Duolingo, Inc. key statistics and ratios

In fiscal 2025, Duolingo, Inc. had return on equity of 38.1%, an operating margin of 13.1%, debt equal to 0.0% of equity and a current ratio of 2.61. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Duolingo, Inc.: financial ratios, annual
Fiscal year	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMJun 2026
Gross margin	71.6%	72.4%	73.1%	73.2%	72.8%	72.2%	72.7%
Operating margin	−9.9%	−23.9%	−17.6%	−2.5%	8.4%	13.1%	13.7%
Net margin	−9.8%	−24.0%	−16.1%	3.0%	11.8%	39.9%	35.9%
Free-cash-flow margin	8.9%	2.2%	13.0%	28.3%	36.5%	35.6%	35.6%
Return on equity	—	−27.8%	−11.3%	2.7%	12.0%	38.1%	29.8%
Return on assets	−9.0%	−14.4%	−8.5%	1.9%	7.9%	25.1%	20.2%
Asset turnover	0.92	0.60	0.52	0.62	0.66	0.63	0.56
Current ratio	2.41	5.20	3.84	3.24	2.61	2.61	2.72
Debt to equity	—	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Effective tax rate	—	—	—	9.6%	13.4%	—	—
R&D as % of revenue	32.8%	41.4%	40.7%	36.6%	31.5%	29.5%	29.5%
Capital spending as % of revenue	2.1%	1.4%	1.5%	0.6%	1.6%	1.7%	2.0%
Free cash flow ÷ net income	—	—	—	936.2%	308.7%	89.3%	99.3%
Dividends and buybacks ÷ free cash flow	0.0%	15.5%	0.0%	0.0%	—	—	—

US$ thousands unless shown otherwise. Fiscal quarters.

Duolingo, Inc.: financial ratios, quarterly
Quarter	2024 Q3Sept 2024	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026
Gross margin	72.9%	71.9%	71.1%	72.4%	72.5%	72.8%	73.0%	72.6%
Operating margin	7.0%	6.6%	10.2%	13.2%	12.9%	15.4%	15.3%	11.4%
Net margin	12.1%	6.6%	15.2%	17.8%	107.5%	14.8%	14.9%	11.1%
Free-cash-flow margin	27.6%	38.8%	45.2%	35.5%	29.2%	34.1%	51.6%	27.3%
Current ratio	3.09	2.61	2.68	2.81	2.82	2.61	2.62	2.72
R&D as % of revenue	32.6%	31.7%	30.5%	29.2%	30.4%	28.1%	28.4%	30.9%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 2 checks passed · June 30, 2026

What it owns · $2.1bn

Short-term assets $1.6bnLonger-term assets $503m

What it owes, and who funded it · $2.1bn

Short-term liabilities $578mLonger-term liabilities $86mShareholders' equity $1.4bn

Short-term assets cover short-term liabilities $1.6bn of assets due within a year against $578m of liabilities due within a year.
Short-term assets cover long-term liabilities $1.6bn short-term assets against $86m of longer-dated liabilities.
More cash than debt Cash or debt not separately reported. Not assessable.
Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt Cash flow or debt not reported. Not assessable.
Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Duolingo, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

72 /100

Strong moat

How hard Duolingo's competitive advantage looks for rivals to wear away, judged from 6 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Cash operating profit has been a median 27.5% of total assets over 5 years.
Pricing power 20 / 20

Gross margin has been a median 72.7%, moving by 0.4 percentage points (standard deviation) across 6 years.
Durability 10 / 20

Operating margin has been a median -3.1%; its worst year was -23.8%.
Cash conversion 20 / 20

Free cash flow was positive in 6 of 6 years, at a median 27.1% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (88 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Duolingo, Inc.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Duolingo, Inc.