operating Assets	23	22	21	55	54	53	51	92	92	93	89
Total Liabilities & Shareholders' Equity	790	835	871	1,069	1,139	1,220	1,403	1,543	1,886	2,058	2,074
Total Liabilities	225	238	256	358	372	397	509	566	578	666	664
Total Current Liabilities	203	217	235	304	318	342	454	471	485	574	578
Accounts Payable	0.99	2.31	2.71	2.63	3.41	3.65	2.55	7.73	3.57	7.49	16
Accrued Expenses	19	22	23	21	23	28	31	32	39	50	55
Current Deferred Revenue	182	193	209	279	291	311	415	431	442	513	505
Current Deferred & Payable Income Tax Liabilities	0.93	0.06	0.06	0.36	0.04	0.04	6.38	0.02	0.02	3.81	1.11
Total Noncurrent Liabilities	22	21	21	54	55	55	55	94	94	92	86
Noncurrent Deferred & Payable Income Tax Liabilities	-	-	-	-	-	0.31	0.30	0.30	0.30	0.24	0.24
Other Noncurrent Operating Liabilities	22	21	21	54	55	55	55	94	93	92	86
Commitments & Contingencies	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Equity & Noncontrolling Interests	565	596	615	711	767	822	894	977	1,308	1,392	1,410
Total Preferred & Common Equity	565	596	615	711	767	822	894	977	1,308	1,392	1,410
Total Common Equity	565	596	615	711	767	822	894	977	1,308	1,392	1,410
Common Stock	798	826	841	899	930	962	985	1,023	1,061	1,065	1,046
Retained Earnings	-233	-229	-227	-187	-163	-140	-91	-46	246	332	365
Treasury Stock	-	-	-	-	-	-	-	-	-	-4.50	-1.43

This table displays calculated financial ratios and metrics derived from Duolingo's official financial filings.

