Duolingo's shares witnessed a remarkable ascent following the impressive unveiling of its second-quarter financial outcomes, which substantially surpassed expert predictions. The language education technology company showcased robust expansion in its user base and subscription figures, signaling a period of dynamic development. This stellar performance has prompted an upward revision of its financial forecasts for the current fiscal year, highlighting the firm's strategic accomplishments and burgeoning market presence.
The recent financial disclosures from Duolingo revealed a compelling narrative of success, particularly in its second-quarter achievements. The company announced adjusted earnings per share of $0.91, alongside a substantial 41% increase in revenue, reaching $252.3 million. These figures comfortably outstripped the Visible Alpha analyst consensus, which had anticipated earnings of $0.58 per share on revenues of $240.8 million. Such a significant beat underscores Duolingo's strong operational efficiency and its capacity to generate impressive financial returns.
A deeper dive into the company's performance metrics further illustrates its vibrant growth trajectory. Total bookings surged by 41%, indicative of strong demand for its language learning services. More critically, the platform experienced a 40% increase in average daily active users, now totaling an impressive 47.7 million. The number of paid subscribers also saw a healthy rise, climbing by 37% to reach 10.9 million. These statistics collectively paint a picture of an expanding and deeply engaged user community, which is fundamental to Duolingo's business model.
Luis von Ahn, the chief executive of Duolingo, attributed these outstanding results to a combination of factors: a strategic focus on product-led growth, the delivery of an enriching and enjoyable learning experience, and a commitment to rapid iterative development. He emphasized the substantial strides made during the quarter, which are expected to lay the groundwork for sustained long-term success. This strategic vision, coupled with effective execution, appears to be a cornerstone of the company's ongoing prosperity.
In light of its strong second-quarter performance, Duolingo has revised its full-year financial projections upwards, reflecting increased confidence in its future. The company now anticipates a full-year booking expansion in the range of 32.0% to 32.9%, a notable improvement from its prior forecast of 28.4% to 29.4%. Furthermore, adjusted EBITDA is projected to fall between $288.1 million and $295.5 million, up from an earlier estimate of $271.4 million to $283.9 million. Revenue expectations have also been elevated, with the company now foreseeing figures between $1.011 billion and $1.019 billion, compared to the initial projection of $987 million to $996 million. These revised forecasts highlight the firm's optimistic outlook and its robust growth momentum.
Prior to these announcements, Duolingo's shares had seen a modest increase of less than 6% throughout 2025. The recent surge in its stock value, driven by an exceptional financial quarter and an upgraded outlook, suggests a renewed investor confidence in the company's growth potential and its leadership in the competitive language learning market.
In conclusion, Duolingo's recent financial report underscores its position as a dominant force in the language learning sector, marked by impressive user acquisition and revenue growth. The company's strategic emphasis on an engaging product experience and continuous innovation has clearly paid dividends, leading to a significant uplift in its market valuation. With revised upward forecasts for the remainder of the year, Duolingo is well-positioned for continued expansion and financial success, solidifying its trajectory as a leader in educational technology.