$DUOL · Duolingo, Inc.
Duolingo reported Q3 FY2026 results with revenue of $309M (+14% YoY), bookings of $316.1M (+12% YoY), and DAUs accelerating to 64.9M (+29% YoY). GAAP net income was $27.2M (8.8% margin), down from $292.2M a year ago due to a one-time $222.7M tax benefit in Q3 2025. Adjusted EBITDA was $78.7M (25.5% margin). The company raised full-year guidance across all key metrics and guided Q4 bookings of $382M (+13% YoY).
- DAUs hit 64.9M, accelerating to 29% YoY growth from 23% in Q2 2026
- Revenue of $309M (+14% YoY) and bookings of $316.1M (+12% YoY) both beat guidance
- GAAP net income was $27.2M (8.8% margin); prior-year Q3 included a one-time $222.7M tax benefit
- Adjusted EBITDA of $78.7M (25.5% margin) came in ahead of the most recent outlook
- Full-year 2026 Adjusted EBITDA guidance raised to $323M, up $3M from prior and $21M above original midpoint
Extended-hours trading shows DUOL at $139.00, up 8.59% vs the regular-session close of $128.00, reflecting strong positive reaction to the DAU acceleration and guidance raise.
Duolingo's user growth reacceleration validates its 2026 product-investment strategy, and the raised full-year guidance signals confidence that monetization can follow without degrading the free experience.
Duolingo's 29% DAU growth and 14% paid subscriber growth reinforce its dominance in mobile language learning. The decision to sunset Max in favor of Super with unlimited Video Call signals a consolidation strategy focused on a single premium tier, diverging from the multi-tier approach common among edtech peers.
Duolingo is sunsetting its Max subscription tier and migrating subscribers to Super family plans, which could create churn risk among legacy Max family plan users in 2027. The company also accrued an $11.4M performance bonus tied to achieving Q4 DAU growth of 25%+, adding expense pressure.