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*(If people are gonna pump this stock, at least have the intellectual honesty to follow thru regardless.”)*
TLDR: -24% after hours because guidance shows slowing growth.
Duolingo Sees Slower Revenue Growth Ahead in Shift to Growing User Base - wsj
The company’s fourth-quarter revenue grew 35% to $282.9 million
By Elias Schisgall
Feb. 26, 2026 at 5:18 pm ET
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**Quick Summary**
\- Duolingo expects slower bookings and revenue growth, along with lower profitability this year, due to a user growth strategy shift. Shares tumbled 24% in after-hours trading.
\- Duolingo forecasts 11% bookings growth and $288.5 million in revenue for the first quarter, below analyst expectations.
\- Duolingo reported a fourth-quarter profit of $42 million and 35% revenue growth to $282.9 million, exceeding analyst estimates.
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Duolingo DUOL 5.19%increase; green up pointing triangle expects a slowdown in bookings and revenue growth along with lower profitability this year as it looks to boost its user base by 2028.
The educational technology company said Thursday its daily active user growth has decelerated in recent years, due in part its increased scale and recent focus on monetization.
Duolingo will now shift toward prioritizing user growth in the coming years, with a goal of 100 million daily active users by 2028.
“If we succeed in doubling our DAUs, the payoff would be huge,” Chief Executive Luis von Ahn said. “But the short-term implication is that this year will see slower bookings growth and lower profitability.”
Shares tumbled 24% to $89.84 in after-hours trading.
For the first quarter, the company is forecasting an 11% increase in bookings and revenue of $288.5 million, representing 25% growth. Analysts polled by FactSet were expecting $291.4 million.
Duolingo expects revenue to growth by 15% to 18% this year. That would equate to revenue of $1.27 billion to $1.3 billion, compared with the $1.26 billion analysts are expecting.
Bookings growth is projected at 10% to 12% this year, compared with a potential for 20% growth with its current business model.
“We could also reach higher bookings in 2028 with the strategy that we’ve employed until now, but we believe the result would be a smaller and less valuable business in the long run,” von Ahn said. “In that scenario, we would likely have fewer DAUs and make more money per user, but would have less total impact and our position as the leading education app in the world would be less defensible.”
Duolingo reported a fourth-quarter profit of $42 million, compared with a profit of $13.9 million a year earlier.
Revenue grew 35% to $282.9 million. Analysts polled by FactSet were expecting $276 million.
Daily active users grew 30% to 52.7 million during the quarter.
Fin