DUOLMEDIUM SIGNALOPPORTUNITY10-K

Duolingo demonstrated strong growth across key financial metrics with revenue expanding meaningfully and the balance sheet substantially strengthening through increased equity and cash positions.

The company's continued robust revenue growth coupled with expanding gross profit margins indicates effective monetization of its user base and operational leverage in the business model. The substantial increase in stockholders' equity and cash reserves provides significant financial flexibility for future investments and strategic initiatives.

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

Duolingo reported strong financial performance with revenue growing meaningfully alongside corresponding gross profit expansion. The balance sheet strengthened considerably, with stockholders' equity growing notably to $1.3B and total assets expanding to $2.0B, while cash and equivalents increased to over $1.0B. Operating cash flow grew solidly to $387.8M, demonstrating the company's ability to convert revenue growth into cash generation, though capital expenditures also increased as the company continues investing in its platform infrastructure.

FINANCIAL STATEMENT CHANGES
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.

Current Liabilities
Balance Sheet
+30.5%
$422.2M→$551.1M

Current liabilities surged 30.5% — significant near-term obligations; verify ability to meet short-term debt.

Current Assets
Balance Sheet
+30.4%
$1.1B→$1.4B

Current assets grew 30.4% — improving short-term liquidity or inventory/receivables build.

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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