Duolingo (NASDAQ:DUOL) Issues Quarterly Earnings Results

Duolingo (NASDAQ:DUOL) released its quarterly earnings data on Monday. The company reported $0.89 EPS for the quarter, beating the consensus estimate of $0.79 by $0.10, FiscalAI reports. The company had revenue of $291.97 million for the quarter, compared to analyst estimates of $288.60 million. Duolingo had a return on equity of 14.88% and a net margin of 39.91%.The firm’s revenue was up 26.5% compared to the same quarter last year. During the same period last year, the company posted $0.72 earnings per share.

Here are the key takeaways from Duolingo’s conference call:

• Duolingo reported DAUs up 21% year-over-year, reiterated a ~20% DAU growth target for 2026, and rolled out speaking-focused features (spoken tokens, Speaking Adventures, Flashcards) plus Video Call improvements to boost retention and engagement.
• AI-driven content scale accelerated dramatically — 20,500 course units in Q1 — and the company now offers up to B2 proficiency across its nine most-learned languages, enabling faster personalization and A/B testing of content.
• Management gave 2026 point estimates (bookings ~10.5%, revenue ~16.1%, adjusted EBITDA margin ~25.7%), enters Q2 with >$1 billion cash, no debt, expects >$350M free cash flow, and is executing a $400M buyback (514k shares repurchased to date).
• Near-term headwinds include a tough Q2 comp with bookings growth guided to ~6% and expected margin pressure as gross margin is forecast to move from ~71% in Q2 to ~69% by year-end as AI usage and related costs expand.

Duolingo Stock Down 0.9%

NASDAQ:DUOL opened at $110.23 on Tuesday. The company has a market capitalization of $5.18 billion, a price-to-earnings ratio of 12.94, a price-to-earnings-growth ratio of 0.78 and a beta of 0.90. Duolingo has a one year low of $87.89 and a one year high of $544.93. The stock has a 50-day simple moving average of $100.45 and a 200 day simple moving average of $157.37. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.61 and a current ratio of 2.61.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Q1 results beat consensus — Duolingo reported $0.89 EPS (vs. $0.79 est.) and revenue of ~$292M, up ~26.5% year?over?year, showing healthy margin expansion. Zacks: Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Operational efficiency and AI use — Management highlighted use of AI to automate content creation and improve product development, supporting profit margin gains reported for the quarter. MarketWatch: AI automates content creation
• Neutral Sentiment: FY and Q2 revenue guidance roughly in line — Duolingo issued FY 2026 revenue guidance around $1.2B and Q2 revenue guidance near $295.5M, roughly matching consensus, so top?line dollar guidance was not the main surprise. GlobeNewswire: Q1 Results / Guidance
• Negative Sentiment: Bookings outlook slowed — Total bookings grew ~14% in Q1 (~$308.5M) but management guided to materially slower bookings growth in Q2 (implied ~5.8% y/y) and full?year bookings growth of ~10.5%, signaling near?term deceleration that hurt sentiment for a growth multiple. Reuters: Growth outlook moderates
• Negative Sentiment: Market reaction and investor concern — Despite the beat, shares fell after hours as investors focused on the slower bookings guidance and management’s decision to prioritize engagement/longer?dated returns over faster monetization. Yahoo Finance: Q1 Sales Beat But Stock Drops
• Negative Sentiment: Management message: investing for later returns — Executives said current investments will yield benefits beyond 2026, which can pressure near?term growth expectations and multiple compression for a premium growth name. See the full call transcript for detail. Seeking Alpha: Q1 2026 Earnings Call Transcript

Insider Transactions at Duolingo

In other Duolingo news, insider Robert Meese sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $110.06, for a total value of $110,060.00. Following the transaction, the insider owned 122,636 shares of the company’s stock, valued at $13,497,318.16. This trade represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, General Counsel Stephen C. Chen sold 1,901 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.26, for a total transaction of $215,307.26. Following the completion of the transaction, the general counsel directly owned 30,545 shares in the company, valued at $3,459,526.70. This represents a 5.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 14,939 shares of company stock valued at $1,676,291 over the last ninety days. Insiders own 16.62% of the company’s stock.

Hedge Funds Weigh In On Duolingo

Large investors have recently bought and sold shares of the business. EFG International AG bought a new position in Duolingo in the fourth quarter worth about $26,000. AlphaCentric Advisors LLC bought a new position in Duolingo in the fourth quarter worth about $33,000. Caitong International Asset Management Co. Ltd bought a new position in Duolingo in the fourth quarter worth about $43,000. Advisors Asset Management Inc. lifted its holdings in Duolingo by 152.5% in the fourth quarter. Advisors Asset Management Inc. now owns 298 shares of the company’s stock worth $52,000 after acquiring an additional 180 shares during the last quarter. Finally, Banque Cantonale Vaudoise bought a new position in Duolingo in the third quarter worth about $70,000. Institutional investors own 91.59% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on DUOL shares. UBS Group set a $245.00 target price on Duolingo in a research note on Monday, January 5th. Wells Fargo & Company lowered their target price on Duolingo from $185.00 to $160.00 and set an “underweight” rating for the company in a research note on Thursday, January 8th. Bank of America restated a “neutral” rating and set a $100.00 target price on shares of Duolingo in a research note on Friday, February 27th. JPMorgan Chase & Co. decreased their price target on Duolingo from $95.00 to $92.00 and set a “neutral” rating for the company in a research note on Monday, April 20th. Finally, Citigroup reiterated a “neutral” rating and issued a $101.00 price target (down from $270.00) on shares of Duolingo in a research note on Friday, February 27th. Three investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $196.78.

Duolingo Company Profile

Duolingo, Inc (NASDAQ:DUOL) is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company’s core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.