Fundamental analysis · SEC EDGAR · TTM through 30/06/2026
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 29.1%) with wide margins (net margin 35.9%) and a business that keeps growing (42.8% 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: 42.8%
Net margin: 35.9% · ROE: 29.1% · ROIC: 68.6%
Net debt/EBITDA: -6.83x · FCF: 35.6%
Source: SEC EDGAR · TTM through 30/06/2026
The score combines growth, profitability and financial strength, and here its pillars hold up evenly.
Percentile against the other 100 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
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.
Latest results
Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):
Compared with the previous close (March 31, 2026), this is what moved in its accounts:
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
This company doesn't pay a dividend: it reinvests all its earnings back into the business.
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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 35.9% and an ROE of 29.1%, 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 42.8% annualized in recent years and its earnings per share 150%, and without interruption since 2020.
Does Duolingo, Inc. generate cash?
Yes. It converts about 35.6% 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.
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Who's behind the methodology and model · how the score is computed
Data: see Duolingo, Inc.'s filings on EDGAR
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