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Consumer Discretionary · NASDAQ: DUOL

Duolingo: how the business works

Duolingo runs a free app for learning languages, math, music and chess, and sells paid subscriptions on top. FY2025 revenue was $1.04 billion.

By · Checked against filings: . Editorial policy. Corrections

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Duolingo, Inc. · Pittsburgh, Pennsylvania · Founded 2011

Updated for Q3 FY2026 · checked

Revenue, FY2025
$1,037.6M
Net income, FY2025 (includes a one-time tax benefit)
$414.1M
Daily users, Q3 FY2026 (Duolingo's own measure)
64.9 million
Paid subscribers, Sep 30, 2026
13.1 million
Officers and directors' share of votes, Apr 7, 2026
76.0%

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

The short version

Duolingo in 5 points

  1. 1 · What it sells

    Duolingo sells subscriptions on top of its free learning app, plus ads, the Duolingo English Test and in-app purchases, with $1,037.6 million of revenue in FY2025.

    More: what it sells

  2. 2 · Who pays it

    In FY2025, subscribers paid 84.2% of Duolingo's revenue, advertisers 7.7%, English Test takers 4.0%, in-app buyers 3.9% and other sources 0.2%.

    More: who pays it

  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2025, Duolingo kept $38.2 as net income, lifted by a one-time $256.7 million tax benefit, while operating income was $13.1 per $100 of revenue.

    More: what it keeps from $100

  4. 4 · Where the operating profit comes from

    Duolingo reports one segment and does not split profit by product, so its $135.6 million of FY2025 operating income comes from a business where subscriptions were 84.2% of revenue.

    More: where the operating profit comes from

  5. 5 · The one thing to watch

    In Q3 FY2026, Duolingo's daily users grew 29% from a year earlier to 64.9 million, while its revenue grew 14% to $309.0 million.

    More: the one thing to watch

Sources: From Duolingo's FY2025 10-K and Q3 FY2026 shareholder letter · checked

See the full receipt and the management scorecard below

Sources (2)
Next: Where $100 goes

01Where the money goes · FY2025

Where does $100 of Duolingo's money go?

Of every $100 that came in (revenue plus other income), this is where it went.

Duolingo · FY2025

Receipt for every $100

Where $100 of Duolingo's money went in FY2025
Research and development$28.2
App-store fees, hosting and AI (cost of revenues)$26.6
General and administrative$16.8
Sales and marketing$11.6
Income tax benefit (includes a one-time $256.7M release)−$21.4
Kept as net income$38.2
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

How this is worked out

Cityfort calculation from the FY2025 10-K. Of every $100 that came in during FY2025 (revenue $1,037.6 million + interest income $45.2 million + other income $1.6 million = $1,084.4 million): each line = line ÷ total money in × 100. The tax line is negative because Duolingo released a valuation allowance on its deferred tax assets (future tax savings it now expects to use), which turned income tax into a $231.7 million benefit. The 10-K describes a one-time benefit of $256.7 million. Operating income was $13.1 per $100 of revenue. Stock-based pay ($137.4 million) sits inside the cost lines.

Sources (1)
Next: The business in one line

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02The business in one line

What does Duolingo do?

Learners pay Duolingo for subscriptions on top of free lessons; research and app-store, hosting and AI costs take the most, and $13.1 of every $100 of FY2025 revenue was operating income.

  • In FY2025 subscriptions brought in $873.4 million, 84.2% of revenue. Ads, the Duolingo English Test and in-app purchases made up most of the rest.
  • Duolingo made operating losses from FY2021 to FY2023. Operating income was $62.6 million in FY2024 and $135.6 million in FY2025.
Next: Who pays it

03Who pays it

Who pays Duolingo?

  • Subscribers

    84%

    of revenue

    Learners who pay for Super Duolingo or Duolingo Max. Duolingo had 12.2 million paid subscribers at the end of FY2025.

  • Advertisers

    8%

    of revenue

    Businesses that pay to show ads in the app.

  • English Test takers

    4%

    of revenue

    People who pay to take the Duolingo English Test: $42.0 million, 4.0% of FY2025 revenue.

  • In-app buyers

    4%

    of revenue

    Learners who buy items inside the app without a subscription.

  • Other

    0%

    of revenue

    Small other revenue: $1.9 million, 0.2% of FY2025 revenue.

  • Subscribers84%
  • Advertisers8%
  • English Test takers4%
  • In-app buyers4%
  • Other0%

How spread out the customers are

Learners are individual consumers. But most payments pass through app stores: Apple processed 61.6% of FY2025 revenue, Google 23.4% and Stripe 10.3%. These are payment processors, not customers.

Sources (1)
Next: Why it makes money

04Why it makes money

Why does Duolingo make money?

Duolingo keeps about $72 of each $100 of revenue after app-store fees, hosting and AI, so revenue growth can reach profit

From FY2021 to FY2025 revenue rose from $250.8 million to $1,037.6 million, while gross margin stayed between 72.2% and 73.2%. Operating income per $100 of revenue moved from a $23.93 loss to a $13.07 profit. Paid subscribers were 9.2% of average monthly users at Dec 31, 2025.

