DUOLINGO (DUOL) Stock Fundamental Analysis

NASDAQ:DUOL • US26603R1068

112.57 USD
+0.52 (+0.46%)
At close: Feb 13, 2026
112.9 USD
+0.33 (+0.29%)
After Hours: 2/13/2026, 8:04:05 PM
Fundamental Rating

7

Taking everything into account, DUOL scores 7 out of 10 in our fundamental rating. DUOL was compared to 75 industry peers in the Diversified Consumer Services industry. DUOL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DUOL is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes DUOL very considerable for growth investing!


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • DUOL had positive earnings in the past year.
  • In the past year DUOL had a positive cash flow from operations.
  • In multiple years DUOL reported negative net income over the last 5 years.
  • Each year in the past 5 years DUOL had a positive operating cash flow.
DUOL Yearly Net Income VS EBIT VS OCF VS FCFDUOL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M

1.2 Ratios

  • The Return On Assets of DUOL (20.47%) is better than 93.33% of its industry peers.
  • DUOL's Return On Equity of 29.52% is amongst the best of the industry. DUOL outperforms 89.33% of its industry peers.
  • The Return On Invested Capital of DUOL (7.05%) is better than 69.33% of its industry peers.
Industry RankSector Rank
ROA 20.47%
ROE 29.52%
ROIC 7.05%
ROA(3y)0.17%
ROA(5y)-3.51%
ROE(3y)0.73%
ROE(5y)-5%
ROIC(3y)N/A
ROIC(5y)N/A
DUOL Yearly ROA, ROE, ROICDUOL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

  • DUOL has a Profit Margin of 40.03%. This is amongst the best in the industry. DUOL outperforms 97.33% of its industry peers.
  • DUOL has a better Operating Margin (11.58%) than 73.33% of its industry peers.
  • DUOL has a Gross Margin of 71.99%. This is amongst the best in the industry. DUOL outperforms 89.33% of its industry peers.
  • DUOL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.58%
PM (TTM) 40.03%
GM 71.99%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y0.58%
DUOL Yearly Profit, Operating, Gross MarginsDUOL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

8

2. Health

2.1 Basic Checks

  • DUOL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • DUOL has more shares outstanding than it did 1 year ago.
  • DUOL has more shares outstanding than it did 5 years ago.
  • DUOL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DUOL Yearly Shares OutstandingDUOL Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
DUOL Yearly Total Debt VS Total AssetsDUOL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

  • DUOL has an Altman-Z score of 6.85. This indicates that DUOL is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 6.85, DUOL belongs to the top of the industry, outperforming 94.67% of the companies in the same industry.
  • There is no outstanding debt for DUOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.85
ROIC/WACC0.81
WACC8.68%
DUOL Yearly LT Debt VS Equity VS FCFDUOL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

  • DUOL has a Current Ratio of 2.82. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of DUOL (2.82) is better than 85.33% of its industry peers.
  • DUOL has a Quick Ratio of 2.82. This indicates that DUOL is financially healthy and has no problem in meeting its short term obligations.
  • DUOL has a better Quick ratio (2.82) than 85.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.82
Quick Ratio 2.82
DUOL Yearly Current Assets VS Current LiabilitesDUOL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

8

3. Growth

3.1 Past

  • DUOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 330.60%, which is quite impressive.
  • The Revenue has grown by 39.86% in the past year. This is a very strong growth!
  • The Revenue has been growing by 60.26% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)330.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1114.29%
Revenue 1Y (TTM)39.86%
Revenue growth 3Y43.95%
Revenue growth 5Y60.26%
Sales Q2Q%41.08%

3.2 Future

  • DUOL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.20% yearly.
  • The Revenue is expected to grow by 21.76% on average over the next years. This is a very strong growth
EPS Next Y361.41%
EPS Next 2Y53.87%
EPS Next 3Y43.2%
EPS Next 5YN/A
Revenue Next Year38.69%
Revenue Next 2Y30.31%
Revenue Next 3Y26.4%
Revenue Next 5Y21.76%

3.3 Evolution

  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
DUOL Yearly Revenue VS EstimatesDUOL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B
DUOL Yearly EPS VS EstimatesDUOL Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 2 -2 4 6 8

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 14.29 indicates a correct valuation of DUOL.
  • Based on the Price/Earnings ratio, DUOL is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
  • DUOL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
  • With a Price/Forward Earnings ratio of 25.43, DUOL can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DUOL is on the same level as its industry peers.
  • DUOL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.29
Fwd PE 25.43
DUOL Price Earnings VS Forward Price EarningsDUOL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as DUOL.
  • 73.33% of the companies in the same industry are more expensive than DUOL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 14.97
EV/EBITDA 31.56
DUOL Per share dataDUOL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • DUOL has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as DUOL's earnings are expected to grow with 43.20% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y53.87%
EPS Next 3Y43.2%

