Catenaa, Thursday, August 07, 2025- Duolingo shares jumped more than 31% on Thursday after the language learning platform boosted its guidance due to strong user growth driven by artificial intelligence.
The mobile learning platform hiked its full-year guidance to between $1.01 billion and $1.02 billion, up from a prior range of $987 million to $996 million. Duolingo also lifted its bookings guidance to between $1.15 billion and $1.16 billion.
“We exceeded our own high expectations for bookings and revenue this quarter, and did it while expanding profitability,” said co-founder and CEO Luis von Ahn in a release.
Daily active users jumped 40% to nearly 48 million from about 34 million in the year-ago period.
The market cap of Duolingo surpassed $20.5 billion as the stock rose over 39% year to date.
To expand its course offerings and boost users, Duolingo has implemented AI tools, including a video-call conversation practice feature for some paying subscribers. The company has also expanded beyond language learning with new course such as chess.
Duolingo also announced the acquisition of London-based music gaming startup NextBeat for an undisclosed amount as it looks to broaden its app products.
The company’s CEO said Duolingo is still in the early stages of its growth trajectory.
Revenues jumped about 41% year over year to $252 million and beat a Wall Street estimate of $241 million. Net income grew 84% from a year ago to about $45 million, or 91 cents per share.
For the third quarter, Duolingo projects revenues between $257 million and $261 million, surpassing the $253 million forecast from Wall Street analysts.
