Core Viewpoint - Duolingo's stock fell 14% following the release of its fourth-quarter results, primarily due to a strategic shift towards prioritizing user growth over immediate monetization, which has raised concerns among investors [1][7]. Financial Performance - Duolingo reported a 35% year-over-year revenue increase, reaching $282.9 million, driven by a 30% rise in daily active users to 52.7 million and a 28% increase in paid subscribers to 12.2 million [5]. - The company's net income surged to $42.0 million from $13.9 million year-over-year, and it announced a $400 million share repurchase program, indicating strong free cash flow generation [6]. Strategic Shift - Management is intentionally slowing down near-term financial results to focus on expanding its user base, aiming for 100 million daily active users by 2028, which involves enhancing the free user experience [7][8]. - This strategy includes an estimated investment of over $50 million in foregone bookings to support the free user experience and the introduction of new subjects like math, music, and chess [8]. Future Guidance - For Q1, Duolingo expects revenue growth of 25%, down from 35% in Q4, with full-year 2026 revenue growth projected at 15% to 18% and total bookings growth slowing to 10% to 12% [9]. - Management anticipates a contraction in adjusted EBITDA margin to about 25% in 2026 due to increased investments in marketing and AI features [10]. Market Valuation - The stock is currently valued at approximately 32 times earnings, suggesting that investors expect sustained strong growth and margin expansion [12]. - Concerns arise regarding the potential delay in reaccelerating bookings due to the strategic pivot, which may not provide sufficient margin of safety given the stock's premium valuation [12][13].

Core Insights - Duolingo, Inc. reported a revenue of $282.87 million for the quarter ended December 2025, marking a year-over-year increase of 35% and exceeding the Zacks Consensus Estimate by 2.19% [1] - The earnings per share (EPS) for the same period was $0.94, significantly higher than the $0.31 reported a year ago, with an EPS surprise of 19.24% over the consensus estimate of $0.79 [1] Financial Performance Metrics - Paid subscribers reached 12.2 million, slightly above the estimated 12.12 million [4] - Subscription bookings totaled $296.6 million, marginally exceeding the average estimate of $296.58 million [4] - Daily active users (DAUs) were reported at 52.7 million, surpassing the average estimate of 52.33 million [4] - Monthly active users (MAUs) were 133.1 million, below the average estimate of 137.98 million [4] - Total bookings amounted to $336.8 million, slightly above the estimated $335.84 million [4] Revenue Breakdown - Subscription revenue was $242.29 million, exceeding the four-analyst average estimate of $237.33 million, reflecting a year-over-year increase of 39% [4] - Other revenues, including advertising and in-app purchases, totaled $31.03 million, below the average estimate of $39.91 million, with a year-over-year increase of 14.9% [4] - In-app purchases generated $9.55 million, slightly below the estimated $10.12 million [4] - Advertising revenue was $20.22 million, exceeding the average estimate of $17.55 million, representing a year-over-year increase of 41.5% [4] - Revenue from the Duolingo English Test was $10.28 million, slightly below the estimate of $10.42 million, showing a year-over-year decline of 9.9% [4] Stock Performance - Duolingo's shares have returned -15.8% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Not surprisingly, several Wall Street analysts downgraded DUOL stock. Even experts who maintained optimism lowered their price forecasts. Still, the one group that apparently doesn't share in the pessimism is the smart money.Essentially, the volatility skew is a visual representation of the surface-area distortion of volatility space, enabling retail traders to better understand how the smart money is positioned for risk. The skew is a lot like a soccer team's starting formation.In the case of DUOL stock, t ...

In 2025, Duolingo recorded $1.03 billion in revenue, along with total bookings of $1.15 billion, the latter figure representing 33% year-over-year growth. Net income for the year totaled $414.1 million. "We closed 2025 with strong momentum,†Duolingo CEO Luis von Ahn said in a statement, "surpassing 50 million daily active users and generating more than $1 billion in bookings for the first time.†Yet it was von Ahn's next comments, along with the company's 2026 guidance, that caused investors to turn negati ...

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Duolingo To Contact Him Directly To Discuss Their Options If you suffered significant losses in Duolingo stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information] NEW YORK, Feb. 27, 2026 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a l ...

Duolingo said Thursday (Feb. 27) that it plans to shift its focus from financial growth to user growth amid a challenge posed by artificial intelligence.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Louis von Ahn ...

Company Overview - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Expertise and Focus Areas - The company specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive delivers news and insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Fourth quarter earnings season is entering its final stretch. Earnings from Nvidia (NVDA) this week marked the final company among the "Magnificent Seven" tech stocks to report quarterly results. This report offered a crucial update on how demand for its high-tech AI chips — a big part of the hundreds of billions of dollars its Big Tech peers are spending on AI investments — continues to shape up. But concerns about increased competition and the drivers underpinning Nvidia's strong forecast overshadowed t ...

Duolingo Inc (NASDAQ:DUOL) on Thursday reported upbeat fourth-quarter sales but issued sales guidance below estimates.Duolingo posted quarterly sales of $282.868 million, beating market estimates of $275.925 million.Duolingo said it sees FY2026 sales of $1.197 billion to $1.221 billion, versus expectations of $1.264 billion.“At the same time, advances in AI are fundamentally reshaping how people learn, and we believe this is a pivotal moment for our company. In 2026, we are deliberately prioritizing user gr ...

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims on behalf of investors of Duolingo, Inc. following a significant decline in its stock price after the company announced disappointing financial results and guidance [1][3]. Group 1: Investigation Details - The investigation focuses on whether Duolingo's executive officers complied with federal securities laws, particularly in light of the company's recent disclosures [4]. - Duolingo's stock fell by over 30% in pre-market trading on February 27, 2026, after the announcement of slower bookings growth and reduced profitability expectations [3]. Group 2: Company Background - Duolingo announced its financial results for the fourth quarter and full fiscal year ended December 31, 2025, on February 26, 2026 [3]. - The company is facing scrutiny from investors due to the significant losses incurred following its financial disclosures [2][4]. Group 3: Law Firm Background - Johnson Fistel, PLLP is a nationally recognized shareholder-rights law firm that represents individual and institutional investors in securities class action lawsuits [5]. - The firm has a strong track record, having recovered approximately $90,725,000 for clients in previous cases, and has been recognized as a top plaintiffs' securities law firm multiple times [6].