Evercore zvýšil doporučení pro Duolingo na Outperform a cílovou cenu na 210 USD, protože obavy z ChatGPT považuje za přehnané. Akcie už od dubnového dna vzrostly asi o 70 %.
When the AI boom took hold, few companies looked more vulnerable than Duolingo Inc. NASDAQ: DUOL. If a chatbot could teach you a language for free, so the thinking went, why bother with a dedicated app at all?
Duolingo Today
$154.46 -4.36 (-2.75%)
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$353.0018.30
$124.38
That fear sent the stock down more than 80% in less than a year, but since bottoming out last April, shares of the language-learning app have been rallying hard. With the stock having gained about 70% through the end of last week, this week’s jump came thanks to a fresh analyst upgrade.
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Evercore’s Mark Mahaney has turned bullish, saying the threat from ChatGPT and its peers has been wildly overstated. Alongside a fresh Outperform rating, he raised his price target to $210, indicating more than 30% upside from current levels.
Maheney also reached for an interesting comparison. He likened Duolingo's setup to that of Netflix Inc. NASDAQ: NFLX in 2022, when the streaming giant's shares fell more than 75% before a wave of product improvements powered a spectacular recovery. As we head into the final few months of 2026, could Duolingo be setting up for a Netflix-style comeback of its own?
Why the AI Fear Was OverdoneThe heart of the bullish case is that the market has fundamentally misjudged the AI threat. Rather than stealing Duolingo's users, tools like ChatGPT appear to coexist with the app, and often the same people use both. The evidence is telling. Evercore's research found that most language learners who use ChatGPT also use Duolingo, and crucially, they use the app just as intensively as Duolingo's most dedicated fans.
Far from cannibalizing the business, the AI-chatbot crowd treats ChatGPT as a casual supplement, reaching for it mostly for light, travel-related dabbling rather than serious study.
Duolingo, Inc. (DUOL) Price Chart for Saturday, September, 5, 2026
Given Duolingo’s stock had more than 80% of its value wiped out on the assumption that this wouldn’t be the case, that distinction matters enormously. It suggests the company’s committed, habit-forming core, the users who log in day after day to keep their streaks alive, remains firmly intact. But with shares still down 70% from last year’s all-time high, it feels like the market still hasn’t quite priced this in yet.
A Business in Good HealthBeyond the AI question, the underlying numbers paint a picture of a company in good health. User growth, for example, has been accelerating rather than fading, with daily active users recently hitting an all-time high. Just as important, those users are sticking around, with retention rates well above 80%. They’re also coming back, with a clever one-off campaign to win back lapsed learners bringing millions flooding back to the app.
That’s not exactly the kind of engagement momentum you’d expect from a product being disrupted by AI. Duolingo is also widening its appeal well beyond languages, pushing into subjects like math, music, and even chess, while using AI to slash the cost of premium features. One of the app's tools saw its cost per use collapse from around 30 cents to less than 1 cent, a neat illustration that, far from being replaced by AI, Duolingo is making it work in its favor.
Where the Bears Still See RiskFor all the renewed enthusiasm, the skeptics have not been entirely silenced, and their concerns deserve a fair hearing. The most pressing is the gap between Duolingo's booming user numbers and the slower pace at which it converts those users into paying subscribers. Strong engagement is one thing; turning it into hard revenue is quite another.
Then there are external risks, from the ever-present threat of new and more capable AI rivals to the regulatory complications of operating in China. This market holds the key to much of Duolingo’s planned growth. In addition, with such a sharp rebound in shares already, investors are right to question whether most of the easy gains have already been made.
Could History Repeat?So, could Duolingo really deliver the next Netflix-style comeback? The parallel is appealing: a beaten-down favorite, written off too soon, staging a comeback on the back of relentless product innovation. If the comparison holds, today's price could look cheap in hindsight, just as Netflix's did after its own 700% recovery.
Yet caution is warranted. Netflix operated at a vastly greater scale, and the monetization questions hanging over Duolingo are real and unresolved. History, as ever, rarely repeats itself so cleanly, and a single upbeat analyst call doesn’t guarantee a repeat performance.
Still, the direction of travel is hard to ignore. Duolingo seems to have answered its biggest existential question, with strong evidence that AI is proving more friend than foe, and its engagement numbers keep climbing. For investors willing to look past the near-term doubts, this recovering favorite may be at the start of a triple-digit rally of its own.
