Duolingo, Inc.
DUOLQ4 2025(DUOL Q3 FY2025)Estimated42% AI
AI Revenue %
42%
AI Fair Value
$989.7M
AI Revenue (Q)
$226.2M
Total Revenue (Q)
$538.5M
Source: SEC EDGAR 10-Q Filing
View 10-Q on SEC.govAnalysis
Q3 2025 total revenue was $271,713K (41.1% YoY growth from $192,594K in Q3 2024). 9M 2025 total was $754,721K. Gross profit was $196,911K (72.5% margin). Net income was $292,195K (including $245,746K tax benefit from release of deferred tax valuation allowances). The filing identifies AI as both a risk factor and opportunity. Notably, the company recognized a massive deferred tax asset ($240,172K vs $675K at year-end 2024), suggesting confidence in sustained profitability driven partly by AI efficiency. AI is now deeply woven into every aspect of the product: adaptive learning, premium features, content generation, conversation practice, and personalization. Goodwill increased to $35,335K (from $10,538K at year-end 2024) reflecting new acquisitions likely including AI/engineering talent. Estimate of 42% reflects AI's dominant and growing role in Duolingo's product and business model. Math: 42% x $271,713K = ~$114,120K attributed to AI.
Analyzed by claude-opus-4-6
Quoted Figures
Q3 2025: Revenues $271,713. Cost of revenues $74,802. Gross profit $196,911. 9M 2025: Revenues $754,721. Net income $372,111.
10-Q filed for period ending September 30, 2025, Condensed Consolidated Statements of Operations
the success of our development, implementation and use of artificial intelligence and machine learning technologies
10-Q filed for period ending September 30, 2025, Forward-Looking Statements
Deferred tax assets, net $240,172 (vs $675 at December 31, 2024). Goodwill $35,335 (vs $10,538 at December 31, 2024).
10-Q filed for period ending September 30, 2025, Condensed Consolidated Balance Sheet
AI Products Identified (Ring 1)
Birdbrain adaptive learning engineDuolingo Max (GPT-4 Roleplay, Explain My Answer, Video Call)AI-generated content replacing human contractorsAI-powered personalizationAI-driven content across all languages
AI-Enabled Items (Ring 2 — Not Counted)
These items use AI but are not counted in the AI revenue estimate because they primarily serve non-AI functions.
Total revenue ($271,713K)Gross profit ($196,911K)
Confidence Tier
EstimatedNo direct AI revenue disclosure — estimated from product mix