Metric	2020	2021	2022	2023	2024	2025
Period end date	12/31/2020	12/31/2021	12/31/2022	12/31/2023	12/31/2024	12/31/2025
DEI Shares Outstanding	-	-	-	-	-	46,227,357.00
DEI Adjusted Shares Outstanding	-	-	-	-	-	46,227,357.00
DEI Earnings Per Adjusted Shares Outstanding	-	-	-	-	-	8.96
Growth Metrics	-	-	-	-	-	-
Revenue Growth	0.00%	55.09%	47.34%	43.74%	40.84%	38.71%
EBITDA Growth	0.00%	-318.41%	-6.55%	89.81%	1,224.17%	114.15%
EBIT Growth	0.00%	-276.29%	-9.83%	79.79%	547.72%	130.13%
NOPAT Growth	0.00%	-274.79%	-8.65%	73.74%	552.23%	467.86%
Net Income Growth	0.00%	-281.18%	0.93%	126.97%	451.28%	367.48%
EPS Growth	0.00%	-107.26%	41.25%	123.18%	437.14%	355.85%
Operating Cash Flow Growth	0.00%	-48.22%	485.13%	186.29%	85.86%	35.83%
Free Cash Flow Firm Growth	0.00%	0.00%	-3.50%	168.74%	709.16%	-25.17%
Invested Capital Growth	0.00%	-120.04%	-61.75%	-39.34%	-64.36%	147.19%
Revenue Q/Q Growth	0.00%	0.00%	9.10%	9.75%	8.49%	7.60%
EBITDA Q/Q Growth	0.00%	0.00%	-1.20%	79.38%	10.90%	26.69%
EBIT Q/Q Growth	0.00%	0.00%	-2.19%	63.67%	10.79%	29.50%
NOPAT Q/Q Growth	0.00%	0.00%	-1.14%	52.72%	10.97%	13.01%
Net Income Q/Q Growth	0.00%	0.00%	5.68%	260.99%	2.06%	7.27%
EPS Q/Q Growth	0.00%	0.00%	10.65%	225.00%	2.17%	8.62%
Operating Cash Flow Q/Q Growth	0.00%	-26.16%	26.31%	32.39%	13.59%	6.58%
Free Cash Flow Firm Q/Q Growth	0.00%	0.00%	0.00%	407.05%	50.18%	19.06%
Invested Capital Q/Q Growth	0.00%	0.00%	0.06%	-5.97%	-33.22%	-18.21%
Profitability Metrics	-	-	-	-	-	-
Gross Margin	71.56%	72.41%	73.09%	73.24%	72.78%	72.23%
EBITDA Margin	-8.46%	-22.83%	-16.51%	-1.17%	9.35%	14.43%
Operating Margin	-9.90%	-23.93%	-17.64%	-2.50%	8.37%	13.07%
EBIT Margin	-9.86%	-23.92%	-17.83%	-2.51%	7.97%	13.22%
Profit (Net Income) Margin	-9.76%	-23.98%	-16.12%	3.03%	11.84%	39.91%
Tax Burden Percent	100.43%	100.30%	101.60%	90.38%	86.58%	227.00%
Interest Burden Percent	98.55%	99.97%	89.02%	-133.52%	171.63%	132.97%
Effective Tax Rate	0.00%	0.00%	0.00%	9.62%	13.42%	-127.00%
Return on Invested Capital (ROIC)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ROIC Less NNEP Spread (ROIC-NNEP)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Return on Net Nonoperating Assets (RNNOA)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Return on Equity (ROE)	-15.48%	-19.56%	-11.29%	2.68%	11.97%	38.14%
Cash Return on Invested Capital (CROIC)	0.00%	0.00%	0.00%	0.00%	0.00%	118.86%
Operating Return on Assets (OROA)	-9.07%	-14.33%	-9.35%	-1.57%	5.29%	8.33%
Return on Assets (ROA)	-8.98%	-14.37%	-8.46%	1.89%	7.85%	25.14%
Return on Common Equity (ROCE)	12.26%	-13.75%	-11.29%	2.68%	11.97%	38.14%
Return on Equity Simple (ROE_SIMPLE)	19.55%	-11.72%	-10.99%	2.45%	10.74%	0.00%
Net Operating Profit after Tax (NOPAT)	-11	-42	-46	-12	54	308
NOPAT Margin	-6.93%	-16.75%	-12.35%	-2.26%	7.24%	29.66%
Net Nonoperating Expense Percent (NNEP)	-3.79%	-5.38%	-2.40%	4.14%	3.99%	9.44%
Return On Investment Capital (ROIC_SIMPLE)	-	-	-8.42%	-1.83%	6.57%	22.85%
Cost of Revenue to Revenue	28.44%	27.59%	26.91%	26.76%	27.22%	27.77%
SG&A Expenses to Revenue	27.09%	31.45%	32.11%	25.00%	21.42%	17.70%
R&D to Revenue	32.79%	41.41%	40.72%	36.59%	31.46%	29.52%
Operating Expenses to Revenue	81.46%	96.34%	90.73%	75.74%	64.41%	59.16%
Earnings before Interest and Taxes (EBIT)	-16	-60	-66	-13	60	137
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)	-14	-57	-61	-6.22	70	150
Valuation Ratios	-	-	-	-	-	-
Price to Book Value (P/BV)	0.00	7.75	5.27	14.54	17.30	6.02
Price to Tangible Book Value (P/TBV)	0.00	7.82	5.40	15.00	17.96	6.32
Price to Revenue (P/Rev)	3.22	15.86	7.73	17.95	19.07	7.82
Price to Earnings (P/E)	0.00	0.00	0.00	593.19	161.01	19.59
Dividend Yield	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Earnings Yield	0.00%	0.00%	0.00%	0.17%	0.62%	5.10%
Enterprise Value to Invested Capital (EV/IC)	0.00	0.00	0.00	0.00	0.00	95.71
Enterprise Value to Revenue (EV/Rev)	3.61	13.65	6.09	16.54	17.76	6.59
Enterprise Value to EBITDA (EV/EBITDA)	0.00	0.00	0.00	0.00	190.03	45.67
Enterprise Value to EBIT (EV/EBIT)	0.00	0.00	0.00	0.00	222.87	49.84
Enterprise Value to NOPAT (EV/NOPAT)	0.00	0.00	0.00	0.00	245.14	22.22
Enterprise Value to Operating Cash Flow (EV/OCF)	32.92	373.20	41.92	57.18	46.53	17.63
Enterprise Value to Free Cash Flow (EV/FCFF)	0.00	0.00	0.00	626.33	117.08	80.52
Leverage & Solvency	-	-	-	-	-	-
Debt to Equity	0.00	0.00	0.00	0.00	0.00	0.00
Long-Term Debt to Equity	0.00	0.00	0.00	0.00	0.00	0.00
Financial Leverage	-1.18	-1.10	-1.10	-1.13	-1.16	-1.04
Leverage Ratio	1.72	1.36	1.34	1.42	1.52	1.52
