Q4 2025 Duolingo Inc Earnings Call Transcript
Key Points
- Duolingo Inc (DUOL) surpassed 50 million daily active users for the first time, marking significant growth since its IPO in 2021.
- The company delivered over $1 billion in bookings and more than $300 million in adjusted EBITDA, showcasing strong financial performance.
- Duolingo Inc (DUOL) is focusing on leveraging AI to enhance learning experiences, aiming to redefine the future of education.
- The company has a medium-term goal to reach 100 million daily active users by 2028, indicating a strong growth trajectory.
- Duolingo Inc (DUOL) announced a $400 million share buyback authorization, reflecting confidence in its financial position and capital allocation strategy.
- Daily active user (DAU) growth decelerated throughout 2025, and this trend is expected to continue into 2026 with a projected 20% year-over-year growth.
- The company anticipates slower bookings growth and lower profitability in the short term as it prioritizes user growth over immediate financial returns.
- Duolingo Inc (DUOL) plans to increase R&D and sales and marketing spend, which will outpace revenue growth, potentially impacting margins.
- The company acknowledges that shifts in strategy, such as reducing friction in the free-user experience, may take time to materialize in terms of financial benefits.
- There is uncertainty regarding the impact of moving AI features like video calls from the Max to the Super subscription tier, which could affect revenue from subscriptions.
(video playing)
Welcome everyone to Duolingo's fourth-quarter 2025 earnings webcast. Today after market close, we released this quarter's shareholder letter, a copy of which you can find on our IR website at investors.duolingo.com.
On today's call, we have Luis Von Ahn, our Co-Founder and CEO; and Gillian Munson, who we are pleased to welcome as our new CFO. They will begin with some prepared remarks before we open the call for questions.(Operator Instructions) And please note that this call is being recorded. (Operator Instructions)
Before we begin, please note we will make some forward-looking statements regarding future events and financial performance. These statements are subject to risks and uncertainties described in our SEC filings and are based on assumptions we believe to be reasonable as of today. We undertake no obligation to update them.
We will also discuss both GAAP and non-GAAP financial measures. Reconciliations between the two can be found in our earnings materials, and we encourage you to review them when evaluating our
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