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A month has gone by since the last earnings report for Duolingo, Inc. (DUOL - Free Report) . Shares have added about 29.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Duolingo due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Duolingo, Inc. before we dive into how investors and analysts have reacted as of late.
Reported earnings of 66 cents per share beat the Zacks Consensus Estimate of 61 cents by 8.2%. Earnings declined from 91 cents in the year-ago quarter as the company continued investing in product development and user growth.
Revenues increased 18.3% year over year to $298.5 million and topped the consensus estimate of $297.3 million by 0.4%. Daily active users grew 23% to 58.7 million, accelerating from the first quarter, while paid subscribers increased 17% to 12.7 million.
DUOL Gains From Expanding User EngagementMonthly active users rose 10% year over year to 140.6 million. Management attributed the stronger daily active user growth to product improvements, marketing efforts and a one-time Streak Revival campaign conducted in June.
Current User Retention Rate, which measures the proportion of recurring users returning the following day, reached an all-time high of 84%. The metric improved roughly one percentage point from the prior year, reflecting the combined impact of hundreds of product experiments conducted through Duolingo’s Green Machine testing process.
The Streak Revival campaign allowed eligible learners to restore their longest previous streak by completing three lessons. About 15.4 million learners participated, including nearly 8 million who did not have an active streak when the campaign began.
Duolingo’s Subscription Revenues Drive GrowthSubscription revenues increased 22% year over year to $258 million and accounted for the bulk of the company’s top-line expansion. Subscription bookings advanced 10% to $250.3 million.
Total bookings rose 8% to $289.1 million, or 6% on a constant-currency basis. Growth moderated from the first quarter due to a difficult year-ago comparison related to the initial Energy rollout, a price increase and stronger advertising performance.
Advertising revenues grew 2% to $21.1 million, while Duolingo English Test revenues remained nearly flat at $10.1 million. In-app purchase revenues declined 23% to $8 million. Other revenues increased to $1.3 million from $0.5 million.
DUOL Balances Monetization With User GrowthThe company continued testing monetization initiatives designed to avoid adding friction for free users. Longer free trials have increased trial participation and payer conversions while improving the user experience by removing advertisements and Energy restrictions during the trial period.
Duolingo is also testing Super Lite, a lower-priced, advertising-supported subscription tier that provides more Energy than the free product but fewer benefits than Super. The offering remains in an early testing phase and represents only a small portion of subscribers.
Most new Super Duolingo subscribers now have access to Video Call, the company’s AI-powered conversational practice feature. Management plans to extend access to existing Super subscribers later in 2026 after reducing the cost per call to less than 1 cent through greater use of open-source models.
Duolingo’s Costs Rise on Strategic InvestmentsGross profit increased 19% year over year to $216.7 million. Gross margin expanded 20 basis points to 72.6%, exceeding management’s expectation of approximately 71%, supported by AI cost efficiencies and the measured rollout of AI-powered features.
Operating expenses increased to $182.8 million from $149.2 million. Research and development expenses rose to $92.2 million, sales and marketing expenses increased to $40 million, and general and administrative expenses advanced to $50.6 million.
Net income declined 26% to $33.2 million, while net margin contracted to 11.1% from 17.8%. Adjusted EBITDA decreased 2% to $77.3 million, and the corresponding margin narrowed 530 basis points to 25.9% as Duolingo prioritized investments in user acquisition and product improvements.
DUOL Maintains Strong Liquidity and BuybacksNet cash provided by operating activities declined 3% year over year to $88.3 million. Free cash flow decreased 9% to $78.6 million, while free cash flow margin contracted 790 basis points to 26.3%.
Duolingo ended the quarter with approximately $1.3 billion in cash and short-term investments. The company repurchased $44.4 million of shares during the quarter, bringing total repurchases under its $400 million authorization to $71.9 million through Aug. 1, 2026.
Duolingo Raises Profitability OutlookFor the third quarter of 2026, management expects revenues of approximately $302 million, indicating 11.1% year-over-year growth. Bookings are projected at $307 million, while adjusted EBITDA is forecast at $76 million, implying a 25.2% margin.
Duolingo maintained its full-year revenue and bookings targets. Revenues are expected to reach approximately $1.21 billion, up 16.3%. Bookings are projected at $1.29 billion, indicating growth of 10.9%.
The company raised its full-year adjusted EBITDA margin outlook to approximately 26.5% from its earlier expectation of about 25%. Adjusted EBITDA is projected at $320 million, reflecting stronger-than-expected gross margin performance and lower AI costs.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.
