Filing Flows › Duolingo (DUOL) › Q1 2025
Duolingo (DUOL) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 2, 2025
Duolingo (DUOL) reported revenue of $231M for the first quarter 2025 (Q1 2025), +38% from a year earlier and +10% from the quarter before. Operating margin was 10.2%, net earnings $35.1M (15.2% of revenue).
Duolingo, Q1 2025: revenue $231M (+38% year over year), operating margin 10.2%, net earnings $35.1M, operating cash flow $106M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $231M | +10% | +38% |
| Gross profit | $164M | +9% | +34% |
| Operating profit | $23.6M | +70% | +44% |
| Net earnings | $35.1M | +153% | +30% |
| Operating cash flow | $106M | +27% | +26% |
| Free cash flow | $104M | +28% | +27% |
What changed
Revenue was $230.7M in Q1 2025, up 38% year over year and up 10% from the previous quarter. Subscription was the largest line at 83% of revenue. Subscription added $59.3M year over year (up 45%), 94% of the total change. Duolingo English Test declined 6%.
Gross margin was 71.1%, down 1.9 points from a year earlier. Operating profit was $23.6M, a 10.2% margin (up 0.4 points year over year). Of the extra revenue versus a year earlier, 11% reached operating profit, above the 10% margin then. Operating expenses grew 33% against revenue growth of 38%. The fastest-growing cost line was Research & development (+38%). Net earnings were $35.1M, up 30% year over year. The effective tax rate was -0.4%. Non-operating items added $11.4M, 33% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $105.6M (up 26% year over year), 301% of net earnings. Non-cash charges added back $3.6M of depreciation and amortization and $31.0M of share-based compensation. Working capital and other items added $35.9M. Capital expenditures of $1.3M left free cash flow of $104.3M.
Questions
What was Duolingo's revenue in the first quarter 2025?
Duolingo (DUOL) reported revenue of $231M for the first quarter 2025 (Q1 2025), +38% from a year earlier and +10% from the quarter before.
Was Duolingo profitable in the first quarter 2025?
Operating profit was $23.6M (10.2% of revenue) and net earnings $35.1M.
Source: Duolingo 10-Q on SEC EDGAR.