DUOL Duolingo, Inc.
Platform & Compounding FCF
F 30.0 / 100 pillar composite

AlphaQuality composite grade, weighted for platform & compounding fcf businesses.

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a platform & compounding fcf business.

Grade overrides the 30.0 pillar composite — hard gates always win.

Profitability

Weight: 25%
D+ 41
  • 5yr Avg ROIC 1.1%
  • Operating Margin Trend +9.79 pp/yr

Capital Efficiency

Weight: 15%
F 20
  • 5yr Avg ROE 4.2%
  • 5yr Share-Count CAGR 6.1%

Growth Quality

Weight: 25%
A+ 100
  • 5yr Revenue CAGR 45.0%
  • Revenue-Growth Years (5) 5/5

Cash Generation

Weight: 20%
A- 80
  • 5yr FCF Margin 23.1%
  • 5yr FCF/NI Conversion 4.45x

Balance Sheet

Weight: 10%
A+ 100
  • Net Debt / EBITDA -5.32x
  • Interest Coverage (EBIT/Int) 30.00x
  • Altman Z-Score 7.35

Stability

Weight: 5%
D 35
  • EPS Volatility (σ/μ) 1.21
  • Negative-Revenue Years (5) 0/5
  • Piotroski F-Score 3

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Holding

3 of 4 gurus held; 2 added; 1 trimmed; 1 full exit.

Holders
3 -1
Avg Δ position
+130.1%
New buys
0
Full exits
1
As of Q1 2026