Duolingo Forecasts 20% DAU Growth, Guides 10–12% Bookings and $400M Buyback
Duolingo delivered over $1 billion in bookings and $300 million in adjusted EBITDA while reaching 50 million DAUs, yet forecasts DAU growth slowing to about 20% in 2026. The company targets 10–12% bookings and 15–18% revenue growth with ~25% adjusted EBITDA margin in 2026 and authorized a $400 million buyback.
1. 2025 Financial and User Metrics
Duolingo delivered over $1 billion in bookings and $300 million in adjusted EBITDA in 2025, marking profitability at scale. The platform surpassed 50 million daily active users, more than five times its level at the 2021 IPO.
2. 2026 Guidance and Share Repurchase
For full-year 2026, the company forecasts bookings growth of 10–12%, revenue growth of 15–18% and an adjusted EBITDA margin around 25%, with seasonal margin pressure in the first half improving in the second half. Duolingo authorized up to $400 million in share repurchases while accepting lower near-term profitability to prioritize user growth.
3. AI-driven Product and Monetization Strategy
Management plans to expand AI-driven features such as Video Call and Speaking Adventures broadly, aiming to enhance learning quality and re-accelerate DAU growth. Duolingo will experiment with less-friction monetization, including tier adjustments and in-app purchases, acknowledging potential margin headwinds from a wider AI rollout.