DUOL's long-term strategy centers on its push for stronger free cash flow, as reinvesting in product, AI tools and global expansion builds future leverage.
Recently, Zacks.com users have been paying close attention to Duolingo (DUOL). This makes it worthwhile to examine what the stock has in store.
Recently, Zacks.com users have been paying close attention to Duolingo (DUOL). This makes it worthwhile to examine what the stock has in store.
Duolingo (NASDAQ: DUOL) shares are down 45% in the last month, coinciding with an implosion of retail investor sentiment.
Duolingo (NASDAQ: DUOL) has historically been a favorite growth story on Wall Street — however, the narrative has recently changed. Following a robust performance last year, the stock has dropped nearly 60% from its peak and currently trades at about $195, marking its lowest point in several months.
Maintaining a bullish stance, I see Duolingo's 22x forward free cash flow valuation as a bargain for its growth profile. DUOL is reinvesting profits into product innovation and AI-driven tools, temporarily reducing free cash flow margins and causing investor caution. Revenue growth is expected to exceed 30% year-over-year in 2026, with a robust balance sheet supporting continued innovation and resilience.
Recently, Zacks.com users have been paying close attention to Duolingo (DUOL). This makes it worthwhile to examine what the stock has in store.
Duolingo is my preferred language learning platform, offering a compelling user experience and strong global growth, especially in China. Despite a 35% stock decline and post-earnings volatility, DUOL continues to deliver impressive user and paid subscriber growth with solid profitability metrics. Concerns over near-term monetization and competition, particularly from OpenAI, appear overblown given the company's differentiated curriculum and market position.
Duolingo reported strong Q3 FY25 results, but shares fell over 20% due to weak Q4 guidance and a focus on user-growth over monetization. Duolingo management is taking the next leap in its innovation journey, to further solidify their footing in the online learning platform space, or else risk getting disrupted. This is similar to how Meta did in 2022. While the strategy is not aligned to the short-termism of Wall Street, the long-term revenue opportunity could be huge.
Although the revenue and EPS for Duolingo (DUOL) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Shares of Duolingo Inc tumbled 26% on Thursday after the language-learning platform issued softer-than-expected fourth-quarter guidance, despite reporting record revenue and user growth. The company posted third-quarter revenue of $271.7 million, up 41% from a year earlier, and achieved an all-time high of 50.5 million daily active users.
Shares in language learning platform Duolingo, Inc. (Nasdaq: DUOL) are plummeting this morning.