How does Duolingo (DUOL) make money?

Duolingo (DUOL) generates revenue primarily from License and Service, which accounted for 85.7% of total revenue in TTM through Q1 2026. The company reported $1.10B in revenue and converted 38.4% of it into net profit, equivalent to roughly $422.39M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Duolingo (DUOL)?

Duolingo (DUOL) reported a gross profit margin of 72.1% in TTM through Q1 2026, equivalent to $792.69M in gross profit on $1.10B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Duolingo (DUOL)?

Duolingo (DUOL) reported an operating profit margin of 14.8% in TTM through Q1 2026, equivalent to $162.41M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Duolingo (DUOL)?

Duolingo (DUOL) reported a net profit margin of 38.4% in TTM through Q1 2026, equivalent to $422.39M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Duolingo (DUOL) profitable?

Yes. Duolingo (DUOL) reported $422.39M in net income for TTM through Q1 2026, with a net profit margin of 38.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Duolingo (DUOL) invest in research and development?

Duolingo (DUOL) invested $315.49M in research and development during TTM through Q1 2026, roughly 28.7% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Duolingo (DUOL) spend on capital expenditures?

Duolingo (DUOL) spent $16.92M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 1.5% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Duolingo (DUOL) generate?

Duolingo (DUOL) generated $416.04M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 37.9%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What are the main business segments of Duolingo (DUOL)?

Duolingo (DUOL) reports revenue across 5 reportable product segments, led by License & Service at 85.7% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Duolingo Makes Money: 2026 Visual Revenue Map

Duolingo (DUOL) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 5, 2026).

Duolingo discloses geographic revenue only in annual filings. to view the full breakdown.

Duolingo (DUOL) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Duolingo (DUOL) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
License & Service	$942.14M	85.7%
Advertising	$83.23M	7.6%
English Test	$41.73M	3.8%
In-App Purchases	$30.21M	2.7%
Other	$1.51M	0.1%
Total	$1.10B	100%

License & Service$942.14M
Advertising$83.23M
English Test$41.73M
In-App Purchases$30.21M
Other$1.51M
Total$1.10B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Duolingo (DUOL) reports revenue across 5 operating segments; the largest segment was License & Service at 85.7%, followed by Advertising (7.6%) and English Test (3.8%).

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