Duolingo Stock Soars 18.91% on Q2 Earnings, User Growth

Duolingo's stock surged 18.91% in pre-market trading on August 7, 2025, driven by strong user growth, AI integration, and premium upsell strategies.

Duolingo reported impressive Q2 earnings, with revenue exceeding estimates by 4.7% and achieving a 35% year-over-year growth. The company's daily active users (DAUs) increased by 40%, and paid subscribers rose by 37%. These metrics underscore Duolingo's robust performance and investor confidence.

The introduction of 148 new language courses has doubled Duolingo's offerings, expanding its global reach. However, this expansion comes with higher initial costs, which may impact short-term profitability. Despite this, the strategic move is expected to attract more users and drive long-term revenue growth.

Duolingo's strategic goals for 2028 include achieving $1.7 billion in revenue and $343.7 million in earnings, requiring a 27% annual growth rate. The company's focus on AI-driven engagement and margin management positions it for sustained growth and innovation in the edtech sector.