Duolingo Under Investigation After Forecast of Slower Bookings Growth
Johnson Fistel is investigating federal securities law claims against Duolingo’s executive officers after the company reported Q4 and full-year 2025 results and issued guidance forecasting slower bookings growth and reduced profitability. Shares plunged after-hours on February 26, 2026, after Duolingo cut bookings outlook, prompting investors to seek recovery.
1. Investigation Launched
Johnson Fistel, PLLP has opened a federal securities law investigation into Duolingo’s executive officers to determine if missed disclosures or misleading statements led to investor losses.
2. Financial Results and Guidance
On February 26, 2026, Duolingo reported Q4 and full-year 2025 results, then provided forward-looking guidance citing expectations of slower bookings growth and lower profitability in the near term.
3. Market Reaction
Following the guidance cut, Duolingo shares plunged in after-hours trading, triggering the class action inquiry as investors look to recover losses sustained in the stock’s sharp decline.