Duolingo's earnings call highlighted strong growth in daily active users and successful expansion of language courses, aided by AI. However, the company faces challenges with declining gross margins and monetization of new educational subjects. The introduction of new offerings like chess and AI-driven efficiencies are promising, but pricing issues in certain markets persist.

Company Guidance -

Q2 2025

In the recent call, Duolingo provided detailed guidance on their financial performance and strategic initiatives. The company anticipates a full-year gross margin decline of about 150 basis points year-over-year, with a sequential decline of 50 basis points expected in Q2, followed by an increase in Q3 and Q4, ultimately ending the year at levels similar to the prior year. As of the end of Q1, 7% of subscribers were utilizing the Duolingo Max plan, contributing to strong financial results. The company continues to focus on expanding their offerings, including the recent addition of 148 new language courses, which were developed using AI. This AI-driven approach also enables the creation of content more efficiently, allowing Duolingo to enhance user engagement through features like the Video Call with Lily. These advancements are expected to drive user growth, particularly among English learners, who currently constitute around 50% of Duolingo's user base—a figure the company hopes will eventually reach closer to the global average of 80%. Additionally, Duolingo is exploring the potential benefits of recent legal developments regarding app store payment structures, which may offer new opportunities for cost optimization.

Strong Daily Active User Growth

Duolingo reported a 49% year-over-year growth in daily active users, continuing strong growth trends from previous years.

Expansion of Language Courses

Duolingo added 148 new language courses using AI, significantly speeding up content creation compared to the previous 12 years.

AI-Driven Content Creation

AI has allowed Duolingo to create nearly 100% of its content automatically, enhancing the speed and efficiency of course development.

Introduction of Chess Course

Duolingo is set to launch a chess course developed with a small team using AI, expanding its educational offerings beyond language.

Impressive Max Subscription Growth

Max subscriptions make up about 7% of total subscribers, contributing to strong Q1 performance.

Duolingo (DUOL) Earnings, Revenues Date & History

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DUOL Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 06, 2025	2025 (Q2)	0.59 / -	0.51	―	―	―
May 01, 2025	2025 (Q1)	0.52 / 0.72	0.57	26.32% (+0.15)	―
Feb 27, 2025	2024 (Q4)	0.48 / 0.28	0.26	7.69% (+0.02)	―
Nov 06, 2024	2024 (Q3)	0.35 / 0.49	0.06	716.67% (+0.43)	―
Aug 07, 2024	2024 (Q2)	0.32 / 0.51	0.08	537.50% (+0.43)	―
May 08, 2024	2024 (Q1)	0.27 / 0.57	-0.06	1050.00% (+0.63)	―
Feb 28, 2024	2023 (Q4)	0.04 / 0.26	-0.35	174.29% (+0.61)	―
Nov 08, 2023	2023 (Q3)	-0.07 / 0.06	-0.46	113.04% (+0.52)	―
Aug 08, 2023	2023 (Q2)	-0.19 / 0.08	-0.38	121.05% (+0.46)	―
May 09, 2023	2023 (Q1)	-0.24 / -0.06	-0.31	80.65% (+0.25)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

DUOL Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 01, 2025	$400.00	$486.42	+21.61%
Feb 27, 2025	$375.78	$312.07	-16.95%
Nov 06, 2024	$318.85	$315.82	-0.95%
Aug 07, 2024	$161.40	$178.99	+10.90%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.