Duolingo, Inc.

The estimated dilutive effect is calculated as the number of shares expected to be issued upon vesting or exercise, adjusted for the strike price proceeds that are received by the Company and assumed to be used to repurchase shares of Duolingo common stock.

SEC original ↗Duolingo, Inc. — Earnings release (8-K exhibit)EX-99Aug 6, 2025

All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q including without limitation, statements regarding our business model and strategic plans, including the introduction of new products, and our implementation thereof; statements regarding our expectations, beliefs, plans, objectives, prospects, assumptions, future events or expected performance, including our ability to compete in our industry; the sufficiency of our cash, cash equivalents and investments; and the plans and objectives of management for future operations and capital expenditures are forward-looking statements.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

An allowance for expected credit losses is meant to reflect a risk of loss even if remote, irrespective of the expectation of collection from a particular issuer or debt security.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

With respect to held-to-maturity marketable securities which are comprised of debt securities, the Company evaluates expected credit losses on a pooled basis based on issuer-type which have similar credit risk characteristics.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Changes in market interest rates, credit risk of borrowers and overall market liquidity, among other factors, may cause the short-term and long-term debt investments to fall below their amortized cost basis, resulting in unrealized losses.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

For those debt securities in an unrealized loss position as of June 30, 2026, the Company does not intend to sell, nor is it more likely than not that it will be required to sell, such securities before recovering the amortized cost basis.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Engagement remained strong, and we ve seen encouraging early signals from new product initiatives like our Energy mechanic and Chess course.

SEC original ↗Duolingo, Inc. — Earnings release (8-K exhibit)EX-99Aug 6, 2025

We remain focused on building for long-term engagement and growth.

SEC original ↗Duolingo, Inc. — Earnings release (8-K exhibit)EX-99Aug 6, 2025

All statements other than statements of historical facts contained in this press release, including without limitation, statements regarding our planned investments, strategic priorities and new product initiatives, the ability of our products to drive growth, and our financial outlook are forward-looking statements.

SEC original ↗Duolingo, Inc. — Earnings release (8-K exhibit)EX-99Aug 6, 2025

Without limiting the generality of the foregoing, you can identify forward-looking statements because they contain words such as may, will, shall, should, expects, plans, 1 anticipates, could, intends, target, projects, contemplates, believes, estimates, predicts, potential, goal, objective, seeks, or continue or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions.

SEC original ↗Duolingo, Inc. — Earnings release (8-K exhibit)EX-99Aug 6, 2025

We have an exciting product roadmap ahead, including better content for intermediate learners and the ability to engage in matches against others.

SEC original ↗Duolingo, Inc. — Earnings release (8-K exhibit)EX-99Aug 6, 2025

While these metrics are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring how our platform is used.

SEC original ↗Duolingo, Inc. — Earnings release (8-K exhibit)EX-99Aug 6, 2025

Legal Proceedings 37 Item 1A.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

See Risk Factors Our user metrics and other operating metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics may negatively affect our reputation and our business included in the Annual Report on Form 10-K.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

REVENUE Disaggregation of Revenue In accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , the Company disaggregates revenue from contracts with customers into revenue streams, which most closely depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may become involved in various legal proceedings in the ordinary course of its business and may be subject to third-party infringement claims.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Legal costs incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred and are included in General and administration expense within our Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

SEC original ↗Duolingo, Inc. — 10-Q Quarterly report10-QAug 6, 2026