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Duolingo stock plunges 27% on light guidance as company prioritizes user growth
Duolingo’s Q4 bookings forecast of $329.5-$335.5 million missed analyst estimates, prompting a 19% stock drop amid a strategic pivot to prioritize teaching quality over short-term monetization.
- On November 5, 2025, Duolingo, Inc. reported a fine quarter, beating revenue expectations and raising full-year guidance to between $1.0275 billion and $1.0315 billion, yet shares fell over 19% in after-hours trading.
- A weak bookings forecast showed the company projected Q4 bookings of $329.5- $335.5 m, below analyst consensus of $344.3 million, raising caution about freemium monetisation.
- Duolingo reported that revenue rose 41% during the quarter to $271.7 million and total bookings increased 33% to about $281.9 million, aided by a $222.7 million tax benefit.
- Brokerage actions included Goldman Sachs , Wells Fargo , Needham , Evercore ISI cuts and a KeyBanc Capital Markets downgrade, while the stock decline cratered 27%.
- Longer term, the company retains a strategic shift, with CEO Luis von Ahn saying `We have made a slight shift over the last quarter in how we invest, and we're investing a lot more in long-term things because we see that as such a big opportunity ahead of us`, while maintaining 72% gross profit margins and 11.5 million paid subscribers.
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Duolingo's soft bookings forecast overshadows revenue beat, shares plunge
Duolingo forecast fourth-quarter bookings below Wall Street estimates on Wednesday as the company prioritizes user growth and teaching quality on its app, sending its shares tumbling 20% in trading after the bell.
·United Kingdom
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Coverage Details
Total News Sources7
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 16%
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