Duolingo, Inc. DUOL
NasdaqApplication softwareFinancials to Sep 30, 2026 · Updated Nov 11, 2026
Moat ranks
Balance sheet
| $B | Dec 31 | Sep 30 |
|---|---|---|
| Cash | 1.0 | 1.2 |
| Securities | 0.1 | 0.1 |
| Long-term securities | 0.1 | 0.1 |
| Debt | 0.0 | 0.0 |
| Net cash | 1.3 | 1.5 |
| Equity | 1.3 | 1.5 |
- Debt / EBITDA
- 0.00×
- Debt / equity
- 0.00×
- Leases (12/31/25)
- $101M
- Diluted shares
- 50M
- Book value / share
- $29.67
- Price / book
- 4.9×
- Net cash / share
- $29.69
- Market cap
- $7.3B
- Enterprise value
- $5.8B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 13.7% | -27.4 pts | |
| Operating margin | 7.8% | -5.1 pts | |
| FCF margin | 24.4% | -4.1 pts | |
| Capex / revenue | 4.6% | +2.0 pts | |
| Daily active users | 64.9M | +29% | |
| Paid subscribers | 13.1M | +14% | |
| Monthly active users | 153.1M | +13% | |
| Subscription bookings | $278M | +16% | |
| English Test revenue | $10M | +2% |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About DUOL
Duolingo teaches languages and other subjects through a free app and paid subscriptions, with additional advertising, purchases and testing revenue. Its brand, habit-forming product and experimentation data support distribution and product improvement, while free alternatives and easy switching limit pricing.
- Data Network Effects
Learner activity supports large-scale tests and personalized lessons.
- Habit Default
Streaks and short lessons encourage daily practice.
- Brand Trust
The recognizable brand brings learners through word of mouth and social content.
- Scope Economies
Language, math, music, chess and the English Test share technology and design capabilities.
- Nov 3, 2026
Duolingo will stop selling new Max subscriptions in November and move individual Max subscribers to Super family plans at the same price. Unlimited Video Call is intended for all Super subscribers by year end; legacy Max family subscribers remain a 2027 question. This changes premium-tier monetization rather than proving more pricing power. Source: https://www.sec.gov/Archives/edgar/data/1562088/000162828026069474/q3fy26duolingo9-30x26share.htm
- Oct 7, 2026
A shareholder filed a proposed securities class action against Duolingo and some current and former executives. Duolingo said it would defend the case and had recorded no liability for it in its Q3 filing.
- Sep 19, 2026
Duolingo and Supercell launched a Brawl Stars crossover through September 30, rewarding a learning streak with game items. It adds audience reach, but retained learners and paid demand remain unreported.
- Aug 18, 2026
Duolingo disclosed accidentally displayed preliminary August daily-user growth data; management said it was unvalidated and did not change Q3 guidance.
- Aug 13, 2026
Duolingo acquired London animation studio Animade, adding design staff for learning features and growth experiments; financial terms were not disclosed.
Ownership
Go deeper on DUOL
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On this page
Financial record
| Fiscal year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2020–25 |
|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||
| Revenue | 12.70 | 10.70 | 9.36 | 11.42 | 15.88 | 21.48 | 23.68 | +11.1%/yr | |
| Cash flow | 1.39 | 0.39 | 1.36 | 3.30 | 6.06 | 8.03 | 8.73 | +42.0%/yr | |
| Earnings | -1.24 | -2.57 | -1.51 | 0.35 | 1.88 | 8.57 | 2.92 | – | |
| Free cash flow | 1.08 | 0.13 | 1.10 | 3.01 | 5.61 | 7.46 | 7.92 | +47.3%/yr | |
| Capex | 0.32 | 0.26 | 0.26 | 0.29 | 0.45 | 0.57 | 0.81 | +12.5%/yr | |
| Dividends | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | – | |
| Book value | -6.34 | 21.89 | 13.73 | 14.09 | 17.51 | 27.88 | 29.67 | – | |
| Diluted shares (M) | 13 | 23 | 39 | 47 | 47 | 48 | 50 | +30.6%/yr | |
| Totals ($B) | |||||||||
| Revenue | 0.2 | 0.3 | 0.4 | 0.5 | 0.7 | 1.0 | 1.2 | +45.0%/yr | |
| Operating income | -0.0 | -0.1 | -0.1 | -0.0 | 0.1 | 0.1 | 0.1 | – | |
| Net income | -0.0 | -0.1 | -0.1 | 0.0 | 0.1 | 0.4 | 0.1 | – | |
| Free cash flow | 0.0 | 0.0 | 0.0 | 0.1 | 0.3 | 0.4 | 0.4 | +92.3%/yr | |
| Buybacks | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | – | |
| Dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | – | |
| Net cash | 0.1 | 0.6 | 0.6 | 0.7 | 1.0 | 1.3 | 1.5 | +$1.2B | |
| Margins & returns (%) | |||||||||
| Gross margin | 71.6 | 72.4 | 73.1 | 73.2 | 72.8 | 72.2 | 72.8 | +0.7 pts | |
| Operating margin | -9.9 | -23.9 | -17.6 | -2.5 | 8.4 | 13.1 | 12.4 | +23.0 pts | |
| Net margin | -9.8 | -24.0 | -16.1 | 3.0 | 11.8 | 39.9 | 12.3 | +49.7 pts | |
| FCF margin | 8.5 | 1.2 | 11.8 | 26.3 | 35.3 | 34.7 | 33.5 | +26.3 pts | |