Compound Leverage Factor	1.70	1.36	1.19	-1.90	2.62	2.02
Debt to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Short-Term Debt to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Long-Term Debt to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Preferred Equity to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Noncontrolling Interests to Total Capital	179.17%	0.00%	0.00%	0.00%	0.00%	0.00%
Common Equity to Total Capital	-79.17%	100.00%	100.00%	100.00%	100.00%	100.00%
Debt to EBITDA	0.00	0.00	0.00	0.00	0.00	0.00
Net Debt to EBITDA	0.00	0.00	0.00	0.00	0.00	0.00
Long-Term Debt to EBITDA	0.00	0.00	0.00	0.00	0.00	0.00
Debt to NOPAT	0.00	0.00	0.00	0.00	0.00	0.00
Net Debt to NOPAT	0.00	0.00	0.00	0.00	0.00	0.00
Long-Term Debt to NOPAT	0.00	0.00	0.00	0.00	0.00	0.00
Altman Z-Score	4.60	16.72	8.95	20.14	19.15	9.03
Noncontrolling Interest Sharing Ratio	179.17%	29.69%	0.00%	0.00%	0.00%	0.00%
Liquidity Ratios	-	-	-	-	-	-
Current Ratio	2.41	5.20	3.84	3.24	2.61	2.61
Quick Ratio	2.15	4.93	3.60	3.02	2.38	2.36
Cash Flow Metrics	-	-	-	-	-	-
Free Cash Flow to Firm (FCFF)	0.00	-20	-20	14	113	85
Operating Cash Flow to CapEx	524.53%	255.72%	964.69%	4,969.72%	2,356.50%	2,143.14%
Free Cash Flow to Firm to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00
Operating Cash Flow to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00
Operating Cash Flow Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00
Efficiency Ratios	-	-	-	-	-	-
Asset Turnover	0.92	0.60	0.52	0.62	0.66	0.63
Accounts Receivable Turnover	7.91	9.35	9.25	7.83	6.87	7.11
Inventory Turnover	0.00	0.00	0.00	0.00	0.00	0.00
Fixed Asset Turnover	25.15	34.26	34.89	42.90	48.68	37.57
Accounts Payable Turnover	20.94	13.82	22.11	78.42	46.14	40.08
Days Sales Outstanding (DSO)	46.16	39.02	39.46	46.63	53.16	51.32
Days Inventory Outstanding (DIO)	0.00	0.00	0.00	0.00	0.00	0.00
Days Payable Outstanding (DPO)	17.43	26.42	16.51	4.65	7.91	9.11
Cash Conversion Cycle (CCC)	28.73	12.60	22.95	41.98	45.25	42.21
Capital & Investment Metrics	-	-	-	-	-	-
Invested Capital	-19	-41	-66	-92	-151	71
Invested Capital Turnover	-8.71	-8.44	-6.91	-6.71	-6.14	-25.96
Increase / (Decrease) in Invested Capital	0.00	-22	-25	-26	-59	223
Enterprise Value (EV)	583	3,422	2,249	8,783	13,285	6,837
Market Capitalization	521	3,976	2,857	9,531	14,261	8,113
Book Value per Share	($15.80)	$13.69	$13.49	$15.60	$18.23	$29.14
Tangible Book Value per Share	($16.25)	$13.57	$13.18	$15.12	$17.55	$27.76
Total Capital	102	513	542	656	825	1,347
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Long-Term Debt	0.00	0.00	0.00	0.00	0.00	0.00
Net Debt	-120	-554	-608	-748	-976	-1,276
Capital Expenditures (CapEx)	3.38	3.59	5.56	3.09	12	18
Debt-free, Cash-free Net Working Capital (DFCFNWC)	-28	-54	-93	-127	-198	-255
Debt-free Net Working Capital (DFNWC)	93	500	515	620	679	885
Net Working Capital (NWC)	93	500	515	620	679	885
Net Nonoperating Expense (NNE)	4.57	18	14	-28	-34	-106
Net Nonoperating Obligations (NNO)	-120	-554	-608	-748	-976	-1,276
Total Depreciation and Amortization (D&A)	2.26	2.73	4.87	7.10	10	13
Debt-free, Cash-free Net Working Capital to Revenue	-17.19%	-21.45%	-25.11%	-23.95%	-26.51%	-24.58%
Debt-free Net Working Capital to Revenue	57.32%	199.44%	139.49%	116.82%	90.82%	85.34%
Net Working Capital to Revenue	57.32%	199.44%	139.49%	116.82%	90.82%	85.34%
Earnings Adjustments	-	-	-	-	-	-
Adjusted Basic Earnings per Share	$0.00	($2.57)	($1.51)	$0.39	$2.04	$9.05
Adjusted Weighted Average Basic Shares Outstanding	0.00	38.63M	40.64M	42.88M	45.24M	46.95M
Adjusted Diluted Earnings per Share	$0.00	($2.57)	($1.51)	$0.35	$1.88	$8.57
Adjusted Weighted Average Diluted Shares Outstanding	0.00	38.63M	40.64M	42.88M	45.24M	46.95M
Adjusted Basic & Diluted Earnings per Share	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Adjusted Weighted Average Basic & Diluted Shares Outstanding	0.00	38.63M	40.64M	42.88M	45.24M	46.95M
Normalized Net Operating Profit after Tax (NOPAT)	-11	-42	-46	-12	54	95
Normalized NOPAT Margin	-6.93%	-16.75%	-12.35%	-2.26%	7.24%	9.15%
Pre Tax Income Margin	-9.71%	-23.91%	-15.87%	3.35%	13.68%	17.58%
Debt Service Ratios	-	-	-	-	-	-
EBIT to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00
NOPAT to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00
EBIT Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00
NOPAT Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00
Payout Ratios	-	-	-	-	-	-
Dividend Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Augmented Payout Ratio	0.00%	-1.44%	0.00%	0.00%	0.00%	0.00%

