What is Duolingo's return on invested capital?

Duolingo (DUOL) reported return on invested capital of 14.4% in Q1 2026.

What does return on invested capital mean?

Net operating profit after tax (operating income taxed at the effective rate) divided by average invested capital (debt plus equity minus cash). Measures the after-tax return on all capital put to work in the business, independent of capital structure.

Duolingo DUOL Return on invested capital

Return on invested capital at other companies

SSR MiningSSRM

18.7%—

RepligenRGEN

0.3%-6.3pp

MYR GroupMYRG

18.4%+13.4pp

Sensata TechnologiesST

2.4%+0.2pp

AppFolioAPPF

36.1%+1.0pp

Boyd GamingBYD

10.9%-2.4pp

Other financials

Income statement

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Revenue$292.0M+26.5%

Gross profit$213.1M+29.9%

Operating income$44.5M+88.7%

Net income$43.5M+23.7%

EPS (diluted)$0.89+23.6%

Balance sheet

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Cash & equivalents$171.2M+113%

Total debt$91.9M+68.5%

Total equity$1.4B+55.7%

Total assets$2.1B+46.7%

Cash flow

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Operating cash flow$150.8M+42.7%

CapEx$132.0K-89.9%

Free cash flow$150.6M+44.4%

Valuation

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Market cap$5.85B-67.1%

Enterprise value$5.77B-67.6%

P/E13.9×-170×

P/S5.3×-16.6×

Profitability

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Gross margin72.7%+0.4pp

Operating margin14.2%+5.6pp

Net margin38.4%+26.5pp

FCF margin37.9%+1.4pp

Returns & leverage

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Return on equity37%+24.9pp

Debt / equity0.1×0.0×

Current ratio2.6×-0.1×

Where this comes from

Calculated from Duolingo’s reported figures.

nopat/invested capital=14.4%

Based on trailing twelve months.

The official record: Duolingo’s 10-Q, filed May 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Duolingo's return on invested capital?: Duolingo (DUOL) reported return on invested capital of 14.4% in Q1 2026.
What does return on invested capital mean?: Net operating profit after tax (operating income taxed at the effective rate) divided by average invested capital (debt plus equity minus cash). Measures the after-tax return on all capital put to work in the business, independent of capital structure.