Latest news with #DuolingoMax
Forbes
11-08-2025
- Business
- Forbes
What's Next With Duolingo Stock?
Duolingo (NASDAQ: DUOL) has transformed from a unique language-learning application into one of the leading, AI-driven educational platforms worldwide. As of Q2 2025, the firm reported revenues of $252.3 million, representing a 42% year-over-year growth, with net income skyrocketing to $88.6 million, up over 450% compared to the previous year. Daily active users increased to 47.7 million, a growth of 40%, fueled by the rising popularity of its AI-enhanced subscription tiers, especially Duolingo Max. The stock surged 21% in pre-market trading following the announcement of its earnings. The company's implementation of generative AI has drastically reduced course development time, enabling it to release over 140 new courses in a year, a process that previously took over a decade to complete. This has facilitated rapid expansion across various markets, particularly in India and Latin America. Duolingo's Max tier, which includes AI tutors and roleplay tools, has demonstrated higher conversion and retention rates than its Super tier. Nevertheless, if you are seeking returns with potentially lower volatility than individual stocks, consider the High Quality portfolio, which has outperformed the S&P and yielded returns exceeding 91% since its inception. Also see –What's Next With CoreWeave Stock? In a significant strategic change, Duolingo is branching out beyond language learning. It has recently introduced a beta chess course and plans to expand into subjects like math and music. Projections suggest that the chess product alone may generate bookings of $60–$150 million by 2026. This diversification reflects Duolingo's goal to become a comprehensive learning platform. On the financial front, Duolingo has made a notable turnaround. Free cash flow now exceeds $270 million, and EBITDA margins are improving. The company anticipates that total revenue for 2025 will fall between $1.01 and $1.02 billion, with long-term annual growth expected at 25–30%. Valuation remains elevated, with a forward P/E around 103x and a price-to-sales ratio near 18x. Duolingo's premium valuation reflects high expectations for performance, but its growth trajectory—driven by AI, global reach, and an expanding subject range—places it as a distinctive entity in the education sector. If it fulfills its strategic plan, the stock may experience significant appreciation from current prices. The disparity between market perceptions and actual risks highlights the necessity for a thorough risk assessment framework. Unlike investing in a single, speculative stock, Trefis constructs its High Quality (HQ) Portfolio utilizing a comprehensive risk assessment framework. This collection of 30 stocks has consistently outperformed the S&P 500 over the past four years, delivering higher returns with reduced volatility, as demonstrated in HQ Portfolio performance metrics.
Yahoo
08-08-2025
- Business
- Yahoo
Duolingo stock is surging after announcing it's making a lot more money from AI during earnings
Duolingo stock is surging after the language learning company reported strong Q2 earnings. The company seems to be benefiting from lower-than-expected AI costs. Retail investor interest in DUOL stock is surging as it continues to trend. Duolingo may be one of the Q2 earnings season's unexpected winners. The language learning platform reported its Q2 results on Wednesday, revealing significant revenue growth and record profitability, sending Duolingo stock soaring. Subscription revenue increased 46% and overall revenue rose by 41%. Duolingo also reported record net income and raised its full-year guidance, signaling high confidence in its future prospects. DUOL stock rose 30% in the first few hours of trading on Thursday, following the company's strong earnings report. The company also seems to be benefiting from its continued artificial intelligence integration. More specifically, the company's leaders have made clear that they have been able to integrate AI tools and features into more of their offerings at a lower cost than anticipated. This includes the conversational AI feature available in Max, Duolingo's top-tier subscription service. "We expanded gross margin by 130 basis points to 72.4% from Q1 to Q2, due to lower-than-expected AI costs and strength in our ads business," said CEO Luis von Ahn in his letter to shareholders. Von Ahn added that gross margin did fall 100 basis points year-over-year due to the higher AI costs that came with the Max expansion. It was less than the 300 basis points they had initially predicted. "We now expect FY 2025 gross margin to decline about 100 basis points year over year, which is an improvement from the guidance we provided last quarter," he noted, attributing this to lower AI costs and ad business strength. This comes just a few months after Duolingo came under fire when von Ahn announced plans to shift toward an AI-first business model, comments that he walked back shortly thereafter. As Duolingo stock has surged, it has caught the attention of retail traders, who seem optimistic about its growth prospects. Data from Stocktwits shows that retail sentiment towards it is "highly bullish" and that message volume is extremely high. Meanwhile, Duolingo stock is gaining traction on popular retail investor forums such as r/WallStreetbets. According to ApeWisdom, mentions of DUOL have surged 1,200% during the past 24 hours. Read the original article on Business Insider
Yahoo
05-08-2025
- Business
- Yahoo
What's Dragging Duolingo Down 35% Before Q2?
