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STOCKHOLDERS’ EQUITY
 9 Months Ended
Sep. 30, 2026
Equity [Abstract]  
STOCKHOLDERS’ EQUITY STOCKHOLDERS’ EQUITY
A summary of stock option activity as of September 30, 2026 is as follows:
(In thousands, except prices and years)Number of
options		Weighted-
average
exercise
price		Weighted- average remaining contractual life (years)Aggregate intrinsic value
Options outstanding at January 1, 2026
859 $18.38 3.77$135,938 
Granted (1)— — 
Exercised(377)15.82 
Forfeited and expired (2)— — 
Options outstanding at September 30, 2026
482 $20.36 3.44$59,481 
Options exercisable at September 30, 2026
482 $20.36 3.44$59,481 
________________
(1) There were no stock options granted during the three and nine months ended September 30, 2026.
(2) There was a nominal amount of forfeitures and expirations during the three and nine months ended September 30, 2026.

The total intrinsic value of options exercised was approximately $40.7 million and $189.4 million for the nine months ended September 30, 2026 and 2025, respectively. 
A summary of RSU activity as of September 30, 2026 is as follows:
(In thousands, except prices)Restricted stock unitsWeighted-
average
grant-date fair value per share
Outstanding at January 1, 2026
1,406 $242.94 
Granted2,147 113.27 
Released(656)177.86 
Forfeited(259)206.98 
Outstanding at September 30, 2026
2,638 $157.07 
As of September 30, 2026, there was no unrecognized stock-based compensation expense related to stock options granted under the plans. The amount of unrecognized stock-based compensation expense for RSUs as of September 30, 2026 was $375.8 million with a weighted-average period of approximately three years.
There were 9,209 thousand shares available for issuance under the Company’s 2021 Incentive Award Plan and 1,604 thousand shares available for issuance under the Company’s 2021 Employee Stock Purchase Plan, in each case, at September 30, 2026.
Performance-based RSUs
In June 2021, the Company granted performance-based RSUs to its founders (“Founder Awards”) that vest based on continued service and the achievement of specified stock price targets. As of September 30, 2026, certain performance conditions have been achieved, while others remain subject to future stock price performance. Stock-based compensation expense is recognized over the derived service period using an accelerated attribution method, subject to continued service.
In 2026, the Company modified the service condition applicable to the final two tranches of the Founder Awards held by one of its founders. The modification was accounted for as a Type III modification under
ASC 718. As a result of the revised service condition, the Company reversed $8.2 million of stock-based compensation expense previously recognized under the original derived service periods. The modified awards have a total compensation cost of approximately $10.0 million, based on the modified fair value determined using a Monte Carlo simulation model, representing an increase of $1.7 million, over the original grant-date fair value. The total compensation cost will be recognized over the revised derived service periods, which extend through September 30, 2029.
The Company recognized a stock-based compensation expense of $1.7 million and a stock-based compensation benefit of $4.1 million related to the Founder Awards during the three and nine months ended September 30, 2026, respectively. The Company recognized stock-based compensation expense of $1.7 million and $9.8 million for the three and nine months ended September 30, 2025, respectively. As of September 30, 2026, unrecognized stock-based compensation expense related to the Founder Awards was $10.6 million.
Stock-Based Compensation
Total stock-based compensation expense was $47.5 million and $120.3 million for the three and nine months ended September 30, 2026, respectively, and $35.6 million and $101.2 million for the three and nine months ended September 30, 2025, respectively.
Stock-based compensation expense is included in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income as shown in the following table:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2026202520262025
Cost of revenues$36 $28 $90 $72 
Research and development30,977 22,821 80,361 61,115 
Sales and marketing2,495 1,633 6,299 4,657 
General and administrative13,969 11,083 33,584 35,331 
Total$47,477 $35,565 $120,334 $101,175 
Nominal amounts of stock-based compensation expense are capitalized into intangible assets for the three and nine months ended September 30, 2026 and 2025.
Common Stock Repurchases
In February 2026, Duolingo’s Board of Directors authorized a share repurchase program of up to $400 million. During the three and nine months ended September 30, 2026, the Company repurchased a total of 48 thousand and 743 thousand shares, respectively, of the Company’s Class A common stock through open market purchases at an average per share price of $132.68 and $103.21, respectively, for a total repurchase price of $6.4 million and $76.7 million, respectively. During the three and nine months ended September 30, 2026, 51 thousand and 734 thousand of these shares were retired, respectively. The cost of the remaining 9 thousand shares is recorded as treasury stock in the Unaudited Condensed Consolidated Balance Sheets as of September 30, 2026. As of September 30, 2026, $323.3 million of the total amount authorized to be repurchased remained available.