Duolingo Inc (DUOL) FinancialsDUOLFinancialDuolingo Inc

Duolingo, Inc. (DUOL) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Subscription, accounting for 86.5% of total sales, equivalent to $258.04M. Other significant revenue streams include Advertising and Duolingo English Test. Understanding this composition is critical for investors evaluating how DUOL navigates market cycles within the Online Services industry.

Evaluating the bottom line, Duolingo, Inc. maintains a gross margin of 72.62%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 11.68%, while the net margin is 11.11%. These profitability ratios, combined with a Return on Equity (ROE) of 34.42%, provide a clear picture of how effectively DUOL converts its operational activities into shareholder value.

In the context of the broader market, DUOL competes directly with industry leaders such as HNGE and BB. With a market capitalization of $6.88B, it holds a significant position in the sector. When comparing efficiency, DUOL's gross margin of 72.62% stands against HNGE's 86.44% and BB's 76.65%. Such benchmarking helps identify whether Duolingo, Inc. is trading at a premium or discount relative to its financial performance.

Duolingo reported a total revenue of $298.45 million in Q2 2026, with a gross margin of 72.62%. The company has shown consistent revenue growth, with a projected increase to $291.97 million in Q1 2026 and $282.87 million in Q4 2025. However, the net income has fluctuated, with a notable drop to $33.16 million in Q2 2026 from $44.36 million in Q1 2026.