VGM ScoresAt this time, Duolingo has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Duolingo has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Duolingo v úterý vzrostlo o více než 5 % poté, co Evercore ISI zvýšila rating na Outperform z In Line a cílovou cenu na 210 USD z 105 USD, což znamená téměř 42% potenciál růstu. Firma těží z lepší angažovanosti uživatelů a produktů s AI.
Duolingo stock DUOL rose more than 5% on Tuesday after Evercore ISI upgraded the language-learning company to Outperform from In Line and raised its price target to $210 from $105.
The new target implies nearly 42% upside from Monday’s close.
The upgrade comes as Duolingo works to expand user engagement and subscriber growth through artificial intelligence-enabled products.
The shares have declined more than 10% this year as the company has struggled to maintain paid subscriber growth and faced concerns about potential disruption from generative AI tools.
However, recent product developments and user activity data have led some analysts to take a more positive view of the stock.
Evercore ISI analyst Mark Mahaney said the firm’s recent survey showed Duolingo has about four times the selection of its closest pure-play competitor. The survey also indicated that user satisfaction and daily usage have increased.
According to the survey, daily usage rose to 65% in 2026 from 61% in 2025. Mahaney attributed the improvement to recent AI-linked product changes.
Evercore has focused on the engagement impact of several AI-enabled products introduced by Duolingo this year.
These include spoken tokens, Flashcards and Speaking Adventures, a free lesson format that allows learners to complete real-world tasks by interacting with Duolingo characters.
The company has also reported a record current user retention rate of 84%, representing an increase of about 1 percentage point from a year earlier, according to Evercore.
Mahaney also argued that generative AI tools are unlikely to significantly undermine Duolingo’s business.
ChatGPT users interested in language learning are largely focused on travel, an area that Duolingo is less focused on because it is more difficult to monetize.
DA Davidson also became more positive on Duolingo, raising its price target to $175 from $160 while maintaining a Buy rating.
Analyst Wyatt Swanson based the updated view on in-house data tracking activity among more than 170,000 existing Duolingo users.
The data showed continued strength in week-over-week daily active user growth, with the final week of August recording another increase.
DA Davidson estimates third-quarter daily active user growth could reach between 25.6% and 27.6% year over year.
August daily active users increased 1.3% month over month, compared with 0.6% in the firm’s previous update.
The week from Aug. 22 to Aug. 29 recorded 1.8% week-over-week growth, the strongest weekly increase since Duolingo’s streak revival event in early June.
Growth came from both older users returning to the platform and new users from more recent cohorts.
Wall Street remains divided on DuolingoDA Davidson’s new $175 price target represents 23.5 times the firm’s 2026 EBITDA estimate and 18.5 times its 2027 estimate.
The firm also noted that its daily active user data has historically underestimated Duolingo’s reported results by 100 to 200 basis points.
Despite the positive calls from Evercore ISI and DA Davidson, broader analyst sentiment remains more cautious.
LSEG data shows that 17 of the 25 analysts covering Duolingo have a Hold rating on the stock.
The contrasting views reflect the debate around Duolingo’s ability to sustain user and paid subscriber growth while navigating the impact of generative AI on language learning.
For now, recent engagement data and the company’s expanding portfolio of AI-enabled products have provided a more positive backdrop for the shares, even as Duolingo remains below its levels at the start of the year.
DA Davidson zvýšila hodnocení akcií Duolingo z Neutral na Buy a stanovila cílovou cenu 160 USD. Firma podle ní míří k obratu po 65% poklesu akcií za poslední rok.
drew an upgrade to Buy from Neutral at DA Davidson, which set a $160 price target. Duolingo shares were up 4.49% premarket.
The argument is that investors are undervaluing product work, marketing changes and continued refinement of the monetization engine. DA Davidson expects daily active user growth to keep accelerating and bookings to converge with it. It also concedes the market has priced the risks around user deceleration and monetization effectively until now, but says Duolingo is nearing a turning point. The stock has fallen 65% over the past year.
The upgrade follows second-quarter results that beat on both lines, with adjusted earnings of $0.66 per share on revenue of $298.45 million against estimates of $0.58 and $295.44 million. Daily active users rose 23%, faster than the prior quarter, and Duolingo lifted its full-year adjusted EBITDA margin outlook to 26.5% from 25%.
UBS raised its price target to $150 after the print, while Scotiabank cut to $120 on a soft third-quarter revenue forecast.
