How Duolingo Stock Jumped 36% Thursday Morning

Core Insights - Duolingo significantly exceeded analyst expectations in Q2 2025, with stock prices rising as much as 36.2% following the report [1][3] - The company reported a revenue increase of 41% year-over-year to $252 million and earnings per share of $0.91, up 78% [3][6] - Daily active users grew by 40% to 47.7 million, while paid subscribers increased by 37% to 10.9 million [3][4] Financial Performance - Analyst consensus predicted earnings of approximately $0.58 per share on revenue near $241 million, which Duolingo surpassed comfortably [3] - The company's revenue growth reflects a strong demand for its language-learning services, particularly in premium service plans [4][6] Market Dynamics - Asia, especially China, is highlighted as the fastest-growing region for Duolingo, with plans to launch a local version of the Duolingo Max plan pending regulatory approval [5] - The potential approval for the Max plan in China could lead to significant revenue growth in Duolingo's strongest market [5] Stock Performance - Despite trading nearly 30% below its all-time highs from May, Duolingo's stock has appreciated 142% over the past 52 weeks, indicating strong investor confidence [6]