Duolingo Inc. Class A Common Stock Earnings Recaps
Q1 2026
May 5, 2026
Duolingo’s shares dropped 6.5% after earnings as investors reacted negatively to the company’s cautious Q2 bookings guidance and margin pressure from increased AI-driven investments, signaling concerns over near-term growth deceleration and margin compression.
Key takeaways
- Q1 revenue and bookings grew double digits, with adjusted EBITDA margin expanding to 29%, above the year target.
- Daily active users (DAUs) grew 21% YoY, consistent with guidance, led by strong retention improvements and accelerated growth in Asia.
- Q2 bookings growth guidance of approximately 6% reflects a tough comp and a significant slowdown from Q1, driving negative sentiment.
- Gross margin expected to decline from 71% in Q2 to about 69% by year-end due to rising AI feature costs.
- Adjusted EBITDA margin expected to dip slightly to 24% in Q2 before rebounding toward year-end, reflecting deliberate strategic investments.
Q3 2025
Nov 6, 2025
Duolingo reported robust third-quarter results with 36% year-over-year growth in Daily Active Users (DAUs) and a guiding forecast of nearly $1.2 billion in bookings for the year, reflecting both significant user engagement and expanding profitability.
Key takeaways
- Over 50 million daily users, driving a 33% growth in total bookings year-over-year.
- Adjusted EBITDA margin improved to 29%, indicating enhanced operational efficiency.
- Strategic investments in AI-driven educational tools expected to transform user engagement and learning effectiveness.
- Anticipated moderate deceleration in DAU growth for Q4, yet optimistic about stabilization around 30% year-over-year.
- Upcoming enhancements to the app include enriched content and interactive features to foster long-term user retention and growth.