Duolingo posts strong results, but signals slower growth ahead
Duolingo grew users, revenue and profit sharply, but its outlook signaled a slower climb as it favors engagement over faster monetization.
Duolingo delivered another quarter of strong growth, but its message to investors was clear: the company would rather deepen engagement than squeeze users for cash too quickly. The language-learning app said daily active users rose to 56.5 million in the first quarter, up 21% from a year earlier, while paid subscribers climbed to 12.5 million, also up 21%. Revenue increased to $292.0 million from $230.7 million, total bookings reached $308.5 million, and adjusted EBITDA came in at $83.4 million, a 28.6% margin.
That solid performance came with a more measured outlook. Duolingo said it is aiming for 100 million daily active users in 2028, and executives are leaning into product changes meant to keep learners coming back longer before pushing harder on monetization. Speaking practice is now a core part of the product, and the average number of words spoken per user in Video Call has more than doubled over the past year. The company also said it has expanded content up to Duolingo Score 129, equivalent to CEFR B2, across its nine most-learned languages, while using AI tools to accelerate content creation.
The tradeoff is visible in the guidance. Duolingo expects bookings growth of about 11% in 2026, well below the roughly 20% pace it said it could have reached under its previous approach. It also expects adjusted core profit margin to decline to about 25% as it expands access to AI features and raises marketing spending. Management has said faster user growth would be the clearest sign that the strategy is working, even if that means taking a more gradual path to revenue.
That slower-growth stance unsettled investors, and the shares fell in extended trading as the market absorbed the softer booking outlook. Duolingo’s board also authorized a share repurchase program of up to $400 million, and the company said it had already bought back about $50.6 million, or roughly 514,000 shares, through May 1.
The broader message reaches beyond one app. Duolingo’s model still depends on converting free learners into paying subscribers, but its latest results show the limits of trying to maximize both engagement and near-term monetization at once. The company said about 9% of its monthly active users were paid subscribers at the end of 2024, underscoring how tightly growth and conversion remain linked. For Duolingo, the bet is that stronger retention today will build a larger, more durable business later, even if that makes the next leg of growth look less explosive.
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