How Duolingo (DUOL) Makes Money: A Visual Guide
Duolingo (DUOL) generated $1.04B in revenue (TTM through Q4 2025), 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
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.
About this data
- 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 sum the last four quarters. 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.