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DUOL (Duolingo) Degree of Operating Leverage : 12.68 (As of Mar. 2025)


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What is Duolingo Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Duolingo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 12.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Duolingo's Degree of Operating Leverage or its related term are showing as below:

DUOL's Degree of Operating Leverage is ranked worse than
88.97% of 2665 companies
in the Software industry
Industry Median: 0.79 vs DUOL: 12.68

Duolingo Degree of Operating Leverage Historical Data

The historical data trend for Duolingo's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Duolingo Degree of Operating Leverage Chart

Duolingo Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 0.19 4.99 0.18 -1.82 -14.01

Duolingo Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.68 -3.87 -5.84 -14.01 12.68

Competitive Comparison of Duolingo's Degree of Operating Leverage

For the Software - Application subindustry, Duolingo's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Duolingo's Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Duolingo's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Duolingo's Degree of Operating Leverage falls into.


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Duolingo Degree of Operating Leverage Calculation

Duolingo's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 69.75 (Mar. 2025) / 11.699 (Mar. 2024) - 1 )/( 811.214 (Mar. 2025) / 583.001 (Mar. 2024) - 1 )
=4.962/0.3914
=12.68***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Duolingo  (NAS:DUOL) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Duolingo Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Duolingo's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Duolingo Business Description

Industry
Traded in Other Exchanges
Address
5900 Penn Avenue, Pittsburgh, PA, USA, 15206
Duolingo Inc is a technology company that develops a mobile learning platform to learn languages and is the top-grossing app in the Education category on both Google Play and the Apple App Store. Its products are powered by sophisticated data analytics and artificial intelligence and delivered with class art, animation, and design to make it easier for learners to stay motivated master new material, and achieve their learning goals. Its solutions include the Duolingo Language Learning App, Super Duolingo, Duolingo English Test: AI-Driven Language Assessment, Duolingo For Schools, Duolingo ABC, and Duolingo Math. It has four predominant sources of revenue; time-based subscriptions, in-app advertising placement by third parties, and the Duolingo English Test, and In-App Purchases.
Executives
Severin Hacker director, 10 percent owner, officer: Chief Technology Officer,, other: Co-Founder C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Natalie Glance officer: SVP, Engineering C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Matthew Skaruppa officer: Chief Financial Officer C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Stephen C. Chen officer: General Counsel C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Robert Meese officer: Chief Business Officer C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Ahn Luis Von director, 10 percent owner, officer: President & CEO, Co-Founder C/O ROOT, INC., 80 E. RICH STREET, SUITE 500, COLUMBUS OH 43215
Gillian Munson director C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
James H Shelton director 469 FLORIDA AVENUE NW, WASHINGTON DC 20001
Sara Clemens director C/O PANDORA MEDIA, INC., 2101 WEBSTER STREET, #1650, OAKLAND CA 94612
Amy Bohutinsky director C/O ZILLOW GROUP, INC., 1301 SECOND AVENUE, FLOOR 31, SEATTLE WA 98101
Durable Capital Partners Lp 10 percent owner 4747 BETHESDA AVENUE, SUITE #1002, BETHESDA MD 20814
Newview Capital Fund I, L.p. 10 percent owner 1290 HOWARD AVE, SUITE 319, BURLINGAME CA 94010
Ravi Viswanathan 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Newview Capital Partners I, Llc 10 percent owner 1201 HOWARD AVENUE, SUITE 101, BURLINGAME CA 94010
Kpcb Digital Growth Founders Fund, Llc 10 percent owner 2750 SAND HILL ROAD, MENLO PARK CA 94025