Operating income per $100 of revenue

−$23.9$13.1

FY2021 to FY2025

  1. Free lessons draw learners
  2. Daily streaks bring them back
  3. Some pay for a subscription
  4. Ads and the English Test add revenue
  5. Revenue grows faster than costs
  6. Profit pays for new courses and features

↺ Step 6 feeds back into step 1.

Sources (2)
Next: Business segments

05Business segments · FY2025

Which businesses make up Duolingo?

  • Subscription

    84%

    Duolingo reports one business segment; this is a revenue line within it, with no separate profit. It was $270.0 million in Q3 FY2026, up 18% from a year earlier.

    Revenue $873M

  • Advertising

    8%

    Ads shown in the app. It was $20.8 million in Q3 FY2026, down 1% from a year earlier.

    Revenue $79.7M

  • Duolingo English Test

    4%

    Fees for the online English test. It was $9.9 million in Q3 FY2026, up 2% from a year earlier.

    Revenue $42M

  • In-app purchases

    4%

    Items bought inside the app. It was $6.9 million in Q3 FY2026, down 38% from a year earlier.

    Revenue $40.5M

  • Other

    0%

    Small other revenue.

    Revenue $1.9M

How the mix changed

  • Subscription
  • Advertising
  • Duolingo English Test
  • In-app purchases
  • Other

Revenue by segment, FY2022 to FY2025.

US$

See the numbers
How the mix changed (US$)
YearSubscriptionAdvertisingDuolingo English TestIn-app purchasesOther
FY2022$274M$44.7M$32.7M$17.9M$0.6M
FY2023$405M$49.9M$41.2M$34.7M$0.7M
FY2024$608M$54.9M$45.6M$38.7M$1.3M
FY2025$873M$79.7M$42M$40.5M$1.9M
Sources (3)
Next: How has it done

06The numbers · Consolidated · US$

How has Duolingo done?

Revenue

$1.0BFY2025

Revenue grew every year from $250.8 million in FY2021 to $1,037.6 million in FY2025, and Q3 FY2026 revenue was $309.0 million, up 14% from a year earlier.

US$

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2021$251M
FY2022$370M
FY2023$531M
FY2024$748M
FY2025$1.0B
Q4 FY2024$210M
Q1 FY2025$231M
Q2 FY2025$252M
Q3 FY2025$272M
Q4 FY2025$283M
Q1 FY2026$292M
Q2 FY2026$299M
Q3 FY2026$309M

Net profit

$414MFY2025

FY2025 net income of $414.1 million includes a one-time tax benefit of $256.7 million, and Q3 FY2025's $292.2 million includes $222.7 million of it; operating income was $135.6 million in FY2025.

US$

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2021−$60.1M−$2.57
FY2022−$59.6M−$1.51
FY2023$16.1M$0.35
FY2024$88.6M$1.88
FY2025$414M$8.57
Q4 FY2024$13.9M–
Q1 FY2025$35.1M$0.72
Q2 FY2025$44.8M$0.91
Q3 FY2025$292M$5.95
Q4 FY2025$42M–
Q1 FY2026$43.5M$0.89
Q2 FY2026$33.2M$0.66
Q3 FY2026$27.2M$0.54

Profit kept per $100 of revenue

$39.9FY2025

Operating income was $13.07 per $100 of revenue in FY2025, after a $23.93 loss in FY2021; stock-based pay was $137.4 million, 13.2% of FY2025 revenue.

$ of profit per $100 of revenue (net margin)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY2021−24.0%−22.8%
FY2022−16.1%−16.3%
FY20233.0%−1.2%
FY202411.8%9.8%
FY202539.9%14.5%

Free cash flow

$370MFY2025

Free cash flow rose from $5.6 million in FY2021 to $369.7 million in FY2025, above operating income; deferred revenue, paid up front by subscribers, rose $123.3 million in FY2025.

US$ · cash from operations minus spending on plants and equipment

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2021$9.2M$3.6M$5.6M
FY2022$53.7M$5.6M$48.1M
FY2023$154M$3.2M$150M
FY2024$286M$12.1M$273M
FY2025$388M$18.1M$370M
See all yearly numbers
Duolingo annual financials, FY2021–FY2025, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2021$251M−$57.3M−$60.1M−$2.57$9.2M$3.6M$5.6M
FY2022$370M−$60.3M−$59.6M−$1.51$53.7M$5.6M$48.1M
FY2023$531M−$6.2M$16.1M$0.35$154M$3.2M$150M
FY2024$748M$73.4M$88.6M$1.88$286M$12.1M$273M
FY2025$1.0B$150M$414M$8.57$388M$18.1M$370M

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Fiscal year ends on Dec 31 (Duolingo's fiscal year is the calendar year)). Net profit is the share belonging to the company's owners.

Download Duolingo's yearly and quarterly numbers (CSV, with source ids)

Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares

Sources (11)
Next: What they said, and what happened

07Who runs it

Who runs Duolingo, and did they deliver?

  • Luis von Ahn

    Co-founder and chief executive officer

    Co-founded Duolingo in 2011. Held 40.0% of voting power in the 2026 proxy table. His 2025 pay was $767,500, with no new equity awards; the median employee earned $296,588.

  • Severin Hacker

    Co-founder and chief technology officer

    Co-founded Duolingo in 2011. Held 35.8% of voting power in the 2026 proxy table, partly through a family trust.

