Duolingo

Management prioritizes product development and engagement over heavy marketing or acquisitions. Capex requirements are minimal and mostly for software and small equipment. The company has not engaged in material, dilutive M&A.

Stock-based compensation is meaningful but trending in line with high-growth software peers; diluted weighted-average shares were about 49.0 million in Q2 2025, up modestly year over year, and should be watched. We would prefer opportunistic repurchases if and when the share price trades below intrinsic value.