Duolingo (NASDAQ:DUOL) Announces Earnings Results

Posted by Stanley Muller on Aug 5th, 2026

Duolingo (NASDAQ:DUOL – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.06, FiscalAI reports. Duolingo had a return on equity of 14.07% and a net margin of 38.44%.The company had revenue of $298.45 million for the quarter, compared to the consensus estimate of $295.58 million. During the same period in the previous year, the business earned $0.91 EPS. Duolingo’s revenue for the quarter was up 18.3% compared to the same quarter last year.

Here are the key takeaways from Duolingo’s conference call:

Daily active users grew 23% year over year in Q2, accelerating from Q1, while user retention reached an all-time high. Duolingo said growth was broad-based and supported by ongoing product experimentation.
The company raised its full-year adjusted EBITDA margin outlook to 26.5% and now expects roughly $320 million of adjusted EBITDA, gross margin near 70%, and more than $375 million in free cash flow.
Duolingo is expanding monetization in ways it believes support user growth, including longer free trials, a lower-priced Super Lite tier, improved advertising, and broader access to Video Call as AI costs decline. AI cost savings are expected to support margins while enabling more features for users.
Management maintained full-year guidance of approximately 11% bookings growth and 16% revenue growth despite stronger user trends, noting that freemium users take time to monetize and that the company is prioritizing DAU expansion and product quality.
The future of the higher-priced Max subscription remains uncertain as Video Call is rolled out to Super subscribers; management said Max could be restructured or even sunset, although it intends to avoid a material revenue loss.

Duolingo Stock Performance

NASDAQ:DUOL traded down $2.43 during midday trading on Wednesday, reaching $135.32. 1,834,575 shares of the company traded hands, compared to its average volume of 1,008,954. Duolingo has a twelve month low of $87.89 and a twelve month high of $468.00. The firm has a market capitalization of $6.30 billion, a price-to-earnings ratio of 37.33, a price-to-earnings-growth ratio of 1.05 and a beta of 0.87. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.62 and a quick ratio of 2.62. The company has a fifty day moving average price of $124.54 and a 200 day moving average price of $115.32.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Bank of America lowered shares of Duolingo from a “neutral” rating to an “underperform” rating and dropped their price target for the stock from $103.00 to $93.00 in a research note on Tuesday. KeyCorp reaffirmed a “sector weight” rating on shares of Duolingo in a research report on Thursday, June 4th. Wedbush began coverage on Duolingo in a report on Thursday, July 16th. They issued a “neutral” rating and a $139.00 price objective for the company. Wells Fargo & Company increased their target price on Duolingo from $81.00 to $82.00 and gave the stock an “underweight” rating in a report on Tuesday, July 7th. Finally, Morgan Stanley lifted their target price on Duolingo from $95.00 to $125.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 16th. Two equities research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $151.88.

Read Our Latest Stock Analysis on DUOL

Insiders Place Their Bets

In other news, insider Natalie Glance sold 3,360 shares of the business’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $113.59, for a total transaction of $381,662.40. Following the completion of the transaction, the insider owned 173,401 shares of the company’s stock, valued at approximately $19,696,619.59. The trade was a 1.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Stephen C. Chen sold 1,977 shares of the company’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $113.61, for a total transaction of $224,606.97. Following the completion of the transaction, the general counsel owned 52,807 shares of the company’s stock, valued at approximately $5,999,403.27. This trade represents a 3.61% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 9,506 shares of company stock valued at $1,073,864 over the last three months. Company insiders own 16.62% of the company’s stock.

Hedge Funds Weigh In On Duolingo

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DUOL. EFG International AG bought a new stake in Duolingo during the 4th quarter valued at $26,000. Globeflex Capital L P bought a new position in shares of Duolingo in the second quarter worth $77,000. AlphaCentric Advisors LLC acquired a new position in shares of Duolingo during the fourth quarter valued at $33,000. Banque Cantonale Vaudoise acquired a new position in shares of Duolingo during the third quarter valued at $70,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Duolingo during the second quarter valued at about $89,000. 91.59% of the stock is owned by institutional investors.

About Duolingo

(Get Free Report)

Duolingo, Inc (NASDAQ:DUOL) is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company’s core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.