  • Gillian Munson

    Chief financial officer · since 2026

    A Duolingo director until she became CFO on Feb 23, 2026, succeeding Matthew Skaruppa, who resigned on Jan 8, 2026. She received a start-date grant of restricted stock units worth $14 million.

What they said, and what happened

2 delivered · 4 too early to tell

  1. Said on Feb 27, 2025

    FY2025 revenue of $962.5–978.5 million.

    What happened

    FY2025 revenue was $1,037.6 million, above the top of the range.

    Delivered

  2. Said on Feb 27, 2025

    FY2025 adjusted EBITDAOperating profit before wear-and-tear charges (depreciation and amortization). As a margin: per $100 of sales. of $259.9–274.0 million.

    What happened

    FY2025 adjusted EBITDA was $305.9 million, above the top of the range.

    Delivered

  3. Said on Feb 26, 2026

    Daily-user growth of about 20% in 2026.

    What happened

    Daily users grew 21%, 23% and 29% from a year earlier in Q1, Q2 and Q3 FY2026, as Duolingo stated. The full year is not yet reported.

    Too early to tell

  4. Said on Feb 26, 2026

    FY2026 revenue of $1,197–1,221 million.

    What happened

    On Nov 3, 2026 Duolingo put it at $1,221 million, the top of the original range. Revenue for the first nine months was $899.4 million (Cityfort calculation from the Q1 FY2026 to Q3 FY2026 shareholder letters).

    Too early to tell

  5. Said on Feb 26, 2026

    Free cash flowCash from operations minus spending on buildings and equipment. Learn more of over $350 million in 2026, by the company's own definition.

    What happened

    Company-defined free cash flow was $147.8 million, $78.6 million and $75.3 million in Q1, Q2 and Q3 FY2026.

    Too early to tell

  6. Said on Feb 26, 2026

    A medium-term goal of 100 million daily users in 2028.

    What happened

    Daily users averaged 64.9 million in Q3 FY2026.

    Too early to tell
Sources (8)
Next: What could go wrong

08What could go wrong

What could go wrong for Duolingo?

  • Concentration

    Apple and Google collect most payments

    Apple processed 61.6% and Google 23.4% of FY2025 revenue through their app stores. Duolingo's 10-K lists its dependence on these app stores as a risk.

    Watch Gross margin each quarter (72.9% in Q3 FY2026).

  • Governance

    Two founders control the votes

    Class B shares carry 20 votes each. The co-founders held 40.0% and 35.8% of voting power in the 2026 proxy table, Class A shares carried 24.2% of votes on Nov 3, 2026.

    Watch Class B conversions, which reduce the class's share of votes (75.8% on Nov 3, 2026).

  • Demand

    Revenue growth has slowed

    Revenue grew 14% in Q3 FY2026, against 41% a year earlier. Ad revenue fell 1% and in-app purchases 38%. On Feb 26, 2026 Duolingo said it would put user growth ahead of making money from users.

    Watch Q4 FY2026 revenue against the company's estimate of $322 million (Nov 3, 2026).

  • Execution

    Higher spending on staff and stock pay

    Research and development rose to $107.7 million in Q3 FY2026 from $82.7 million a year earlier, and stock-based payPay given as shares instead of cash, which spreads ownership more thinly. Learn more to $47.5 million from $35.6 million. Costs include an $11.4 million accrual for a staff bonus tied to a Q4 daily-user growth goal of 25% or more.

    Watch Operating income per $100 of revenue ($7.8 in Q3 FY2026, $12.9 a year earlier).

  • Demand

    English Test revenue fell

    Duolingo English Test revenue fell from $45.6 million in FY2024 to $42.0 million in FY2025. It depends on colleges and other programs accepting the test.

    Watch Test revenue each quarter ($9.9 million in Q3 FY2026).

  • Competition

    Many kinds of rivals

    Duolingo's 10-K says it competes with other online and app-based language platforms, offline classes, test providers, and math, music and chess products.

    Watch Daily-user growth each quarter (29% in Q3 FY2026).

  • Legal

    Securities class action

    A putative class action filed on Oct 7, 2026 alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act and seeks unspecified damages. The case is at an early stage, and Duolingo has recorded no accrual.

    Watch Lead-plaintiff motions, due Dec 7, 2026, and any amended complaint.

Sources (6)
Next: Supporters vs. critics

09Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • Daily users grew 29% from a year earlier in Q3 FY2026, to 64.9 million.
  • Revenue grew every year from $250.8 million in FY2021 to $1,037.6 million in FY2025.
  • Operating income went from a $60.0 million loss in FY2021 to $135.6 million in FY2025.
  • Duolingo had no debt and $1,484.0 million of cash and investments on Sep 30, 2026.
  • FY2025 revenue of $1,037.6 million came in above Duolingo's Feb 27, 2025 range of $962.5–978.5 million.

What critics point to

  • Revenue growth slowed to 14% in Q3 FY2026, from 41% a year earlier.
  • Operating income fell to $24.2 million in Q3 FY2026 from $35.2 million a year earlier, as R&D rose to $107.7 million.
  • Apple processed 61.6% and Google 23.4% of FY2025 revenue through their app stores.
  • Officers and directors held 76.0% of voting power on Apr 7, 2026, through Class B shares with 20 votes each.
  • Interest income was $12.4 million of Duolingo's $35.6 million pre-tax income in Q3 FY2026.
Next: What to watch next

10What to watch next

What should you watch next at Duolingo?

