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,…
Earnings analysis · 10-Q
DUOL earnings analysis
Filed May 4, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.89
What stood out
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Revenue Surpasses Estimates
Actual revenue of $291.97 million beat estimates by $3.4 million, marking a 27% increase year-over-year.
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Strong Growth in User Engagement
Daily active users grew 21% year-over-year to 56.5 million, driven by improvements in user retention.
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Adjusted EBITDA Increase
Adjusted EBITDA rose to $83.43 million, up 33% from $62.80 million in the prior year.
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Free Cash Flow Surged
Free cash flow reached $147.79 million, up from $103.01 million year-over-year.
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Record Subscription Bookings
Subscription bookings increased 15% to $268.07 million, compared to $232.18 million in Q1 2025.
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Gross Margin Improvement
Gross margin improved to 73% from 71.1% year-over-year, reflecting efficiency gains despite higher costs.
What to watch
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EPS Misses Consensus
EPS of $0.89 fell short of the consensus estimate of $1.53, reflecting margin pressures.
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Increased Operating Expenses
Operating expenses rose 20% to $168.57 million, driven by higher R&D and marketing spend.
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Market Uncertainty Risks
Future performance remains uncertain due to geopolitical and macroeconomic factors that could impact consumer spending.
Management's outlook
No specific numeric guidance provided; management emphasizes ongoing investment in engagement and product development.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.