Fundamental analysis · SEC EDGAR · TTM through 31/03/2026
DUOL · Nasdaq · Technology
Fundamental quality
94
out of 100
Duolingo, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 30.3%) with wide margins (net margin 38.4%) and a business that keeps growing (44.1% a year). On fundamental quality it scores 94 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Duolingo is the world's most-downloaded language app, with a freemium model: learn free with ads or pay to subscribe. Its engine is an addictive product (streaks, gamification) that converts free users into subscribers.
EPS growth: 150% · Revenue growth: 44.1%
Net margin: 38.4% · ROE: 30.3%
Net debt/EBITDA: -6.64x · FCF: 37.9%
Source: SEC EDGAR · TTM through 31/03/2026
The score combines growth, profitability and financial strength, and here its pillars hold up evenly.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 162 | -16 | 14 | -120 |
| 2021 | 251 | -60 | 6 | -554 |
| 2022 | 369 | -60 | 48 | -608 |
| 2023 | 531 | 16 | 150 | -748 |
| 2024 | 748 | 89 | 273 | -786 |
| 2025 | 1,038 | 414 | 370 | -1,036 |
Between 2020 and 2025, revenue went from $162M to $1,038M (+542%) and net income went from -$16M to $414M (+2725%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.
The serious investor's standard
Open free account →Anyone who wants low commissions and access to almost any market in the world.
Popular in the U.S.
Open free account →Anyone investing in the U.S. who wants a powerful, commission-free stock app.
Is Duolingo, Inc. cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Duolingo, Inc. a good company to invest in?
In terms of business quality, Duolingo, Inc. scores 94 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Duolingo, Inc. a profitable company?
Very. Duolingo, Inc. shows a net margin of 38.4% and an ROE of 30.3%, typical of a highly profitable business.
Does Duolingo, Inc. have a lot of debt?
No. Duolingo, Inc. has a net cash position: more cash than debt.
Is Duolingo, Inc. growing?
Its revenue has grown 44.1% annualized in recent years and its earnings per share 150%, and without interruption since 2020.
Does Duolingo, Inc. generate cash?
Yes. It converts about 37.9% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
More Technology companies
KLA Corporation (KLAC) · Synopsys (SNPS) · Cadence Design (CDNS) · CrowdStrike (CRWD) · Arista Networks (ANET) · Dell Technologies (DELL) · see more →