Next event

Q4 FY2026 results

Date not announced yet.

  • Q4 FY2026 revenue and bookings

    Reported figures against Duolingo's Nov 3, 2026 estimates of $322 million of revenue and $382 million of bookings. The letter says the 2027 outlook comes with Q4 results in February.

  • Daily users

    Q4 daily-user growth against the 25% goal tied to the company-wide bonus, and against 64.9 million in Q3 FY2026.

  • Subscribers after Max

    Paid subscribers (13.1 million on Sep 30, 2026) and subscription bookings once new Max sales stop.

  • The securities lawsuit

    Lead-plaintiff motions are due Dec 7, 2026.

Next: Key facts

11Key facts

Key facts about Duolingo

What does Duolingo do?
Duolingo, Inc. runs a free app for learning languages, math, music and chess, with over 250 language courses. Duolingo averaged 64.9 million daily users in Q3 FY2026 (the quarter to Sep 30, 2026), by its own count. Duolingo's Q3 FY2026 revenue was $309.0 million.
How does Duolingo make money?
Duolingo makes most of its money from paid subscriptions such as Super Duolingo. In FY2025 (the year to Dec 31, 2025) subscriptions brought in $873.4 million, 84.2% of Duolingo's revenue of $1,037.6 million. Ads, the Duolingo English Test and in-app purchases made up most of the rest.
What is Duolingo's business model?
Duolingo's business model is freemium: all course content is free, and some learners pay for a subscription. Duolingo states that paid subscribers were 9.2% of average monthly users at Dec 31, 2025. Duolingo kept $72.2 of each $100 of FY2025 revenue after cost of revenues.
Who are Duolingo's customers?
Duolingo's customers are individual learners, advertisers and people taking the Duolingo English Test. Apple and Google are payment channels, not customers: Apple processed 61.6% and Google 23.4% of Duolingo's FY2025 revenue. Customers in the United States gave 37.8% of FY2025 revenue.
How big is Duolingo?
Duolingo had revenue of $1,037.6 million and net income of $414.1 million in FY2025, and more than 900 employees at Dec 31, 2025. Duolingo's revenue for the 12 months to Sep 30, 2026 was $1,182.3 million (Cityfort calculation from the Q4 FY2025 to Q3 FY2026 shareholder letters).
Is Duolingo profitable?
Duolingo made operating income of $62.6 million in FY2024 and $135.6 million in FY2025, after operating losses from FY2021 to FY2023. Duolingo's FY2025 net income of $414.1 million included a one-time tax benefit of $256.7 million. Q3 FY2026 operating income was $24.2 million and net income $27.2 million.
What is Duolingo's revenue by segment?
Duolingo reports one segment, so it gives no segment profit. By product, Duolingo's FY2025 revenue was $873.4 million from subscriptions, $79.7 million from advertising, $42.0 million from the Duolingo English Test, $40.5 million from in-app purchases and $1.9 million from other sources.
Who owns and controls Duolingo?
Duolingo's co-founders hold most of the votes: Luis von Ahn had 40.0% and Severin Hacker 35.8% of voting power in the 2026 proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more (record date Apr 7, 2026). Their Class B shares carry 20 votes each; Duolingo's Class A shares carry one vote and trade on Nasdaq as DUOL.
How much does Duolingo earn from subscriptions?
Duolingo's subscription revenue was $270.0 million in Q3 FY2026, up 18% from $229.5 million a year earlier. Duolingo had 13.1 million paid subscribers on Sep 30, 2026, up 14% from a year earlier.
How much does the Duolingo English Test earn?
The Duolingo English Test, an online English proficiency test launched in 2016, brought Duolingo $42.0 million of revenue in FY2025, down from $45.6 million in FY2024. Duolingo says more than 6,100 programs accept the test. It brought in $9.9 million in Q3 FY2026.
Sources (7)
Next: Go deeper

Terms on this page

Each explains the term in plain English, with the same number from other companies on Cityfort.

Go deeper

More detail from the same filings. Open any section.

12What it sells

12What it sells

What does Duolingo sell?

Duolingo is a phone app and website that teaches languages and other subjects in lessons. Every lesson is free. Learners can pay for a subscription, and Duolingo also earns from ads, an online English test and items bought inside the app.

  • Free courses

    Over 250 language courses, plus math, music and chess. Learners complete nearly 2 billion exercises a day, Duolingo says.

  • Super Duolingo (paid subscription)

    A paid plan on top of the free app, with a family plan for up to six people since 2021. Subscriptions brought in $873.4 million, 84.2% of FY2025 revenue.

  • Duolingo Max

    A higher-priced plan launched in 2023 with AI features such as Video Call. On Nov 3, 2026 Duolingo said it would stop selling new Max plans that month and make unlimited Video Call part of Super.

  • Duolingo English Test

    An online English proficiency test launched in 2016. More than 6,100 programs accept it, Duolingo says. It brought in $42.0 million in FY2025.

