Duolingo, Inc. (DUOL) AI Stock Analysis

Duolingo, Inc. is a developer of a language-learning platform accessible via its mobile application and website, serving users across the United States and China. Founded in 2011 and headquartered in Pittsburgh, Pennsylvania, the company provides courses in over 40 languages, ranging from Spanish, English, and French to Japanese, German, and Italian. Its offerings include a digital language proficiency assessment exam that allows learners to evaluate their language skills objectively. Duolingo focuses on leveraging technology and pedagogical methods to provide accessible, engaging, and personalized educational experiences for millions of users worldwide.

Revenue expanded at a 5-year CAGR of 45.0% from FY2020 to FY2025, rising from $250.8M in FY2021 to $1.04B in FY2025. Annual profitability turned positive in FY2023 with net income of $16.1M, expanding to $88.6M in FY2024 and $414.1M in FY2025, when operating margin reached 13.6%. Free cash flow reached $369.7M in FY2025 alongside R&D expenses of $303.0M. Over the trailing twelve months ended June 30, 2026, revenue stood at $1.15B with an operating margin of 11.7% and EPS of $8.42. In the quarter ended June 30, 2026, quarterly revenue grew 18.3% year-over-year, while quarterly earnings declined 27.5%.

As of June 30, 2026, Duolingo held $1.31B in cash and short-term investments against total debt of $86.1M, yielding a net cash position of $1.23B. Total assets stood at $2.07B against shareholders' equity of $1.41B, with a current ratio of 2.72 and a debt-to-equity ratio of 0.06. In FY2025, operating cash flow was $387.8M and capital expenditures were $18.1M, while share count grew 30.7% over 5 years.

At a share price of $141.76, Duolingo holds a market capitalization of $6.61B and an enterprise value of $5.60B. The stock trades at a trailing P/E of 16.8x, compared to the median of 28.1x for its US-listed Technology peers. Its forward P/E stands at 19.0x versus the peer median of 18.8x, while its price-to-sales of 5.8x exceeds the peer median of 2.8x, and its EV-to-EBITDA is 32.4x against the peer median of 16.6x. Over the 1-year period, the stock declined 57.1%, while the S&P 500 (SPY) gained 16.8%.

Wall Street analysts hold 4 Strong Buy, 2 Buy, 16 Hold, 1 Sell, and 1 Strong Sell ratings on DUOL. The mean price target is $135.12, representing a 4.7% decrease from the last close of $141.76. For the fiscal year ending December 31, 2026, analysts estimate revenue of $1.21B and EPS of $6.61. For the following fiscal year, 7 analysts project revenue of $1.37B and EPS of $7.64. The company has beaten EPS expectations in each of the last 4 quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Duolingo, Inc. (DUOL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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