Duolingo, Inc.

Duolingo, Inc. reported strong financial performance for fiscal year 2025, ending December 31, 2025. Revenue grew to $1.04 billion, driven by its freemium model and subscription services, with approximately 9% of monthly active users being paid subscribers. The company achieved significant profitability, with net income of $414.1 million, a substantial increase from the prior year's $88.6 million, largely due to a $231.7 million income tax benefit from the release of a valuation allowance on deferred tax assets. Gross profit was $749.5 million, and operating income reached $135.6 million. The company generated $387.8 million in net cash from operating activities and ended the period with $1.04 billion in cash and cash equivalents. Key growth drivers included expansion into new subjects like Math, Music, and Chess, leveraging AI-powered features, and the Duolingo English Test, accepted by over 6,100 education programs globally. The company had over 130 million monthly active users and more than 900 employees as of year-end.

Key Takeaways