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Duolingo Inc (DUOL)


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Upturn Advisory Summary
10/15/2025: DUOL (3-star) is a STRONG-BUY. BUY since 1 days. Simulated Profits (0.00%). Updated daily EoD!
1 Year Target Price $449.24
1 Year Target Price $449.24
6 | Strong Buy |
8 | Buy |
9 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 16.11% | Avg. Invested days 33 | Today’s Advisory Strong Buy |
Upturn Star Rating ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 15.24B USD | Price to earnings Ratio 136.87 | 1Y Target Price 449.24 |
Price to earnings Ratio 136.87 | 1Y Target Price 449.24 | ||
Volume (30-day avg) 23 | Beta 0.85 | 52 Weeks Range 256.63 - 544.93 | Updated Date 10/15/2025 |
52 Weeks Range 256.63 - 544.93 | Updated Date 10/15/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.43 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 13.24% | Operating Margin (TTM) 13.5% |
Management Effectiveness
Return on Assets (TTM) 4.01% | Return on Equity (TTM) 13.44% |
Valuation
Trailing PE 136.87 | Forward PE 69.44 | Enterprise Value 13338216891 | Price to Sales(TTM) 17.22 |
Enterprise Value 13338216891 | Price to Sales(TTM) 17.22 | ||
Enterprise Value to Revenue 15.07 | Enterprise Value to EBITDA 136.13 | Shares Outstanding 39694545 | Shares Floating 39361018 |
Shares Outstanding 39694545 | Shares Floating 39361018 | ||
Percent Insiders 0.79 | Percent Institutions 97.95 |
Upturn AI SWOT
Duolingo Inc

Company Overview
History and Background
Duolingo Inc. was founded in 2011 by Luis von Ahn and Severin Hacker and launched to the public in 2012. Initially focused on providing free language education through crowdsourced translation, it evolved into a comprehensive language learning platform using gamification and personalized learning. Duolingo completed an initial public offering in 2021.
Core Business Areas
- Language Learning: Offers a wide range of language courses, from popular languages like Spanish and English to less common ones. Uses gamified lessons, quizzes, and interactive exercises to engage learners.
- Duolingo English Test: Provides a digital English proficiency test that is accepted by universities and institutions globally.
- Subscription Services: Offers premium subscription tiers, such as Duolingo Plus (now Super Duolingo), which provide ad-free learning, offline access, and other exclusive features.
Leadership and Structure
Luis von Ahn is the co-founder and CEO. The company has a typical corporate structure with departments focusing on engineering, product development, marketing, and finance.
Top Products and Market Share
Key Offerings
- Duolingo Language Learning App: The core product offering free language courses in various languages. It has approximately 88.4 million monthly active users as of Q1 2024. Competitors include Babbel, Rosetta Stone, and Memrise.
- Duolingo English Test: A widely accepted English proficiency test. The company has a target of $100 million USD in revenue from DET by the end of 2024, and the english test is used by ~4000 academic institutions. Competitors include IELTS and TOEFL.
- Duolingo ABC: Duolingo ABC is a language learning app for children. The company has a target of reaching over 1 million monthly active users. Competitors include Starfall and Khan Academy Kids.
Market Dynamics
Industry Overview
The language learning market is growing due to globalization and increasing demand for multilingual skills. The shift towards online and mobile learning platforms is accelerating this growth.
Positioning
Duolingo is a market leader in mobile language learning, known for its freemium model, gamified approach, and broad language offerings. It has a strong brand recognition and a large user base.
Total Addressable Market (TAM)
The global language learning market is estimated to be in excess of $75 billion. Duolingo, through both organic and inorganic growth, is positioning itself to capture a significant portion of this TAM.
Upturn SWOT Analysis
Strengths
- Large user base
- Strong brand recognition
- Gamified learning approach
- Freemium business model
- Diverse language offerings
Weaknesses
- Heavy reliance on freemium users converting to paid subscriptions
- Potential for plateauing user engagement over time
- Dependence on mobile platforms
Opportunities
- Expanding into new language courses and content
- Increasing subscription conversion rates
- Developing new educational products (e.g., literacy apps)
- Partnerships with educational institutions and corporations
Threats
- Competition from other language learning platforms
- Changing user preferences and technology
- Economic downturns impacting subscription spending
- Data security and privacy concerns
Competitors and Market Share
Key Competitors
- BABEL
- ROST
- MEMR
Competitive Landscape
Duolingo's key advantages include its freemium model and broad language offerings. However, competitors like Babbel and Rosetta Stone offer more structured and comprehensive language learning programs. MEMR differentiates through user generated content.
Major Acquisitions
Gunner Technology
- Year: 2016
- Acquisition Price (USD millions): 7.5
- Strategic Rationale: Acquisition of Gunner Technology was made so that the company could expand their engineering expertise. Gunner Technology was a small engineering firm who helped develop Duolingo's test center platform.
Growth Trajectory and Initiatives
Historical Growth: Duolingo has experienced rapid growth in user base, revenue, and profitability over the past several years.
Future Projections: Analysts project continued revenue growth for Duolingo, driven by expansion into new markets, increased subscription adoption, and new product launches.
Recent Initiatives: Duolingo has recently focused on expanding its content offerings, improving user engagement through gamification, and exploring partnerships with educational institutions.
Summary
Duolingo is a strong player in the language learning market with a well-recognized brand and growing user base. Its freemium model is effective, although it faces the challenge of converting free users to paid subscribers. Strong growth and expanding course offerings position the company for continued success, but it must address competition and maintain user engagement to sustain its momentum.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Duolingo Investor Relations
- SEC Filings
- Third-party market research reports
Disclaimers:
This analysis is based on publicly available information and should not be considered financial advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Duolingo Inc
Exchange NASDAQ | Headquaters Pittsburgh, PA, United States | ||
IPO Launch date 2021-07-28 | Co-Founder, Chairman of the Board, President & CEO Dr. Luis Alfonso von Ahn Arellano Ph.D. | ||
Sector Technology | Industry Software - Application | Full time employees 830 | Website https://www.duolingo.com |
Full time employees 830 | Website https://www.duolingo.com |
Duolingo, Inc. operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.

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