The language-learning platform posts record revenue but guidance disappoints.
Duolingo stock plunged 20% post-Q3 earnings, despite strong revenue and EPS beats, due to weak bookings guidance overshadowing positive results. DUOL's freemium model faces engagement risks, with users potentially switching to LLMs for language learning, threatening future growth and ad revenue. Valuation remains high even after the dip, with forward P/E ratios still elevated and technical analysis suggesting further downside risk to $170-175 per share.
Duolingo reported strong Q3 results, beating revenue and EPS estimates, but shares dropped 20% after a slight DAU miss. DUOL's profitability metrics, including adjusted EBITDA and free cash flow, showed significant YoY growth and expanding margins, highlighting strong scalability. Valuation now appears more attractive after the selloff, with P/S and P/FCF multiples at historical lows and a DCF suggesting 21% upside potential.
Duolingo, Inc. (DUOL) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.49 per share a year ago.
Duolingo, Inc. ( DUOL ) Q3 2025 Earnings Call November 5, 2025 5:30 PM EST Company Participants Deborah Belevan - VP of Investor Relations Luis von Ahn Arellano - Co-Founder, Chairman of the Board, President & CEO Matthew Skaruppa - Chief Financial Officer Conference Call Participants Bryan Smilek - JPMorgan Chase & Co, Research Division Nathaniel Feather - Morgan Stanley, Research Division Wyatt Swanson - D.A. Davidson & Co., Research Division Ralph Schackart - William Blair & Company L.L.C.
Duolingo remains a high-growth language-learning platform, but recent AI-related threats and valuation concerns justify a Hold rating with a $270 price target. FQ2 2025 results showcased 41% revenue growth, 84% net income increase, and strong user engagement, supporting a bullish operational outlook for DUOL. Despite impressive fundamentals, DUOL's premium valuation and market concerns over AI-driven translation tools may limit upside over the next year.
DUOL's Q3 earnings may top estimates as strong subscriber growth, AI-driven innovation, and new verticals boost its profitability outlook.
Beyond analysts' top-and-bottom-line estimates for Duolingo (DUOL), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended September 2025.
Duolingo (DUOL) has been a top performer in edtech, but after a strong run, the stock is losing momentum. The recent drop raises a key question for investors: is this a healthy pullback or the start of a deeper correction?
Duolingo (DUOL) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Duolingo (DUOL) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In the latest trading session, Duolingo, Inc. (DUOL) closed at $306.73, marking a -1.69% move from the previous day.