Core Thesis - Duolingo, Inc. is positioned as a leading digital education platform, evolving from a gamified language-learning app to a multi-disciplinary platform with significant growth potential [2][3][4] Company Overview - As of October 15th, Duolingo's share price was $341.08, with trailing and forward P/E ratios of 128.28 and 69.44 respectively [1] - The company generates the majority of its revenue through subscriptions, utilizing a freemium model to convert millions of free users into paying subscribers [2] Growth Metrics - Duolingo has achieved a revenue growth rate exceeding 40% CAGR and free cash flow margins above 30%, indicating strong financial health [3] - Recent Q2 2025 results showed a 41% year-over-year revenue growth and a 46% increase in subscriptions, with record EBITDA of $79 million and free cash flow of $86 million [5] Market Position - The company commands approximately 60% of the app-based language learning market, despite only reaching 5% of the global language-learning population, suggesting substantial room for expansion [4] - Long-term growth drivers include rising global demand for English, under-penetrated subscription adoption, AI-enabled upsell opportunities, and international expansion into emerging markets [4] Product Development - Recent product launches, such as Chess and Math courses, have seen strong adoption, broadening the addressable market and enhancing user engagement [5] Financial Strength - Duolingo maintains a robust balance sheet with $1.1 billion in cash and minimal debt, positioning it well for future growth [5]