Added to YB: 2026-03-10
Pitch date: 2026-03-07
DUOL [bullish]
Duolingo, Inc.
-5.85%
current return
Author Info
Asymmetric Investing analyzes stocks that have an asymmetric return potential of 10x (or more) over the next decade. Sign up for the newsletter.
Company Info
Duolingo, Inc. operates as a mobile learning platform in the United States, the United Kingdom, and internationally.
Market Cap
$4.8B
Pitch Price
$100.82
Price Target
N/A
Dividend
N/A
EV/EBITDA
22.23
P/E
11.89
EV/Sales
3.61
Sector
Diversified Consumer Services
Category
growth
Duolingo's Asymmetric Potential: Short-Term vs Long-Term Investing
DUOL: Prioritizing DAU growth to 100M by 2028 over near-term profits. 2026 guide: $1.197B-$1.221B rev (+15-18% YoY), $299M-$305M adj EBITDA (25% margin) disappoints vs 39% 2025 growth. CFO projects 2028: $2.5B rev, $700M EBITDA at 100M DAUs = 44% rev CAGR, 52% EBITDA CAGR from 2026. Trades 11.5x EV/EBITDA, <10x trailing FCF, $1.04B cash, zero debt. $400M buyback launched. Strategy: scale languages→expand to math/music/chess→bundle for subscription flywheel. Mgmt sacrificing 2026 for long-term asymmetry.
Read full article (5 min)