0

5. Dividend

5.1 Amount

  • No dividends for DUOL!.
Industry RankSector Rank
Dividend Yield 0%

DUOLINGO

NASDAQ:DUOL (2/13/2026, 8:04:05 PM)

After market: 112.9 +0.33 (+0.29%)

112.57

+0.52 (+0.46%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners101.42%
Inst Owner Change3.77%
Ins Owners0.77%
Ins Owner Change-3.35%
Market Cap5.20B
Revenue(TTM)964.27M
Net Income(TTM)386.02M
Analysts75.48
Price Target289.98 (157.6%)
Short Float %19.5%
Short Ratio4.21
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)359.08%
Min EPS beat(2)54.23%
Max EPS beat(2)663.94%
EPS beat(4)3
Avg EPS beat(4)179.08%
Min EPS beat(4)-39%
Max EPS beat(4)663.94%
EPS beat(8)7
Avg EPS beat(8)120.2%
EPS beat(12)11
Avg EPS beat(12)113.9%
EPS beat(16)15
Avg EPS beat(16)93.29%
Revenue beat(2)2
Avg Revenue beat(2)1.78%
Min Revenue beat(2)0.81%
Max Revenue beat(2)2.76%
Revenue beat(4)4
Avg Revenue beat(4)1.25%
Min Revenue beat(4)0.02%
Max Revenue beat(4)2.76%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)8
Avg Revenue beat(12)0.63%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)-4.61%
PT rev (3m)-33.08%
EPS NQ rev (1m)-7.12%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)10.83%
EPS NY rev (3m)158.77%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.25%
Valuation
Industry RankSector Rank
PE 14.29
Fwd PE 25.43
P/S 5.4
P/FCF 14.97
P/OCF 14.3
P/B 3.98
P/tB 4.18
EV/EBITDA 31.56
EPS(TTM)7.88
EY7%
EPS(NY)4.43
Fwd EY3.93%
FCF(TTM)7.52
FCFY6.68%
OCF(TTM)7.87
OCFY6.99%
SpS20.86
BVpS28.28
TBVpS26.91
PEG (NY)0.04
PEG (5Y)N/A
Graham Number70.81
Profitability
Industry RankSector Rank
ROA 20.47%
ROE 29.52%
ROCE 7.97%
ROIC 7.05%
ROICexc 35.32%
ROICexgc 45.66%
OM 11.58%
PM (TTM) 40.03%
GM 71.99%
FCFM 36.05%
ROA(3y)0.17%
ROA(5y)-3.51%
ROE(3y)0.73%
ROE(5y)-5%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.17%
GM growth 5Y0.58%
F-Score4
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 114.39%
Cap/Sales 1.69%
Interest Coverage 250
Cash Conversion 289.08%
Profit Quality 90.05%
Current Ratio 2.82
Quick Ratio 2.82
Altman-Z 6.85
F-Score4
WACC8.68%
ROIC/WACC0.81
Cap/Depr(3y)198.51%
Cap/Depr(5y)200.22%
Cap/Sales(3y)2.71%
Cap/Sales(5y)2.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)330.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1114.29%
EPS Next Y361.41%
EPS Next 2Y53.87%
EPS Next 3Y43.2%
EPS Next 5YN/A
Revenue 1Y (TTM)39.86%
Revenue growth 3Y43.95%
Revenue growth 5Y60.26%
Sales Q2Q%41.08%
Revenue Next Year38.69%
Revenue Next 2Y30.31%
Revenue Next 3Y26.4%
Revenue Next 5Y21.76%
EBIT growth 1Y105.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year359.74%
EBIT Next 3Y95.97%
EBIT Next 5Y61.95%
FCF growth 1Y229.17%
FCF growth 3Y346.8%
FCF growth 5YN/A
OCF growth 1Y213.62%
OCF growth 3Y214.6%
OCF growth 5Y165.8%

DUOLINGO / DUOL FAQ

What is the fundamental rating for DUOL stock?

ChartMill assigns a fundamental rating of 7 / 10 to DUOL.


Can you provide the valuation status for DUOLINGO?

ChartMill assigns a valuation rating of 6 / 10 to DUOLINGO (DUOL). This can be considered as Fairly Valued.


Can you provide the profitability details for DUOLINGO?

DUOLINGO (DUOL) has a profitability rating of 6 / 10.


What is the financial health of DUOLINGO (DUOL) stock?

The financial health rating of DUOLINGO (DUOL) is 8 / 10.