Duolingo reported third-quarter 2025 revenue growth of 41% year-over-year, driven by a 33% increase in bookings and a 36% rise in daily active users (DAUs). The platform now reaches over 140 million monthly active learners globally, with paying subscribers climbing 34% to a record 11.5 million. These metrics exceeded consensus forecasts and underscore Duolingo’s ability to retain and engage users through its gamified experience. Management emphasized that this sustained engagement provides a robust foundation for future monetization initiatives.

While near-term monetization takes a back seat, Duolingo is leveraging its vast user base and data to fuel proprietary AI learning tools. New “Max” features—including conversational role-play bots, personalized answer explanations and an AI avatar that conducts practice video calls—accounted for 9% of subscriptions in Q3 and are scaling rapidly. In preliminary Q4 results, DAUs grew approximately 30% year-over-year and bookings landed at the high end of guidance ($329.5 million–$335.5 million). Management likens this long-term investment strategy to Spotify’s early focus on user growth over immediate profits, positioning Duolingo for market leadership.

On January 12, 2026, Duolingo announced that Board member and audit committee chair Gillian Munson will succeed Matt Skaruppa as CFO on February 23. Skaruppa, who led the company through its IPO and six consecutive years of disciplined growth, will stay on as an advisor. Munson brings experience as former CFO of Vimeo and Iora Health, and has served on Duolingo’s board since 2019. Her appointment is expected to reinforce financial rigor while supporting continued investment in product innovation.

Duolingo’s shares have declined roughly 70% from their mid-2024 peak, erasing billions in market value and lowering its valuation to about $7.5 billion. The company now trades at a price-to-sales ratio near 8.8, a steep discount to its historical average of 16.6. Wall Street’s consensus 12- to 18-month price target implies upside of 50% or more, with a range of $266 to $347. Given accelerating user growth, expanding AI monetization and a seasoned leadership team, many investors view the recent pullback as a compelling buying opportunity.