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Sep 30, 2025
Duolingo Q3 2025 Earnings Report
Duolingo delivered strong Q3 2025 results with record user growth, robust revenue expansion, and exceptional net income boosted by a one-time tax benefit.
Key Takeaways
Duolingo surpassed 50 million daily users and delivered $271.7 million in revenue. Net income surged due to a one-time tax-related gain, while strong subscriber and bookings growth supported a record Adjusted EBITDA.
Revenue by Segment
Forward Guidance
Duolingo expects continued growth in Q4 and FY 2025 with raised full-year guidance, driven by product innovation and global expansion.
Positive Outlook
- Raised full-year bookings guidance to $1.151B–$1.157B
- FY25 revenue projected to grow ~38% YoY
- Q4 Adjusted EBITDA projected between $75.4M and $78.8M
- Full-year Adjusted EBITDA margin expected to reach 29%
- Strength in higher-priced tiers like Max and family plans
Challenges Ahead
- Expected FY gross margin decline of 80 bps YoY
- Foreign exchange rates could impact international bookings
- Q4 revenue growth guidance moderates to 30–32%
- Continued investment in AI and marketing may pressure margins
- No GAAP EPS guidance provided due to non-forecastable items
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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