Duolingo
ConvictionModerate
Freemium: a free ad-supported tier funnels to Super Duolingo and Duolingo Max (AI) auto-renewing subscriptions (~80%+ of revenue); plus in-app advertising and the paid Duolingo English Test (DET). App-store-distributed, asset-light software.
Revenue
$1,037.59MFY2025Rev growth
+38.7%FY2025 vs $748M FY2024); guided ~+16% for FY2026 ($1.205BGross margin
72.2%FY2025; gross profit $749.5M); Q1 FY2026 came in ~73.0%, but management guides compression toward ~69% by Q4 FY2026 on rising AI-feature costsOp margin
13.1%FY2025); 15.5% in Q4 2025; adj. EBITDA ~28% in Q1 2026Capex intensity
Very low~1-2% of revenue) — asset-light SaaS/mobile; FCF tracks operating cash flow closelyMarket cap
~$5.65BNasdaq: DUOL, $125.76/sh, 2026-07-02; ~46.8M shares outThe read
Where our coverage leans
Coverage leans bullish
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Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.
- Income statement & margin structure
- SWOT, moats & dependency map
- Supplier–customer ecosystem graph
- Signals, trends & valuation range
Not investment advice — analyst work product for a qualified professional.· intel vintage 2026-07 (figures stamped inline; FY2025 10-K + Q4/FY2025 shareholder letter filed 2026-02-26, Q1 FY2026 shareholder letter dated 2026-05-04, market data 2026-07-02)· sign in (free) for the analyst summary; Pro unlocks full intelligence