Operating margins have expanded from 3.2% in 2023Q4 to 15.3% in 2026Q1, demonstrating successful economies of scale despite revenue growth decelerating to 26.5% over the same period.
| Sales/Revenue | 1.1B | 1.04B | 748.02M | 531.11M | 369.5M | 250.77M | 161.7M | 70.76M |
| Revenue Growth % | 35.45% | 38.71% | 40.84% | 43.74% | 47.34% | 55.09% | 128.51% | - |
| Cost of Goods Sold | 300.36M | 288.13M | 203.65M | 142.1M | 99.43M | 69.19M | 45.99M | 20.74M |
| COGS % of Revenue | - | 27.77% | 27.22% | 26.76% | 26.91% | 27.59% | 28.44% | 29.31% |
| Gross Profit | 798.46M | 749.46M | 544.38M | 389M | 270.06M | 181.59M | 115.71M | 50.02M |
| Gross Margin % | 72.67% | 72.23% | 72.78% | 73.24% | 73.09% | 72.41% | 71.56% | 70.69% |
| Gross Profit Growth % | - | 37.67% | 39.94% | 44.04% | 48.73% | 56.93% | 131.31% | - |
| Operating Expenses | 641.95M | 613.89M | 481.78M | 402.26M | 335.26M | 241.59M | 131.72M | 64.15M |
| OpEx % of Revenue | - | 59.16% | 64.41% | 75.74% | 90.73% | 96.34% | 81.46% | 90.66% |
| Selling, General & Admin | 323.05M | 307.56M | 246.49M | 207.91M | 184.81M | 137.76M | 78.7M | 31.36M |
| SG&A % of Revenue | - | 29.64% | 32.95% | 39.15% | 50.02% | 54.93% | 48.67% | 44.32% |
| Research & Development | 318.91M | 306.32M | 235.3M | 194.35M | 150.44M | 103.83M | 53.02M | 31.56M |
| R&D % of Revenue | - | 29.52% | 31.46% | 36.59% | 40.72% | 41.41% | 32.79% | 44.6% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.23M |
| Operating Income | 156.5M | 135.57M | 62.59M | -13.26M | -65.19M | -60.01M | -16.01M | -14.13M |
| Operating Margin % | 14.24% | 13.07% | 8.37% | -2.5% | -17.64% | -23.93% | -9.9% | -19.96% |
| Operating Income Growth % | - | 116.58% | 572.09% | 79.66% | -8.65% | -274.79% | -13.35% | - |
| EBITDA | 167.3M | 149.96M | 73.45M | -6.16M | -60.33M | -57.28M | -13.76M | -12.87M |
| EBITDA Margin % | 15.23% | 14.45% | 9.82% | -1.16% | -16.33% | -22.84% | -8.51% | -18.19% |
| EBITDA Growth % | 103.73% | 104.17% | 1291.58% | 89.78% | -5.31% | -316.44% | -6.84% | - |
| D&A (Non-Cash Add-back) | 10.8M | 14.39M | 10.85M | 7.09M | 4.87M | 2.73M | 2.26M | 1.25M |
| EBIT | 111.98M | 135.57M | 62.59M | -13.26M | -65.19M | -60.01M | -16.01M | -12.9M |
| Net Interest Income | 34.82M | 45.23M | 42.7M | 31.09M | 7.24M | 19K | 231K | 0 |
| Interest Income | 46.63M | 45.23M | 42.7M | 31.09M | 7.24M | 19K | 231K | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 46.45M | 46.84M | 39.71M | 31.04M | 6.56M | 49K | 303K | 571K |
| Pretax Income | 202.95M | 182.41M | 102.31M | 17.78M | -58.64M | -59.96M | -15.71M | -13.55M |
| Pretax Margin % | 18.47% | 17.58% | 13.68% | 3.35% | -15.87% | -23.91% | -9.71% | -19.15% |
| Income Tax | -219.44M | -231.66M | 13.73M | 1.71M | 938K | 177K | 68K | 0 |
| Effective Tax Rate % | -108.12% | -127% | 13.42% | 9.62% | -1.6% | -0.3% | -0.43% | 0% |
| Net Income | 422.39M | 414.06M | 88.57M | 16.07M | -59.57M | -60.13M | -15.78M | -13.55M |
| Net Margin % | 38.44% | 39.91% | 11.84% | 3.03% | -16.12% | -23.98% | -9.76% | -19.15% |
| Net Income Growth % | 336.57% | 367.48% | 451.28% | 126.97% | 0.93% | -281.18% | -16.39% | - |
| Net Income (Continuing) | 422.39M | 414.06M | 88.57M | 16.07M | -59.57M | -60.13M | -15.78M | -13.55M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.06 | 8.57 | 1.88 | 0.35 | -1.51 | -1.57 | -0.44 | -0.41 |
| EPS Growth % | 332.34% | 355.85% | 437.14% | 123.18% | 3.82% | -256.82% | -7.32% | - |
| EPS (Basic) | - | 9.05 | 2.04 | 0.35 | -1.51 | -1.57 | -0.44 | -0.41 |