  • Ads and in-app purchases

    Ads shown in the app brought in $79.7 million in FY2025. Items bought inside the app brought in $40.5 million.

Think of it like this

Like a gym that is free to enter, where some members pay a monthly fee for extras.

What it does

  • Does: Gives all course content away free
  • Does: Sells subscriptions, mostly paid through Apple's and Google's app stores
  • Does: Runs an online English test that colleges and other programs accept
  • Does: Shows ads in its app

What it does not do

  • Does not: Does not charge for the lessons themselves
  • Does not: Does not count free trials or non-paying family-plan members as paid subscribers
  • Does not: Does not borrow: it had no debt on Sep 30, 2026
  • Does not: Does not pay a dividend, and has never paid one
Sources (2)
13How the money flows

13How the money flows · FY2025

How does money flow through Duolingo?

Money in

  • Revenue (subscriptions, ads, English Test, in-app purchases)$1.0B
  • Interest and other income$46.8M

The company

Duolingo

$1.1B came in

Money out

  • Research and development$306M
  • Cost of revenues (app-store fees, hosting, AI)$288M
  • General and administrative$182M
  • Sales and marketing$126M
  • Income tax benefit (includes a one-time $256.7M release)−$232M
  • Net income$414M
  1. Learners, advertisers and test takers paid Duolingo $1,037.6 million in FY2025. Subscriptions were $873.4 million of it.
  2. Research and development was the biggest cost, at $306.3 million. It is mostly pay for engineers and other staff, including stock-based pay.
  3. Cost of revenues took $288.1 million, mainly app-store payment fees, hosting and AI costs. Admin took $181.9 million and sales and marketing $125.7 million.
  4. That left operating income of $135.6 million. Interest on Duolingo's cash and other income added $46.8 million.
  5. Duolingo released a tax valuation allowance, which turned income tax into a $231.7 million benefit. Net income came to $414.1 million.
Sources (1)
14What it needs to run

14What it needs to run

What does Duolingo need to run?

  • Apple's and Google's app stores

    Most learners pay through the app stores. Apple processed 61.6% and Google 23.4% of FY2025 revenue, and their fees sit in cost of revenues.

  • Engineers and other staff

    Duolingo had more than 900 employees at Dec 31, 2025, including more than 430 engineers.

  • Hosting and AI services

    Duolingo rents computing from outside providers. At Dec 31, 2025 it had $44.4 million of purchase commitments for hosting, web services and AI.

  • Offices

    Headquarters in Pittsburgh, on a lease extended in 2025 to 2036. Operating lease payments still due totaled $137.8 million at Dec 31, 2025.

Sources (1)
15Where it sells

15Where it sells · FY2025

Where does Duolingo sell?

  • United States38%
  • Rest of world (no other country above 10%)62%
Sources (1)
16Where growth could come from

16Where growth could come from

Where could Duolingo's growth come from?

In its Q3 FY2026 shareholder letter (Nov 3, 2026) Duolingo said it expects FY2026 bookings of $1,296 million, revenue of $1,221 million and adjusted EBITDA of $323 million (bookings and adjusted EBITDA are Duolingo's own measures, not GAAP). For Q4 FY2026 it gave revenue of $322 million and bookings of $382 million (Duolingo's own measure, not GAAP). On Feb 26, 2026 it said it would "prioritize user growth over monetization", with a medium-term goal of 100 million daily users in 2028.
Management statement, Nov 3, 2026. Reported as a statement, not our forecast.

  • More daily users

    Working

    64.9 million, +29%, Q3 FY2026

    Daily users grew 21%, 23% and 29% from a year earlier in Q1 to Q3 FY2026. On Feb 26, 2026 Duolingo had said it expected about 20% for 2026.

    Status: Working, on track against what the company said.

  • More paid subscribers

    Working

    13.1 million, +14%, Sep 30, 2026

    Paid subscribers rose from 2.5 million at the end of FY2021 to 12.2 million at the end of FY2025. Subscription revenue grew 18% in Q3 FY2026.

    Status: Working, on track against what the company said.

  • Subjects beyond languages

    Early

    Chess: over 7 million daily users

    Math launched in 2022, Music in 2023, then Chess. On Feb 26, 2026 Duolingo said Chess reached more than seven million daily users in less than a year. It reports no separate revenue for these courses.

    Status: Early, too early to judge.

  • AI features moved into Super

    New

    New Max sales to stop in Nov 2026 (company statement, Nov 3, 2026)

    On Nov 3, 2026 Duolingo said it will stop selling new Max plans that month. It said existing Max individual subscribers will move to a Super family plan at the same price. Unlimited Video Call will be part of Super. Duolingo said the bookings effect should be minimal.

    Status: New, recently announced.

  • Duolingo English Test

    Mixed

    $9.9 million, +2%, Q3 FY2026

    Test revenue fell from $45.6 million in FY2024 to $42.0 million in FY2025, then rose 2% in Q3 FY2026.

    Status: Mixed, partly on track.

  • Ads and in-app purchases

    Mixed

    Ads −1%, in-app −38%, Q3 FY2026

    Ad revenue was $20.8 million and in-app purchases $6.9 million in Q3 FY2026. Duolingo said in Feb 2026 that it would put user growth ahead of making money from users.

