Duolingo, Inc.

Profitable, debt-free hypergrowth consumer-software name with elite returns and FCF.

Strengths

• Hypergrowth with profitability — revenue +38.7% (88th), net margin 39.9% (99th)
• Elite returns and FCF — ROA 20.8% (96th), FCF margin 35.6% (95th)
• Debt-free, well-capitalized — current ratio 2.61 (80th)

Risks

• Net margin flattered by tax items — operating margin 13.1% is the cleaner read
• Consumer engagement/retention dependence — per 10-K
• Premium valuation — per 10-K

Notable findings

• High convictionHigh conviction — notable institutional holders, insider buying, and a strong balance sheet
• Exec changeRecent 8-K item 5.02 8-K ↗
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC, Bridgewater Associates, LP
• Chronic dilutionShare count +38%/yr over 4y (dilution, book value/share -28%)
• Insider buyingInsider buying — 1 open-market buy(s) by 1 insider(s) (~$498,792, last 6mo) Form 4 ↗
• Strong balance sheetStrong balance sheet — $1.2B cash & investments
• Insider sellingInsider selling — 23 open-market sale(s) by 4 insider(s) (cluster of 4 insiders, ~$3M, last 6mo) Form 4 ↗
• Notable holderHeld by 5 notable fund(s): CITADEL ADVISORS LLC, STATE STREET CORP, FMR LLC +2 more (as of 2026-03-31)