Duolingo, Inc. (DUOL)

Latest 10-Q (filed 2026-08-06)

Income Statement

Consolidated Statement of Income

Duolingo, Inc. (DUOL)

Three and Six Months Ended (In thousands, except shares and per share data)

Jun 30, 2026 (Q2) Jun 30, 2025 (Q2) Jun 30, 2026 (YTD) Jun 30, 2025 (YTD)
    Revenues $298,454 $252,265 $590,421 $483,008
Subscription $258,035 $210,678 $508,943 $401,665
Advertising $21,052 $20,603 $41,666 $38,485
Duolingo English Test $10,109 $10,088 $21,426 $22,074
IAPs $8,002 $10,390 $16,448 $19,832
Other $1,256 $506 $1,938 $952
    Cost of revenues $81,714 $69,684 $160,585 $136,331
    Gross profit $216,740 $182,581 $429,836 $346,677
      Research and development $92,195 $73,670 $175,169 $144,060
      Sales and marketing $40,007 $29,563 $79,256 $56,225
      General and administrative $50,593 $45,985 $96,939 $89,435
    Total operating expenses $182,795 $149,218 $351,364 $289,720
    Income from operations 33,945 33,363 78,472 56,957
    Other (expense) income, net $(410) $1,660 $(1,196) $2,661
    Income before interest income and income taxes $33,535 $35,023 $77,276 $59,618
    Interest income $11,831 $11,427 $23,642 $21,842
  Income before income taxes $45,366 $46,450 $100,918 $81,460
  Provision for income taxes $12,208 $1,669 $24,300 $1,544
  Net income $33,158 $44,781 $76,618 $79,916
Class A and Class B Common Stock $33,158 $44,781 $76,618 $79,916
  Comprehensive income $33,158 $44,781 $76,618 $79,916
  Net income per share attributable to Class A and Class B common stockholders, basic (in usd per share) 0.71 0.98 1.64 1.76
  Net income per share attributable to Class A and Class B common stockholders, diluted (in usd per share) 0.66 0.91 1.53 1.64

Balance Sheet

Consolidated Balance Sheets

Duolingo, Inc. (DUOL)

As of June 30, 2026 and December 31, 2025 (In thousands, except shares and per share data)

Jun 30, 2026 Dec 31, 2025
        Cash and cash equivalents $1,180,887 $1,036,389
        Short-term investments $132,979 $104,078
        Accounts receivable $130,979 $162,827
        Deferred cost of revenues $102,689 $102,663
        Income tax receivable $2,707 $14,067
        Prepaid expenses and other current assets $20,873 $16,582
      Total current assets $1,571,114 $1,436,606
      Operating lease right-of-use assets $74,830 $80,380
      Long-term investments $102,693 $135,098
      Intangible assets, net $27,598 $28,309
      Property and equipment, net $42,619 $36,297
      Goodwill $35,335 $35,335
      Restricted cash $2,735 $2,735
      Deferred tax assets, net $206,039 $227,339
      Other assets $10,990 $10,083
    Total assets $2,073,953 $1,992,182
        Deferred revenues $505,102 $496,205
        Accounts payable $16,196 $7,998
Board of Directors Chairman
        Income tax payable $1,106 $1,257
        Accrued expenses and other current liabilities $55,429 $45,688
      Total current liabilities $577,833 $551,148
      Long-term obligation under operating leases $86,136 $93,779
      Deferred tax liabilities, net $242 $249
      Total liabilities $664,211 $645,176
      Commitments and contingencies (Note 9)
      Class A common stock, $0.0001 par value; 2,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 40,337 issued and 40,325 outstanding at June 30, 2026 and 40,368 issued and outstanding at December 31, 2025, respectively Class B common stock, $0.0001 par value; 30,000 shares authorized as of June 30, 2026 and December 31, 2025; 6,399 and 6,260 issued and outstanding at June 30, 2026 and December 31, 2025, respectively $5 $5
      Treasury stock, at cost; 12 and 0 shares as of June 30, 2026 and December 31, 2025, respectively. $(1,425)
      Additional paid-in capital $1,046,326 $1,058,783
      Retained earnings $364,836 $288,218
      Total stockholders’ equity $1,409,742 $1,347,006
    Total liabilities and stockholders' equity $2,073,953 $1,992,182

Cash Flow

Consolidated Statement of Cash Flows

Duolingo, Inc. (DUOL)

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

Jun 30, 2026 (YTD) Jun 30, 2025 (YTD)
      Net income $76,618 $79,916
Class A and Class B Common Stock $76,618 $79,916
      Deferred income taxes $21,293
      Stock-based compensation expense $72,857 $65,610
      Depreciation and amortization $8,438 $7,030
      Accretion on marketable securities, net $(642) $(1,017)
      Impairment of capitalized software $578
        Deferred revenue $8,897 $58,293
        Accounts receivable $31,848 $16,004
        Deferred cost of revenues $(26) $(13,632)
        Prepaid expenses and other current assets $7,069 $(4,536)
        Accounts payable $6,188 $593
        Accrued expenses and other current liabilities $7,159 $(10,350)
        Noncurrent assets and liabilities $(1,246) $(1,605)
    Net cash provided by operating activities $239,031 $196,306
      Purchases of investments $(75,438) $(48,321)
      Maturities and paydowns of investments $79,584 $42,470
      Capitalized software expense and purchases of intangible assets $(5,587) $(4,463)
      Purchase of property and equipment $(7,028) $(2,507)
    Net cash used for investing activities $(8,469) $(12,821)
      Proceeds from exercise of stock options $2,338 $6,955
      Repurchase of common stock $(69,603)
      Taxes paid related to net-share settlement of share-based compensation awards $(18,799)
    Net cash (used for) provided by financing activities $(86,064) $6,955
  Net increase in cash, cash equivalents and restricted cash $144,498 $190,440
  Cash, cash equivalents and restricted cash - End of period
  Cash, cash equivalents and restricted cash - End of period
    Cash paid for income taxes $768 $11,720
    Property and equipment included in Current liabilities $2,012 $827
    Landlord incentive included in Other assets $6,809 $6,809
    Right of use assets obtained in exchange for new operating lease liabilities $1,918 $36,025
    Repurchases of common stock included in Current liabilities $675