Duolingo, Inc.

NASDAQ Global Select
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Slightly Bullish +15

Duolingo vs. Zeta Global: Which Technology Stock Is a Better Buy in 2026?

AI-generated analysis

📈 Duolingo achieved FY 2025 revenue of $1 billion with a 38.7% growth rate and net income of nearly $414.1 million.

💰 Zeta Global reported FY 2025 revenue of $1.3 billion but posted a net loss of roughly $31.5 million.

📱 Duolingo's revenue is heavily concentrated, with Apple and Alphabet accounting for approximately 82% of total revenue in 2025.

🤝 Zeta Global recently entered a strategic partnership with Palantir Technologies to enhance its AI infrastructure.

⚖️ Both companies face customer concentration risks, though Duolingo also faces an ongoing federal securities law investigation.

💸 Duolingo's free cash flow was roughly $369.7 million compared to Zeta Global's nearly $185.1 million in FY 2025.

📉 Zeta Global trades at a significantly lower multiple than Duolingo, suggesting a more conservative valuation.

🧠 Both companies are applying artificial intelligence to power their respective businesses in the software sector.

⚠️ Duolingo competes in a crowded market where generative AI products could disrupt its pricing power and adoption.

🔒 Zeta Global must navigate evolving data privacy laws like GDPR that could limit consumer data collection.

Bullish Signals
  • Duolingo demonstrated strong profitability with a net margin close to 39.9% in FY 2025, converting sales into profit efficiently.
  • Zeta Global achieved higher total revenue of $1.3 billion compared to Duolingo's $1 billion despite being unprofitable.
  • Duolingo maintains a very strong balance sheet with a debt-to-equity ratio of roughly 0.1x and a current ratio of 2.6x.
  • Zeta Global holds a healthy liquidity position with a current ratio of approximately 1.6x to cover short-term liabilities.
  • Duolingo generated robust free cash flow of roughly $369.7 million in FY 2025, indicating strong operational cash generation.
  • Zeta Global secured a strategic partnership with Palantir Technologies to enhance its enterprise AI infrastructure capabilities.
  • Both companies are successfully applying artificial intelligence to power their core business operations and growth strategies.
Risk Factors
  • Duolingo faces significant revenue concentration risk as Apple and Alphabet together accounted for roughly 82% of total revenue in 2025.
  • Zeta Global is heavily reliant on a small number of large clients, where the loss of any single major relationship poses a significant threat to financial results.
  • Duolingo is currently under investigation by law firms concerning potential federal securities law violations as of April 2026.
  • Zeta Global remains unprofitable with a net loss of roughly $31.5 million and a negative net margin of -2.4% in FY 2025.
  • Duolingo competes in a crowded online learning market where new generative AI products could disrupt its pricing power and user adoption.
  • Zeta Global must navigate evolving data privacy laws like GDPR that could limit its ability to collect consumer data essential for its business model.
Full Analysis
This article compares technology stocks Duolingo (NASDAQ:DUOL) and Zeta Global (NYSE:ZETA) as potential portfolio additions for 2026, highlighting their distinct business models. Duolingo dominates the gamified language learning market with a highly profitable consumer-facing platform, while Zeta Global leverages proprietary data and AI to power marketing campaigns for large enterprise clients. Duolingo reported FY 2025 revenue of $1 billion, representing a 38.7% growth rate, and achieved net income of nearly $414.1 million with a net margin close to 39.9%. Its balance sheet shows a low debt-to-equity ratio of 0.1x and strong free cash flow of roughly $369.7 million, though stock-based compensation accounted for 35.4% of operating cash flow. In contrast, Zeta Global reported FY 2025 revenue of approximately $1.3 billion with a 29.7% year-over-year growth rate but remains unprofitable with a net loss of roughly $31.5 million and a negative net margin of -2.4%. The company maintains a debt-to-equity ratio of 0.2x and free cash flow of nearly $185.1 million, with stock-based compensation representing 89.4% of operating cash flow. Both companies face significant customer concentration risks; Duolingo derives roughly 82% of revenue from Apple and Alphabet, while Zeta's top 10 clients account for over one-third of total revenue. Duolingo faces regulatory investigations regarding potential securities law violations and competition from generative AI, whereas Zeta navigates data privacy laws like GDPR and integration challenges from acquisitions.