Stocks analysis

Analysis for DUOL

$148.93 +9.20 (+6.58%)
  • 📈 Growth — 28/30
  • 💰 Profitability — 18/20
  • 🏦 Financial Health — 19/20
  • 💵 Valuation — 14/20
  • ⚠️ Risk — 7/10
Overall Score: 82/100

Summary:


📈 Growth & Financial Trajectory

Eight quarters show a clear revenue uptrend. Revenues grew from about $192.6M in 2024 Q2 to $291.97M in 2026 Q1, up roughly 52%. Net income expanded from $24.35M to $43.46M, with a standout spike to $292.20M in 2025 Q3 driven by a one-off item; excluding that spike, earnings trend higher as scale increases.

💰 Margins & Cash Flow

Gross margin remained strong around 72%–74%, and operating margins moved from the high single digits to the low double digits, indicating improving operating leverage. Cash flow from operating activities stayed positive in every quarter, notably about $150.8M in 2026 Q1, while investing activities were often negative as the company invested in growth. Overall, cash generation appears sufficient to fund growth.

🛡️ Balance Sheet & Liquidity

Balance sheet shows total assets around $1.9B–$2.0B, with current assets near $1.0B–$1.3B and current liabilities around $0.3B–$0.5B. Equity to parent ranges roughly $0.8B–$1.4B. Noncurrent liabilities are typically small or zero, and long-term debt is minimal, supporting a solid liquidity position and resilience through quarterly fluctuations.

⚠️ Key Drivers & Risks

  • Drivers: Accelerating monetization of a growing user base and scalable subscription revenue; ongoing product enhancements.
  • Risks: Earnings volatility due to one-off gains (notably 2025 Q3); competitive dynamics and sensitivity to user engagement and retention, which could impact multiple quarters.

📊 Key Financial Fundamentals

Valuation Multiples
Market Cap $6.73B
P/E Ratio 16.39
Forward P/E 43.41
P/S Ratio 5.88
P/B Ratio 3.80
EV / EBITDA 34.09
Profitability & Returns
Gross Margin 72.72%
Operating Margin 13.72%
Net Margin 35.87%
ROE 30.11%
ROIC 30.11%
Financial Health & Liquidity
Current Ratio 2.72
Quick Ratio 2.68
Financial Scale & Cash Flow
Revenue $1.14B
Net Income $0.41B
FCF Yield 5.91%
Free Cash Flow $0.40B
Total Debt To Equity 0.00