| ROIC | – | – | – | – | – | 56.9 | – | – | – |
| Return on equity | – | -11.7 | -11.0 | 2.5 | 10.7 | 30.7 | 9.8 | – | |
| R&D % of revenue | 32.8 | 41.4 | 40.7 | 36.6 | 31.5 | 29.5 | 30.7 | -3.3 pts | |
| Stock pay % of revenue | 10.5 | 16.3 | 20.0 | 17.9 | 14.8 | 13.2 | 13.2 | +2.7 pts | |
| Capex % of revenue | 2.5 | 2.5 | 2.7 | 2.6 | 2.8 | 2.6 | 3.4 | +0.2 pts | |
Change uses 2020 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2020 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Competitive
- Durability
- medium
- Trajectory
- widening
- Pricing power
- moderate
- Duolingo App96.0%4 claims
- Duolingo English Test4.0%1 claim
Moat claims
- Applies to
- Duolingo App
- Confidence
- Durability
- medium
- Trajectory
- wideningas of Oct 7, 2026
Learner activity supports large-scale tests and personalized lessons. The advantage comes from converting those observations into better retention and learning, rather than data volume alone.
Current user retention reached 84% in Q2 2026 as daily active users reached 58.7 million; better retention supports the data and product feedback loop.
- Daily active users64,900,000+29%
- Monthly active users153,100,000+13%
- Current user retention84.0%
- General AI models can give rivals inexpensive personalization.
- Privacy rules or reduced access to learner data can weaken experiments.
- FilingDuolingo FY2025 Form 10-KFeb 27, 2026
- FilingDuolingo Q2 2026 shareholder letterAug 5, 2026
- Applies to
- Duolingo App
- Confidence
- Durability
- medium
- Trajectory
- wideningas of Nov 10, 2026
Streaks and short lessons encourage daily practice. They defend attention and subscription conversion, but cannot force a learner to stay.
Daily users grew 29% to 64.9 million in Q3, while the company credited both experiments on habits and game promotions for bringing learners back.
- Daily active users64,900,000+29%
- Paid subscribers13,100,000+14%
- Subscription bookings$278M+16%
- Current user retention84.0%
- Learners can tire of game mechanics without lasting learning progress.
- Copied streaks and AI tutors can compete for attention.
- NewsSupercell announces Brawl Stars and Duolingo collaborationSep 17, 2026
- FilingDuolingo FY2025 Form 10-KFeb 27, 2026
- FilingDuolingo Q2 2026 shareholder letterAug 5, 2026
- Applies to
- Duolingo App
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
The recognizable brand brings learners through word of mouth and social content. That reduces dependence on paid acquisition, although more performance marketing is now being tested.
Organic reach remains above one billion social impressions per quarter, but a larger performance-marketing effort has not yet proved that the brand advantage is widening.
- Daily active users64,900,000+29%
- Paid subscribers13,100,000+14%
- Monthly active users153,100,000+13%
- Subscription bookings$278M+16%
- Sales and marketing expense$42M+20%
- Poor learning outcomes or privacy failures can damage trust.
- Paid acquisition can become necessary as organic reach slows.
- FilingDuolingo FY2025 Form 10-KFeb 27, 2026
- FilingDuolingo Q2 2026 shareholder letterAug 5, 2026
- Applies to
- Duolingo App
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 7, 2026
Language, math, music, chess and the English Test share technology and design capabilities. Reuse can lower the cost of adding features; separate subject economics are not reported.
Chess had more than seven million daily users by February 2026 and Video Call now reaches most new Super subscribers, but no subject-level cost or profit figures establish larger scope savings.
- Daily active users64,900,000+29%
- Paid subscribers13,100,000+14%
- Chess daily active users≥7,000,000
- New subjects can distract staff from language learning.
- Wider AI use can increase hosting costs before paid demand grows.
- FilingDuolingo Q4/FY2025 shareholder letterFeb 26, 2026
- FilingDuolingo FY2025 Form 10-KFeb 27, 2026
- FilingDuolingo Q2 2026 shareholder letterAug 5, 2026
- Applies to
- Duolingo English Test
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 7, 2026
Admission programs must accept the credential before students have a reason to buy it. Acceptance is a real barrier, but it is not exclusive and can be withdrawn.
More than 6,100 education programs accepted DET at year-end 2025, but Q2 2026 revenue of $10.109 million was almost unchanged from $10.088 million a year earlier.
- English Test accepting education programs≥6,100
- English Test revenue$10M+2%
- Annual English Test revenue$42M-8%
- Institutions can rescind acceptance after security concerns.
