Duolingo Inc shares soared more than 27% after the language learning app reported strong financial results for the second quarter and raised its full-year revenue guidance.
Duolingo exceeded Q2 revenue expectations with $252.3 million, up 41% year-over-year, beating analyst estimates of $240.7 million.
Earnings per share of $0.91 were well ahead of estimates of $0.58 as income surged 84% to $44.8 million from $24.4 million.
The company raised its 2025 revenue forecast to $1.01 billion to $1.02 billion from a prior range below $1 billion, surpassing analysts’ estimates of $996.6 million.
The company’s growth is being driven by AI enhancements, including AI-powered subscription tiers like "Max" featuring video conversation practice tools. These AI features have improved user engagement and helped increase average revenue per user by 6% in Q2.
During Q2, daily active users jumped by 40% year-over-year to nearly 48 million, and paid subscribers rose 37% to 10.9 million.
“We’re halfway through 2025, and I’m happy to report another quarter of great results, driven by product-led growth, a delightful learning experience, and fast iteration,” Duolingo CEO Luis von Ahn said in a letter to shareholders.
“Our user growth and engagement remain strong, and our subscription performance and profitability exceeded expectations.”
Shares of Duolingo added 27.2% at $437 on Thursday afternoon.