Key Takeaways Duolingo's Q2 daily active users rose 23% to 58.7 million, while paid subscribers climbed 17%.DUOL's Q2 bookings rose 8% as R&D increased 25%, sales and marketing 35%, and net income fell 26%.Duolingo ended Q2 with $1.3 billion in cash and investments and generated $78.6 million of free cash flow. Duolingo, Inc. (DUOL - Free Report) offers investors a growing, highly engaged audience and expanding product reach. Yet bookings growth is slowing, operating spending is rising faster than revenues and the shares still command a premium valuation.
The investment case depends on whether user growth and platform expansion can translate into stronger monetization quickly enough to justify that premium.
Duolingo User Growth Strengthens the Long-Term CaseSecond-quarter daily active users increased 23% year over year to 58.7 million. Monthly active users rose 10% to 140.6 million and paid subscribers climbed 17% to 12.7 million. Current User Retention Rate also reached a record 84%, giving Duolingo a larger and stickier base for future monetization.
Duolingo is extending that distribution advantage beyond language learning. Chess had roughly 7 million daily active users by early 2026, while Math and Music each had single-digit millions of daily active users in the second quarter. Those products remain small relative to the core platform but can broaden engagement over time.
Coursera, Inc. (COUR - Free Report) is another large online learning platform and recently combined with Udemy, expanding its skills-development offering. Nerdy Inc. (NRDY - Free Report) , led by Varsity Tutors, operates a live online learning platform that uses artificial intelligence to personalize instruction.
DUOL Monetization Is Not Keeping Pace With UsageSecond-quarter revenues increased 18.3% year over year to $298.5 million, but total bookings rose only 8% to $289.1 million after increasing 14% in the first quarter. Management has said that new users do not monetize immediately, so stronger engagement may take time to show up fully in revenues.
Research and development expense rose 25% in the quarter and sales and marketing expense increased 35%, both faster than revenues. Net income fell 26%, while adjusted EBITDA declined 2%, showing the near-term cost of prioritizing user growth and product investment.
Duolingo's Premium Valuation Demands ExecutionDUOL trades at 44.4X forward 12-month earnings, compared with 22.2X for its Zacks sub-industry. That roughly twofold premium leaves less room for disappointment if bookings remain soft or the payoff from current investments takes longer than expected.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for current fiscal-year earnings has declined 5% over the past four weeks. A premium multiple alongside weaker estimate revisions raises the importance of meeting growth and margin targets.
DUOL Cash Flow and Buybacks Add Financial SupportDuolingo ended the second quarter with about $1.3 billion in cash and short-term investments and generated $78.6 million of free cash flow. Management expects more than $375 million of free cash flow for 2026, providing flexibility to keep investing through the current growth transition.
The company repurchased $44.4 million of stock during the quarter. Total repurchases reached $71.9 million through Aug. 1 under its $400 million authorization, offsetting nearly all dilution from 2024 and 2025. That supports per-share value even as operating investment remains elevated.
Duolingo Signals Support a Patient StanceDuolingo still has an attractive long-term platform story, but the near-term setup is less clear. User engagement is improving and cash generation remains healthy, while bookings growth, spending and valuation create a higher execution bar.
The stock carries a Zacks Rank #3 (Hold), which supports a patient near-term stance rather than a strong buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DUOL’s Momentum Score of B is the strongest of its style measures, while the Value Score of C is middling. The Growth Score of D and VGM Score of D are less favorable, leaving the overall style profile mixed.
Akcie Duolingo DUOL ve čtvrtek spadly asi o 15 % poté, co výhled tržeb na 3. čtvrtletí kolem 302 milionů dolarů zaostal za očekáváním Wall Street, které činilo zhruba 304 milionů dolarů. Firma přitom zvýšila celoroční výhled EBITDA i hrubé marže.
Duolingo DUOL shares fell about 15% on Thursday after the language-learning platform issued a third-quarter revenue forecast that fell short of Wall Street expectations, overshadowing better-than-expected second-quarter results and stronger user growth.
The company reported second-quarter revenue of $298.5 million, an 18% increase from a year earlier and above analysts' expectations of $295.6 million, according to LSEG data.
Adjusted core profit also exceeded estimates.
However, investors focused on Duolingo's guidance for third-quarter revenue of about $302 million, below analysts' expectations of roughly $304 million.
The company maintained its full-year revenue forecast despite the softer quarterly outlook.
Daily active users (DAUs), a key measure of engagement, rose 23% year over year to 58.7 million during the second quarter, ahead of Visible Alpha estimates, although paid subscriber growth came in slightly below consensus.
