Filing Flows › Duolingo (DUOL) › How it makes money
How Duolingo (DUOL) makes money
Duolingo (DUOL) made $309M of revenue in the third quarter 2026 (Q3 2026), +14% from a year earlier. Subscription brought in $270M (87%); Advertising brought in $20.8M (7%); Duolingo English Test brought in $9.9M (3%). Of every dollar of revenue, 73¢ was left as gross profit, 8¢ was left as operating profit, 9¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Subscription | $270M | 87.4% | +5% | +18% |
| Advertising | $20.8M | 6.7% | -1% | -0.9% |
| Duolingo English Test | $9.9M | 3.2% | -3% | +2% |
| IAPs | $6.9M | 2.2% | -14% | -38% |
| Other | $1.5M | 0.5% | +17% | +221% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $309M | 100.0% |
| Cost of revenue | $83.9M | 27.1% |
| Gross profit | $225M | 72.9% |
| Operating expenses | $201M | 65.0% |
| Operating profit | $24.2M | 7.8% |
| Income tax | $8.4M | 2.7% |
| Net earnings | $27.2M | 8.8% |
| Operating cash flow | $89.4M | 28.9% |
| Free cash flow | $75.3M | 24.4% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $309M | +14% |
| Q2 2026 | $298M | +18% |
| Q1 2026 | $292M | +26% |
| Q4 2025 | $283M | +35% |
| Q3 2025 | $272M | +41% |
| Q2 2025 | $252M | +42% |
| Q1 2025 | $231M | +38% |
From Duolingo's 10-Q filed Nov 4, 2026 (on EDGAR).
Questions
How does Duolingo make money?
Duolingo (DUOL) made $309M of revenue in the third quarter 2026 (Q3 2026), +14% from a year earlier. Subscription brought in $270M (87%); Advertising brought in $20.8M (7%); Duolingo English Test brought in $9.9M (3%). Of every dollar of revenue, 73¢ was left as gross profit, 8¢ was left as operating profit, 9¢ was left as net earnings.
What is Duolingo's biggest business?
Subscription: $270M in the third quarter 2026, 87% of revenue, +18% from a year earlier.
What is Duolingo's profit margin?
Net earnings were $27.2M, 8.8% of revenue, in the third quarter 2026; the operating margin was 7.8%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.