Key Partners
- Apple App Store & Google Play — distribution + billing (61.6% / 23.4% of FY’25 revenue processed — FACT 10-K).
- Stripe — web subscription processing (10.3% of FY’25 revenue — FACT 10-K).
- Cloud / infrastructure providers hosting the learning platform at DAU scale.
- AI / LLM partners for Max features (OpenAI collaboration at Max launch — FACT blog).
- Advertising networks monetizing free-lesson inventory.
- Universities / institutions accepting the Duolingo English Test.
Key Activities
- Ship bite-sized lessons, paths, leagues, streaks, and Energy/hearts mechanics.
- Build Super / Max features — Practice Hub, Roleplay, Video Call with Lily.
- Expand subjects — languages (250+ courses), Chess (>7M DAUs), Math, Music (FACT).
- Run freemium conversion, ad load, and (in 2026) growth-first experiments.
- Brand / social content + selective paid acquisition (FACT 10-K).
- Operate Duolingo English Test and Duolingo for Schools tooling.
Key Resources
- Duolingo brand + Q4’25 133.1M MAUs / 52.7M DAUs (FACT).
- 12.2M paid subscribers; ~9% of MAUs paid at YE’25 (FACT).
- Course catalog — >250 language courses; Math, Music, Chess (FACT 10-K).
- Learning data + AI tutoring features (Roleplay, Video Call).
- DET high-stakes assessment brand accepted by institutions.
- $1.04B cash; >900 employees incl. >430 engineers (FACT).
Value Propositions
- Free gamified language learning — bite-sized lessons, streaks, leagues (FACT).
- Super — ad-free + unlimited energy/hearts + Practice Hub (FACT).
- Max — AI Roleplay + Video Call with Lily for conversation practice (FACT blog).
- Subjects beyond languages — Chess (>7M DAUs), Math, Music (FACT letter).
- Duolingo English Test — affordable, on-demand proficiency credential (FACT).
- Duolingo for Schools + ABC for classrooms and early literacy (FACT 10-K).
Customer Relationships
- Streaks, XP, leagues, and Duo push notifications (habit loop).
- Self-serve Super / Max subscribe and cancel in-app or on web.
- Family plan — one manager, up to six members (FACT 10-K).
- Practice Hub personalized review for Super/Max learners.
- Duolingo for Schools teacher tools for classroom cohorts.
- DET candidate + institution score-reporting relationships.
Channels
- Primary — Duolingo iOS / Android apps + duolingo.com web.
- Organic word-of-mouth and viral brand / social content (FACT 10-K).
- Selective paid user acquisition targeting high-quality segments.
- App Store / Play discovery; top-grossing Education category (FACT).
- Localized marketing & influencers for geographic expansion.
- Schools web tool + DET website / institutional channels.
Customer Segments
- Free learners worldwide — 133.1M Q4’25 MAUs (FACT).
- Paid Super / Max subscribers — 12.2M period-end; ~9% of MAUs (FACT).
- Family plan households (up to six seats — FACT).
- DET candidates seeking university / institutional English scores.
- Teachers / classrooms via Duolingo for Schools (FACT).
- Advertisers on the free tier; US 38% / RoW 62% of revenue (FACT).
Cost Structure
- Cost of revenues $288.1M FY’25 — hosting, payment fees, AI serving (FACT).
- Research & development $306.3M — content, product, AI (FACT).
- Sales & marketing $125.7M; G&A $181.9M (FACT).
- Gross margin 72.2% FY’25; guided lower as AI expands (FACT letter).
- Stock-based compensation ~$149M in Adj. EBITDA recon (FACT).
- Apple/Google/Stripe concentration in payment processing (FACT 10-K).
Revenue Streams
- Subscriptions $873.4M FY’25 — Super + Max (+ Family) (FACT 10-K).
- Advertising $79.7M on free lessons (FACT).
- Duolingo English Test $42.0M; IAPs $40.5M (FACT).
- Total revenue $1,037.6M (+39%); bookings $1,158.4M (FACT letter).
- Adj. EBITDA $305.9M (29.5%); FCF $360.4M (FACT).
- No invented Super/Max split % or global sticker ARPU.