This table displays calculated financial ratios and metrics derived from Duolingo's official financial filings.

Metric	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
Period end date	12/31/2023	3/31/2024	6/30/2024	9/30/2024	12/31/2024	3/31/2025	6/30/2025	9/30/2025	12/31/2025	3/31/2026	6/30/2026
DEI Shares Outstanding	-	-	-	-	-	-	-	-	46,227,357.00	46,950,291.00	46,593,117.00
DEI Adjusted Shares Outstanding	-	-	-	-	-	-	-	-	46,227,357.00	46,950,291.00	46,593,117.00
DEI Earnings Per Adjusted Shares Outstanding	-	-	-	-	-	-	-	-	0.91	0.93	0.71
Growth Metrics	-	-	-	-	-	-	-	-	-	-	-
Revenue Growth	45.42%	44.87%	40.59%	39.94%	38.79%	37.71%	41.46%	41.08%	34.99%	26.53%	18.31%
EBITDA Growth	149.19%	372.12%	678.34%	521.68%	87.26%	54.45%	87.76%	122.07%	213.46%	72.29%	-1.41%
EBIT Growth	133.45%	289.73%	450.54%	348.43%	99.26%	55.49%	94.65%	145.04%	268.13%	77.85%	-4.25%
NOPAT Growth	130.22%	387.45%	310.90%	379.34%	124.96%	38.13%	102.82%	1,670.92%	287.28%	47.12%	-22.86%
Net Income Growth	186.98%	1,144.00%	553.72%	732.21%	14.77%	30.34%	83.90%	1,150.83%	201.68%	23.69%	-25.96%
EPS Growth	175.00%	1,050.00%	537.50%	716.67%	14.81%	26.32%	78.43%	1,114.29%	219.35%	23.61%	-27.47%
Operating Cash Flow Growth	323.79%	182.10%	67.86%	49.45%	69.42%	26.48%	45.34%	49.71%	28.72%	42.73%	-2.66%
Free Cash Flow Firm Growth	138.21%	349.61%	365.23%	140.46%	127.55%	56.62%	95.07%	-48.52%	-378.84%	-264.05%	-253.70%
Invested Capital Growth	-39.34%	-56.33%	-47.45%	-30.74%	-64.36%	-59.11%	-61.76%	176.87%	147.19%	99.97%	96.53%
Revenue Q/Q Growth	9.71%	10.97%	6.43%	8.00%	8.80%	10.11%	9.33%	7.71%	4.11%	3.22%	2.22%
EBITDA Q/Q Growth	295.52%	126.74%	13.10%	-15.90%	-13.17%	87.01%	37.49%	-0.60%	22.64%	2.79%	-21.32%
EBIT Q/Q Growth	202.74%	170.44%	13.75%	-21.40%	-17.59%	111.03%	42.40%	-1.05%	23.80%	1.95%	-23.33%
NOPAT Q/Q Growth	185.87%	346.47%	-7.49%	-21.25%	-30.84%	174.15%	35.84%	587.64%	-84.88%	4.14%	-28.78%
Net Income Q/Q Growth	331.67%	122.46%	-9.66%	-4.07%	-40.47%	152.64%	27.45%	552.50%	-85.64%	3.59%	-23.70%
EPS Q/Q Growth	350.00%	111.11%	-10.53%	-3.92%	-36.73%	132.26%	26.39%	553.85%	-83.36%	-10.10%	-25.84%
Operating Cash Flow Q/Q Growth	30.66%	69.77%	-25.30%	-9.81%	48.12%	26.74%	-14.16%	-7.10%	27.35%	40.54%	-41.46%
Free Cash Flow Firm Q/Q Growth	83.04%	100.69%	-8.36%	-28.57%	73.21%	38.13%	14.14%	-81.15%	-1,038.19%	18.73%	-6.94%
Invested Capital Q/Q Growth	-5.97%	-28.83%	-2.22%	6.31%	-33.22%	-24.71%	-3.93%	144.52%	-18.21%	-100.08%	-11,859.65%
Profitability Metrics	-	-	-	-	-	-	-	-	-	-	-
Gross Margin	73.13%	73.03%	73.45%	72.91%	71.88%	71.12%	72.38%	72.47%	72.78%	72.99%	72.62%
EBITDA Margin	5.23%	10.68%	11.35%	8.84%	7.05%	11.98%	15.06%	13.90%	16.38%	16.31%	12.55%
Operating Margin	3.18%	9.81%	10.49%	7.05%	6.62%	10.23%	13.23%	12.94%	15.36%	15.25%	11.37%
EBIT Margin	3.87%	9.44%	10.09%	7.34%	5.56%	10.66%	13.88%	12.75%	15.17%	14.98%	11.24%
Profit (Net Income) Margin	8.03%	16.09%	13.66%	12.13%	6.64%	15.23%	17.75%	107.54%	14.83%	14.89%	11.11%
Tax Burden Percent	80.07%	104.27%	84.81%	92.01%	62.22%	100.36%	96.41%	629.07%	76.98%	78.23%	73.09%
Interest Burden Percent	258.73%	163.43%	159.58%	179.52%	191.78%	142.35%	132.63%	134.03%	127.03%	127.00%	135.28%