    Status: Mixed, partly on track.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Sources (6)
17The company's own measures (non-GAAP)

17The company's own measures · FY2025 and Q3 FY2026

What do Duolingo's own measures show?

These are Duolingo's own measures, shown next to the nearest official (GAAP) figure. They are never added together.

  • Official (GAAP): Revenue, FY2025

    $1.0B

    Company's own measure: Total bookings, FY2025

    $1.2B

    Duolingo's measure of amounts received in the period. Subscription revenue is counted over the plan's term, so bookings run ahead of revenue when subscriptions grow.

  • Official (GAAP): Revenue, Q3 FY2026

    $309M

    Company's own measure: Total bookings, Q3 FY2026

    $316M

    Same definition; up 12% from a year earlier. Subscription bookings were $278.4 million, up 16%.

  • Official (GAAP): Net income, FY2025

    $414M

    Company's own measure: Adjusted EBITDA, FY2025

    $306M

    Net income before interest income, taxes, depreciation and amortization, stock-based pay with its payroll taxes ($148.6 million), acquisition costs ($4.8 million) and an earn-out ($0.8 million).

  • Official (GAAP): Net income, Q3 FY2026

    $27.2M

    Company's own measure: Adjusted EBITDA, Q3 FY2026

    $78.7M

    Same definition; stock-based pay with its payroll taxes was $49.1 million, and a $1.6 million impairment of capitalized software is also left out.

  • Official (GAAP): Net cash from operating activities, FY2025

    $388M

    Company's own measure: Free cash flow (company definition), FY2025

    $360M

    Operating cash flow less purchases of property and equipment and capitalized software and intangibles. This page's free cash flow ($369.7 million) deducts only property and equipment.

  • Official (GAAP): Revenue, Q3 FY2026 (US$ million)

    $309M

    Company's own measure: Daily active users (DAUs), Q3 FY2026

    64.9 million users

    Unique users of the app or the website's learning section in a day, averaged over the quarter; up 29% from a year earlier. From Q3 FY2026 Duolingo reports monthly users only in a footnote.

  • Official (GAAP): Subscription revenue, Q3 FY2026 (US$ million)

    $270M

    Company's own measure: Paid subscribers, Sep 30, 2026

    13.1 million subscribers

    Users with a paid subscription at the end of the period, excluding free trials and non-paying family-plan members; up 14% from a year earlier.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares

Sources (2)
18Financial strength and debt

18Financial strength · Sep 30, 2026

How much debt does Duolingo have?

On Sep 30, 2026 Duolingo had no borrowings and $1,484.0 million of cash and investments. Total liabilities were $684.6 million, most of it money received for subscriptions not yet delivered.
  • Total debt$0M
  • Cash and investments$1.5B
  • Net cash (cash minus debt)$1.5B
  • Net worth (shareholders' money)$1.5B
Debt to equity
0×
$ of debt for every $1 of shareholders' money
  • Net cash = cash $1,239.6 million + short-term investments $134.3 million + long-term investments $110.1 million − no debt = $1,484.0 million (Cityfort calculation from the Q3 FY2026 10-Q).
  • Deferred revenue was $513.6 million on Sep 30, 2026. Subscribers pay up front, and Duolingo counts the revenue over the plan's term.
  • Not counted as debt: office leases. Lease payments still due totaled $137.8 million at Dec 31, 2025, and a $2.7 million letter of credit for the New York lease is backed by cash.
  • Deferred tax assets were $203.6 million on Sep 30, 2026, after the FY2025 valuation-allowance release.
Sources (3)
19Who owns it

19Who owns it · ownership as of Apr 7, 2026

Who owns Duolingo?

The 13 officers and directors held 1.3% of Class A, 99.9% of Class B and 76.0% of total voting power on Apr 7, 2026. Class B shares carry 20 votes each, so the co-founders control most votes with a small share of the company. Later filings put FMR at 2.7% (May 6, 2026), Capital World Investors at 0.0% (May 14, 2026) and Vanguard Capital Management at 4.78% (Oct 30, 2026) of Class A.
Officers and directors (as a group), votes
76.0%

Shares vs votes by class

Duolingo has more than one class of shares, and the classes carry different votes. The share of votes a class holds can differ a lot from its share of the shares.

  • Class A common stock: share of all votes24.2%
  • Class B common stock: share of all votes75.8%

Each class's part of all votes = its shares outstanding × votes per share ÷ the total for all classes.

