Duolingo (DUOL) investor relations material

Executive summary

• Surpassed 50 million daily active users, over five times the 2021 IPO level, and exceeded $1 billion in bookings for the first time in 2025.

• Announced a strategic shift to prioritize user growth and enhance the free learner experience over near-term profitability, aiming for 100 million DAUs by 2028.

• Advances in AI are pivotal for future product development and user engagement.

• Transitioned CFO role from Matt Skaruppa to Gillian Munson.

Financial highlights

• 2025 bookings exceeded $1 billion; adjusted EBITDA surpassed $300 million.

• Q4 bookings growth was about 24% year-over-year.

• 2026 guidance: bookings growth of 10%-12%, revenue growth of 15%-18%, adjusted EBITDA margin around 25%.

• Q1 2026 guidance: 11% bookings growth, 25% revenue growth, 25.5% adjusted EBITDA margin.

Outlook and guidance

• Aims to reach 100 million daily active users in the medium term by prioritizing user growth and product improvements.

• Expect DAU growth to be about 20% year-over-year throughout 2026.

• Short-term: slower bookings growth and lower profitability due to investment in user growth.

• Adjusted EBITDA margin expected to decline by roughly 3 points sequentially in Q2, then improve in the second half of 2026.

• Revenue growth rate to moderate after Q1, with stabilization in the second half.