Management said the company continues to prioritize expanding its user base over maximizing near-term revenue from subscriptions.
Chief Executive Officer Luis von Ahn said Duolingo now expects daily active user growth to remain above 20% for the rest of the year, supported by product improvements, stronger user retention and marketing initiatives.
Chief Financial Officer Gillian Munson said the company is allowing teams to focus more heavily on growing engagement rather than immediate monetization, believing that strategy will help Duolingo reach its long-term goal of 100 million daily active users.
The company also credited broader deployment of AI-powered features, including Video Call, along with more disciplined marketing efforts, for boosting engagement during the quarter.
Management noted that a one-time "Streak Revival" campaign helped bring millions of inactive users back to the platform.
However, executives said future growth is expected to come primarily from improvements in retention and learning outcomes rather than temporary promotional campaigns.
Lower artificial intelligence costs also contributed to stronger profitability during the quarter.
Munson said Duolingo has increasingly adopted open-source AI models for features that do not require its most advanced systems, helping reduce operating costs and improve gross margins.
The company raised its adjusted EBITDA outlook for the full year to 26.5%, up from the 25% target announced earlier this year.
It also increased its gross margin forecast, with Munson stating, "For gross margin, we now expect to end the year closer to 70% as compared to the 69% we initially expected."
Full-year guidance remains unchangedDespite the softer third-quarter revenue outlook, Duolingo reaffirmed its annual financial guidance.
Munson said the company continues to expect bookings growth of about 11% and revenue growth of roughly 16% for the full year.
For the third quarter, the company expects bookings of approximately $307 million alongside revenue of about $302 million.
Management also disclosed that employees could receive a cash bonus if fourth-quarter daily active user growth reaches at least 25%.
According to BarCharts data, Duolingo currently holds a consensus Hold rating from analysts, including two Buy ratings, 18 Hold ratings and two Sell ratings.
Thursday's decline erased part of the stock's recent gains as investors weighed the company's long-term user growth strategy against expectations for near-term revenue expansion.
Duolingo, Inc. (DUOL - Free Report) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.20%. A quarter ago, it was expected that this company would post earnings of $0.79 per share when it actually produced earnings of $0.89, delivering a surprise of +12.66%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Duolingo, which belongs to the Zacks Technology Services industry, posted revenues of $298.45 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.37%. This compares to year-ago revenues of $252.26 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Duolingo shares have lost about 21.5% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Duolingo?While Duolingo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Duolingo was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.58 on $305.89 million in revenues for the coming quarter and $2.81 on $1.21 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, NextNav Inc. (NN - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11.
This company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +46.7%. The consensus EPS estimate for the quarter has been revised 12% higher over the last 30 days to the current level.
NextNav Inc.'s revenues are expected to be $0.9 million, down 25% from the year-ago quarter.
Duolingo ve 2. čtvrtletí ukáže, zda vyšší investice do bezplatného zážitku a AI podporují růst uživatelů. V 1. čtvrtletí DAU vzrostly o 21 % na 57 milionů.
Duolingo (DUOL -1.76%) enters its second-quarter earnings report, to be released on Aug. 5, with something to prove. The business itself remains strong. In the first quarter, revenue jumped 27% year over year to $292 million, paid subscribers grew 21% to 12.5 million, and adjusted EBITDA increased 33% to $83.4 million.
But those numbers don't tell the whole story. Duolingo made a major strategic shift as it entered 2026. Instead of maximizing near-term monetization, management is investing more aggressively in the free experience, AI-powered learning, and other initiatives designed to drive long-term user growth.
Q2 should give investors an early indication of whether that strategy is working. Here are three things worth watching.
Image source: Getty Images.
Is user growth holding up? This is arguably the most important number in Duolingo's upcoming report. Daily active users (DAUs) increased 21% in Q1 to 57 million, a deceleration from 49% growth a year earlier. Some deceleration was inevitable as Duolingo grew and management's earlier focus on improving monetization shifted.
Still, management pivoted by the end of 2025, making user growth its priority in the near future. The company wants to reach 100 million DAUs by 2028, nearly double Q1's level. Getting there requires Duolingo to sustain strong growth even as its existing user base becomes much larger.
That's why investors shouldn't simply ask whether DAUs increased. They should ask whether Duolingo remains on a credible path toward 100 million. If DAU growth remains at or above 20%, the strategy appears on track. A meaningful slowdown, however, would make that 2028 target harder to reach.