Effective Tax Rate	19.93%	-4.27%	15.19%	7.99%	37.78%	-0.36%	3.59%	-529.07%	23.02%	21.77%	26.91%
Return on Invested Capital (ROIC)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ROIC Less NNEP Spread (ROIC-NNEP)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Return on Net Nonoperating Assets (RNNOA)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Return on Equity (ROE)	2.68%	7.15%	9.72%	12.08%	11.97%	12.06%	13.44%	36.25%	38.14%	36.96%	34.42%
Cash Return on Invested Capital (CROIC)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	81.65%	118.86%	0.00%	0.00%
Operating Return on Assets (OROA)	2.42%	5.92%	6.49%	4.84%	3.69%	7.00%	9.16%	7.92%	9.56%	9.51%	7.11%
Return on Assets (ROA)	5.01%	10.09%	8.78%	8.00%	4.40%	9.99%	11.72%	66.79%	9.34%	9.45%	7.03%
Return on Common Equity (ROCE)	2.68%	7.15%	9.72%	12.08%	11.97%	12.06%	13.44%	36.25%	38.14%	36.96%	34.42%
Return on Equity Simple (ROE_SIMPLE)	0.00%	6.41%	8.64%	10.55%	0.00%	10.82%	0.00%	0.00%	0.00%	0.00%	0.00%
Net Operating Profit after Tax (NOPAT)	3.84	17	16	12	8.64	24	32	221	33	35	25
NOPAT Margin	2.54%	10.23%	8.89%	6.48%	4.12%	10.26%	12.75%	81.40%	11.83%	11.93%	8.31%
Net Nonoperating Expense Percent (NNEP)	1.22%	1.33%	1.08%	1.33%	0.61%	1.20%	1.22%	6.59%	0.76%	0.70%	0.64%
Return On Investment Capital (ROIC_SIMPLE)	0.59%	-	-	-	1.05%	2.65%	3.29%	16.92%	2.48%	2.50%	1.76%
Cost of Revenue to Revenue	26.87%	26.97%	26.55%	27.09%	28.12%	28.88%	27.62%	27.53%	27.22%	27.01%	27.38%
SG&A Expenses to Revenue	24.43%	20.96%	20.72%	19.93%	23.76%	18.83%	18.23%	16.18%	17.77%	15.87%	16.95%
R&D to Revenue	33.29%	30.37%	30.92%	32.65%	31.68%	30.51%	29.20%	30.44%	28.12%	28.42%	30.89%
Operating Expenses to Revenue	69.95%	63.22%	62.96%	65.86%	65.26%	60.89%	59.15%	59.53%	57.42%	57.74%	61.25%
Earnings before Interest and Taxes (EBIT)	5.85	16	18	14	12	25	35	35	43	44	34
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)	7.89	18	20	17	15	28	38	38	46	48	37
Valuation Ratios	-	-	-	-	-	-	-	-	-	-	-
Price to Book Value (P/BV)	14.54	13.30	11.73	14.93	17.30	15.72	19.08	11.28	6.02	3.33	3.80
Price to Tangible Book Value (P/TBV)	15.00	13.74	12.12	15.54	17.96	16.25	19.69	11.85	6.32	3.48	3.98
Price to Revenue (P/Rev)	17.95	16.22	14.18	17.81	19.07	17.32	21.06	15.29	7.82	4.21	4.68
Price to Earnings (P/E)	593.19	207.38	135.86	141.49	161.01	145.21	159.04	38.20	19.59	10.96	13.05
Dividend Yield	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Earnings Yield	0.17%	0.48%	0.74%	0.71%	0.62%	0.69%	0.63%	2.62%	5.10%	9.13%	7.66%
Enterprise Value to Invested Capital (EV/IC)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	154.86	95.71	0.00	0.00
Enterprise Value to Revenue (EV/Rev)	16.54	14.80	12.78	16.45	17.76	15.98	19.73	14.03	6.59	2.95	3.44
Enterprise Value to EBITDA (EV/EBITDA)	0.00	472.81	193.17	179.93	190.03	162.79	179.27	114.47	45.67	19.07	23.31
Enterprise Value to EBIT (EV/EBIT)	0.00	795.85	238.76	210.82	222.87	189.62	204.46	127.70	49.84	20.70	25.46
Enterprise Value to NOPAT (EV/NOPAT)	0.00	749.14	252.20	232.26	245.14	214.18	228.10	49.68	22.22	9.94	12.33
Enterprise Value to Operating Cash Flow (EV/OCF)	57.18	41.58	34.85	45.13	46.53	42.15	51.99	37.17	17.63	7.47	9.16
Enterprise Value to Free Cash Flow (EV/FCFF)	626.33	158.97	113.92	150.12	117.08	99.23	115.29	189.67	80.52	23.62	30.27
