Duolingo (DUOL) Q1 2026 earnings summary

Executive summary

• Achieved double-digit growth in bookings and revenue for Q1 2026, with DAUs up 21% year-over-year, aligning with strategic priorities to improve teaching and user growth.

• Major product enhancements included expanded speaking practice, new spoken tokens, Speaking Adventures, and Flashcards, with AI driving rapid content creation and personalization.

• Progress made on strategic initiatives, focusing on integrating speaking as a core learning component and expanding features and content to support learners.

• Emphasis on building a product that drives long-term engagement and loyalty, aiming for sustainable business growth.

• Advanced course content now covers professional proficiency (B2 CEFR) in the top nine languages, with 20,500 course units published in Q1 alone.

Financial highlights

• Q1 adjusted EBITDA reached $83 million, representing about 29% of revenue.

• Gross margin expanded in Q1 and is expected to be approximately 71% in Q2, trending down to 69% by year-end due to increased AI-powered features.

• Entered Q2 with over $1 billion in cash, no debt, and projected over $350 million in free cash flow for the year.

Outlook and guidance

• Full-year 2026 guidance: bookings growth of 10.5%, revenue growth of 16.1%, and adjusted EBITDA margin of 25.7%.

• Q2 bookings growth expected at 6% due to tough comps, with acceleration in the second half; Q2 revenue growth projected at 17%.

• Adjusted EBITDA margin guidance: ~24% in Q2, flat to slightly down in Q3, rising to 27% in Q4.

• DAU growth expected to remain around 20% throughout 2026, with minor fluctuations.

• Early stages of executing the 2026 plan, with a focus on long-term business durability and expansion.