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What is Duolingo sacrificing for that growth? There's no free lunch. Duolingo is deliberately making parts of its product more generous to improve the free learner experience. It's also expanding AI-powered features, which can improve learning but entail additional computing costs.
Management already warned investors about the trade-off. While Q1 gross margin actually improved 190 basis points to 73%, management expects adjusted EBITDA margins for 2026 to come under pressure, down from 30% to below 26%. At the same time, bookings are expected to grow at just 11% in 2026.
That makes Q2 a useful test of Duolingo's balancing act. Investors shouldn't panic if margins or bookings growth soften. That's partly the plan. What matters is whether Duolingo is getting enough additional engagement and user growth in return. Sacrificing some profitability for faster growth can create enormous long-term value. Sacrificing profitability without accelerating growth cannot.
What does management say about the rest of 2026? Finally, don't stop at the quarterly numbers. Listen to what management has to say for the rest of the year. Duolingo said after Q1 that it was still early in executing its 2026 strategy and that results were tracking largely as expected. That makes any change in tone during Q2 particularly important.
Does management remain confident in its 100 million DAU target? Is investment in the free experience producing the desired results? Are AI costs developing as expected? And does the company maintain or change its financial outlook?
Those answers could matter more than whether Duolingo beats Wall Street's quarterly revenue estimate by a few million dollars, since they will indicate whether the company's efforts are bearing fruit.
What does it mean for investors? Duolingo's Q2 earnings aren't simply another report card. They're an early test of one of the biggest strategic decisions the company has made since going public. Management is effectively asking investors to accept slower near-term monetization in exchange for a larger user base and potentially greater long-term earnings power. That's a reasonable trade-off, but only if it works.
So when Duolingo reports Q2, forget about whether earnings beat expectations by a penny. Watch the users. Watch the cost of acquiring that growth. And, above all, listen to what management says about what comes next. Those three things will tell investors far more about where Duolingo is heading than a single quarter's headline numbers ever could.
PITTSBURGH, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Duolingo, Inc. (NASDAQ: DUOL) announced results for the second quarter ended June 30, 2026 in a shareholder letter that is posted on its Investor Relations website at investors.duolingo.com.
"Q2 was a strong quarter, with DAU growth of 23% compared to the prior year, an acceleration from Q1," said Luis von Ahn, Co-Founder and CEO of Duolingo. "The results reinforce our strategy to improve the product and prioritize user growth."
"Our ambition is to teach a billion people, and every step we take toward a better product brings us closer to that goal."
Video Webcast
Duolingo will host a live video webcast to discuss its quarterly results today, August 5, 2026 at 5:00 p.m. ET. Luis von Ahn and Gillian Munson, our Chief Financial Officer, will answer questions from sell side analysts. This webcast and related materials will be publicly available and can be accessed at investors.duolingo.com. A replay will be available on the Investor Relations section of our website two hours following completion of the webcast.
About Duolingo
Duolingo is the leading mobile learning platform globally. Its flagship app has organically become the world's most popular way to learn languages and the top-grossing app in the Education category on both Google Play and the Apple App Store. With technology at the core of everything it does, Duolingo has consistently invested to provide learners a fun, engaging, and effective learning experience while remaining committed to its mission to develop the best education in the world and make it universally available.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release, including without limitation, statements regarding our business model and strategy and the expected benefits therefrom are forward-looking statements. Without limiting the generality of the foregoing, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are neither promises nor guarantees, but involve a number of known and unknown risks, uncertainties and assumptions that may cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to: our ability to retain and grow our users and sustain their engagement with our products; competition in the online language learning industry; our limited operating history; our ability to maintain or increase profitability; our ability to manage our growth and operate at such scale; the success of our investments; our reliance on third-party platforms to store and distribute our products and collect revenue; our reliance on third-party hosting, cloud computing providers and Artificial Intelligence (“AI”) vendors; our ability to compete for advertisements; acceptance by educational organizations of technology-based education; our ability to access, protect, collect, use, and otherwise process Personal Data about our users and payers, and to comply with applicable data privacy laws; our ability to successfully develop, implement and use artificial intelligence and machine learning technologies; our ability adequately obtain, protect and maintain our intellectual property rights; and the other important factors more fully detailed under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as any such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (“SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of the Company’s website at investors.duolingo.com. All forward-looking statements speak only as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by applicable law, we disclaim any obligation to do so, even if subsequent events cause our views to change.
