(DUOL) Duolingo - NASDAQ
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 5.080m USD | Total Return: -74.5% in 12m
Avg Turnover: 168M
Qual. Beats: 0
Rev. Trend: 99.9%
Qual. Beats: 15
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Duolingo, Inc. (DUOL) operates a global mobile learning platform headquartered in Pittsburgh, Pennsylvania. The company provides over 250 language courses through its flagship application and administers a digital English language proficiency assessment for academic and professional certification.
The business utilizes a freemium model, where the core learning content is accessible for free while revenue is generated through premium subscriptions, in-app advertising, and one-time purchases. As part of the broader Education Services sector, the company competes in the digital English Language Learning (ELL) market, which is increasingly shifting from traditional classroom settings to mobile-first asynchronous environments.
To better understand the companys financial health and competitive positioning, you may wish to examine the performance metrics available on ValueRay.
- Freemium conversion rates drive subscription revenue and daily active user growth
- AI implementation reduces content creation costs and improves gross profit margins
- Duolingo English Test adoption increases institutional revenue and market penetration
- Expansion into math and music subjects diversifies total addressable market reach
- High marketing spend relative to organic growth affects long-term operating leverage
| Net Income: 422.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA -0.85 > 1.0 |
| NWC/Revenue: 84.80% < 20% (prev 94.32%; Δ -9.52% < -1%) |
| CFO/TA 0.21 > 3% & CFO 433.0m > Net Income 422.4m |
| Net Debt (-1.16b) to EBITDA (177.4m): -6.54 < 3 |
| Current Ratio: 2.62 > 1.5 & < 3 |
| Outstanding Shares: last quarter (49.0m) vs 12m ago 1.01% < -2% |
| Gross Margin: 72.14% > 18% (prev 71.55%; Δ 0.59% > 0.5%) |
| Asset Turnover: 63.49% > 50% (prev 57.81%; Δ 5.68% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.45 (Total Current Assets 1.51b - Total Current Liabilities 574.1m) / Total Assets 2.06b |
| B: 0.16 (Retained Earnings 331.7m / Total Assets 2.06b) |
| C: 0.09 (EBIT TTM 162.4m / Avg Total Assets 1.73b) |
| D: 2.09 (Book Value of Equity 1.39b / Total Liabilities 666.2m) |
| Altman-Z'' = 6.32 = AAA |
| DSRI: 0.84 (Receivables 130.2m/114.2m, Revenue 1.10b/811.2m) |
| GMI: 0.99 (GM 71.55% / 72.14%) |
| AQI: 2.52 (AQ_t 0.21 / AQ_t-1 0.08) |
| SGI: 1.35 (Revenue 1.10b / 811.2m) |
| TATA: -0.01 (NI 422.4m - CFO 433.0m) / TA 2.06b) |
| Beneish M = -2.01 (Cap -4..+1) = BB |
As of June 13, 2026, the stock is trading at USD 123.85 with a total of 1,354,278 shares traded.
Over the past week, the price has changed by +12.47%,
over one month by +15.68%,
over three months by +29.19% and
over the past year by -74.53%.
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 | 104.6 | -15.6% |
P/E Trailing = 12.4748
P/E Forward = 16.1812
P/S = 4.6232
P/B = 3.6541
Revenue TTM = 1.10b USD
EBIT TTM = 162.4m USD
EBITDA TTM = 177.4m USD
Long Term Debt = unknown (none)
Short Term Debt = 93.8m USD (from shortTermDebt, two quarters ago)
Debt = 91.9m USD (from shortLongTermDebtTotal, last quarter) (leases 91.9m already included)
Net Debt = -1.16b USD (calculated: Debt 91.9m - CCE 1.25b)
Enterprise Value = 3.92b USD (5.08b + Debt 91.9m - CCE 1.25b)
Interest Coverage Ratio = unknown (Ebit TTM 162.4m / Interest Expense TTM 0.0)
EV/FCF = 9.42x (Enterprise Value 3.92b / FCF TTM 416.0m)
FCF Yield = 10.61% (FCF TTM 416.0m / Enterprise Value 3.92b)
FCF Margin = 37.86% (FCF TTM 416.0m / Revenue TTM 1.10b)
Net Margin = 38.44% (Net Income TTM 422.4m / Revenue TTM 1.10b)
Gross Margin = 72.14% ((Revenue TTM 1.10b - Cost of Revenue TTM 306.1m) / Revenue TTM)
Gross Margin QoQ = 72.50% (prev 72.27%)
Tobins Q-Ratio = 1.90 (Enterprise Value 3.92b / Total Assets 2.06b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 91.9m)
Taxrate = 21.77% (12.1m / 55.6m)
NOPAT = 127.1m (EBIT 162.4m * (1 - 21.77%))
Current Ratio = 2.62 (Total Current Assets 1.51b / Total Current Liabilities 574.1m)
Debt / Equity = 0.07 (Debt 91.9m / totalStockholderEquity, last quarter 1.39b)
Debt / EBITDA = -6.54 (Net Debt -1.16b / EBITDA 177.4m)
Debt / FCF = -2.79 (Net Debt -1.16b / FCF TTM 416.0m)
Total Stockholder Equity = 1.26b (last 4 quarters mean from totalStockholderEquity)
RoA = 24.41% (Net Income 422.4m / Total Assets 2.06b)
RoE = 33.63% (Net Income TTM 422.4m / Total Stockholder Equity 1.26b)
RoCE = 10.95% (EBIT 162.4m / Capital Employed (Total Assets 2.06b - Current Liab 574.1m))
RoIC = 8.89% (NOPAT 127.1m / Invested Capital 1.43b)
WACC = 10.62% (E(5.08b)/V(5.17b) * Re(10.81%) + D(91.9m)/V(5.17b) * Rd(0.0%) * (1-Tc(0.22)))
Discount Rate = 10.81% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 44.95 | Cagr: -0.01%
[DCF] Terminal Value 71.00% ; FCFF base≈367.9m ; Y1≈421.7m ; Y5≈620.6m
[DCF] Fair Price = 194.4 (EV 6.66b - Net Debt -1.16b = Equity 7.82b / Shares 40.2m; r=10.62% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.07 | # QB: 0
Revenue Correlation: 99.92 | Revenue CAGR: 39.80% | SUE: 0.85 | # QB: 15
EPS current Quarter (2026-06-30): EPS=1.54 | Chg30d=-2.89% | Revisions=+14% | Analysts=3
EPS next Quarter (2026-09-30): EPS=1.54 | Chg30d=-12.38% | Revisions=-43% | Analysts=3
EPS current Year (2026-12-31): EPS=6.69 | Chg30d=-5.43% | Revisions=-14% | GrowthEPS=-43.2% | GrowthRev=+16.2%
EPS next Year (2027-12-31): EPS=7.84 | Chg30d=-3.10% | Revisions=-14% | GrowthEPS=+17.3% | GrowthRev=+13.9%
[Analyst] Revisions Ratio: -43%