Duolingo rated Strong Buy with 350% DAU growth and strong cash flow, targeting 100M users by 2028.

Duolingo is rated a Strong Buy, trading at 12 times earnings with a low forward PEG of 0.28, supported by robust free cash flow and no debt. Its daily active users (DAUs) have surged 350% since the rise of ChatGPT, reaching 56.5 million, with 22% converting to paid users. Despite a broader SaaS sector downturn, Duolingo's AI-driven growth and strong financials, including 35% free cash flow margins and $1.1 billion in cash, highlight its attractive risk/reward profile. Management aims to grow DAUs to 100 million by 2028, accepting slower revenue growth of 15–18% to accelerate user expansion.