Duolingo, Inc.DUOL

Duolingo, Inc. Revenue Disclosure

10-KFiled Feb 27, 20262 min read
REVENUE
Disaggregation of Revenue
In accordance with ASC 606, Revenue from Contracts with Customers, the Company disaggregates revenue from contracts with customers into revenue streams, which most closely depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Year Ended December 31,
(In thousands)
2025
2024
2023
Revenues:
Subscription
$873,442 $607,531 $404,684 
Other (1)
164,147 140,493 126,425 
Total revenues
$1,037,589 $748,024 $531,109 
________________
(1) Other revenue is comprised of the below.
Year Ended December 31,
(In thousands)
2025
2024
2023
Advertising$79,725 $54,907 $49,858 
Duolingo English Test42,006 45,640 41,212 
IAPs40,479 38,653 34,673 
Other1,937 1,293 682 
Total other revenue$164,147 $140,493 $126,425 

Three service providers Apple, Google, and Stripe processed 61.6%, 23.4%, and 10.3% of total revenues for the year ended December 31, 2025, respectively. Three services providers, Apple, Google, and Stripe processed 60.8%, 23.4% and 11.7% of total revenues for the year ended December 31, 2024, respectively.
Information regarding geography of revenues is based upon the location where the users are located or, in the case of the Duolingo English Test, where the tests are taken:
Year Ended December 31,
202520242023
United States$392,214 $311,539 $238,759 
Rest of World645,375 436,485 292,350 
Total$1,037,589 $748,024 $531,109 
Customers located in the United States accounted for 38%, 42% and 45% of total revenues for the years ended December 31, 2025, 2024 and 2023, respectively. No other country accounted for more than 10% of revenue in the periods presented.
Deferred revenue mostly consists of payments received in advance of revenue recognition, and is mostly related to time-based subscriptions, which will be recognized into revenue over the course of the upcoming year (recognized over 12 months or less). Additionally, the Duolingo English Test has deferred revenue related to tests that have been purchased, but will not be recognized until the tests have been proctored. Changes in deferred revenues were as follows:
Year Ended December 31,
(In thousands)20252024
Beginning balance—January 1$372,884 $249,192 
Amount from beginning balance recognized into revenue(372,434)(248,667)
Recognition of deferred revenue(572,589)(402,937)
Deferral of revenue1,068,345 775,296 
Ending balance—December 31$496,205 $372,884 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Mar 4, 2022

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&ELeasesCommitmentsStock CompensationNew Standards