DUOLHIGH SIGNALFINANCIAL10-K

Duolingo achieved exceptional financial performance with net income surging 367.5% to $414.1M while revenue crossed the $1B milestone with 38.7% growth.

This represents a significant inflection point in Duolingo's profitability trajectory, demonstrating the company's ability to scale efficiently and convert revenue growth into substantial bottom-line results. The massive jump in net income far outpacing revenue growth indicates strong operational leverage and margin expansion, suggesting the business model is reaching optimal efficiency at scale.

Comparing 2026-02-27 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

Duolingo delivered outstanding across-the-board growth with revenue reaching $1.0B (+38.7%) and all profitability metrics expanding dramatically - net income exploded 367.5% to $414.1M while operating income more than doubled to $135.6M. The balance sheet strengthened significantly with stockholders' equity growing 63.4% to $1.3B, total assets expanding 53% to $2.0B, and cash position increasing 31.9% to over $1B, while operating cash flow grew a healthy 35.8%. This financial performance signals Duolingo has achieved exceptional operational leverage and profitability scaling as it crosses key revenue milestones.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+367.5%
$88.6M→$414.1M

Net income grew 367.5% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+116.6%
$62.6M→$135.6M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Stockholders Equity
Balance Sheet
+63.4%
$824.5M→$1.3B

Equity base grew 63.4% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+53%
$1.3B→$2.0B

Asset base grew 53% — expansion through organic growth, acquisitions, or capital deployment.

Capital Expenditure
Cash Flow
+49.4%
$12.1M→$18.1M

Capital expenditure jumped 49.4% — major investment cycle underway; assess returns on deployment.

Revenue
P&L
+38.7%
$748.0M→$1.0B

Strong top-line growth of 38.7% — accelerating demand or successful expansion into new markets.

Gross Profit
P&L
+37.7%
$544.4M→$749.5M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Operating Cash Flow
Cash Flow
+35.8%
$285.5M→$387.8M

Operating cash flow surged 35.8% — exceptional cash generation, highest quality earnings signal.

Total Liabilities
Balance Sheet
+35.2%
$477.2M→$645.2M

Liabilities grew 35.2% — significant increase in debt or obligations, assess impact on financial flexibility.

Cash & Equivalents
Balance Sheet
+31.9%
$785.8M→$1.0B

Cash position surged 31.9% — strong cash generation or capital raise providing significant financial cushion.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
As of February 25, 2026, 40,594,239 shares of the registrant's Class A common stock were outstanding, and 6,356,052 shares of the registrant's Class B common stock were outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 58 Item 7A.
See Risk Factors Our user metrics and other operating metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics may negatively affect our reputation and our business included in Part I, Item 1A.
We have grown rapidly in recent years and have limited operating experience at our current scale of operations.
And today, the technology necessary to enable this is in the hands of billions of people, in the form of a smartphone.
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REMOVED
As of February 26, 2025, 39,044,190 shares of the registrant's Class A common stock were outstanding, and 6,198,612 shares of the registrant's Class B common stock were outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 61 Item 7A.
See the section titled Risk Factors Our user metrics and other operating metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics may negatively affect our reputation and our business .
And for the first time in history, the technology necessary to enable this is in the hands of billions of people, in the form of a smartphone.
Our team, which as of December 31, 2024, consisted of approximately 830 passionate employees, including more than 380 engineers, aims to build the most sophisticated education platform in the world.
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