- Student visa restrictions can reduce test demand.
- TOEFL, IELTS and PTE retain established regulatory relationships.
- FilingDuolingo FY2025 Form 10-KFeb 27, 2026
- FilingDuolingo Q2 2026 Form 10-QAug 6, 2026
Profile change log
- Nov 11, 2026 · business change
Duolingo will stop selling new Max subscriptions in November and move individual Max subscribers to Super family plans at the same price. Unlimited Video Call is intended for all Super subscribers by year end; legacy Max family subscribers remain a 2027 question. This changes premium-tier monetization rather than proving more pricing power. Source: https://www.sec.gov/Archives/edgar/data/1562088/000162828026069474/q3fy26duolingo9-30x26share.htm
- Nov 10, 2026 · business change
A shareholder filed a proposed securities class action against Duolingo and some current and former executives. Duolingo said it would defend the case and had recorded no liability for it in its Q3 filing.
- Oct 7, 2026 · analyst revision
Added the September promotion and patent ruling, extended the engagement debate, and put each market's named competitors on one published basis. Preserved the five moat claims and their scores; consumer market size remains a broad forecast rather than current app sales.
- Oct 7, 2026 · business change
Duolingo and Supercell launched a Brawl Stars crossover through September 30, rewarding a learning streak with game items. It adds audience reach, but retained learners and paid demand remain unreported.
- Oct 7, 2026 · business change
A federal court dismissed Modern Font Applications' asserted font-patent counterclaims against Duolingo with prejudice, reducing that specific legal risk without protecting the app from competing learning products.
- Oct 7, 2026 · business change
Duolingo acquired design and engineering capabilities for $34.5 million total consideration, with $33.1 million paid at closing and $1.4 million tied to employee service. The talent and intellectual property support new learning products; retention payments remain compensation.
- Oct 7, 2026 · business change
Duolingo disclosed accidentally displayed preliminary August daily-user growth data; management said it was unvalidated and did not change Q3 guidance.
- Oct 7, 2026 · business change
Duolingo acquired London animation studio Animade, adding design staff for learning features and growth experiments; financial terms were not disclosed.
- Oct 7, 2026 · business change
Duolingo appointed Sallie Krawcheck to its board, adding consumer finance and operating experience.
- Oct 7, 2026 · business change
Duolingo raised FY2026 adjusted EBITDA guidance to $320 million while maintaining its revenue and bookings targets, reflecting lower-than-expected AI delivery costs.
- Oct 7, 2026 · business change
Duolingo allowed learners to revive lost streaks by completing three lessons; 15.4 million participated, increasing engagement but making Q2 user growth partly temporary.
- Oct 7, 2026 · business change
Gillian Munson became CFO, succeeding Matthew Skaruppa and bringing a new finance leader as Duolingo expands AI features and subscriptions.
- Oct 7, 2026 · analyst revision
Verified the five existing moat claims, replaced unsupported verbatim quotations with source-based notes, added trajectories and debate, and changed the analytical revenue mix from Q2 2026 to the FY2025 reported revenue streams.
Industry & peers
Peer map
Peers appear on the map as their numbers are collected.
Consumer language learning
Consumer spending on language learning through apps, websites, tutors and classrooms. Adjacent casual subjects can reuse the same app, but have different demand and are not included in the language market forecast.
- Duolingo
- Babbel
- Busuu
- Pearson Mondly
- Rosetta Stone
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| DUOL | 84 | 72.8% | 12.4% | |
| Industry median | 31 | 78 | 75.8% | 19.9% |
| Sector median | 77 | 75 | 64.7% | 23.8% |
| All stocks median | 398 | 76 | 53.1% | 20.0% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Employment, travel and cross-border communication support demand for language proficiency.
- Smartphone access and low-cost subscriptions expand access beyond classroom users.
- Effective lessons and lasting habits support renewals and word-of-mouth growth.
- AI conversation practice can improve speaking value while falling model costs reduce delivery expense.
- Consumer budget pressure can reduce paid subscriptions even when free user counts hold up.
- General AI tutors and automatic translation can change how much consumers need or pay for traditional lessons.
- App stores control access, payment fees and distribution terms; these costs can limit the benefit of subscription growth.
- Currencies move translated sales; lower rates also reduce interest income on cash-rich providers’ reserves.
- Privacy and AI rules can raise compliance costs or limit learner-data use; poor learning outcomes can damage trust and retention.
Bulls & bears
Can stronger daily learning habits turn into faster subscription bookings without requiring much higher marketing and AI spending?
Arguments
What to watch
- 1Current user retention and daily active users after June and September promotions
- 2Subscription bookings and paid subscribers
- 3Gross profit, AI delivery cost and sales and marketing expense
Next check: Q 4/FY 2026 results: test bookings conversion from DAU growth, Super Video Call adoption, Max migration, bonus costs and the user-growth investment plan.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Nov 9, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 84/100 by <a href="https://www.findmymoat.com/stocks/XNAS:DUOL">Find My Moat</a> (as of September 2026)Curation & Accuracy
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