Duolingo, Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 6 fiscal years, taken from the XBRL data Duolingo, Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2021	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	162	251	369	531	748	1,038
Cost of revenue	46	69.2	99.4	142	204	288
Gross profit	116	182	270	389	544	749
Research and development	53	104	150	194	235	306
Selling and marketing	35	59.2	67	75.8	90.5	126
General and administrative	43.7	78.6	118	132	156	182
Operating expenses	132	242	335	402	482	614
Operating income	-16	-60	-65.2	-13.3	62.6	136
Other non-operating income	0.07	0.03	-0.68	-0.06	-2.99	1.61
Pre-tax income	-15.7	-60	-58.6	17.8	102	182
Income tax	0.07	0.18	0.94	1.71	13.7	-232
Net income	-15.8	-60.1	-59.6	16.1	88.6	414
EBITDA	-13.8	-57.3	-60.3	-6.16	73.4	150
EPS, basic	-1.24	-2.57	-1.51	0.39	2.04	9.05
EPS, diluted	-1.24	-2.57	-1.51	0.35	1.88	8.57
Shares, basic (weighted)	12.7	23.4	39.5
Shares, diluted (weighted)	12.7	23.4	39.5	46.5	47.1	48.3

Balance sheet

	FY2021	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	120	554	608	748	786	1,036
Receivables	20.5	33.2	46.7	89	129	163
Other current assets	3.86	7.97	7.23	7.28	14.8	16.6
Total current assets	158	619	697	898	1,102	1,437
Property, plant and equipment	6.43	8.21	13	11.8	18.9	36.3
Lease right-of-use assets	8.07	28.4	22.5	19.1	47.5	80.4
Goodwill		0	4.05	4.05	10.5	35.3
Intangible assets		4.57	8.5	16	19.9	28.3
Long-term investments				0	98.3	135
Other non-current assets	0.56	0.89	1.51	1.72	1.56	10.1
Total assets	176	661	747	954	1,302	1,992
Accounts payable	2.2	7.82	1.18	2.45	6.38	8
Accrued liabilities	8.63	12.9	22	24.9	36.4	45.7
Deferred revenue	54.8	98.3	158	249	373	496
Total current liabilities	65.7	119	182	277	422	551
Lease liabilities	8.13	29.1	23.5	21.1	54.7	93.8
Other non-current liabilities						0
Total liabilities	73.8	148	205	298	477	645
Paid-in capital	30.1	684	773	870	950	1,059
Retained earnings	-111	-171	-230	-214	-126	288
Treasury stock						0
Shareholders' equity	-80.7	513	542	656	825	1,347
Total equity	-80.7	513	542	656	825	1,347
Total liabilities and equity	176	661	747	954	1,302	1,992
Shares outstanding	12.8	16.6

Cash flow statement

	FY2021	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	-15.8	-60.1	-59.6	16.1	88.6	414
Depreciation and amortization	2.26	2.73	4.87	7.1	10.9	14.4
Stock-based compensation	17	40.8	73.8	95.2	110	137
Deferred income tax	0	0	-0.22	-0.13	0.16	-227
Change in receivables	-10.4	-12.7	-13.6	-42.2	-39.9	-33.9
Change in payables	-1.62	5.62	-6.66	1.26	3.93	1.62
Cash from operations	17.7	9.17	53.7	154	286	388
Capital expenditures	-3.38	-3.59	-5.56	-3.19	-12.1	-18.1
Acquisitions	0	0	-4.05	0	-6.6	-33.1
Purchases of investments			0	0	-193	-163
Sales and maturities of investments			0	0	3.71	116
Cash from investing	-4.01	-6.21	-14.2	-13.6	-217	-108
Stock issued	2.03	12.5	14.8	13.6	19.4	12.6
Share buybacks	0	-0.87	0	0
Cash from financing	47	430	14.8	2.14	-30	-29.5
Net change in cash	60.6	433	54.3	142	38.2	251
Free cash flow	14.3	5.58	48.1	150	273	370
Interest paid	0	0	0	0
Income taxes paid	0	0.13	0.62	2.32	7.62	14.4

