"Yesterday, after market close, Duolingo (Nasdaq: DUOL) reported its fourth quarter 2025 results. On the surface, many of the company's most critical metrics saw decent gains for the quarter, including: Daily Active Users: 52.7 million (up 30% year-over-year), Paid Subscribers: 12.2 million (up 28% year-over-year), Revenue: $282.9 million (up 35% year-over-year), Total bookings: $336.8 million (up 24% year-over-year), Net income: $42 million."
"The company also reported its full-year 2025 financials, revealing that for the first time in its history, it crossed the $1 billion revenue mark for a fiscal year. In 2025, Duolingo recorded $1.03 billion in revenue, along with total bookings of $1.15 billion, the latter figure representing 33% year-over-year growth. Net income for the year totaled $414.1 million."
"Yet it was von Ahn's next comments, along with the company's 2026 guidance, that caused investors to turn negative on the stock."
Duolingo reported robust fourth quarter 2025 results with daily active users reaching 52.7 million (up 30% year-over-year), paid subscribers at 12.2 million (up 28%), and revenue of $282.9 million (up 35%). The company achieved a historic milestone by surpassing $1 billion in annual revenue for 2025, totaling $1.03 billion with $1.15 billion in bookings and $414.1 million in net income. Despite these strong operational metrics and CEO Luis von Ahn's positive statements about momentum, investor sentiment turned sharply negative following the company's 2026 forward guidance, which disappointed market expectations and triggered significant stock selling.
#duolingo-earnings #stock-market-reaction #forward-guidance #financial-performance #investor-sentiment
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