Duolingo ve 1. čtvrtletí zvýšil tržby o 27 % na 292 milionů USD a čistý zisk na 43 milionů USD. Firma ale varuje před zpomalením růstu a zaměřuje se z tržeb na růst uživatelů.
Duolingo stock price has slumped this year as concerns about disruption by artificial intelligence tools and as investors watch its turnaround strategy. DUOL was trading at $132 after falling by 25% this year and 64% in the last 12 months. It has slumped by 75% from its all-time high, with its market capitalization falling from $24.12 billion to the current $6.2 billion.
Duolingo stock price has pulled back sharply in the past few months as investors predict that its business will slow in the future. That’s because analysts believe that its business is vulnerable to AI disruption.
The company has taken measures to grow its business in the long term. In a statement, the management maintained that it would reduce its focus on revenue growth. Instead, it will focus on user growth in the long term.
The company also announced plans to expand in adjacent areas like chess, math, and music. It is also expanding its video call service to more users and reducing subscription friction.
The most recent earnings reports showed that its business continued growing in the first quarter. Its daily active users jumped by 21% to 56.5 million. Paid subscribers grew by the same percentage to 12.5 million. Its goal is to get to 100 million users by 2028.
The data also revealed that Duolingo’s revenue jumped by 27% to $292 million, which is impressive for a company whose business is being highly disrupted.
Duolingo has continued to be profitable, with the net income rising to $43 million from the previous $35.1 million.
Wall Street analysts predict that its growth will continue, although the deceleration will accelerate. The average estimate among analysts is that the upcoming results will show that revenue comes in at $295 million, up by 17% from the same period last year.
For the year, analysts estimate that its revenue will jump by 16% to $1.21 billion. This will mark a deceleration after it expanded by nearly 40% last year. This slowdown will then continue, falling to 13% YoY next year.
Most notably, analysts expect that its earnings per share will drop drastically this year, moving from $11.77 last year to $6.69.
Analysts are largely bullish about the Duolingo stock. For example, JPMorgan’s Bryan Smilek hiked his target from $94 to $125. Morgan Stanley and Jefferies have the same target of $125, while Wedbush expects it to hike to $139. The average estimate among analysts is $150.
Duolingo stock chart | Source: TradingView
The daily chart shows that the DUOL stock has bounced back gradually in the past few months. It has jumped from the year-to-date low of $89.7 in April to the current $132.
The stock has formed an ascending channel and is slowly approaching the upper side. However, the stock remains below the 100-day moving average.
Most importantly, the Relative Strength Index (RSI) has formed a descending channel, a sign that it has formed a bearish divergence. Similarly, the Percentage Price Oscillator (PPO) has continued falling.
The stock has also formed a bearish flag pattern. Therefore, there is a risk that it will resume the downward trend, potentially after releasing its financial results next week.
Akcie Duolingo uzavřely o 6,86 % níže, i když S&P 500 v daný den vzrostl o 0,89 %. Trh čeká výsledky 5. srpna 2026; odhad EPS je 0,61 USD a tržby 297,2 milionu USD.
In the latest trading session, Duolingo, Inc. (DUOL - Free Report) closed at $124.71, marking a -6.86% move from the previous day. This change lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
Shares of the company witnessed a gain of 5.22% over the previous month, beating the performance of the Business Services sector with its gain of 4.27%, and the S&P 500's loss of 0.63%.
Market participants will be closely following the financial results of Duolingo, Inc. in its upcoming release. The company plans to announce its earnings on August 5, 2026. The company is expected to report EPS of $0.61, down 32.97% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $297.2 million, indicating a 17.81% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $1.2 billion, which would represent changes of -67.21% and +16.1%, respectively, from the prior year.
Any recent changes to analyst estimates for Duolingo, Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.65% higher. Right now, Duolingo, Inc. possesses a Zacks Rank of #2 (Buy).
Investors should also note Duolingo, Inc.'s current valuation metrics, including its Forward P/E ratio of 47.7. For comparison, its industry has an average Forward P/E of 16.53, which means Duolingo, Inc. is trading at a premium to the group.
We can also see that DUOL currently has a PEG ratio of 1.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services was holding an average PEG ratio of 1.44 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 99, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Duolingo v poslední obchodní den vzrostlo o 1,72 % na 131,95 USD a za poslední měsíc přidalo 9,97 %. Před výsledky trh čeká EPS 0,58 USD a tržby 296,19 milionu USD.
