Forensic Analysis · Technology / Software · as of Sep 25, 2026
Duolingo, Inc. (DUOL)
A forensic read on Duolingo, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
15.0
Distress distance
Watch
Earnings quality
2
Forensic signals
16.2
P / E (ttm)
30.7%
ROE
$6.8B
Market cap
38.7%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Duolingo, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 15.0, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+155.6%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +155.6% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by receivables up +26% against revenue +39%. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 15% of net operating assets, against an accruals ratio of 155.6%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.
+1.9%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +4% over the last 2 years to FY2025 (+1.9%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~4%.
Key fundamentals
Latest Revenue$1.04B
Revenue Growth YoY+38.7%
Revenue CAGR (2yr)+39.7%
Net Margin39.9%
Free Cash Flow$369.7M
Return on Equity30.7%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Duolingo, Inc.'s actual 10-K/10-Q/8-K filings?