| Diluted Shares Outstanding | 46.63M | 48.31M | 47.1M | 46.52M | 39.47M | 38.27M | 35.89M | 35.89M |
| Basic Shares Outstanding | 46.63M | 45.77M | 43.5M | 46.52M | 39.47M | 38.27M | 35.89M | 35.89M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Platform fee dependency
As reported in recent financial filings, Duolingo's quarterly revenue growth has decelerated from a peak of 45.4% in 2023Q4 to 26.5% by 2026Q1, suggesting that the initial post-pandemic surge in user acquisition is moderating as the company matures within its core language-learning market.
The transition from hyper-growth to a more sustainable expansion phase appears to be underway as the company faces a larger base effect. Investors should monitor whether the integration of new verticals like Math and Music can effectively re-accelerate top-line momentum or if the core language product is reaching saturation.
Based on the company's reported income statements, operating margins have expanded from 3.2% in 2023Q4 to 15.3% in 2026Q1, demonstrating that Duolingo is successfully achieving economies of scale as revenue growth outpaces the incremental costs of supporting its expanding global user base.
This improvement suggests that the company's product-led growth strategy is effectively reducing the relative burden of marketing and administrative overhead. The ability to scale operating income while maintaining high R&D investment indicates a disciplined approach to managing the cost structure as the platform matures.
According to historical income statement data, the reported net margin of 107.5% in 2025Q3 represents a significant outlier driven by non-operating tax benefits, which obscures the underlying operational profitability that typically trends closer to the 15% range observed in more recent quarters.
Analysts should exercise caution when interpreting GAAP net income, as these periodic tax-related anomalies do not reflect the recurring cash-generating capacity of the business. Focusing on adjusted metrics is essential to strip away these non-recurring items and assess the true trajectory of core earnings.
Financial statements indicate that Duolingo's gross margin has remained remarkably stable, hovering near 72-73% over the last ten quarters, which highlights the structural impact of app store platform fees that act as a persistent ceiling on the company's overall profitability profile.
Because these fees are largely non-negotiable, the company's ability to expand gross margins is limited unless it can successfully shift a larger portion of its user base to direct web-based payment channels. This cost structure warrants close monitoring, as any change in app store policies could have a disproportionate impact on bottom-line results.
Quick answers to the most common questions about buying DUOL stock.
For fiscal year 2025, Duolingo, Inc. (DUOL) reported total revenue of $1.04B. This represents a 1366.3% increase compared to $70.8M in 2019.
Duolingo, Inc. (DUOL) is profitable, generating $414.1M in net income for the fiscal year ending 2025 with a net profit margin of 39.9%.
Duolingo, Inc. (DUOL) reported an operating income of $135.6M, resulting in an operating profit margin of 13.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Duolingo, Inc. (DUOL) generated $749.5M in gross profit for the year, representing a gross profit margin of 72.2%. This demonstrates the company's core pricing power and production efficiency.