Overview
- Q3 revenue rose to $271.7 million, topping estimates, and full-year guidance increased to $1.028–$1.032 billion.
- Paid subscribers jumped 34% to 11.5 million as the company highlighted its AI-powered Duolingo Max tier as profitable.
- Daily active users came in below expectations at roughly 50.5 million versus about 51.1 million forecast, and the stock fell about 17%–20% after hours.
- The company projected Q4 bookings of $329.5 million to $335.5 million, below Wall Street expectations near $343.6 million.
- Reported EPS of $5.95 was inflated by a one-time $223 million tax gain, while gross margin of 72.5% remained above estimates despite AI-related costs.