Duolingo Sees 10–12% 2026 Growth, Launches $400M Buyback, Faces Class Action
Duolingo ended 2025 with over 50 million daily active users, more than $1 billion in bookings and over $300 million in adjusted EBITDA leveraging its AI-first platform. Management guides 10–12% revenue growth and a 25% EBITDA margin for 2026, launches a $400 million share repurchase, faces a class action investigation.
1. Strong 2025 Performance
Duolingo closed 2025 with over 50 million daily active users, more than $1 billion in bookings and over $300 million in adjusted EBITDA, supported by a 90-basis-point gross margin expansion driven by high-tier AI-powered subscriptions and the launch of 148 new courses.
2. 2026 Guidance and Buyback
Management expects 2026 revenue growth of 10–12%—down from 39% in 2025—and a 25% EBITDA margin, while authorizing a $400 million share repurchase program to underpin long-term value despite slower top-line momentum.
3. Class Action Investigation
A class action investigation has been initiated against Duolingo following a more than 20% stock decline earlier this year, introducing potential litigation costs and investor uncertainty.