Duolingo's Q2 Earnings Surprise: Daily Active Users Up 40%, Revenue Rises 41%

Duolingo's stock surged 14% on Thursday, adding $2 billion to its market capitalization. The language learning platform reported Q2 daily active users up 40% to 47.7 million and monthly active users up 24% to 128.3 million. Revenue rose 41% to $252.3 million, and EPS climbed to $0.91. CEO Luis von Ahn attributed the strong results to stronger advertising revenue and lower AI costs.

Duolingo Inc. (NASDAQ: DUOL) saw its stock surge by 14% on Thursday, adding $2 billion to its market capitalization. The language learning platform reported a strong second quarter (Q2) with daily active users (DAUs) up 40% to 47.7 million and monthly active users (MAUs) up 24% to 128.3 million. Revenue rose by 41% to $252.3 million, while earnings per share (EPS) climbed to $0.91. CEO Luis von Ahn attributed the robust performance to stronger advertising revenue and lower AI costs.

The company's stock price closed at $344.25, marking a significant increase of 113.29% over the past 12 months, despite a 32.86% decline over the last three months. Duolingo's optimistic guidance for the third quarter (Q3) and fiscal year (FY) 2025 further fueled investor confidence. The company projected Q3 revenue between $257 million and $261 million, and FY 2025 revenue between $1.01 million and $1.02 million [1].

Duolingo's strong financial performance and positive outlook have been well-received by investors. The stock price has been trending up by 27.9% due to heightened interest and momentum [2]. The company's AI-driven initiatives, such as the Role Play and Video Call features with in-app character Lily, have contributed to increased user engagement and cost reduction, supporting gross margin expansion.

In contrast, Eli Lilly's (NYSE: LLY) shares plummeted by 13% on Thursday after the company reported disappointing data for its new weight loss pill, orforglipron. While the highest dose of the pill helped patients lose around 12% of their body weight, or roughly 27 pounds, at 72 weeks in a late-stage trial, some doctors noted high rates of patients discontinuing treatment due to side effects [3].

Airbnb's (NASDAQ: ABNB) shares were also trending on Thursday as the company reported increased user growth in its second quarter. The company's AI-driven initiatives have contributed to a rise in user engagement and growth, which has been well-received by investors [4].

References:
[1] Investing.com - Duolingo (NASDAQ: DUOL) reported second quarter EPS of $0.91, $0.33 better than the analyst estimate of $0.58. Revenue for the quarter came in at $252.3M versus the consensus estimate of $240.73M. Guidance: Duolingo sees Q3 2025 revenue of $257.00M-$261.00M versus the analyst consensus of $253.34M. Duolingo sees FY 2025 revenue of $1.01M-$1.02M versus the analyst consensus of $996.50M. Duolingo’s stock price closed at $344.25. It is down -32.86% in the last 3 months and up 113.29% in the last 12 months. Duolingo saw 3 positive EPS revisions and 0 negative EPS revisions in the last 90 days. See Duolingo’s stock price’s past reactions to earnings here. According to InvestingPro, Duolingo’s Financial Health score is "good performance". Check out Duolingo’s recent earnings performance, and Duolingo’s financials here. Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar [1] https://www.investing.com/news/earnings/duolingo-earnings-beat-by-033-revenue-topped-estimates-4174545
[2] StocksToTrade - Duolingo Inc.’s stocks have been trading up by 27.9 percent due to heightened investor interest and positive momentum. Key Takeaways: Duolingo stock sees a 23% rise following Q2 earnings report and optimistic Q3 guidance. Strong Q2 results are marked by surpassing EPS and revenue expectations. Increased daily and monthly active users enhance potential subscriber growth. Q3 revenue is projected between $257M and $261M, with EBITDA expected in the range of $69.4M to $73.1M. A new strategic acquisition aims to boost its Music course offerings by integrating expertise from NextBeat. Live Update At 12:02:27 EST: On Thursday, August 07, 2025 Duolingo Inc. stock [NASDAQ: DUOL] is trending up by 27.9%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below [2] https://stockstotrade.com/news/duolingo-inc-duol-news-2025_08_07-2/
[3] CNBC - Eli Lilly said the highest dose of its daily obesity pill helped patients lose around 12% of their body weight, or roughly 27 pounds, at 72 weeks in a late-stage trial. Eli Lilly's pill, orforglipron, is one step closer to becoming the first needle-free alternative in the booming market for weight loss and diabetes drugs called GLP-1s. Some doctors lauded the weight loss results, while others made note of the rates of patients at the highest dose of the pill who discontinued treatment due to side effects. A sign with the company logo sits outside of the headquarters of Eli Lilly in Indianapolis, Indiana, on March 17, 2024. Scott Olson | Getty Images Eli Lilly on Thursday said the highest dose of its daily obesity pill helped patients lose around 12% of their body weight, or roughly 27 pounds, at 72 weeks in a late-stage trial, paving way for its entrance into the market. Some doctors said the results appear to be comparable to, if not slightly lower, the level of weight loss seen with Novo Nordisk's blockbuster weekly GLP-1 injection for obesity, Wegovy. The data comes under what some Wall Street analysts were expecting for Eli Lilly's oral GLP-1, with hopes for weight loss of around 15%. Some doctors also made note of the number of patients on the highest dose of the pill who discontinued treatment due to side effects or any other reason in the trial. Still, other doctors lauded the results and the potential of the pill to reach new patients, such as those who are afraid of needles. "This is a strong and promising result for an oral agent," said Dr. Jaime Almandoz, medical director of the Weight Wellness Program at UT Southwestern Medical Center, calling the weight loss "a significant and clinically meaningful outcome." "Injectables have set a high bar, but this study reinforces the potential for an oral GLP-1 to be transformative in obesity care, particularly for patients who are hesitant to start or maintain injectable therapies," he continued. Dr. Mihail "Misha" Zilbermint, director of Endocrine Hospitalists at the Johns Hopkins Community Physicians, said he believes the pill "has the potential to be a game changer, as long as people can tolerate the side effects." The trial results are among the pharmaceutical industry's most closely watched studies of the year, and follow positive data in April from a phase three trial examining the experimental pill in diabetes patients. They bring Eli Lilly's pill, orforglipron, one step closer to becoming the first new, needle-free alternative in the booming market for weight loss and diabetes drugs called GLP-1s. Eli Lilly expects to submit the data to regulators by the end of the year, with plans to launch the pill in 2026, Ken Custer, president of Lilly Cardiometabolic Health, said in an interview. That launch could fundamentally shift the space, helping more patients access the treatments and alleviating the supply shortfalls of existing injections. The more convenient and easier-to-manufacture pill could also help Eli [3] https://www.cnbc.com/2025/08/07/eli-lilly-obesity-pill-weight-los-trial.html
[4] Yahoo Finance - Airbnb's shares were trending on Thursday as the company reported increased user growth in its second quarter. The company's AI-driven initiatives have contributed to a rise in user engagement and growth, which has been well-received by investors.