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Duolingo (DUOL) FY2025 results: revenue $1.0 billion, up 38.7% on the year

Duolingo, Inc. (DUOL) reported revenue of $1.0 billion for fiscal 2025, the year ended 31 December 2025, up 38.7% on the year before. Net income was $414 million, up 367.5%, and diluted earnings per share $8.57. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2026.

Revenue
$1.0 billion
+38.7% on the year
FY2020FY2025
Operating margin
13.1%
8.4% a year earlier
FY2020FY2025
Net income
$414 million
+367.5% on the year
FY2020FY2025
Diluted EPS
$8.57
+355.9% on the year
FY2020FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 18 new, 1 kept.

  • Revenue rose 35% in fourth quarter: Revenue was $282.9 million in the quarter, up 35%, or about 33% in constant currency. Full-year revenue was $1,037.6 million, up 39%.
  • Bookings rose 24%, subscriber growth cited: Total bookings were $336.8 million, up 24%, and $1,158.4 million for the year, up 33%. Management cited continued subscriber growth and healthy conversion.
  • Friction cited for slower DAU growth: Management said extra friction, such as higher ad load and subscription upsells, is part of the reason DAU growth slowed. Some deceleration was described as natural at scale.
  • Over $50M of bookings given up: Management estimated more than $50M of foregone bookings from friction, about 5 points of year-over-year bookings growth, is being put into the free user experience.
  • Video Call reaches far more learners: Video Call moves into the Super Duolingo tier, giving conversation practice to about ten times as many learners. Changes to the Duolingo Max tier are to be experimented with.
Read the Q4 FY2025 earnings call summary

From this 10-K

Duolingo makes a mobile app for learning languages, along with courses in math, music and chess, and an online English proficiency test. It was founded by Luis von Ahn and Severin Hacker, who met at Carnegie Mellon University, where von Ahn was a professor of computer science and Hacker his Ph.D. student. As of December 31, 2025 the app offered over 250 language courses to more than 130 million monthly active users.

Duolingo, Inc., the 10-K for 2025

Duolingo makes a mobile app for learning languages, along with courses in math, music and chess, and an online English proficiency test. It was founded by Luis von Ahn and Severin Hacker, who met at Carnegie Mellon University, where von Ahn was a professor of computer science and Hacker his Ph.D. student. As of December 31, 2025 the app offered over 250 language courses to more than 130 million monthly active users.

Free first, then subscriptions

The business runs on a freemium model. Every course is free to use for as long as a learner likes, and free users see an ad at the end of each lesson. Paying subscribers get no ads and extra features. Super Duolingo is the main subscription, with a family plan for up to six people, and Duolingo Max, launched in 2023 and priced higher, adds features and exercises powered by AI. In the fourth quarter of 2025 the company reported 133.1 million monthly active users and 52.7 million daily active users, and it had 12.2 million paid subscribers at the end of the year, approximately 9% of monthly active users.

How a lesson works

Lessons are short and built like a mobile game, with points and streaks, the count of days in a row a learner has completed a lesson. At December 31, 2025 about 43 million daily active users had a streak of seven days or longer, and about 15 million had one of 365 days or longer. AI models adjust the order and difficulty of exercises for each learner, and features such as Roleplay, Explain My Answer and Video Call are powered by AI. Learners complete nearly 2 billion exercises every day, and the company runs hundreds of A/B tests on new product features each quarter.

The English test and other products

The Duolingo English Test, launched in 2016, is an online, on-demand English proficiency test used for purposes such as university admissions, taken from anywhere on a computer with a webcam plus a smartphone. It is computer adaptive, getting harder or easier depending on how the test taker performs. Duolingo for Schools is a web-based tool for teachers using the platform in a classroom, and Duolingo ABC is an app that teaches young children early literacy skills. The math course launched in 2022 and the music course in 2023, and chess is the most recent addition.

How it grows

The company states that its learner base has grown mainly through word of mouth, supplemented by brand marketing, personalized emails and push notifications, and targeted paid user acquisition. In markets where awareness is low it hires local marketing managers and runs localized social media and influencer campaigns. All of its products, including the English test, share one technology infrastructure, and the company states that it does not sell personal data to outside parties.

People

As of December 31, 2025 the company had more than 900 employees, including more than 430 engineers.

From Duolingo's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 27 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue1,038748531+38.7%
Cost of revenue288204142+41.5%
Gross profit749544389+37.7%
Gross margin72.2%72.8%73.2%
Research and development306235194+30.2%
Operating income13662.6-13.3+116.6%
Operating margin13.1%8.4%-2.5%
Pre-tax income18210217.8+78.3%
Income tax-23213.71.7
Effective tax rate-127.0%13.4%9.6%
Net income41488.616.1+367.5%
Net margin39.9%11.8%3.0%
Diluted EPS$8.57$1.88$0.35+355.9%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow388286154+35.8%
Capital expenditure18.112.13.2+49.4%
Free cash flow370273150+35.2%
Free cash flow margin35.6%36.5%28.3%
Cash from investing-108-217-13.6
Cash from financing-29.5-30.02.1
Depreciation and amortisation14.410.97.1+32.6%
Share-based compensation13711095.2+24.4%
Buybacksn/an/a0.0
Diluted shares, weighted48m47m47m+2.6%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity1,347825656+63.4%
Debt0.00.00.0
Operating lease liabilities93.854.721.1+71.6%
Other liabilities551423277+30.5%
Total liabilities and equity1,9921,302954+53.0%
Fixed assets36.318.911.8+91.6%
Goodwill35.310.54.0+235.3%
Intangible assets28.319.916.0+42.3%
Investments13598.30.0+37.4%
Cash and equivalents1,036786748+31.9%
Receivables16312989.0+26.3%
Other assets55823985.5+133.1%
Total assets1,9921,302954+53.0%

10-K for the year ended 31 December 2025, filed 27 February 2026: the filing.