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Duolingo Shares Jump 30% After AI-Driven Q2 Outperformance

Duolingo raised its full-year revenue forecast above $1 billion after surpassing second-quarter revenue and profitability expectations.

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Luis von Ahn, CEO of Duolingo, said AI could help speed up the integration of languages into the app.

Overview

  • The company reported $252.3 million in Q2 revenue, up 41% year-over-year, and net income of $44.8 million, an 84% increase.
  • Paid subscriber count climbed to 10.9 million and daily active users neared 48 million, driven by AI-powered learning features.
  • Full-year 2025 revenue guidance was lifted to $1.01–$1.02 billion following the quarter’s stronger-than-expected results.
  • Generative AI accelerated content creation with 148 new language courses launched in the past year and enhanced personalized practice tools.
  • Lower-than-expected AI expenses and stronger ad performance narrowed the gross margin decline to 100 basis points, reinforcing investor confidence.