Duolingo, Inc. (DUOL)

Latest 10-K (filed 2026-02-27)

Income Statement

Consolidated Statement of Income

Duolingo, Inc. (DUOL)

Year Ended (In thousands, except shares and per share data)

Dec 31, 2025 Dec 31, 2024 Dec 31, 2023
    Revenues $1,037,589 $748,024 $531,109
Subscription $873,442 $607,531 $404,684
Advertising $79,725 $54,907 $49,858
Duolingo English Test $42,006 $45,640 $41,212
IAPs $40,479 $38,653 $34,673
Other $164,147 $140,493 $126,425
    Cost of revenues $288,132 $203,645 $142,105
    Gross profit $749,457 $544,379 $389,004
      Research and development $306,323 $235,298 $194,352
      Sales and marketing $125,677 $90,494 $75,788
      General and administrative $181,887 $155,992 $132,123
    Total operating expenses $613,887 $481,784 $402,263
    Income from operations 135,570 62,595 (13,259)
    Other income $3,382 $1,267 $590
    Other expense $(1,773) $(4,253) $(645)
    Other income (expense), net $1,609 $(2,986) $(55)
    Income (loss) before interest income and income taxes $137,179 $59,609 $(13,314)
    Interest income $45,231 $42,697 $31,091
  Income before income taxes $182,410 $102,306 $17,777
  (Benefit from) provision for income taxes $(231,655) $13,732 $1,710
  Net income $414,065 $88,574 $16,067
Class A and Class B Common Stock $414,065 $88,574 $16,067
  Comprehensive income $414,065 $88,574 $16,067
  Net income per share attributable to Class A and Class B common stockholders, basic (in usd per share) 9.05 2.04 0.39
  Net income per share attributable to Class A and Class B common stockholders, diluted (in usd per share) 8.57 1.88 0.35

Balance Sheet

Consolidated Balance Sheets

Duolingo, Inc. (DUOL)

As of December 31, 2025 and December 31, 2024 (In thousands, except shares and per share data)

Dec 31, 2025 Dec 31, 2024
        Cash and cash equivalents $1,036,389 $785,791
        Short-term investments $104,078 $91,854
        Accounts receivable $162,827 $128,923
        Deferred cost of revenues $102,663 $80,162
        Income tax receivable $14,067 $27
        Prepaid expenses and other current assets $16,582 $14,831
      Total current assets $1,436,606 $1,101,588
      Operating lease right-of-use assets $80,380 $47,495
      Long-term investments $135,098 $98,292
      Intangible assets, net $28,309 $19,899
      Property and equipment, net $36,297 $18,943
      Goodwill $35,335 $10,538
      Restricted cash $2,735 $2,735
      Deferred tax assets, net $227,339 $675
      Other assets $10,083 $1,563
    Total assets $1,992,182 $1,301,728
        Deferred revenues $496,205 $372,884
        Accounts payable $7,998 $6,381
        Income tax payable $1,257 $6,591
        Accrued expenses and other current liabilities $45,688 $36,375
      Total current liabilities $551,148 $422,231
      Long-term obligation under operating leases $93,779 $54,656
      Deferred tax liabilities, net $249 $291
      Total liabilities $645,176 $477,178
      Commitments and contingencies (Note 11)
      Class A common stock, $0.0001 par value; 2,000,000 shares authorized as of December 31, 2025 and December 31, 2024; 40,368 and 38,730 issued and outstanding at December 31, 2025 and December 31, 2024, respectively Class B common stock, $0.0001 par value; 30,000 shares authorized as of December 31, 2025 and December 31, 2024; 6,260 and 6,206 issued and outstanding at December 31, 2025 and December 31, 2024, respectively $5 $4
      Additional paid-in capital $1,058,783 $950,393
      Retained earnings (Accumulated deficit) $288,218 $(125,847)
      Total stockholders’ equity $1,347,006 $824,550
    Total liabilities and stockholders' equity $1,992,182 $1,301,728

Cash Flow

Consolidated Statement of Cash Flows

Duolingo, Inc. (DUOL)

Year Ended (In thousands, except shares and per share data)

Dec 31, 2025 Dec 31, 2024 Dec 31, 2023
      Net income $414,065 $88,574 $16,067
Class A and Class B Common Stock $414,065 $88,574 $16,067
      Deferred income taxes $(225,185)
      Stock-based compensation expense $137,437 $110,477 $95,221
      Depreciation and amortization $14,391 $10,854 $7,095
      Accretion on marketable securities, net $(1,851) $(551)
      Other $238 $333
        Deferred revenue $123,321 $123,692 $91,642
        Accounts receivable $(33,904) $(39,917) $(42,247)
        Deferred cost of revenues $(22,501) $(26,231) $(18,890)
        Prepaid expenses and other current assets $(15,791) $(7,570) $(48)
        Accounts payable $1,617 $3,934 $1,261
        Accrued expenses and other current liabilities $255 $16,850 $3,444
        Noncurrent assets and liabilities $(4,031) $5,163 $(264)
    Net cash provided by operating activities $387,823 $285,513 $153,614
      Purchases of investments $(162,926) $(193,300)
      Maturities and paydowns of investments $115,747 $3,705
      Capitalized software expense and purchases of intangible assets $(9,303) $(9,024) $(10,493)
      Purchase of property and equipment $(18,096) $(12,116) $(3,191)
      Proceeds from sale of capitalized software $100
      Acquisitions of companies, net of $0 and $5 cash acquired, respectively $(33,100) $(6,595)
    Net cash used for investing activities $(107,678) $(217,330) $(13,584)
      Proceeds from exercise of stock options $12,570 $19,356 $13,617
      Taxes paid related to net-share settlement of share-based compensation awards $(41,617) $(49,358) $(11,482)
      Payment of earn-out related to a previous acquisition $(500)
    Net cash used for financing activities $(29,547) $(30,002) $2,135
  Net increase in cash, cash equivalents and restricted cash $250,598 $38,181 $142,165
  Cash, cash equivalents and restricted cash - End of period
  Cash, cash equivalents and restricted cash - End of period
    Cash paid for income taxes $14,405 $7,620 $2,320
    Property and equipment included in Current liabilities $4,453 $165
    Landlord incentive included in Other assets $6,809
    Right of use assets obtained in exchange for new operating lease liabilities $39,202 $33,039
    Right of use assets disposed of or adjusted for modifying operating leases liabilities $1,303 $2,024