Duolingo Inc (NASDAQ:DUOL) shares reported better-than-expected quarterly earnings, but its shares fell nearly 15% as it issued guidance that fell short of Wall Street estimates. For the fourth quarter of 2025, Duolingo reported revenue of $282.9 million, a 35% increase year-over-year and slightly above the $275.9 million analysts had anticipated.
Duolingo, Inc. (DUOL) Q4 2025 Earnings Call Transcript
Following a slowdown in user growth, the language-learning company is stepping up investment and changing how it thinks about its tiers of service
The company expects a slowdown in bookings and revenue growth as it shifts focus toward its goal of 100 million daily active users by 2028.
Duolingo forecast first-quarter and 2026 bookings below expectations on Thursday as the language-learning app shifts strategy toward faster user growth, a move it said will weigh on bookings growth and profitability this year.
Performance in the fourth quarter was led by our exposure to consumer-focused investments as the consumer remains resilient despite macro worries. Shares of FIGS increased 69.8% in the fourth quarter and added 161 bps to performance as the company continues to generate strong results. Shares of Hyatt Hotels increased 13.1% and added 60 bps to performance as the company reported strong RevPAR and unit growth rates despite concerns about the macro economy.
In the closing of the recent trading day, Duolingo, Inc. (DUOL) stood at $111.01, denoting a -1.29% move from the preceding trading day.
Duolingo (DUOL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Duolingo shifts focus to teaching quality and long-term user growth, even as daily active user gains slow and near-term monetization faces pressure.
DUOL has plunged 70% in six months, yet still trades at a premium as AI risks and a growth-over-monetization shift cloud its near-term outlook.
Duolingo is misunderstood in the current SaaSpocalypse selloff; AI agents do not threaten its business model or pricing. DUOL's moat lies in its data dominance, addictive engagement features, and AI-driven product expansion, not traditional SaaS seat-based pricing. AI has enhanced DUOL's offerings, doubling courses and enabling new features like Max, rather than undermining its value proposition.
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