William Blair Has Weak Forecast for Duolingo FY2025 Earnings

Duolingo, Inc. (NASDAQ:DUOL) – Stock analysts at William Blair cut their FY2025 earnings per share (EPS) estimates for Duolingo in a report released on Thursday, November 6th. William Blair analyst R. Schackart now expects that the company will post earnings of $3.35 per share for the year, down from their prior forecast of $3.39. The consensus estimate for Duolingo’s current full-year earnings is $2.03 per share. William Blair also issued estimates for Duolingo’s Q4 2025 earnings at $0.88 EPS, Q1 2026 earnings at $0.98 EPS, Q2 2026 earnings at $1.05 EPS, Q3 2026 earnings at $1.13 EPS, Q4 2026 earnings at $1.14 EPS and FY2026 earnings at $4.30 EPS.

A number of other equities research analysts also recently commented on DUOL. Citizens Jmp downgraded Duolingo from a “market outperform” rating to a “hold” rating in a research report on Thursday, November 6th. Morgan Stanley set a $300.00 price objective on shares of Duolingo in a research note on Thursday, November 6th. JPMorgan Chase & Co. cut their price objective on shares of Duolingo from $465.00 to $300.00 and set an “overweight” rating on the stock in a report on Thursday, November 6th. Needham & Company LLC lowered their target price on shares of Duolingo from $460.00 to $300.00 and set a “buy” rating for the company in a report on Thursday, November 6th. Finally, Raymond James Financial reaffirmed a “market perform” rating on shares of Duolingo in a research report on Tuesday, August 26th. Ten research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $340.53.

Duolingo Stock Performance

Shares of NASDAQ DUOL opened at $194.89 on Monday. The company has a 50-day simple moving average of $293.75 and a 200-day simple moving average of $374.38. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.82 and a quick ratio of 2.82. The company has a market cap of $8.93 billion, a PE ratio of 24.70, a price-to-earnings-growth ratio of 1.22 and a beta of 0.83. Duolingo has a 12 month low of $182.00 and a 12 month high of $544.93.

Duolingo (NASDAQ:DUOL) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $5.95 EPS for the quarter, topping analysts’ consensus estimates of $0.72 by $5.23. The firm had revenue of $271.71 million during the quarter, compared to analysts’ expectations of $260.14 million. Duolingo had a return on equity of 14.02% and a net margin of 40.03%.The firm’s quarterly revenue was up 41.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.49 EPS. Duolingo has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS.

Insider Activity at Duolingo

In other news, insider Robert Meese sold 1,444 shares of the stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $329.03, for a total value of $475,119.32. Following the completion of the sale, the insider owned 120,080 shares in the company, valued at approximately $39,509,922.40. This trade represents a 1.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Natalie Glance sold 3,283 shares of the business’s stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $312.30, for a total value of $1,025,280.90. Following the transaction, the insider directly owned 116,171 shares in the company, valued at $36,280,203.30. This trade represents a 2.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 83,791 shares of company stock valued at $25,649,401 over the last quarter. Company insiders own 18.30% of the company’s stock.

Institutional Investors Weigh In On Duolingo

A number of large investors have recently added to or reduced their stakes in DUOL. Baillie Gifford & Co. raised its holdings in shares of Duolingo by 28.6% during the third quarter. Baillie Gifford & Co. now owns 2,827,834 shares of the company’s stock worth $910,110,000 after purchasing an additional 628,943 shares during the period. T. Rowe Price Investment Management Inc. grew its holdings in shares of Duolingo by 110.5% during the first quarter. T. Rowe Price Investment Management Inc. now owns 990,903 shares of the company’s stock valued at $307,716,000 after purchasing an additional 520,069 shares during the last quarter. Norges Bank acquired a new stake in shares of Duolingo during the 2nd quarter worth approximately $192,965,000. Invesco Ltd. lifted its holdings in shares of Duolingo by 24.1% in the 1st quarter. Invesco Ltd. now owns 1,346,278 shares of the company’s stock worth $418,073,000 after purchasing an additional 261,212 shares during the last quarter. Finally, AQR Capital Management LLC boosted its position in Duolingo by 105.9% during the 2nd quarter. AQR Capital Management LLC now owns 415,221 shares of the company’s stock valued at $170,249,000 after purchasing an additional 213,529 shares during the period. 91.59% of the stock is owned by institutional investors and hedge funds.

About Duolingo

Duolingo, Inc operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam.