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Edge28 Nov 2025
Keeping the Streak Alive: The Story of Duolingo
How Duolingo made language learning addictive, scaled to millions of users, and built a powerful subscription business around everyday practice.
Duolingo
Duolingo (DUOL) investor relations material
Duolingo Q3 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Q3 2026 earnings summary3 Nov, 2026
Executive summary
Q3 revenue rose 14% YoY to $309.0M; DAUs grew 29% to 64.9M and paid subscribers increased 14% to 13.1M.
Bookings, revenue and profitability exceeded expectations; DAU growth accelerated in 8 of the 10 largest markets and across regions and subjects.
Product improvements, especially stronger retention, drove user growth; strategy is gradually emphasizing monetization while protecting the free experience.
Financial highlights
Q3 total bookings rose 12% to $316.1M; subscription bookings increased 16% to $278.4M, with double-digit growth in most regions.
Operating income fell 31% to $24.2M as expenses grew faster than revenue; Q3 R&D expense rose 30% to $107.7M and S&M expense rose 20% to $42.2M.
Q3 net income was $27.2M versus $292.2M a year earlier, when a $222.7M one-time tax benefit followed deferred-tax valuation-allowance releases.
Adjusted EBITDA was $78.7M versus $80.0M; free cash flow was $75.3M versus $77.4M. Nine-month Adjusted EBITDA and free cash flow rose to $239.5M and $301.8M, respectively.
Q3 expenses included an $11M bonus accrual tied to user-growth targets; paid marketing was profitable, and record gross margin benefited from lower-than-expected AI costs.
Outlook and guidance
Q4 guidance: bookings growth of 13% YoY, revenue growth of 14%, Adjusted EBITDA of $84M and margin of 26.1%; bookings are expected slightly ahead of prior guidance.
FY 2026 guidance: bookings growth of 12% YoY, revenue growth of 18% and Adjusted EBITDA margin of 26.5%.
Q4 DAU growth is expected to remain similar to Q3; gross margin is expected to decline slightly sequentially as Video Call reaches all paid subscribers, with operating expenses likely to grow faster than revenue.
Full 2027 outlook is planned for February; priorities include user growth and additional monetization testing while preserving the free experience.
Cash, cash equivalents, short-term investments and operating cash flow were expected to cover working capital, capital expenditures and potential repurchases for at least 12 months.
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Latest events from Duolingo
- User growth and engagement surged as AI-driven innovation and efficient testing fueled retention and feature expansion.DUOL
Citi’s 2026 Global TMT Conference - Q2 2026 saw 23% DAU growth, 18% revenue growth, and improved margins despite lower net income.DUOLQ2 2026
- Record user and bookings growth, with AI-driven innovation and margin expansion set for 2025.DUOLQ4 2024
- All proposals passed, including director elections and auditor ratification.DUOLAGM 2026
- Q1 revenue up 27% to $292M, DAUs up 21%, and strong AI-driven product advances.DUOLQ1 2026
- Director elections, auditor ratification, and executive pay are key votes amid strong growth and ESG focus.DUOLProxy filing
- Virtual annual meeting to vote on directors, auditor ratification, and executive compensation.DUOLProxy filing
- Q3 2024 delivered record user growth, revenue, and profitability, with strong outlook ahead.DUOLQ3 2024
- Q2 2024 saw record user and revenue growth, net income of $24.4M, and raised guidance.DUOLQ2 2024
Next Duolingo earnings date
Q4 202626 Feb, 2027
Duolingo
Next Duolingo earnings date
Q4 202626 Feb, 2027
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Frequently asked questions
Language Learning Platform
Duolingo is a digital language learning platform established in 2011. It offers a range of languages to users who are looking to learn through an online platform in a fun and casual setting. The platform employs a mix of lessons, quizzes, and gamified exercises to assist and guide its users in their learning. Its distinctive feature is the gamification of lessons, aiming to make the learning process more engaging. Duolingo can be accessed through its website or via its mobile application and caters to everything from travelers to students and professionals. The platform's mascot, a green owl, has become an immediately recognizable symbol of both the company and its platform.
Free Learning
Duolingo was launched in 2011 by Luis von Ahn and Severin Hacker, two computer scientists with the ambition to offer free language education to the masses. Founded in Pittsburgh, Duolingo began as an innovative platform designed to break barriers in language learning by uniquely combining gamified lessons with a crowd-sourced text translation model. Over the years, Duolingo evolved and grew, expanding its language offerings, and becoming one of the most downloaded educational apps globally. As of today, Duolingo has hundreds of millions of users worldwide and offers over 30 languages.
The Platform
Duolingo provides a multi-faceted platform that offers a user-friendly and fun way to approach learning new languages. Designed with gamification in mind, learners can engage in bite-sized lessons, reinforcing their knowledge through varied exercises, such as translation, listening, and matching tasks. The platform includes a streak system and experience points to motivate consistent learning. Furthermore, Duolingo Stories allow users to immerse themselves in short, interactive narratives in the language they’re learning, aiding comprehension skills and real-life application of what they’ve learned. The platform also introduced Duolingo Podcasts for some languages, providing real-life conversations and narratives suitable for intermediate learners. This is something that has been appreciated by users, as turning to a podcast on Spotify or SiriusXM can feel daunting while learning.
Free and Paid Users
Primarily known as a free language-learning platform, Duolingo has devised several revenue streams to sustain its operations. One of the primary sources is its "Duolingo Plus" subscription, which offers an ad-free experience, offline access to lessons, and progress tracking. The introduction of in-app advertisements for non-subscribed users has also helped Duolingo generate revenue. Furthermore, Duolingo has ventured into language proficiency testing. Their "Duolingo English Test" is presented as an affordable alternative to traditional English proficiency tests and is recognized by numerous institutions.