Duolingo (DUOL) Q4 2025 earnings summary

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.

• Achieved over $300 million in adjusted EBITDA for 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.

• Transitioned CFO role from Matt Skaruppa to Gillian Munson.

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

Financial highlights

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

• 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.

• Q1 bookings growth tracking above guidance, but tough year-over-year comparisons expected.

Outlook and guidance

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

• Short-term: slower bookings growth and lower profitability as investments are made to re-accelerate user growth.

• Adjusted EBITDA margin expected to decline by ~3 points sequentially in Q2, then improve in the second half, with Q4 as the highest margin quarter.

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