This article summarizes recent evaluations of Duolingo by financial analysts, offering an overview of their perspectives and highlighting key trends in their ratings and price targets. It aims to provide a clear picture of how market experts view Duolingo's financial health and future prospects, drawing from a collection of diverse opinions over the last three months.
Over the past three months, a group of 17 analysts have assessed Duolingo, presenting a spectrum of views ranging from optimistic to cautious. A detailed breakdown of these evaluations reveals shifts in sentiment over time. For instance, in the most recent 30-day period, only one analyst issued an 'Indifferent' rating, whereas the previous month saw two 'Bullish' and two 'Somewhat Bullish' ratings, alongside one 'Somewhat Bearish'. Looking back three months, the sentiment was more broadly distributed, with several 'Bullish', 'Somewhat Bullish', and 'Indifferent' ratings, and a single 'Somewhat Bearish' view.
When it comes to 12-month price targets, the analysts have set an average target of $235.29 for Duolingo, with predictions ranging from a high of $300.00 to a low of $160.00. Notably, there has been a significant decline in the average price target, falling by 27.53%, signaling a collective downward adjustment in expectations among the experts. This adjustment is reflected in individual analyst actions, where many have lowered their price targets, indicating a re-evaluation of the company's valuation.
Understanding these analyst ratings involves considering several factors. Analysts from various financial institutions frequently update their recommendations based on new market information and company performance updates. Their actions, whether maintaining, raising, or lowering ratings, offer insights into their reactions to Duolingo's recent developments. The ratings themselves provide qualitative judgments on the stock's potential performance relative to the broader market. Furthermore, the adjustments in price targets, comparing current estimates to previous ones, reflect the evolving expectations of these financial experts.
Duolingo Inc. is recognized as a technology firm that operates a leading mobile platform for language acquisition, consistently ranking as a top-grossing educational application. The company leverages advanced data analytics and artificial intelligence to create engaging and effective learning experiences. Its offerings include the Duolingo Language Learning App, Super Duolingo, the Duolingo English Test, Duolingo For Schools, Duolingo ABC, and Duolingo Math. The company generates revenue primarily through subscriptions, in-app advertising, and the Duolingo English Test, as well as other in-app purchases.
Financially, Duolingo demonstrates robust performance across several key metrics. Its market capitalization surpasses industry averages, indicating a substantial presence and strong market standing. The company achieved an impressive revenue growth rate of 41.08% as of September 30, 2025, outperforming its peers in the Consumer Discretionary sector. Duolingo's net margin stands at an exceptional 107.54%, highlighting its strong profitability and efficient cost management. The return on equity (ROE) of 25.58% and return on assets (ROA) of 17.05% further underscore its effective utilization of capital and assets. Additionally, Duolingo maintains a healthy financial structure with a low debt-to-equity ratio of 0.07, well below industry norms.
The collective perspective of financial analysts on Duolingo points to a dynamic investment landscape. While the company demonstrates strong financial performance, including significant revenue growth and profitability, the recent downward adjustment in average price targets indicates a recalibration of future expectations. Investors should integrate these expert evaluations with their own financial analysis to make informed decisions regarding Duolingo's stock.