Duolingo (NASDAQ:DUOL) Announces Earnings Results

Duolingo (NASDAQ:DUOL) released its quarterly earnings results on Tuesday. The company reported $0.54 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.03), FiscalAI reports. The firm had revenue of $309.01 million for the quarter, compared to analyst estimates of $303.22 million. Duolingo had a return on equity of 12.10% and a net margin of 35.88%.

Duolingo Stock Down 5.4%

Shares of NASDAQ:DUOL traded down $7.27 during midday trading on Tuesday, hitting $128.00. The stock had a trading volume of 2,371,393 shares, compared to its average volume of 1,759,633. The company has a market cap of $5.99 billion, a P/E ratio of 15.17, a PEG ratio of 1.11 and a beta of 1.05. Duolingo has a 12 month low of $87.89 and a 12 month high of $268.97. The business’s 50-day simple moving average is $145.02 and its 200-day simple moving average is $124.24. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06.

Duolingo News Summary

Here are the key news stories impacting Duolingo this week:

• Neutral Sentiment: A recent earnings-watch article highlights a GF Value model estimate suggesting substantial upside. This is a valuation-model projection, not company guidance or a guarantee. Earnings To Watch: Duolingo Inc (DUOL) Q3 2026
• Negative Sentiment: Several law firms publicized a pending securities class action covering investors who bought Duolingo Class A shares from May 2, 2025, through February 26, 2026. The suit alleges the company’s disclosures failed to reflect concerns about growth prospects, monetization friction and AI-generated lessons; one notice contrasts reported 49% user growth with an alleged outlook of about 20%. Investors have until December 7, 2026, to seek lead-plaintiff status. The claims could add legal and reputational uncertainty, although they remain unproven. Levi & Korsinsky notice

Insider Activity

In other Duolingo news, insider Natalie Glance sold 1,539 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $137.80, for a total value of $212,074.20. Following the completion of the sale, the insider owned 169,111 shares in the company, valued at $23,303,495.80. This trade represents a 0.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Stephen Chen sold 8,072 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $149.33, for a total transaction of $1,205,391.76. Following the completion of the sale, the general counsel owned 43,769 shares of the company’s stock, valued at approximately $6,536,024.77. This represents a 15.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 250,740 shares of company stock valued at $37,685,893. 16.62% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. Truist Financial increased their target price on shares of Duolingo from $100.00 to $120.00 and gave the stock a “hold” rating in a report on Thursday, August 6th. Needham & Company LLC restated a “buy” rating and set a $145.00 price objective on shares of Duolingo in a research note on Thursday, August 6th. Bank of America cut Duolingo from a “neutral” rating to an “underperform” rating and decreased their price objective for the company from $103.00 to $93.00 in a report on Tuesday, August 4th. KeyCorp raised Duolingo from a “hold” rating to an “overweight” rating in a research report on Tuesday, August 18th. Finally, Jefferies Financial Group upped their target price on Duolingo from $95.00 to $125.00 and gave the stock a “hold” rating in a report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $127.19.

Duolingo Company Profile

Duolingo, Inc develops technology-based learning products designed to make education accessible and engaging. Its flagship Duolingo mobile and web platform offers gamified courses in languages including Spanish, English, French, German and Japanese, among others. Lessons incorporate interactive exercises, personalized practice and achievement-based features intended to support regular learning.

The company also operates the Duolingo English Test, an online English-proficiency assessment that can be taken remotely and is accepted by educational institutions and other organizations.