Share classes
Duolingo share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Class A common stock (Shares outstanding on Nov 3, 2026 (10-Q cover). Share and vote percentages are a Cityfort calculation from the Q3 FY2026 10-Q cover.)40.81Public and institutional investors; trades on Nasdaq as DUOL86.4%24.2%Yes
Class B common stock (Shares outstanding on Nov 3, 2026 (10-Q cover). Converts into Class A one for one, and most transfers convert it automatically. Share and vote percentages are a Cityfort calculation from the Q3 FY2026 10-Q cover.)6.420Officers and directors held 99.9% in the 2026 proxy table, mainly the co-founders13.6%75.8%No
Holders of 5% or more
Duolingo holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
Luis von Ahn (co-founder, CEO)55.2%40.0%Apr 7, 2026S1555.2% of Class B in the 2026 proxy table (3,698,995 shares), counting options and performance units the table includes.
Severin Hacker (co-founder, CTO), including a family trust47.7%35.8%Apr 7, 2026S1547.7% of Class B in the 2026 proxy table (3,058,858 shares). The two founders' percentages each use their own base, so they add to more than 100%.
Baillie Gifford & Co11.3%–Oct 20, 2026S234,554,894 Class A shares, 11.3% of the class, from its Schedule 13G/A filed Oct 20, 2026 (holdings at Sep 30, 2026).
BlackRock8.5%–Nov 8, 2024S158.5% of Class A in the 2026 proxy table, based on its Schedule 13G/A dated Nov 8, 2024.
AQR Capital Management5.8%–Aug 12, 2026S242,332,543 Class A shares, 5.8% of the class, from its Schedule 13G filed Aug 12, 2026 (holdings at Jun 30, 2026).

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: Dual-class shares: when votes and ownership don't match · How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Sources (4)
20What it does with profit

20What it does with profit

What does Duolingo do with its profit?

Duolingo has never paid a dividend. It bought back no shares before 2026. Through Oct 30, 2026 it had repurchased 781,439 shares for $82.0 million. Its July 2021 IPO brought in net proceeds of $426.2 million in FY2021.

  • Buyback · Sep 30, 2026

    Class A shares repurchased in the first nine months of FY2026: 743,000 shares at an average of $103.21, under the $400 million program authorized on Feb 26, 2026. In Q3 FY2026 alone Duolingo bought 48,000 shares for $6.4 million, and $323.3 million of the program remained.

    $76.7M

Sources (3)
21Governance signals

21Governance signals

What do Duolingo's governance filings show?

Auditor
Deloitte & Touche LLP, since 2018
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
This page does not summarize related-party transactions; Duolingo reports them in its 2026 proxy statement. Deloitte's 2025 fees were $2.34 million: $1.79 million for the audit and $0.56 million for tax work.
Credit rating
Not checked for this page

Flags to know about

  • other · Apr 7, 2026

    Two founders hold most of the votes

    Class B shares carry 20 votes each. Luis von Ahn held 40.0% and Severin Hacker 35.8% of voting power in the 2026 proxy table, and officers and directors as a group 76.0%.

  • other · Oct 7, 2026

    Securities class action

    A putative class action filed on Oct 7, 2026 in the Western District of Pennsylvania names Duolingo and others as defendants. It alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act and seeks unspecified damages. Duolingo has recorded no accrual. Lead-plaintiff motions are due Dec 7, 2026.

  • other

    Legal settlement accrual

    In 2026 Duolingo accrued about $5.0 million for proposed legal settlement charges. It expects the rest to come from insurance, its Q3 FY2026 10-Q says.

  • disclosure · Aug 19, 2026

    Preliminary user data shown at an investor meeting

    Duolingo filed an 8-K on Aug 19, 2026 after a screen at an investor meeting showed estimated daily-user growth of 27.4% for Aug 17, 2026. The company said it should not be read as indicative.

  • other · Jan 12, 2026

    Chief financial officer change

    CFO Matthew Skaruppa resigned on Jan 8, 2026. Director Gillian Munson became CFO from Feb 23, 2026.

  • disclosure · Nov 6, 2026

    No credit rating found

    Cityfort found no S&P, Moody's or Fitch rating in a search on Nov 6, 2026, and the FY2025 10-K, Q3 FY2026 10-Q and Q4 FY2025 shareholder letter name none. Duolingo has no borrowings, bonds or credit line.

Sources (6)
22What the market paid

22What the market paid · price as of Nov 5, 2026

What did the market pay for Duolingo on Nov 5, 2026?

Price as of Nov 5, 2026 (shown for education; prices change daily).

Price as of Nov 5, 2026: Duolingo Class A shares closed at $157.02 on Nasdaq (Nasdaq's historical table). Market value = $157.02 × 47.18 million Class A and Class B shares (Nov 3, 2026) = about $7,408 million (Cityfort calculation from the Nov 5, 2026 closing price on Nasdaq and the Q3 FY2026 10-Q cover); Class B shares are not listed but convert into Class A one for one, so this counts them at the Class A price. P/E (price ÷ earnings per share) = $157.02 ÷ $3.02, the diluted earnings per share of the 12 months to Sep 30, 2026 = 52.0 (Cityfort calculation from the same price, the FY2025 10-K and the Q3 FY2026 10-Q). On FY2025 earnings per share of $8.57, which include the one-time tax benefit, it would be 18.3. The same table shows a close of $128.00 on Nov 3, 2026, the day Q3 results came out, and $161.27 on Nov 4, 2026.

Share price
$157.02
Market value (market cap)
$7.4B
P/E
52×

More price-based ratios · as of Nov 5, 2026

Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.

Shares used for the market value: 47.18 million ($157.02 × 47.18 million shares ≈ $7.4B). Source: Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026); Definitive proxy statement (DEF 14A), 2026 annual meeting

Source: DUOL historical quotes, Nasdaq, Oct 1 to Nov 5, 2026 (close of Nov 5, 2026: $157.02); Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026); Form 10-K, fiscal year 2025 (ended Dec 31, 2025) and 1 more

Sources (9)
23How it got here

23How it got here

How did Duolingo get here?

