Duolingo, Inc. Class A (DUOL)

Over the past six months, Duolingo's stock price has experienced a significant decline. Despite this, Duolingo announced impressive Q3 2025 earnings, with earnings per share (EPS) of $5.95 and revenue of $271.71 million. Daily active users (DAUs) reached 50.5 million, and monthly active users (MAUs) grew to 135.3 million. However, the stock price dropped after this strong earnings report due to a cautious Q4 DAU forecast and the CEO's statement emphasizing a focus on building the best learning product rather than optimizing for short-term revenue. Analysts have adjusted price targets downwards, while generally maintaining "Buy" ratings.

Duolingo's demand for its products and services exhibits seasonality. The company uses its Monthly Active Users (MAU) metric to track seasonal trends and adapt its content and features accordingly. Q2 is generally a strong quarter for Duolingo, partly attributed to a seasonal feature launched to remind users to do their lessons.

Duolingo, Inc. is an education technology company operating in the EdTech sector, specifically the language learning industry. Founded in 2011, its mission is to make language learning accessible and engaging. The company operates on a freemium business model, offering a free mobile learning platform and website, alongside premium subscription services. Its flagship product is the Duolingo App, offering courses in over 40 different languages, utilizing gamification techniques to enhance user engagement. Super Duolingo is a subscription offering that provides learners with additional features. Duolingo Max incorporates AI-powered features like on-demand tutoring and a role-play mode. The Duolingo English Test (DET) is an affordable online English proficiency assessment. Duolingo for Schools is a free tool designed to help educators integrate the platform into learning environments. Duolingo ABC is a free app aimed at teaching young children reading and writing. Duolingo has expanded its offerings to include math and music courses and has announced the upcoming launch of a chess course.

Duolingo has a significant global presence, with its platform used in over 194 countries and a user base exceeding 500 million registered learners. The mobile app has been downloaded over 800 million times across iOS and Android. The United States leads in the number of Duolingo users, followed by India and Brazil. Nordic countries show the highest Duolingo usage per capita. English remains the most popular language to study worldwide on the platform.

Duolingo has cultivated a strong brand voice and is recognized for its effective social media marketing. A notable event was the "Duo is dead" marketing campaign in February 2025, which generated significant social commentary. However, Duolingo's brand reputation has also faced some criticism. Long-term users have expressed dissatisfaction with the introduction of a "heart system", the replacement of the "learning tree" format, the company's announcement to become an "AI-first company", and the addition of more paywalls and ads for free users. Despite these criticisms, Duolingo has consistently been regarded for its ability to keep users engaged.

Duolingo's ownership structure is primarily composed of institutional shareholders, who hold approximately 78.51% of the company. Insiders own about 21.49%, and retail investors hold a smaller portion. Major institutional owners include Durable Capital Partners LP, BlackRock Inc., Vanguard Group Inc., Fmr LLC, Baillie Gifford & Co, Capital World Investors, Dragoneer Investment Group LLC, T. Rowe Price Investment Management Inc., and State Street Corp. Recent insider trading activity indicates net selling, with co-founder Severin Hacker selling shares in November 2025.