Leverage & Solvency	-	-	-	-	-	-	-	-	-	-	-
Debt to Equity	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Long-Term Debt to Equity	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Financial Leverage	-1.13	-1.15	-1.15	-1.14	-1.16	-1.19	-1.18	-1.01	-1.04	-1.08	-1.09
Leverage Ratio	1.42	1.46	1.45	1.45	1.52	1.54	1.54	1.46	1.52	1.51	1.52
Compound Leverage Factor	3.68	2.38	2.31	2.61	2.92	2.19	2.04	1.95	1.93	1.92	2.05
Debt to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Short-Term Debt to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Long-Term Debt to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Preferred Equity to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Noncontrolling Interests to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Common Equity to Total Capital	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Debt to EBITDA	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Net Debt to EBITDA	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Long-Term Debt to EBITDA	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Debt to NOPAT	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Net Debt to NOPAT	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Long-Term Debt to NOPAT	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Altman Z-Score	20.20	16.97	15.66	19.70	19.03	17.75	21.04	16.62	8.87	5.54	6.27
Noncontrolling Interest Sharing Ratio	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Liquidity Ratios	-	-	-	-	-	-	-	-	-	-	-
Current Ratio	3.24	3.22	3.28	3.09	2.61	2.68	2.81	2.82	2.61	2.62	2.72
Quick Ratio	3.02	2.98	3.04	2.85	2.38	2.45	2.57	2.57	2.36	2.40	2.50
Cash Flow Metrics	-	-	-	-	-	-	-	-	-	-	-
Free Cash Flow to Firm (FCFF)	30	60	55	39	68	94	107	20	-189	-154	-165
Operating Cash Flow to CapEx	5,323.92%	5,906.22%	1,121.48%	1,770.52%	4,250.08%	8,069.60%	7,568.86%	1,732.60%	1,000.07%	114,220.45%	707.04%
Free Cash Flow to Firm to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Operating Cash Flow to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Operating Cash Flow Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Efficiency Ratios	-	-	-	-	-	-	-	-	-	-	-
Asset Turnover	0.62	0.63	0.64	0.66	0.66	0.66	0.66	0.62	0.63	0.63	0.63
Accounts Receivable Turnover	7.83	9.04	9.68	8.84	6.87	8.51	9.29	8.82	7.11	9.18	9.39
Inventory Turnover	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Fixed Asset Turnover	42.90	44.76	41.05	43.77	48.68	50.12	46.55	43.71	37.57	39.15	36.76
Accounts Payable Turnover	78.42	86.29	59.32	58.26	46.14	87.06	44.45	74.84	40.08	59.88	26.11
Days Sales Outstanding (DSO)	46.63	40.36	37.72	41.27	53.16	42.88	39.31	41.39	51.32	39.74	38.87
Days Inventory Outstanding (DIO)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Days Payable Outstanding (DPO)	4.65	4.23	6.15	6.27	7.91	4.19	8.21	4.88	9.11	6.10	13.98
Cash Conversion Cycle (CCC)	41.98	36.13	31.56	35.01	45.25	38.69	31.09	36.52	42.21	33.64	24.90
Capital & Investment Metrics	-	-	-	-	-	-	-	-	-	-	-
Invested Capital	-92	-119	-121	-114	-151	-189	-196	87	71	-0.06	-6.82
Invested Capital Turnover	-6.71	-5.99	-6.23	-6.88	-6.14	-5.28	-5.58	-73.36	-25.96	-11.64	-11.28
Increase / (Decrease) in Invested Capital	-26	-43	-39	-27	-59	-70	-75	201	223	189	189
