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Duolingo DUOL

Duolingo scores excellent on business quality (9.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$149.92Oct 9, 2026
Business qualityExcellent
Next earningsNov 3, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Duolingo does

    Duolingo makes money by selling premium subscriptions and English proficiency tests through its gamified mobile language learning app, charging users directly for ad-free access and advanced features. The company is leaning heavily into expanding its math and music courses while integrating generative artificial intelligence to drive user engagement and monetization.

  2. What it does best

    Duolingo dominates digital language learning through unmatched gamification that drives a top-decile 72.8% gross margin, dwarfing peer GHC at 30.0%. This structural engagement loop creates high switching costs in user streaks that rivals cannot easily replicate.

  3. The main risk

    Trading above intrinsic value at a price of $144.27 against an intrinsic value of $127.74 leaves zero margin for user growth deceleration. If daily active user additions slow, valuation multiples risk an aggressive compression.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Gross margin sits at 72.8% with an operating margin of 14.2%. Profitability expands rapidly with scale as content creation costs are fixed while subscription revenue scales globally.

MoatStrong

The brand ecosystem locks in learners through massive scale and data-driven course personalization. Its 100th percentile FCF margin and top-decile revenue growth show an unassailable competitive advantage.

GrowthFast

Revenue is growing at 38.8%, placing it in the top decile of its sector. This engine is powered by international user adoption and expanding premium subscription tiers.

Financial healthStrong

Zero total debt and $1.1B in cash mean balance-sheet risk is nonexistent. Free cash flow surged to $398.0M, showing the business model gets progressively stronger as scale increases.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

2 sold $307K outside pre-planned sales.

Our sealed record on DUOL

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is DUOL a good business?

Duolingo scores excellent on the Cluenex quality check (9.1 of 10), measured against its own industry. Profitability is fair, moat strong, growth fast and financial health strong.

Are insiders buying DUOL?

In the last 90 days of SEC Form 4 filings: 2 sold $307K outside pre-planned sales.

When does DUOL report earnings?

Nov 3, 2026, after the close.

For members

See DUOL today

  • Today's verdict on DUOL, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Duolingo (DUOL)”, https://cluenex.com/stocks/duol/, data as of Oct 10, 2026.