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Duolingo (DUOL) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 7, 2025
Duolingo (DUOL) reported revenue of $252M for the second quarter 2025 (Q2 2025), +41% from a year earlier and +9% from the quarter before. Operating margin was 13.2%, net earnings $44.8M (17.8% of revenue).
Duolingo, Q2 2025: revenue $252M (+42% year over year), operating margin 13.2%, net earnings $44.8M, operating cash flow $90.7M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $252M | +9% | +41% |
| Gross profit | $183M | +11% | +39% |
| Operating profit | $33.4M | +41% | +78% |
| Net earnings | $44.8M | +27% | +84% |
| Operating cash flow | $90.7M | -14% | +45% |
| Free cash flow | $89.5M | -14% | +57% |
What changed
Revenue was $252.3M in Q2 2025, up 41% year over year and up 9% from the previous quarter. Subscription was the largest line at 84% of revenue. Subscription added $66.8M year over year (up 46%), 90% of the total change. Duolingo English Test declined 6%.
Gross margin was 72.4%, down 1.1 points from a year earlier. Operating profit was $33.4M, a 13.2% margin (up 2.7 points year over year). Of the extra revenue versus a year earlier, 20% reached operating profit, above the 10% margin then. Operating expenses grew 33% against revenue growth of 41%. The fastest-growing cost line was Sales & marketing (+47%). Net earnings were $44.8M, up 84% year over year. The effective tax rate was 3.6%. Non-operating items added $13.1M, 28% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $90.7M (up 45% year over year), 202% of net earnings. Non-cash charges added back $3.4M of depreciation and amortization and $34.6M of share-based compensation. Working capital and other items added $7.9M. Capital expenditures of $1.2M left free cash flow of $89.5M.
Questions
What was Duolingo's revenue in the second quarter 2025?
Duolingo (DUOL) reported revenue of $252M for the second quarter 2025 (Q2 2025), +41% from a year earlier and +9% from the quarter before.
Was Duolingo profitable in the second quarter 2025?
Operating profit was $33.4M (13.2% of revenue) and net earnings $44.8M.
Source: Duolingo 10-Q on SEC EDGAR.