How does Duolingo (DUOL) make money?

Duolingo (DUOL) primarily makes money through License and Service, which accounts for 85% of total revenue. For TTM through Q4 2025, Duolingo generated $1.04B in total revenue with a net profit margin of 39.9%.

What is Duolingo (DUOL) gross profit margin?

Duolingo (DUOL) reported a gross profit margin of 72.2% for TTM through Q4 2025, equivalent to $749.46M in gross profit. This means Duolingo retains 72.2% of each revenue unit after direct costs of production.

What is Duolingo (DUOL) operating profit margin?

Duolingo (DUOL) reported an operating profit margin of 13.1% for TTM through Q4 2025, equivalent to $135.57M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Duolingo (DUOL) net profit margin?

Duolingo (DUOL) reported a net profit margin of 39.9% for TTM through Q4 2025, equivalent to $414.06M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Duolingo (DUOL) invest in R&D?

Duolingo (DUOL) invested $306.32M in research and development in TTM through Q4 2025 (29.5% of total revenue). R&D spending reflects investment in future products, services, and technologies.

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

Duolingo (DUOL) spent $11.19M on capital expenditures in TTM through Q4 2025 (1.1% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Duolingo (DUOL) free cash flow?

Duolingo (DUOL) generated $376.64M in free cash flow for TTM through Q4 2025 (36.3% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

How Duolingo (DUOL) Makes Money: A Visual Guide

Duolingo (DUOL) generated $1.04B in revenue, earning $414.06M in net profit (39.9% margin). Its largest revenue source is License and Service (85% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Duolingo (DUOL) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 31, 2025 (reported February 27, 2026).

Frequently asked questions

How does Duolingo (DUOL) make money?: Duolingo (DUOL) primarily makes money through License and Service, which accounts for 85% of total revenue. For TTM through Q4 2025, Duolingo generated $1.04B in total revenue with a net profit margin of 39.9%.
What is Duolingo (DUOL) gross profit margin?: Duolingo (DUOL) reported a gross profit margin of 72.2% for TTM through Q4 2025, equivalent to $749.46M in gross profit. This means Duolingo retains 72.2% of each revenue unit after direct costs of production.
What is Duolingo (DUOL) operating profit margin?: Duolingo (DUOL) reported an operating profit margin of 13.1% for TTM through Q4 2025, equivalent to $135.57M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Duolingo (DUOL) net profit margin?: Duolingo (DUOL) reported a net profit margin of 39.9% for TTM through Q4 2025, equivalent to $414.06M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Duolingo (DUOL) invest in R&D?: Duolingo (DUOL) invested $306.32M in research and development in TTM through Q4 2025 (29.5% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Duolingo (DUOL) spend on capital expenditures?: Duolingo (DUOL) spent $11.19M on capital expenditures in TTM through Q4 2025 (1.1% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Duolingo (DUOL) free cash flow?: Duolingo (DUOL) generated $376.64M in free cash flow for TTM through Q4 2025 (36.3% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q4 2025.