  1. 2011

    Milestone

    Duolingo is founded

    Luis von Ahn and Severin Hacker founded Duolingo on Aug 18, 2011.

  2. 2012

    Milestone

    The app launches

    The learning app launched on Jun 19, 2012, with all course content free.

  3. 2016

    Business-model change

    The Duolingo English Test

    An online English test added a second product, paid for by test takers. It brought in $42.0 million in FY2025.

  4. 2021

    Milestone

    Listing on Nasdaq

    Class A shares listed on Nasdaq in July 2021. Net IPO proceeds were $426.2 million.

  5. 2023

    Business-model change

    Beyond languages, and a higher-priced plan

    Math arrived in 2022 and Music in 2023, later followed by Chess. Duolingo Max, a plan with AI features, launched in 2023.

  6. 2024

    Milestone

    First yearly operating profit on this page

    Operating income was $62.6 million in FY2024, after operating losses in FY2021 to FY2023.

  7. 2025

    Milestone

    One-time tax benefit

    Releasing a tax valuation allowance gave a one-time benefit of $256.7 million, lifting FY2025 net income to $414.1 million.

  8. 2026

    Business-model change

    Users first, and a buyback

    In Feb 2026 Duolingo said it would put user growth ahead of making money from users, and authorized a $400 million buyback. On Nov 3, 2026 it said it would stop selling new Max plans that month.

Sources (5)

24Sources and changes

Where every number on this page comes from

Sources (23 documents)
  1. S1Form 10-K, fiscal year 2025 (ended Dec 31, 2025) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 27, 2026
  2. S3Form 10-K, fiscal year 2023 (ended Dec 31, 2023) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 29, 2024
  3. S4Form 10-K, fiscal year 2022 (ended Dec 31, 2022) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 1, 2023
  4. S6Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 4, 2026
  5. S7Q3 2026 shareholder letter (8-K Ex. 99.2, Nov 3, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 3, 2026
  6. S8Q2 2026 shareholder letter (8-K Ex. 99.2, Aug 5, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 5, 2026
  7. S9Q1 2026 shareholder letter (8-K Ex. 99.2, May 4, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 4, 2026
  8. S10Q4 and FY2025 shareholder letter (8-K Ex. 99.2, Feb 26, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 26, 2026
  9. S11Q3 2025 shareholder letter (8-K Ex. 99.2, Nov 5, 2025) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 5, 2025
  10. S12Q2 2025 shareholder letter (8-K Ex. 99.2, Aug 6, 2025) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 6, 2025
  11. S13Q1 2025 shareholder letter (8-K Ex. 99.2, May 1, 2025) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 1, 2025
  12. S14Q4 and FY2024 shareholder letter (8-K Ex. 99.2, Feb 27, 2025) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 27, 2025
  13. S15Definitive proxy statement (DEF 14A), 2026 annual meeting · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 17, 2026
  14. S16Form 8-K, Items 2.02 and 5.02: CFO transition (Jan 12, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 12, 2026
  15. S17Form 8-K, Items 2.02 and 8.01: $400 million share repurchase program (Feb 26, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 26, 2026
  16. S19Form 8-K, Item 7.01: inadvertent display of preliminary DAU data (Aug 19, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 19, 2026
  17. S20DUOL historical quotes, Nasdaq, Oct 1 to Nov 5, 2026 (close of Nov 5, 2026: $157.02) · Nasdaq, Inc. · Tier 1: company or exchange filing · Nov 5, 2026
  18. S22Press release: Duolingo Reports Third Quarter 2026 Results (8-K Ex. 99.1, Nov 3, 2026) · Duolingo, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 3, 2026
  19. S23Schedule 13G/A, Baillie Gifford & Co, Class A (event Sep 30, 2026): 4,554,894 shares, 11.3% · Baillie Gifford & Co (filer), SEC EDGAR · Tier 1: company or exchange filing · Oct 20, 2026
  20. S24Schedule 13G, AQR Capital Management, Class A (event Jun 30, 2026): 2,332,543 shares, 5.8% · AQR Capital Management (filer), SEC EDGAR · Tier 1: company or exchange filing · Aug 12, 2026
  21. S25Schedule 13G/A, FMR LLC, Class A (event Mar 31, 2026): 2.7% · FMR LLC (filer), SEC EDGAR · Tier 1: company or exchange filing · May 6, 2026
  22. S26Schedule 13G/A, Capital World Investors, Class A (event Mar 31, 2026): 0.0% · Capital World Investors (filer), SEC EDGAR · Tier 1: company or exchange filing · May 14, 2026
  23. S27Schedule 13G/A, Vanguard Capital Management, Class A (event Sep 30, 2026): 1,934,392 shares, 4.78% · Vanguard Capital Management (filer), SEC EDGAR · Tier 1: company or exchange filing · Oct 30, 2026
Changes to this page (v1 · Nov 6, 2026)
  1. v1 · Nov 6, 2026First version (US edition), from the FY2021 to FY2025 10-Ks, the Q3 FY2026 10-Q, shareholder letters from Q4 FY2024 to Q3 FY2026 and the 2026 proxy statement. (first version)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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