Should you buy Duolingo stock? December 2025 - 3-Minute Analysis

Published first at https://www.3minutebreakdowns.com Duolingo stock analysis. Ticker: $DUOL Duolingo stock has crashed 66% from its peak. But the company is doing quite well, so is this a good time to buy the dip? At the latest share price, Duolingo has a market value of 9.3 billion dollars. The company has over a billion of cash on its balance sheet and minimal debt which means the enterprise value is roughly 8.1 billion. Meanwhile, Duolingo has reported 964 million of revenue over the past 12 months, 386 million of net income and 355 million of free cash flow. That puts the valuation at roughly 23 times free cash flow. Despite the share price drop, Duolingo’s recent performance shows little sign of weakness. Revenue in the third quarter was up 41%, paid subscribers increased 34%, daily active users grew 36% and adjusted ebitda margin advanced 5%. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support.