DUOL Stock Analysis: Duolingo | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 5.711m USD | 12M Return: -60.2% | US26603R1068 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 151M
Qual. Beats: 0
Rev. Trend: 99.8%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Duolingo, Inc. is a mobile-based language learning platform headquartered in Pittsburgh, Pennsylvania, operating in the United States, the United Kingdom, and internationally. Through its flagship app, the company offers 250 language courses spanning major languages including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese. Beyond its core learning product, Duolingo provides a digital English language proficiency assessment exam. The company was incorporated in 2011 and trades on NASDAQ under the ticker DUOL.
Classified within the Education Services sub-industry of the Consumer Discretionary sector, Duolingo operates in the broader EdTech space, leveraging a mobile-first, app-based delivery model that shifts language instruction away from traditional classroom settings toward on-demand, self-paced digital learning. The company is generally associated with a freemium business model, where core content is offered at no cost alongside optional paid premium subscription tiers.
- Paid subscribers surge as Max tier lifts average revenue
- International growth offsets US market saturation concerns
- Competition from Babbel and AI tutoring apps intensifies
| Net Income: 410.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA -1.27 > 1.0 |
| NWC/Revenue: 86.75% < 20% (prev 96.32%; Δ -9.57% < -1%) |
| CFO/TA 0.21 > 3% & CFO 430.5m > Net Income 410.8m |
| Net Debt (-1.14b) to EBITDA (176.7m): -6.43 < 3 |
| Current Ratio: 2.72 > 1.5 & < 3 |
| Outstanding Shares: last quarter (36.4m) vs 12m ago -25.64% < -2% |
| Gross Margin: 72.34% > 18% (prev 71.38%; Δ 0.96% > 0.5%) |
| Asset Turnover: 63.32% > 50% (prev 57.38%; Δ 5.94% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.48 (Total Current Assets 1.57b - Total Current Liabilities 577.8m) / Total Assets 2.07b |
| B: 0.18 (Retained Earnings 364.8m / Total Assets 2.07b) |
| C: 0.09 (EBIT TTM 162.3m / Avg Total Assets 1.81b) |
| D: 2.12 (Book Value of Equity 1.41b / Total Liabilities 664.2m) |
| Altman-Z'' = 6.55 = AAA |
| DSRI: 0.50 (Receivables 133.7m/206.7m, Revenue 1.15b/885.2m) |
| GMI: 0.99 (GM 71.38% / 72.34%) |
| AQI: 2.90 (AQ_t 0.22 / AQ_t-1 0.08) |
| SGI: 1.29 (Revenue 1.15b / 885.2m) |
| TATA: -0.01 (NI 410.8m - CFO 430.5m) / TA 2.07b) |
| Beneish M = -2.11 (Cap -4..+1) = BB |
As of August 12, 2026, the stock is trading at USD 135.44 with a total of 855,379 shares traded. Over the past week, the price has changed by -1.68%, over one month by +2.34%, over three months by +28.81% and over the past year by -60.23%.
Current recommended Stop Loss: 124.60 (which is 8% or 1.3 ATR below the current price).
Duolingo has received a consensus analysts rating of 3.87. Therefore, it is recommended to buy DUOL.
- StrongBuy: 6
- Buy: 8
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 120.8 | -10.8% |
P/E Trailing = 15.4773
P/E Forward = 19.9601
P/S = 5.2193
P/B = 4.5131
Revenue TTM = 1.15b USD
EBIT TTM = 162.3m USD
EBITDA TTM = 176.7m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 178.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 91.9m
Net Debt = -1.14b USD (calculated: Debt 178.0m - CCE 1.31b)
Enterprise Value = 4.58b USD (5.71b + Debt 178.0m - CCE 1.31b)
Interest Coverage Ratio = unknown (Ebit TTM 162.3m / Interest Expense TTM 0.0)
EV/FCF = 11.03x (Enterprise Value 4.58b / FCF TTM 415.0m)
FCF Yield = 9.07% (FCF TTM 415.0m / Enterprise Value 4.58b)
FCF Margin = 36.24% (FCF TTM 415.0m / Revenue TTM 1.15b)
Net Margin = 35.87% (Net Income TTM 410.8m / Revenue TTM 1.15b)
Gross Margin = 72.34% ((Revenue TTM 1.15b - Cost of Revenue TTM 316.7m) / Revenue TTM)
Gross Margin QoQ = 72.62% (prev 72.50%)
Tobins Q-Ratio = 2.21 (Enterprise Value 4.58b / Total Assets 2.07b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 178.0m)
Taxrate = 26.91% (12.2m / 45.4m)
NOPAT = 118.6m (EBIT 162.3m * (1 - 26.91%))
Current Ratio = 2.72 (Total Current Assets 1.57b / Total Current Liabilities 577.8m)
Debt / Equity = 0.13 (Debt 178.0m / totalStockholderEquity, last quarter 1.41b)
Debt / EBITDA = -6.43 (Net Debt -1.14b / EBITDA 176.7m)
Debt / FCF = -2.74 (Net Debt -1.14b / FCF TTM 415.0m)
Total Stockholder Equity = 1.36b (last 4 quarters mean from totalStockholderEquity)
RoA = 22.72% (Net Income 410.8m / Total Assets 2.07b)
RoE = 30.11% (Net Income TTM 410.8m / Total Stockholder Equity 1.36b)
RoCE = 10.85% (EBIT 162.3m / Capital Employed (Total Assets 2.07b - Current Liab 577.8m))
RoIC = 8.24% (NOPAT 118.6m / Invested Capital 1.44b)
WACC = 8.49% (E(5.71b)/V(5.89b) * Re(8.75%) + D(178.0m)/V(5.89b) * Rd(0.0%) * (1-Tc(0.27)))
Discount Rate = 8.75% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -37.73 | Cagr: -10.99%
[DCF] Terminal Value 77.53% ; FCFF base≈380.3m ; Y1≈435.9m ; Y5≈641.6m
[DCF] Fair Price = 262.6 (EV 9.43b - Net Debt -1.14b = Equity 10.6b / Shares 40.2m; r=8.49% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.28 | # QB: 0
Revenue Correlation: 99.77 | Revenue CAGR: 37.90% | SUE: 0.77 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.58 | Chg30d=+2.74% | Revisions=-25% | Analysts=4
EPS current Year (2026-12-31): EPS=6.63 | Chg30d=-0.84% | Revisions=+25% | GrowthEPS=-43.6% | GrowthRev=+16.3%
EPS next Year (2027-12-31): EPS=7.68 | Chg30d=-2.15% | Revisions=+25% | GrowthEPS=+15.8% | GrowthRev=+13.0%
[Analyst] Revisions Ratio: +17% (up=2, down=1)