Enterprise Value (EV)	8,783	8,628	8,110	11,343	13,285	12,967	17,464	13,527	6,837	3,236	3,943
Market Capitalization	9,531	9,458	8,998	12,279	14,261	14,050	18,637	14,747	8,113	4,628	5,359
Book Value per Share	$15.60	$16.58	$17.79	$18.89	$18.23	$19.76	$21.49	$28.54	$29.14	$29.64	$30.26
Tangible Book Value per Share	$15.12	$16.06	$17.21	$18.15	$17.55	$19.11	$20.82	$27.15	$27.76	$28.29	$28.91
Total Capital	656	711	767	822	825	894	977	1,308	1,347	1,392	1,410
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Long-Term Debt	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Net Debt	-748	-830	-888	-936	-976	-1,083	-1,173	-1,220	-1,276	-1,392	-1,417
Capital Expenditures (CapEx)	0.92	1.41	5.56	3.18	1.96	1.31	1.20	4.86	11	0.13	12
Debt-free, Cash-free Net Working Capital (DFCFNWC)	-127	-156	-164	-164	-198	-234	-245	-239	-255	-320	-321
Debt-free Net Working Capital (DFNWC)	620	674	724	716	679	765	853	883	885	932	993
Net Working Capital (NWC)	620	674	724	716	679	765	853	883	885	932	993
Net Nonoperating Expense (NNE)	-8.28	-9.81	-8.49	-11	-5.27	-11	-13	-71	-8.50	-8.63	-8.35
Net Nonoperating Obligations (NNO)	-748	-830	-888	-936	-976	-1,083	-1,173	-1,220	-1,276	-1,392	-1,417
Total Depreciation and Amortization (D&A)	2.04	2.07	2.24	2.88	3.12	3.04	2.97	3.11	3.42	3.87	3.93
Debt-free, Cash-free Net Working Capital to Revenue	-23.95%	-26.79%	-25.91%	-23.85%	-26.51%	-28.86%	-27.71%	-24.77%	-24.58%	-29.10%	-28.00%
Debt-free Net Working Capital to Revenue	116.82%	115.53%	114.08%	103.89%	90.82%	94.32%	96.32%	91.53%	85.34%	84.80%	86.75%
Net Working Capital to Revenue	116.82%	115.53%	114.08%	103.89%	90.82%	94.32%	96.32%	91.53%	85.34%	84.80%	86.75%
Earnings Adjustments	-	-	-	-	-	-	-	-	-	-	-
Adjusted Basic Earnings per Share	$0.29	$0.63	$0.56	$0.53	$0.32	$0.78	$0.98	$6.36	$0.93	$0.93	$0.71
Adjusted Weighted Average Basic Shares Outstanding	42.88M	43.12M	43.54M	43.98M	45.24M	45.45M	45.82M	46.23M	46.95M	46.59M	46.79M
Adjusted Diluted Earnings per Share	$0.27	$0.57	$0.51	$0.49	$0.31	$0.72	$0.91	$5.95	$0.99	$0.89	$0.66
Adjusted Weighted Average Diluted Shares Outstanding	42.88M	43.12M	43.54M	43.98M	45.24M	45.45M	45.82M	46.23M	46.95M	46.59M	46.79M
Adjusted Basic & Diluted Earnings per Share	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
Adjusted Weighted Average Basic & Diluted Shares Outstanding	42.88M	43.12M	43.54M	43.98M	45.24M	45.45M	45.82M	46.23M	46.95M	46.59M	46.79M
Normalized Net Operating Profit after Tax (NOPAT)	3.84	12	16	12	8.64	17	32	25	33	35	25
Normalized NOPAT Margin	2.54%	6.87%	8.89%	6.48%	4.12%	7.16%	12.75%	9.06%	11.83%	11.93%	8.31%
Pre Tax Income Margin	10.02%	15.43%	16.10%	13.18%	10.67%	15.17%	18.41%	17.09%	19.27%	19.03%	15.20%
Debt Service Ratios	-	-	-	-	-	-	-	-	-	-	-
EBIT to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
NOPAT to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
EBIT Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
NOPAT Less CapEx to Interest Expense	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Payout Ratios	-	-	-	-	-	-	-	-	-	-	-
Dividend Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Augmented Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials Breakdown Chart

