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Dec 31, 2025
Duolingo Q4 2025 Earnings Report
Duolingo reported strong Q4 2025 results with accelerating revenue growth and expanding margins.
Key Takeaways
Revenue grew 35% year over year to $282.87 million, driven by subscriber growth and improved conversion. Net income increased to $41.95 million, while Adjusted EBITDA margin expanded to 29.8%, reflecting operating leverage and gross margin expansion.
Revenue increased 35% year over year to $282,868,000.
Net income rose to $41,954,000 with significant year-over-year growth.
Adjusted EBITDA reached $84,348,000 with margin expanding to 29.8%.
Daily active users grew 30% year over year to 52,700,000.
Revenue by Segment
Forward Guidance
For Q1 2026, the company guided bookings of $301,500,000 and revenue of $288,500,000, with adjusted EBITDA of $73,600,000. Full-year 2026 bookings are expected between $1,274,000,000 and $1,298,000,000, with revenue between $1,197,000,000 and $1,221,000,000 and adjusted EBITDA margin around 25%.
Positive Outlook
- Q1 2026 revenue expected to grow 25% year over year.
- FY 2026 revenue expected to grow 15% to 18% year over year.
- Adjusted EBITDA margin expected at approximately 25% for FY 2026.
- Company expects to generate over 350000000 in free cash flow in 2026.
- Strong cash position entering 2026 with over 1000000000 in cash.
Challenges Ahead
- FY 2026 bookings growth expected to slow to 10% to 12%.
- Q1 2026 bookings growth expected at 11% year over year.
- Adjusted EBITDA margin expected to decline versus 2025 levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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