Duolingo (DUOL) Company Report

Duolingo achieved strong Q3 2025 results, reporting 36% year-over-year daily active user (DAU) growth and guiding to nearly $1.2 billion in bookings for the year, a 33% increase, with an adjusted EBITDA margin of 29%.
The company is implementing a durable strategic shift to prioritize long-term user growth and teaching efficacy over short-term monetization, driven by the significant opportunity in AI-powered education.
This reprioritization is expected to lead to some deceleration in bookings and revenue growth in Q4 and potentially into 2026, as resources are reallocated towards product innovation and user acquisition.
Product developments include expanding content for the top nine languages to a professional proficiency level, introducing guided video calls, and enhancing math and music courses. The chess course is the fastest-growing, with player-versus-player (PVP) functionality rolling out.
Max subscribers now constitute 9% of total subscribers, with bookings doubling year-over-year in Q3, and Max renewals are performing slightly better than Super subscribers.

Nov 5, 2025, 10:30 PM

Transcript

Duolingo Reports Strong Q3 2025 User and Revenue Growth

DUOL

Earnings

Guidance Update

Revenue Acceleration/Inflection

Duolingo achieved significant growth in Q3 2025, with Daily Active Users (DAUs) increasing 36% year-over-year to 50.5 million and revenue growing 41% year-over-year to $271.7 million.
Net income for Q3 2025 was $292.2 million, which included a one-time income-tax benefit of $222.7 million resulting from the release of a valuation allowance on deferred tax assets.
The company reported Adjusted EBITDA of $80.0 million with a 29.5% margin in Q3 2025, and subsequently raised its full-year 2025 Adjusted EBITDA margin guidance to 29.0% at the midpoint.
For Q4 2025, Duolingo expects revenue to be between $273 million and $277 million, contributing to a full-year 2025 revenue projection of $1,027.5 million to $1,031.5 million.

Nov 5, 2025, 9:02 PM

8-K

Duolingo Announces Q3 2025 Results and User Growth

DUOL

Earnings

Revenue Acceleration/Inflection

Duolingo announced its third quarter results for the period ended September 30, 2025.
The company achieved a major milestone, with more than 50 million people now using Duolingo every day.
For the first nine months of 2025, Daily Active Users (DAUs) and revenue both increased by 40% or more compared to the same period last year, alongside expanding profitability.

Nov 5, 2025, 9:01 PM

Press Release

Duolingo Reports Strong Q3 Earnings Amid AI Expansion and Diversification

DUOL

Earnings

Product Launch

Guidance Update

Duolingo reported strong financial performance with adjusted EPS of $0.95 and revenue of $271.71 million, surpassing estimates, and achieved an adjusted EBITDA margin of 29% in the third quarter.
The company is experiencing significant growth, with daily users exceeding 50 million and projected bookings of nearly $1.2 billion this year, representing a 33% growth rate.
Duolingo is strategically expanding its offerings through AI-enhanced education and new content areas like Music, Math, and Chess, alongside innovative product launches such as a GenAI Max video call feature.
Despite strong quarterly results, Duolingo's stock has declined approximately 19.2% year-to-date, influenced by investor concerns regarding AI's potential disruptive impact and broader market volatility.

Nov 5, 2025, 7:23 AM

Bloomberg

Duolingo Unveils New Language Proficiency Score, LinkedIn Integration, and Chess Course

DUOL

Product Launch

New Projects/Investments

Duolingo introduced the Duolingo Score, a new standardized measure for language proficiency, aiming to become a global standard, with courses designed to help learners reach a score of 130 (equivalent to B2 CEFR) which enables knowledge jobs in that language.
A significant partnership with LinkedIn was announced, enabling users to immediately showcase their verified Duolingo Scores on their professional profiles.
The company emphasized its global impact, serving over 130 million active learners with 90% learning for free, and noted that its certified Duolingo English Test is accepted by 99 of the top 100 US universities and over 6,000 academic programs worldwide.
Duolingo also launched a new Chess course, currently available in English and Spanish on iOS, with future expansion planned for other languages and Android.

Sep 16, 2025, 4:00 PM

Transcript

Duolingo Faces Investor Investigation

DUOL

Legal Proceedings

Demand Weakening

Profit Warning

Pomerantz LLP is investigating Duolingo, Inc. for potential securities fraud or other unlawful business practices.
The investigation follows JMP Securities lowering its price target on Duolingo stock to $450 from $475 on July 28, 2025.
This price target reduction was attributed to concerns about slowing user engagement, with daily active user growth decelerating to approximately 39% year-over-year in Q2 2025 from about 51% in Q1 2025.
On July 28, 2025, Duolingo's stock price fell $23.60 per share, or 6.48%, closing at $340.49 per share.

Sep 2, 2025, 2:00 PM

Press Release

Duolingo Special Call Highlights Growth and Expansion Strategies

DUOL

Guidance Update

Product Launch

New Projects/Investments

Duolingo provided guidance for 40%-45% DAU growth in Q2, highlighting its robust freemium model, social-first marketing, and user resurrection strategies as key drivers.
The call emphasized ongoing efforts to boost platform LTV through subscription upgrades (Super to Max), expanding Family Plan penetration, and leveraging AI for efficient content creation and new verticals such as math, music, and chess.

May 13, 2025, 8:31 PM

Transcript

Duolingo Q1 2025: Record User Growth, Revenue Surge & AI-Driven Innovations

DUOL

Earnings

New Projects/Investments

Product Launch

Revenue Acceleration/Inflection

Duolingo achieved a record 46.6M daily active users with a 49% YoY increase and surpassed 10 million paid subscribers in Q1 2025.
The company reported 38% YoY revenue growth to $230.7M, with net income rising from $27.0M to $35.1M, highlighting robust operational momentum.
Gross margin guidance was reiterated with Q1 performance exceeding expectations, setting a track for a sequential 50 bp decline in Q2, a ramp-up in Q3/Q4, and an overall 150 bp annual decline.
AI-enabled content expansion drove the rollout of 148 new language courses in one year and introduced new subjects like math, music, and chess to boost subscription growth.
Strong user engagement was further evidenced by robust retention trends on Max and significant incremental subscriber gains from both new and upgraded users.
Investments in GenAI features and product innovations (e.g., improved Video Call interactions) are enhancing efficiency and long-term growth.

May 1, 2025, 9:31 PM

Transcript 8-K

Earnings Transcripts

Quarterly earnings call transcripts for Duolingo.

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