DUOL Stock Analysis: Duolingo | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 6.854m USD | 12M Return: -55.5% | US26603R1068 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 143M
Qual. Beats: 0
Rev. Trend: 99.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 5.2 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 learning platform operating primarily in the United States, the United Kingdom, and other international markets. The company offers 250 language courses, including major languages such as Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese, delivered through its flagship Duolingo app. In addition to language instruction, Duolingo provides a digital English language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.
Listed on the NASDAQ under the ticker DUOL since its IPO in July 2021, Duolingo is classified within the GICS Consumer Discretionary sector and the Education Services sub-industry. As a mobile-first language learning platform, its business model relies on a freemium offering, where core courses are available at no cost while premium subscriptions (such as Duolingo Super/Plus) generate the majority of revenue, supplemented by advertising and the English proficiency test.
- Duolingo Max AI tier expands average revenue per paying user
- International bookings surge as emerging market adoption accelerates
- Elevated marketing spend pressures near-term margin expansion
| Net Income: 410.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA -1.74 > 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 (-1.23b) to EBITDA (206.7m): -5.94 < 3 |
| Current Ratio: 2.72 > 1.5 & < 3 |
| Outstanding Shares: last quarter (50.0m) vs 12m ago 2.10% < -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: 0.11 (EBIT TTM 190.9m / Avg Total Assets 1.81b) |
| D: 2.12 (Book Value of Equity 1.41b / Total Liabilities 664.2m) |
| Altman-Z'' = 6.65 = 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 October 11, 2026, the stock is trading at USD 149.92 with a total of 621,458 shares traded. Over the past week, the price has changed by +3.92%, over one month by +7.67%, over three months by +15.37% and over the past year by -55.54%.
Current recommended Stop Loss: 141.90 (which is 5.3% or 1.2 ATR below the current price).
Duolingo has received a consensus analysts rating of 3.29. Therefore, it is recommended to hold DUOL.
- StrongBuy: 4
- Buy: 2
- Hold: 16
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 134.3 | -10.4% |
P/E Trailing = 17.4703
P/E Forward = 18.9753
P/S = 5.9859
P/B = 4.8448
Revenue TTM = 1.15b USD
EBIT TTM = 190.9m USD
EBITDA TTM = 206.7m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 86.1m USD (from shortLongTermDebtTotal, last quarter) (leases 86.1m already included)
Net Debt = -1.23b USD (calculated: Debt 86.1m - CCE 1.31b)
Enterprise Value = 5.63b USD (6.85b + Debt 86.1m - CCE 1.31b)
Interest Coverage Ratio = unknown (Ebit TTM 190.9m / Interest Expense TTM 0.0)
EV/FCF = 13.88x (Enterprise Value 5.63b / FCF TTM 405.2m)
FCF Yield = 7.20% (FCF TTM 405.2m / Enterprise Value 5.63b)
FCF Margin = 35.39% (FCF TTM 405.2m / 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 = 2.71 (Enterprise Value 5.63b / Total Assets 2.07b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 86.1m)
Taxrate = 26.91% (12.2m / 45.4m)
NOPAT = 139.5m (EBIT 190.9m * (1 - 26.91%))
Current Ratio = 2.72 (Total Current Assets 1.57b / Total Current Liabilities 577.8m)
Debt / Equity = 0.06 (Debt 86.1m / totalStockholderEquity, last quarter 1.41b)
Debt / EBITDA = -5.94 (Net Debt -1.23b / EBITDA 206.7m)
Debt / FCF = -3.03 (Net Debt -1.23b / FCF TTM 405.2m)
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 = 12.76% (EBIT 190.9m / Capital Employed (Total Assets 2.07b - Current Liab 577.8m))
RoIC = 9.69% (NOPAT 139.5m / Invested Capital 1.44b)
WACC = 8.11% (E(6.85b)/V(6.94b) * Re(8.21%) + D(86.1m)/V(6.94b) * Rd(0.0%) * (1-Tc(0.27)))
Discount Rate = 8.21% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 84.93 | Cagr: 2.48%
[DCF] Terminal Value 77.97% ; FCFF base≈374.4m ; Y1≈429.2m ; Y5≈631.7m
[DCF] Fair Price = 266.8 (EV 9.51b - Net Debt -1.23b = Equity 10.7b / Shares 40.2m; r=8.35% [WACC [floored]]; 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=+0.02% | Revisions=+50% | Analysts=4
EPS current Year (2026-12-31): EPS=6.61 | Chg30d=+0.00% | Revisions=-38% | GrowthEPS=-43.8% | GrowthRev=+16.3%
EPS next Year (2027-12-31): EPS=7.64 | Chg30d=-0.01% | Revisions=-44% | GrowthEPS=+15.5% | GrowthRev=+13.3%
[Analyst] Revisions Ratio: -24% (up=5, down=9)