$DUOL

Duolingo, Inc.

CIK:0001562088|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 298,454	$ 252,265	$ 590,421	$ 483,008
Cost of revenues	81,714	69,684	160,585	136,331
Gross profit	216,740	182,581	429,836	346,677
Operating expenses:
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
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

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 76,618,000	$ 79,916,000
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	21,293,000	0
Stock-based compensation expense	72,857,000	65,610,000
Depreciation and amortization	8,438,000	7,030,000
Accretion on marketable securities, net	(642,000)	(1,017,000)
Impairment of capitalized software	578,000	0
Changes in assets and liabilities:
Deferred revenue	8,897,000	58,293,000
Accounts receivable	31,848,000	16,004,000
Deferred cost of revenues	(26,000)	(13,632,000)
Prepaid expenses and other current assets	7,069,000	(4,536,000)
Accounts payable	6,188,000	593,000
Accrued expenses and other current liabilities	7,159,000	(10,350,000)
Noncurrent assets and liabilities	(1,246,000)	(1,605,000)
Net cash provided by operating activities	239,031,000	196,306,000
Cash flows from investing activities:
Purchases of investments	(75,438,000)	(48,321,000)
Maturities and paydowns of investments	79,584,000	42,470,000
Capitalized software expense and purchases of intangible assets	(5,587,000)	(4,463,000)
Purchase of property and equipment	(7,028,000)	(2,507,000)
Net cash used for investing activities	(8,469,000)	(12,821,000)
Cash flows from financing activities:
Proceeds from exercise of stock options	2,338,000	6,955,000
Repurchase of common stock	(69,603,000)	0
Taxes paid related to net-share settlement of share-based compensation awards	(18,799,000)	0
Net cash (used for) provided by financing activities	(86,064,000)	6,955,000
Net increase in cash, cash equivalents and restricted cash	144,498,000	190,440,000
Cash, cash equivalents and restricted cash - Beginning of period	1,039,124,000	788,526,000
Cash, cash equivalents and restricted cash - End of period	1,183,622,000	978,966,000
Supplemental disclosure of cash flow information:
Cash paid for income taxes	768,000	11,720,000
Supplemental disclosure of noncash investing activities:
Property and equipment included in Current liabilities	2,012,000	827,000
Landlord incentive included in Other assets	6,809,000	6,809,000
Right of use assets obtained in exchange for new operating lease liabilities	1,918,000	36,025,000
Repurchases of common stock included in Current liabilities	$ 675,000	$ 0

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
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
Current liabilities
Deferred revenues	505,102	496,205
Accounts payable	16,196	7,998
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)
Stockholders’ equity
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)	0
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