TL;DR
- Duolingo reported Q4 2025 revenue of $282.9 million (+35% YoY), closing its first billion-dollar year, breaking estimates again.
- The stock dropped 22.5% anyway. Again.
- The company plans to slow down monetization to grow to 100 million DAUs until 2028, by focusing on teaching quality, giving more to free users, and growing non-language courses.
Duolingo’s Q4 2025 results confirmed something we highlighted in its 2025 review: growth is slowing.
The company crossed a billion dollars in revenue in 2025, has more than a billion dollars in cash, and 50 million daily active users, but the slowdown is evident, and CEO Luis von Ahn finally acknowledged it in the earnings call and announced long-term growth strategies that sacrifice short-term growth.
MAUs, DAUs, & its Growth (Problem)
When I reported on Duolingo’s aggressive ads and the new Energy feature, one complaint was common: Duolingo was behind monetization. Management acknowledged the friction they created last year for monetization, and they confirmed the daily active users (DAUs) took a hit.
DAUs reached 52.7 million, and paid subscribers hit 12.2 million. But MAUs came in at ~133 million, a two-million drop from ~135 million in Q3.
The growth dip in all three segments has been significant. Look at the one-year difference:
| Segments | YoY Growth (Q4 2024) | YoY Growth (Q4 2025) |
| MAUs | 32% | 14% |
| DAUs | ~50.5% | ~30% |
| Paid Subscribers | ~44% | ~28.5% |
For Duolingo, a platform that aims to build a daily habit of learning, DAUs matter, even from a monetization perspective. But the growth is rapidly slowing down. QoQ growth was just 4% in Q4, down from 15% in Q1 (likely boosted by the “Dead Duo” campaign).
“While our DAU growth over the past several years has been nothing short of phenomenal, it decelerated throughout 2025, and as the new year began, we continued seeing this trend.” – CEO Luis von Ahn
Revenue & Bookings
Duolingo surpassed its revenue expectation with $282.9 million, which came with another growth dip.
Management forecasted full-year 2026 revenue of $1,197–$1,221 million, with a growth of 15–18%; less than half the 38.7% growth in 2025.
The company also saw more than $1.1 billion in bookings in the full year. But in Q4, it only grew 24% YoY in Q4 down from 33% in the previous quarter.
For 2026, it has forecasted a growth of ~11%, compared to the nearly 20% von Ahn believes they could achieve if they continued to monetize. Even that seems like a drop since it grew 33% in 2025.
The company’s medium-term goal is to have 100 million DAUs in 2028, and it might affect short-term bookings.
After the slow growth forecast and reports, Duolingo stock opened 22% lower the next day, adding to the huge drop the stock already taken since January 2025.
The $400 Million Buyback
Duolingo’s stock fell 46% in 2025 and has fallen another 43% since January 2026.
In Q4 2025, the board authorized Duolingo’s first stock buyback of $400 million, under which the company can repurchase up to $400 million of its outstanding shares.
A buyback (also called a share repurchase) is when a company buys back its own shares from the public market.
Duolingo recorded more than a billion dollars in cash, so they could afford the buyback.The company said it “shows commitment to capital allocation, including returning capital to stockholders and
managing dilution, while maintaining flexibility to invest in long-term growth.”
Currently, the stock is ~81% below its 52-week high. The buyback can signal confidence to investors, but the ~22% low opening price the day after Q4 results release suggests they weren’t convinced yet.
2026 Moves
Duolingo claims it is choosing to slow down and is “deliberately prioritizing user growth and teaching better” in 2026.
Von Ahn’s goal is 100 million DAUs by 2028. To get there, the company is expanding access to premium features such as Video Call with Lily (previously exclusive to Max subscribers) to Super subscribers. Free users will get more features too, reducing friction before monetization kicks in. The company also aims to grow its Chess (which already has 7 million DAUs), Math, and Music courses.
In terms of monetization, the company wants to do “thousands of A/B tests” for product and monetization. And it will display more direct, third-party ads from premium companies.
Von Ahn’s message is clear: investment comes first, returns come later, and slow growth is inevitable in 2026.
To understand Duolingo’s strategy, we’ll be covering its detailed 2026 goals and moves soon.
The post Duolingo’s Q4 2025: Record Revenue, Record Stock Drop, One Massive Buyback appeared first on The Report by Class Central.