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $143.51 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	72.7%	Gross profit / revenue.
Operating margin	13.7%	Operating income / revenue.
EBITDA margin	14.6%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	17.6%	Pre-tax income / revenue.
Net margin	35.9%	Net income / revenue.
FCF margin	35.6%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	37.6%	Cash from operations / revenue.
Effective tax rate	-103.5%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	29.1%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	19.8%	Net income / average total assets.
Return on invested capital (ROIC)	54.2%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue	29.5%	Research and development expense / revenue.
Stock-based pay / revenue	12.6%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	2.0%	Capital expenditures / revenue.
D&A / revenue	0.9%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	38.7%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	41.1%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	45.0%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	37.7%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	40.5%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	45.3%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	116.6%	Operating income vs the same period a year earlier. Only from a positive base.
EBITDA growth, 1y	104.2%	EBITDA vs the same period a year earlier. Only from a positive base.
Net income growth, 1y	367.5%	Net income vs the same period a year earlier. Only from a positive base.
EPS growth, 1y	355.9%	EPS vs the same period a year earlier. Only from a positive base.
Operating cash flow growth, 1y	35.8%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	93.3%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	85.4%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	35.2%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	97.4%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	91.6%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	63.4%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	35.4%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets growth, 1y	53.0%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	38.7%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	62.5%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	2.6%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	7.0%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	30.6%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	2.72x	Current assets / current liabilities.
Quick ratio	2.27x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	2.04x	(Cash + short-term investments) / current liabilities.
Liabilities / assets	32.0%	Total liabilities / total assets.
Working capital	$993.3M	Current assets - current liabilities.
Goodwill and intangibles / assets	3.0%	(Goodwill + intangible assets) / total assets.
Tangible book value	$1.35B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.55x	Revenue / average total assets.
Fixed asset turnover	26.9x	Revenue / average property, plant and equipment.
Receivables turnover	8.74x	Revenue / average receivables.
Days sales outstanding	42 days	365 x average receivables / revenue.
Days payables	19 days	365 x average accounts payable / cost of revenue.
FCF conversion	99.3%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	5.3%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$8.21	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$22.89	Revenue / diluted weighted shares.
FCF per share	$8.15	Free cash flow / diluted weighted shares.
Operating cash flow per share	$8.61	Cash from operations / diluted weighted shares.
Book value per share	$28.18	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	$26.92	Tangible book value / shares outstanding.
Cash per share	$23.60	(Cash + short-term investments) / shares outstanding.

Valuation

Metric	Value	How it is calculated
Market cap	$6.71B	Share price x shares outstanding.
Enterprise value	$5.53B	Market cap + total debt - cash - short-term investments.
P/E	16.3x	Market cap / net income. Only when net income is positive.
P/S	5.86x	Market cap / revenue.
P/B	4.76x	Market cap / shareholders' equity. Only when equity is positive.
Price / tangible book	4.99x	Market cap / tangible book value, when positive.
P/FCF	16.5x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	15.6x	Market cap / cash from operations, when positive.
EV/Sales	4.83x	Enterprise value / revenue.
EV/EBIT	35.2x	Enterprise value / operating income, when both are positive.
EV/EBITDA	33.0x	Enterprise value / EBITDA, when both are positive.
EV/FCF	13.6x	Enterprise value / free cash flow, when both are positive.
FCF yield	6.1%	Free cash flow / market cap.
Earnings yield	6.1%	Net income / market cap (the inverse of P/E).

What was Duolingo, Inc.'s revenue in fiscal 2025?

Duolingo, Inc. reported revenue of $1.04B for fiscal 2025, 38.7% higher than the year before.

Was Duolingo, Inc. profitable in fiscal 2025?

Yes. Net income was $414.1M, a net margin of 39.9%.

How much free cash flow did Duolingo, Inc. generate in fiscal 2025?

Cash from operations of $387.8M minus capital expenditures of $18.1M left free cash flow of $369.7M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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