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Duolingo Lifts 2025 Outlook After Q3 Beat as AI Tier Fuels Subscriber Gains

Shares fell after-hours on concern about a slowdown in daily users.

Overview

  • Q3 revenue rose 41% year over year to $271.7 million, topping estimates of about $260 million.
  • Duolingo raised full-year revenue guidance to $1.028–$1.032 billion and projected Q4 revenue of $273–$277 million.
  • Paid subscribers grew 34% to 11.5 million as the company highlighted profitable AI features and a Luckin Coffee promotion in China.
  • Daily active users were about 50.5 million versus roughly 51.1 million expected, signaling softer sequential engagement.
  • Reported EPS hit $5.95 due to a $223 million one-time tax gain, and a 72.5% margin topped the 71.4% consensus as the stock fell roughly 17%–20% after-hours.