Duolingo, Inc.

Technology
Computer Software: Prepackaged Software
www.duolingo.com

Earnings Score
Moat Score

Market Cap $23.84B
PE 246
Debt -
Cash $886.73M
EV -
FCF $295.62M

Earnings

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Sales & Net Margins

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Earnings	$96.75M
EBIT	$111.47M
ROE	11%
ROA	8%
FCF	$295.62M
Equity	$893.83M
Growth Stability	1
PE	246.37
PEG	71.94
PB	26.67
P/FCF	80.64
P/S	29.38
Price/Cash	0.04
Net Margins	15%
Gross Margins	72%
Op. Margins	14%
Earnings CAGR	3%
Sales Growth YoY	38%
Sales Growth QoQ	10%
Sales CAGR	43%
FCF CAGR	201%
Equity CAGR	18%
Earnings Stability	-0.7
Earnings Growth YoY	30%

Earnings Growth QoQ	153%
Earnings CAGR 5Y	3%
Sales CAGR 5Y	43%
FCF CAGR 5Y	201%
Equity CAGR 5Y	18%
Earnings CAGR 3Y	43%
Sales CAGR 3Y	43%
FCF CAGR 3Y	142%
Equity CAGR 3Y	23%
Market Cap	$23.84B
Revenue	$811.21M
Assets	$1.40B
Cash	$886.73M
Shares Outstanding	48.5M
Earnings Score	6%
Moat Score	90%
Working Capital	765.17M
Current Ratio	2.68
Gross Profit	$586.11M
Shares Growth 3y	6%
Equity Growth QoQ	8%
Equity Growth YoY	26%

Assets & ROA

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Stockholders Equity & ROE

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Duolingo Inc is a mobile learning platform to learn languages and the top-grossing app in the Education category on both Google Play and the Apple App Store. It has three predominant sources of revenue; time-based subscriptions, in-app advertising placement by third parties, and the Duolingo English Test.

SEC Filings

Direct access to Duolingo, Inc. (DUOL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Duolingo, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Duolingo, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability -70%

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Duolingo, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Duolingo, Inc..

Years

Calculation mode

= $81T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$296M	$890M	$2.7B	$8.1B	$24B	$73B	$220B	$662B	$2T	$6T	$18T	$180T
DCF		$809M	$2.2B	$6.1B	$17B	$45B	$124B	$340B	$929B	$2.5T	$7T	$70T
Value	$81T

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	-10%	-24%	-16%	3%	12%	15%
ROA	-	-9%	-8%	2%	8%	8%
ROE	-	-12%	-11%	2%	11%	11%

Good Net Margins (15.23%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-
Growth Stability	-	-	-	-	-	1

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	55%	47%	44%	41%	43%
Earnings YoY growth	-	281%	-1%	-127%	451%	3%
Equity YoY growth	-	-736%	6%	21%	26%	18%
FCF YoY growth	-	-61%	761%	213%	82%	201%