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Software - Application · Technology · Fiscal year ends Dec 31
Duolingo reported revenue of $1B in the fiscal year ended Dec 2025, up 38.7% from the year before. Operating income was $136M, an operating margin of 13.1%, and net income was $414M. Operating cash flow of $388M less capital expenditure of $18M left free cash flow of $370M.
Ranks among the 83 software - application companies we cover (1st = best; for debt, the least indebted). Green = top third, red = bottom third.
Last 5 fiscal years
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | 251 | 369 | 531 | 748 | 1,038 |
| Cost of revenue | 69.2 | 99.4 | 142 | 204 | 288 |
| Gross profit | 182 | 270 | 389 | 544 | 749 |
| Research & development | 104 | 150 | 194 | 235 | 306 |
| Selling, general & admin | 138 | 185 | 208 | 246 | 308 |
| Operating income | −60.0 | −65.2 | −13.3 | 62.6 | 136 |
| Pre-tax income | −60.0 | −58.6 | 17.8 | 102 | 182 |
| Income tax | 0.2 | 0.9 | 1.7 | 13.7 | −232 |
| Net income | −60.1 | −59.6 | 16.1 | 88.6 | 414 |
| Diluted EPS | −2.57 | −1.51 | 0.35 | 1.88 | 8.57 |
| Diluted shares | 23.4 | 39.5 | 46.5 | 47.1 | 48.3 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | 554 | 608 | 748 | 786 | 1,036 |
| Receivables | 33.2 | 46.7 | 89.0 | 129 | 163 |
| Current assets | 619 | 697 | 898 | 1,102 | 1,437 |
| Net PP&E | 8.2 | 13.0 | 11.8 | 18.9 | 36.3 |
| Goodwill | 0.0 | 4.1 | 4.1 | 10.5 | 35.3 |
| Total assets | 661 | 747 | 954 | 1,302 | 1,992 |
| Payables | 7.8 | 1.2 | 2.4 | 6.4 | 8.0 |
| Deferred revenue | 98.3 | 158 | 249 | 373 | 496 |
| Current liabilities | 119 | 182 | 277 | 422 | 551 |
| Total liabilities | 148 | 205 | 298 | 477 | 645 |
| Shareholders' equity | 513 | 542 | 656 | 825 | 1,347 |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | 9.2 | 53.7 | 154 | 286 | 388 |
| Capital expenditure | 3.6 | 5.6 | 3.2 | 12.1 | 18.1 |
| Free cash flow | 5.6 | 48.1 | 150 | 273 | 370 |
| Depreciation & amortisation | 2.7 | 4.9 | 7.1 | 10.9 | 14.4 |
| Stock-based compensation | 40.8 | 73.8 | 95.2 | 110 | 137 |
| Acquisitions | 0.0 | 4.1 | 0.0 | 6.6 | 33.1 |
| Share buybacks | 0.9 | 0.0 | 0.0 | – | – |
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 47.3% | 43.7% | 40.8% | 38.7% |
| Operating income growth (YoY) | – | – | – | – | 116.6% |
| EPS growth (YoY) | – | – | – | 437.1% | 355.9% |
| Gross margin | 72.4% | 73.1% | 73.2% | 72.8% | 72.2% |
| Operating margin | −23.9% | −17.6% | −2.5% | 8.4% | 13.1% |
| Net margin | −24.0% | −16.1% | 3.0% | 11.8% | 39.9% |
| Return on equityBlank when equity is negative | −11.7% | −11.0% | 2.5% | 10.7% | 30.7% |
| ROCEEBIT ÷ (assets − current liabilities) | −11.1% | −11.5% | −2.0% | 7.1% | 9.4% |
| Free cash flow margin | 2.2% | 13.0% | 28.3% | 36.5% | 35.6% |
| Cash conversion (CFO ÷ net income) | −0.15x | −0.90x | 9.56x | 3.22x | 0.94x |
| Receivable days | 48 | 46 | 61 | 63 | 57 |
| Payable days | 41 | 4 | 6 | 11 | 10 |
| Current ratio | 5.20x | 3.84x | 3.24x | 2.61x | 2.61x |
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.