DUOL earnings analysis
What we found in DUOL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Duolingo, Inc. reported Q1 2026 revenue of $291.97 million, exceeding estimates by $3.4 million, but EPS was $0.89, falling short of estimates of $1.53. The company experienced significant growth in daily active users and paid subscribers, with a 27% increase in revenue compared to the same period last year, but still faced pressure on margins and increased operating expenses.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Surpasses Estimates
- Actual revenue of $291.97 million beat estimates by $3.4 million, marking a 27% increase year-over-year.
- Strong Growth in User Engagement
- Daily active users grew 21% year-over-year to 56.5 million, driven by improvements in user retention.
- Adjusted EBITDA Increase
- Adjusted EBITDA rose to $83.43 million, up 33% from $62.80 million in the prior year.
- Free Cash Flow Surged
- Free cash flow reached $147.79 million, up from $103.01 million year-over-year.
- Record Subscription Bookings
- Subscription bookings increased 15% to $268.07 million, compared to $232.18 million in Q1 2025.
- Gross Margin Improvement
- Gross margin improved to 73% from 71.1% year-over-year, reflecting efficiency gains despite higher costs.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- EPS Misses Consensus
- EPS of $0.89 fell short of the consensus estimate of $1.53, reflecting margin pressures.
- Increased Operating Expenses
- Operating expenses rose 20% to $168.57 million, driven by higher R&D and marketing spend.
- Market Uncertainty Risks
- Future performance remains uncertain due to geopolitical and macroeconomic factors that could impact consumer spending.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.89
- Gross margin
- 73%
- Operating margin
- 15%
What they said about what is next.
No specific numeric guidance provided; management emphasizes ongoing investment in engagement and product development.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 27, 2026
- The 2025 Form 10-K emphasizes Duolingo’s scale and product roadmap: the company reports more than 130 million monthly active users, a 9% paid‑subscriber penetration, and continued expansion beyond languages (Math,…
- 10-Q · May 2, 2025
- Duolingo delivered a beat on both top and bottom lines for the quarter: revenue of $230,743,000 and diluted EPS of $0.72, above prior-year results and consensus. Operating profitability improved to 10.2% and the company…
- 10-Q · November 7, 2024
- Duolingo reported Q3 revenue of $192,594 (vs. $137,624 in Q3 2023), a 39.9% year-over-year increase, with gross profit of $140,414 and a slight gross‑margin compression to ~72.9%. The company returned to operating…
- 10-Q · August 9, 2023
- Duolingo reported Q2 revenue of $126,839,000, up 43.5% year-over-year and 9.7% sequentially, and delivered GAAP net income of $3,725,000 (diluted EPS $0.08). Gross margin expanded to ~73.4% and operating loss narrowed…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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