📈 Price History

Ratio Health

— Excellent

— Good

— Average

— Poor

By Category

📊 Sector Averages

About

Duolingo, Inc. operates as a mobile learning platform in the United States, the United Kingdom, and internationally.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

See full financials →

📊 Quick Scorecard

Loading…

⭐ Superinvestors Holding DUOL

View All Superinvestors →

Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	603.8K	$59.5M	0.09%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

Management led with 'record profitability, strong top-line growth' and repeatedly emphasized raising full-year guidance, all while giving specific numbers like 40% DAU growth and 8% Max share. They also candidly addressed the social media backlash and Max's slower-than-expected growth, providing concrete reasons.

Q3 2025

Confident Specific

strong performance across all metrics, specific bookings and margin guidance, clear explanations for strategic shift, and detailed answers on product developments and metrics.

Q4 2025

Confident Specific

Management confidently detailed a deliberate strategic shift to prioritize DAU growth over near-term profitability, but also cautiously acknowledged deceleration and provided explicit lower guidance for 2026. Luis used definitive language like 'we now expect DAU growth to be about 20% year-over-year throughout 2026' and 'we are prioritizing growing the size of the pie'. Gillian provided specific numeric guidance ranges and explained the sequential margin trajectory.

Q1 2026 latest

Confident Specific

Management consistently used language such as 'right in line with what we expected', 'solid quarter', and provided specific numerical guidance ranges and point estimates for bookings growth (10.5%), revenue growth (16.1%), and adjusted EBITDA margin (25.7%). They also offered detailed quarterly progressions without evasion.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis remains moderately stronger. Duolingo is executing on its strategic shift to prioritize teaching and free-tier experience, maintaining ~20% DAU growth. The company shows discipline in managing to stated financial ranges, despite near-term margin compression from AI investments. Management provided clear quarterly signposts, which should reduce uncertainty. Key watch items: (1) whether longer free trials and AI features eventually lift bookings growth in the back half as modeled, (2) the trajectory of gross margins as AI costs evolve, and (3) the effectiveness of stepped-up performance marketing on top-of-funnel growth. The thesis is intact but relies on the 2026 investments translating into longer-term revenue acceleration without margin erosion beyond guided levels.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Duolingo Q1 2026: 21% DAU growth, 16.1% revenue guidance, 29% EBITDA margin.

Revenue & Profitability

Q1 2026 adjusted EBITDA was $83 million, representing a 29% margin. Full-year 2026 guidance: revenue growth of approximately 16.1%, bookings growth of 10.5%, and adjusted EBITDA margin of 25.7%. Q2 2026 revenue growth expected at 17%, with bookings growth of 6% due to a tough comp. Gross margin expected to be 71% in Q2, trending to 69% by year-end. Free cash flow expected to exceed $350 million for the full year.

Outlook

Management sees robust demand for language learning, particularly in Asia, with China showing strong appetite for English. They expect DAU growth to remain around 20% for the rest of 2026, with gradual acceleration in bookings in the second half. Macro tailwinds include increasing global interest in language education, while headwinds include tough year-over-year comps in Q2 and the challenge of balancing monetization with user growth.

Growth Drivers

Key growth levers include maintaining ~20% DAU growth through product improvements (e.g., AI-powered features like Video Call, Speaking Adventures) and expanding content to professional proficiency. Asia is the fastest-growing region, and Duolingo is investing in performance marketing, especially in China. Longer free trials are being tested to improve monetization without harming DAU growth.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Gross margin is expected to be 71% in Q2, declining to 69% by Q4 as more AI features are added. Adjusted EBITDA margin was 29% in Q1, dropping to about 24% in Q2, then recovering to near 27% in Q4. The full-year EBITDA margin guidance is 25.7%. Management noted that AI costs per unit have come down, allowing them to absorb more AI content while maintaining margins in the 69% range.

Key Risks

Management flagged tough Q2 comps as a near-term headwind for bookings. Over-monetization could harm DAU growth, so they are carefully testing monetization tactics that do not create friction for free users. AI costs may rise, but optimization is expected to offset some increases. Word-of-mouth, the primary growth driver, is difficult to control precisely.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

🔍

🔎 See cross-company document search → ?

📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-08-05

Q2 delivered 23% DAU growth and strong retention, with profitability and margins ahead of plan. AI cost savings and product improvements support raised EBITDA guidance, while new features and marketing strategies drive user and revenue growth.

Q1 2026 Q1 2026 2026-05-04

Q1 2026 saw double-digit bookings and revenue growth, with DAUs up 21% year-over-year and major AI-driven product enhancements. Guidance for 2026 remains strong, with continued investment in content, technology, and marketing, and robust cash generation supporting buybacks.

Q4 2025 Q4 2025 2026-02-26

Surpassed 50M DAUs and $1B in bookings for 2025, but will prioritize user growth over near-term profitability in 2026, guiding for 10–12% bookings growth and 20% DAU growth. Announced a $400M share buyback and a strategic focus on AI-driven product improvements.

Q3 2025 Q3 2025 2025-11-05

Q3 saw 36% DAU growth and strong bookings, with a strategic shift toward long-term user growth and teaching efficacy, leveraging AI. Asia, especially China, is the fastest-growing region, and new features like Energy and Chess PVP are driving engagement.

Q2 2025 Q2 2025 2025-08-06

Record profitability and strong top-line growth drove a guidance raise, with DAUs up 40% year-over-year and ARPU rising 5-6%. Super outperformed, Max grew slower, and China led regional growth, while new features and marketing investments support future expansion.

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯

Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.

📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Not SEC-Registered:
Finmagine is not registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or any state securities authority. Nothing on this platform constitutes investment advice as defined under the Investment Advisers Act of 1940.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This analysis may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. Finmagine does not undertake any obligation to update such statements in the future.

Limitation of Liability:
The content is provided "as is" without any warranties, express or implied. Finmagine expressly disclaims any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.