Duolingo, Inc.(DUOL)Stock Analysis
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Rank #26 of 2,879 stocksTOP 1%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
DUOL Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Duolingo, Inc. (DUOL), a Technology sector company. 13F Pro's AI-powered ranking engine scores DUOL at 82.0/100 on a 32-signal composite quality model, placing it at rank #26 of 2,879 stocks — the top 1% of the AI-ranked universe. DUOL scores in the top quartile across balance sheet strength (97.1), earnings quality (97.1), profitability (94.3). Shareholder dilution risk is elevated at 13.8/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), Duolingo, Inc. reports quarterly revenue of $292.0M, net income of $43.5M, an operating margin of 15.3%. Top institutional holders of DUOL by reported 13-F value include BAILLIE GIFFORD & CO, BlackRock,, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. DUOL trades on the Nasdaq exchange and files with the SEC under CIK 1562088. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate DUOL daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Duolingo, Inc. directly from SEC EDGAR. Duolingo, Inc.'s 13F Pro composite quality score has ranged between 8 and 83 since 2022, currently 82.0 — an improving long-term trajectory across 52 quarterly and live scoring snapshots.
What's Driving DUOL's Business? Latest 10-Q Breakdown
AI-extracted from Duolingo, Inc.'s 10-Q filed 2026-05-05 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Duolingo Q1 2026 revenue surged 27% YoY to $292.0M, driven by 31% subscription growth to $250.9M with 56.5M DAUs, while adjusted EBITDA jumped 33% to $83.4M.
Biggest Revenue Drivers
Total revenue: $291.967M+27% YoY
Growth in average number of paid subscribers and increase in average revenue per user
Increase in DAUs and price per ad served
Largest Expense Items
Net personnel costs and increased software and AI costs
Increased direct marketing expenses
Increased facilities and office expenses
Offset by reductions in per-unit AI costs and improved feature efficiency
Margins: Gross margin expanded 190 bps to 73.0%, driven by subscription gross margin improvement from continued reductions in per-unit AI costs and improved feature efficiency. Operating leverage evident with operating income up 89% YoY despite 20% operating expense growth.
Watch Items from the Filing
- Deferred revenue increased $17.1M QoQ to $513.3M, to be recognized over next 12 months, indicating strong subscription pipeline.
- Company authorized $400M share repurchase program in February 2026; repurchased $25.8M (262K shares at $98.45 average) in Q1, leaving $374.2M capacity remaining.
- Effective tax rate 21.8% in Q1 2026 vs. (0.4)% in Q1 2025, primarily due to discrete tax expense on stock-based compensation vs. prior year benefits.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$292.0M
Net Income
Q1 2026
$43.5M
Free Cash Flow
Q1 2026
$150.6M
Operating Margin
Q1 2026
15.3%
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+38.7% YoYNet Income
+369.0% YoYOperating Income
+116.6% YoYEPS (Diluted)
+355.9% YoYTotal Assets
+53.0% YoYOp. Cash Flow
+35.8% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $1.04B +38.7% | $748.0M +40.8% | $531.1M +43.7% | $369.5M +128.5% | $161.7M | — |
| Net Income | $414.1M +369.0% | $88.3M +449.4% | $16.1M +127.0% | $-59.6M -277.6% | $-15.8M | — |
| Operating Income | $135.6M +116.6% | $62.6M +572.1% | $-13.3M +79.7% | $-65.2M -307.2% | $-16.0M | — |
| EPS (Diluted) | $8.57 +355.9% | $1.88 +437.1% | $0.35 +123.2% | $-1.51 -21.8% | $-1.24 | — |
| Total Assets | $1.99B +53.0% | $1.30B +36.5% | $954.0M +27.6% | $747.3M +325.3% | $175.7M | — |
| Operating Cash Flow | $387.8M +35.8% | $285.5M +85.9% | $153.6M +186.3% | $53.7M +203.0% | $17.7M | — |
AI Insight: DUOL Financial Trends
Duolingo sustained double-digit revenue growth with operating margin expansion to 15.4% in Q1 2026, while operating cash flow surged 61% year-over-year.
• Revenue grew 26% YoY from $231M (Q1 2025) to $292M (Q1 2026), maintaining consistent double-digit quarterly growth.
• Operating margin expanded to 15.4% in Q1 2026 from 10.4% in Q1 2025; operating income grew 88% YoY.
• Operating cash flow reached $151M in Q1 2026, up 43% from $106M in Q1 2025, showing strong cash generation.
⚠ Q3 2025 net income of $292M appears anomalous relative to quarterly trend; investigate one-time gains or accounting items.
⚠ Equity grew 56% from $767M (Q2 2024) to $1,392M (Q1 2026); monitor if driven by retained earnings or capital raises.
AI Insight: DUOL Ratio Trends
Operating margin nearly doubled from Q2 2024 lows, reaching 15.2% in Q1 2026 on sustained profitability inflection.
• Operating margin expanded from 10.5% in Q2 2024 to 15.2% in Q1 2026, with Q4 2025 peak of 15.4%.
• ROIC improved from 9.8% in Q2 2024 to 12.8% in Q1 2026, with TTM ROIC at 11.2%.
• NPM stabilized near 15% in recent quarters after Q3 2025 anomaly (107.5%), indicating normalized profitability.
⚠ Q3 2025 NPM spike to 107.5% and ROE/ROA surge to 89.4%/62.0% suggest one-time items; confirm sustainability.
⚠ ROE and ROA have moderated to 12.5% and 8.5% respectively in Q1 2026 from Q3 2025 peaks.
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Top Institutional Holders of DUOL
BAILLIE GIFFORD & CO
$480.6M4,875,810 shBlackRock, Inc.
$392.9M3,986,466 shVANGUARD CAPITAL MANAGEMENT LLC
$169.8M1,723,132 shVANGUARD PORTFOLIO MANAGEMENT LLC
$160.9M1,632,650 shFIL Ltd
$160.0M1,622,805 shTWO SIGMA INVESTMENTS, LP
$137.6M1,395,544 shBANK OF AMERICA CORP /DE/
$131.3M1,332,301 shSUSQUEHANNA INTERNATIONAL GROUP, LLP
$126.2M1,280,600 shFEDERATED HERMES, INC.
$123.5M1,253,026 shSTATE TREASURER STATE OF MICHIGAN
$117.6M1,193,307 sh
| Fund | Value | Shares |
|---|---|---|
| BAILLIE GIFFORD & CO | $480.6M | 4,875,810 |
| BlackRock, Inc. | $392.9M | 3,986,466 |
| VANGUARD CAPITAL MANAGEMENT LLC | $169.8M | 1,723,132 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $160.9M | 1,632,650 |
| FIL Ltd | $160.0M | 1,622,805 |
| TWO SIGMA INVESTMENTS, LP | $137.6M | 1,395,544 |
| BANK OF AMERICA CORP /DE/ | $131.3M | 1,332,301 |
| SUSQUEHANNA INTERNATIONAL GROUP, LLP | $126.2M | 1,280,600 |
| FEDERATED HERMES, INC. | $123.5M | 1,253,026 |
| STATE TREASURER STATE OF MICHIGAN | $117.6M | 1,193,307 |
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Is DUOL a good stock to buy?
13F Pro's AI-powered analysis of Duolingo, Inc. (DUOL) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for DUOL are available on the DUOL stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own DUOL?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling DUOL. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Duolingo, Inc.'s investment landscape.