DUOL
Duolingo, Inc.
DUOL's fundamentals are strong and it looks cheap: trading at 51x earnings, about a third of its usual 151x. Its downside scenario is about four times its upside.
DUOL Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Stable | |
| Strong | |
| Strong |
DUOL's revenue, cash flow and balance sheet are currently healthy, and its profitability is stable.
DUOL PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 15x | $46.37 | -71% |
| Current | 51x | $157 | — |
| Forward | 51x | $157 | — |
| Fair | 151x | $464 | +195% |
| Expensive | 207x | $637 | +305% |
Historical ranges are pointers, not guarantees.
DUOL's PE is in its fair range at 51.1x. On analysts' estimates for next year's earnings, today's price would be 51.4x.
DUOL Forward outlook
| Metric | Outlook |
|---|---|
| Stable | |
| Growth | |
| Growth | |
| Weakening | |
| Limited | |
| Low |
Analysts expect earnings and revenue growth for DUOL, but weaker profitability. However, they disagree widely on these estimates.
DUOL Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $3.07 | -0.5% |
| Q3 2026 | $3.08 | -61% |
| Q2 2026 | $8.49 | +249% |
| Q1 2026 | $8.74 | +331% |
| Q4 2025 | $8.57 | +356% |
| Q3 2025 | $7.89 | +329% |
| Q2 2025 | $2.43 | +72% |
| Q1 2025 | $2.03 | +107% |
| Q4 2024 | $1.88 | +437% |
DUOL earned $3.08 per share over the past year, down 61% from the year before.
DUOL Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $309M | +14% |
| Q2 2026 | $298.5M | +18% |
| Q1 2026 | $292M | +27% |
| Q4 2025 | $282.9M | +35% |
| Q3 2025 | $271.7M | +41% |
| Q2 2025 | $252.3M | +41% |
| Q1 2025 | $230.7M | +38% |
| Q4 2024 | $209.6M | +39% |
DUOL's revenue has grown year over year every quarter since late 2020: $309M last quarter, up 14% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 7.8% | -5.1 points |
| Q2 2026 | 11% | -1.9 points |
| Q1 2026 | 15% | +5 points |
| Q4 2025 | 15% | +8.7 points |
| Q3 2025 | 13% | +5.9 points |
| Q2 2025 | 13% | +2.7 points |
| Q1 2025 | 10% | +0.4 points |
| Q4 2024 | 6.6% | +3.4 points |
DUOL's operating margin was 7.8% last quarter, down 5.1 points from the same quarter a year ago.
DUOL Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $78.5M | -1.1% |
| Q2 2026 | $81.4M | -9.1% |
| Q1 2026 | $150.6M | +44% |
| Q4 2025 | $96.6M | +19% |
| Q3 2025 | $79.4M | +50% |
| Q2 2025 | $89.5M | +57% |
| Q1 2025 | $104.3M | +27% |
| Q4 2024 | $81.4M | +69% |
DUOL generated $407M in free cash flow over the past year, up 15% from the year before.
DUOL Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.2% | -101K shares |
| 1 year | +1.6% | +786K shares |
| 3 years | +6.4% | +3M shares |
| 5 years | +279% | +36.8M shares |
| Available history | +39% | +14M shares |
DUOL has 50M diluted shares, up 1.6% from a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $6.9M |
| Q2 2026 | $45.3M |
| Q1 2026 | $24.3M |
| Q4 2022 | — |
| Q3 2022 | — |
| Q2 2022 | — |
| Q1 2022 | — |
| Q4 2021 | — |
DUOL Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -7.6x | Net Cash |
| Q2 2026 | -6.8x | Net Cash |
| Q1 2026 | -6.6x | Net Cash |
| Q4 2025 | -6.9x | Net Cash |
| Q3 2025 | -8.4x | Net Cash |
| Q2 2025 | -10.0x | Net Cash |
| Q1 2025 | -10.8x | Net Cash |
| Q4 2024 | -10.7x | Net Cash |
DUOL has more cash than debt.
DUOL Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 57.9 | Neutral |
| Stochastic | 58.5 | Neutral |
DUOL's weekly RSI is 58 (neutral) and its Stochastic is 59 (neutral).
DUOL PE vs Technology Sector
| Metric | DUOL | Sector median | Relative |
|---|---|---|---|
| PE | 51x | 28x | 83% above |
| PE % | 37 | 44 | 7 pts below |
DUOL is trading at 51x earnings, a 83% premium to the Technology sector's median of 28x.
DUOL Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $146.5 | 7.5% above |
| 20 week MA | $140.5 | 12% above |
| 50 week MA | $132.5 | 19% above |
| 100 week MA | $241.7 | 35% below |
| 200 week MA | $215.7 | 27% below |
DUOL has bounced recently, but its long-term trend is still down: it's above its 8-, 20- and 50-week averages, but 27% below its 200-week average.
DUOL Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2021 | $140.3 | $109.0 | -22% |
| 2022 | $109.0 | $70.7 | -35% |
| 2023 | $70.7 | $226.9 | +221% |
| 2024 | $226.9 | $333.3 | +47% |
| 2025 | $333.3 | $181.7 | -46% |
| 2026 YTD | $181.7 | $157.4 | -13% |
DUOL's yearly returns have swung widely, from +221% in 2023 to −46% in 2025. It's down 13% so far in 2026.