Duolingo (NASDAQ:DUOL) reports Q2 2025 results after the close on August 6. Street forecasts $0.59 in EPS on $241 million in revenue, up 32% YoY. Shares are up 7% year-to-date but have fallen more than 35% since peaking in mid-May, pressured by signs of slowing daily active user (DAU) growth and broader concerns about engagement trends. Adding to the volatility, Levi & Korsinsky LLP recently announced a securities fraud investigation into the company, raising investor concerns around disclosure and governance. Investors will be watching DAU growth and monetization closely. In Q1, Duolingo posted 46.6 million DAUs (up 49% YoY), but analysts flagged a potential deceleration in Q2. Attention will fall on whether premium conversion, pricing strategy, and ad revenue remain strong amid that shift. Commentary around new products like Duolingo Music and Math will also matter, especially if they're driving time spent and long-term monetization per user, as well as the new Chess module. Margins are under pressure due to investment in generative AI and rising content refresh costs. With shares still well off their highs and sentiment fragile, Duolingo's Q2 call will need to reinforce confidence in user momentum and long-term monetization, especially in light of recent scrutiny and DAU-related concerns. Management will also need to address investor fears that generative AI could replace or cannibalize Duolingo's offerings, clarifying how its AI-enhanced features like Duolingo Max complement, rather than compete with, its core learning experience. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-08-2025
- Business
- Yahoo
What's Dragging Duolingo Down 35% Before Q2?
Duolingo (NASDAQ:DUOL) reports Q2 2025 results after the close on August 6. Street forecasts $0.59 in EPS on $241 million in revenue, up 32% YoY. Shares are up 7% year-to-date but have fallen more than 35% since peaking in mid-May, pressured by signs of slowing daily active user (DAU) growth and broader concerns about engagement trends. Adding to the volatility, Levi & Korsinsky LLP recently announced a securities fraud investigation into the company, raising investor concerns around disclosure and governance. Investors will be watching DAU growth and monetization closely. In Q1, Duolingo posted 46.6 million DAUs (up 49% YoY), but analysts flagged a potential deceleration in Q2. Attention will fall on whether premium conversion, pricing strategy, and ad revenue remain strong amid that shift. Commentary around new products like Duolingo Music and Math will also matter, especially if they're driving time spent and long-term monetization per user, as well as the new Chess module. Margins are under pressure due to investment in generative AI and rising content refresh costs. With shares still well off their highs and sentiment fragile, Duolingo's Q2 call will need to reinforce confidence in user momentum and long-term monetization, especially in light of recent scrutiny and DAU-related concerns. Management will also need to address investor fears that generative AI could replace or cannibalize Duolingo's offerings, clarifying how its AI-enhanced features like Duolingo Max complement, rather than compete with, its core learning experience. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
Duolingo Set For Q2 Bookings Beat, Guidance Likely Conservative
Duolingo shares have tumbled 24% in the past month amid concerns over slowing growth and rising churn, despite strong global brand momentum. The company will announce its results for the second quarter ending June 30, following the close of the U.S. market on Wednesday, August 6. Against this backdrop of heightened investor caution and mixed sentiment around engagement trends, JP Morgan analyst Bryan M. Smilek reiterated the Overweight rating on Duolingo, Inc. (NASDAQ:DUOL), lowering the price forecast from $580 to $ analyst cautions that some investors suspect that negative chatter on social media about Duolingo's AI-first strategy could be dampening engagement. While that may have briefly impacted virality in the U.S., Smilek emphasizes that Duolingo's brand remains strong, with about 90% of user growth historically being organic. Smilek notes that Duolingo shares have fallen 30% since their May 14 peak, underperforming the S&P 500's 6% gain. This drop is largely tied to concerns stemming from third-party data pointing to a sharper-than-expected slowdown in user and subscription bookings growth, along with rising churn in Duolingo Max. U.S.-based concerns likely have limited global impact, and the company's social media metrics are steady, with TikTok followers even beginning to rise again. Given these trends, investors are likely hoping for second quarter DAU growth between 40% to 42%, near the low end of management's 40 to 45% guidance, and third quarter growth of 37% to 39%, indicating stabilization. Smilek has trimmed DAU forecasts by roughly 1-4% across the second quarter to fourth quarter, now projecting 42% growth in the second quarter, 39% in the third quarter, and 40% in the fourth quarter. Still, the analyst's bullish view remains intact, citing Duolingo's leadership in a largely untapped global market, its 130 million monthly active users represent just 18% of the online language learning market and only 7% of all language learners. Over the medium term, Smilek expects growth to be driven by new products, increased gross additions, returning users, marketing, and better content and outcomes. Smilek projects Duolingo's adjusted EBITDA margins to improve significantly in the second half of the year, driven by AI-related cost savings. For 2025, he models year-over-year operating leverage across all non-GAAP expense categories. The analyst projects bookings growth of 31% year-over-year on a constant currency basis (versus the company's 29.8%–30.9% guidance), with adjusted EBITDA margins reaching 28.3%, up 266 basis points year-over-year and near the top end of the 27.5%–28.5% guidance range. The forecast reflects a combination of factors, including monetization from Duolingo Max, higher pricing and conversions for Super, increasing Family Plan adoption (currently under 25% of subs), and favorable currency effects. Based on these trends, Smilek anticipates Duolingo's second-quarter results will land at the high end of the company's guidance. He also expects Duolingo to raise its full-year outlook for both bookings and adjusted EBITDA, noting that the guidance could prove conservative. Price Action: DUOL shares are trading lower by 0.41% to $359.87 at last check Thursday. Read Next:Photo by DANIEL CONSTANTE via Shutterstock Latest Ratings for DUOL Date Firm Action From To Mar 2022 Evercore ISI Group Maintains Outperform Mar 2022 Piper Sandler Maintains Overweight Jan 2022 Piper Sandler Maintains Overweight View More Analyst Ratings for DUOL View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Duolingo Set For Q2 Bookings Beat, Guidance Likely Conservative originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
