Duolingo (DUOL) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Duolingo

NasdaqGS•Technology•Software - Application

$154.46-4.36(-0.03%)Market closed

Market Cap

$6.63B

P/E

16.1x

P/S

5.8x

P/B

4.7x

Duolingo, Inc. operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers 250 language courses, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.

How this company scores

ExcellentMetricSide Score: 82/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability20/25

Growth22/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality25/25

Strengths

Growing revenueRising free cash flowHigh ROERising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 16.1x5y range 10.4x – 596.5x

Currently below its 11-quarter median.

P/S · 5.8x5y range 4.0x – 21.1x

Currently below its 18-quarter median.

P/B · 4.7x5y range 3.2x – 19.1x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Share Dilution

Red Flag

Shares outstanding increased 6.8% — significant dilution, likely from stock compensation or capital raises.

Price & Volume

Market Cap $6.63B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.15B
Q. Revenue: $298.45M
TTM EBITDA: $172.88M
TTM Op. Income: $157.09M
Q. Op. Income: $33.95M
TTM Net Income: $410.77M
Q. Net Income: $33.16M
EPS: $0.71
Shares Out.: $46.70M

$1.15B in TTM revenue grew 29.4% YoY, reaching $298.45M last quarter. TTM EBITDA of $172.88M and TTM operating income of $157.09M show growth is flowing through to the bottom line. TTM net income of $410.77M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 72.6%
EBITDA Margin: 12.8%
Op. Margin: 11.4%
Net Margin: 11.1%

Op. margin of 11.4% is down 1.9% YoY — costs are rising relative to revenue. Net margin at 11.1% and gross margin of 72.6% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 16.1x
P/S Ratio: 5.8x
P/B Ratio: 4.7x

At 16.1x P/E, the stock trades within typical market levels. P/S of 5.8x and P/B of 4.7x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 90% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.07B
Cash: $1.18B
Long-Term Debt: N/A
Book Value: $1.41B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $88.26M
TTM Free Cash Flow: $407.93M
FCF Margin: 35.6%
FCF / Net Income: 1.0

TTM FCF of $407.93M on $88.26M in operating cash flow. The FCF / Net Income ratio of 1.0x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 24% — a weakening trend.