Key Financial Trends

Duolingo’s financial profile has strengthened substantially since 2022. Revenue increased from $96.1 million in Q3 2022 to $298.5 million in Q2 2026, while the company moved from operating and net losses to consistent profitability. Q2 2026 revenue rose 18.3% year over year, although growth was slower than the 26.6% increase reported in Q1 2026.

Profitability remains positive, but recent margins have moderated. Q2 2026 gross profit was $216.7 million, representing a gross margin of approximately 72.6%, broadly consistent with the company’s historical level. Operating income was $33.9 million, or an 11.4% operating margin, down from $44.5 million and a 13.3% margin in Q2 2025. Net income declined to $33.2 million from $44.8 million in the year-ago quarter. The Q3 2025 net income figure of $292.2 million was unusually high because of a large tax benefit and is not representative of ongoing profitability.

Cash generation and liquidity are major strengths. Duolingo generated $88.3 million in operating cash flow in Q2 2026 and $239.0 million during the first half of 2026. Cash and equivalents reached $1.18 billion, while short- and long-term investments totaled approximately $235.7 million. The balance sheet also includes $505.1 million of current deferred revenue, reflecting substantial customer billings that will be recognized as revenue over time.

The company is investing heavily in growth while returning capital to shareholders. Research and development expense increased from $50.3 million in Q3 2023 to $92.2 million in Q2 2026, and marketing expense rose from $22.3 million to $40.0 million over the same period. Duolingo repurchased $69.6 million of common stock during the first half of 2026, contributing to a modest reduction in weighted-average shares compared with Q4 2025. Investors should continue monitoring whether elevated investment spending produces sufficient revenue growth and whether recent margin pressure persists.

Sustained revenue expansion: Quarterly revenue has more than tripled from $96.1 million in Q3 2022 to $298.5 million in Q2 2026, demonstrating strong long-term growth.
Consistent positive cash generation: Operating cash flow has remained positive in every reported quarter, increasing from $8.8 million in Q3 2022 to $88.3 million in Q2 2026.
Strong liquidity position: Duolingo held $1.18 billion of cash and equivalents at June 30, 2026, with no debt reported in the provided balance-sheet data.
High and stable gross margins: Gross margin was approximately 72.6% in Q2 2026, comparable with Q2 2025 and Q3 2022, suggesting scalable unit economics.
Deferred revenue growth: Current deferred revenue increased from $134.9 million in Q3 2022 to $505.1 million in Q2 2026, supporting future revenue recognition and visibility.
Share repurchases: The company spent $69.6 million on common-stock repurchases in the first half of 2026, which may support per-share results and shareholder returns.
Growth investment is rising: Research and development and marketing expenses have increased meaningfully, which could support future expansion but may weigh on near-term margins.
Investment income is material: Duolingo generated $11.8 million of interest and investment income in Q2 2026, but this contribution may vary with cash balances and market interest rates.
Recent net-income decline: Q2 2026 net income fell approximately 26% from the restated year-ago period, despite higher revenue.
Operating-margin compression: The Q2 2026 operating margin declined to approximately 11.4% from 13.3% in Q2 2025 as operating expenses grew faster than revenue.

09/05/26 10:49 AM ETAI Generated. May Contain Errors.

Duolingo Financials - Frequently Asked Questions

According to the most recent income statement we have on file, Duolingo's fiscal year ends in December. Their fiscal year 2025 ended on December 31, 2025.

Duolingo's net income appears to be on an upward trend, with a most recent value of $414.07 million in 2025, falling from -$15.78 million in 2020. The previous period was $88.57 million in 2024. Check out Duolingo's forecast to explore projected trends and price targets.

Duolingo's total operating income in 2025 was $135.57 million, based on the following breakdown:

Total Gross Profit: $749.46 million
Total Operating Expenses: $613.89 million

Over the last 5 years, Duolingo's total revenue changed from $161.70 million in 2020 to $1.04 billion in 2025, a change of 541.7%.

Duolingo's total liabilities were at $645.18 million at the end of 2025, a 35.2% increase from 2024, and a 774.0% increase since 2020.

In the past 5 years, Duolingo's cash and equivalents has ranged from $120.49 million in 2020 to $1.04 billion in 2025, and is currently $1.04 billion as of their latest financial filing in 2025.

Over the last 5 years, Duolingo's book value per share changed from -15.80 in 2020 to 29.14 in 2025, a change of -284.4%.

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Financial statements for NASDAQ:DUOL last updated on 8/6/2026 by MarketBeat.com Staff. New filings and market data are monitored continuously.

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Duolingo (DUOL) Financials

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Duolingo (DUOL) Financials

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