Duolingo, Inc. (DUOL - Free Report) closed the most recent trading day at $131.95, moving +1.72% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.16%.
The stock of company has risen by 9.97% in the past month, leading the Business Services sector's gain of 4.05% and the S&P 500's gain of 2.14%.
The investment community will be paying close attention to the earnings performance of Duolingo, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.58, showcasing a 36.26% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $296.19 million, up 17.42% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.76 per share and revenue of $1.21 billion. These totals would mark changes of -67.79% and +16.36%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Duolingo, Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Duolingo, Inc. is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Duolingo, Inc. is holding a Forward P/E ratio of 46.97. This represents a premium compared to its industry average Forward P/E of 17.75.
We can additionally observe that DUOL currently boasts a PEG ratio of 1.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services was holding an average PEG ratio of 1.53 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 110, this industry ranks in the top 45% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Duolingo (DUOL) za poslední měsíc vzrostlo o více než 20 % a těží z AI, která výrazně zrychlila tvorbu obsahu. V 1. čtvrtletí zvýšilo čistý zisk o 24 % a tržby o 27 %.
It's been tough for long-term investors to hold Duolingo (DUOL +4.04%). The stock is down more than 70% over the past year, and while it was overvalued at over $400 per share, the current price is at bargain-basement levels, and some investors are finally noticing.
The stock has rallied more than 20% over the past month, and there are several reasons for Duolingo investors to feel optimistic that this is just the beginning.
Image source: Getty Images.
Duolingo isn't just for learning new languages Duolingo's original specialty was gamifying the language-learning experience. However, it is expanding into teaching other subjects, including chess, its fastest-growing subject.
Chess is a notable addition since it expands Duolingo's offerings beyond academic areas. The edtech company introduced math and music a few years ago and continues to expand its inventory. Duolingo is turning into an app that helps people master high-demand skills, not just new languages.
Its recent artificial intelligence (AI) investments also play a role here. Duolingo told investors in its Q1 shareholder letter that AI has "fundamentally changed how quickly we can create content." The company was able to publish 20,500 course units in Q1, compared to an average of 7,100 per quarter in 2025 and 1,800 per quarter in 2024.
Duolingo explained that this dramatic scaling helped it improve its popular Chinese, Japanese, and Korean courses. However, this same increase in content production makes it substantially easier for Duolingo to create new courses on high-demand skills that attract more users.
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Net income is still growing Almost tripling quarterly course unit production in a single year gives customers more options. That helps with revenue, but surprisingly, Duolingo's net income has marched higher as well. It truly demonstrates that Duolingo's AI efforts are cost-efficient, which makes the growth sustainable.
For instance, Duolingo delivered 24% year-over-year net income growth in Q1. Revenue was up by 27%, so there was a slight contraction in the net profit margin. Duolingo still walked away from the quarter with a double-digit profit margin, which has become the norm.
All of this financial growth is fueled by steady user acquisition. Duolingo's daily active users and paid subscribers were both up by 21% year over year. With 56.5 million and 12.5 million people, respectively, in those segments, Duolingo can still gain more market share. A side focus on hot, broader subjects like chess can expand Duolingo's footprint and keep users more engaged.
Intentional revenue slowdown is for long-term gains Although Duolingo's numbers were good, they were a downgrade from what investors have come to expect. Last year, Duolingo was exceeding 40% year-over-year revenue growth. A drop to 27% would explain the decline if Duolingo traded at over $400 per share then. However, Duolingo released Q1 results in early May, when almost all of the damage was already done.
Duolingo is aiming to become a company that will be around for 100 years and change how the world learns everything. This long-term vision comes with a medium-term goal of reaching 100 million daily active users in 2028.
The company could make more revenue by pushing its subscriptions or establishing a hard paywall, but Duolingo said its scale wouldn't be possible with a paywall model. Getting to 100 million daily active users with a freemium model will give Duolingo more options and financial growth in the future when it maximizes its average revenue per user.
In the meantime, Duolingo continues to improve its subscriptions so more people feel inclined to become paying customers. The company cited its subscription-only Video Call feature, which has more than doubled the average number of words spoken per user who takes advantage of it.
Duolingo anticipates 17.1% year-over-year revenue growth in Q2 and 16.1% in full-year 2026. The guidance figures imply deceleration and aren't glamorous for a growth stock, but Duolingo's correction is long overdue. Its efforts to attract 100 million daily active users in 2028 should pay off tremendously and give the company more opportunities to reignite revenue growth when the time calls for it.
