What’s Happening With Duolingo Stock?

Duolingo (NASDAQ: DUOL) has evolved from a quirky language-learning app into one of the most advanced, AI-driven education platforms in the world. As of Q2 2025, the company reported revenue of $252.3 million, marking a 42% year-over-year increase, with net income surging to $88.6 million, up over 450% from a year earlier. Daily active users reached 47.7 million, a 40% increase, driven by the growing popularity of its AI-powered subscription tiers, particularly Duolingo Max. The stock soared 21% in pre-market, on the announcement of the result.

The company’s use of generative AI has significantly shortened course development time, allowing it to launch over 140 new courses in a year—work that previously took more than a decade. This has supported rapid expansion across markets, especially in India and Latin America. Duolingo’s Max tier, featuring AI tutors and roleplay tools, has shown higher conversion and retention than its Super tier. That said, if you’re looking for gains with potentially lower volatility than individual stocks, consider the High Quality portfolio, which has outpaced the S&P and delivered returns of over 91% since inception. Also see –What’s Next With CoreWeave Stock?

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In a major strategic shift, Duolingo is moving beyond languages. It recently launched a beta chess course, with plans to expand into math and music. It is estimated that the chess product alone could contribute $60–$150 million in bookings by 2026. This diversification signals Duolingo’s ambition to become a broad-based learning platform.

Financially, Duolingo has turned a corner. Free cash flow now exceeds $270 million, and EBITDA margins are rising. The company expects full-year 2025 revenue to reach $1.01–$1.02 billion, with long-term annual revenue growth projected at 25–30%. Valuation remains high, with a forward P/E of  around 103x and a price-to-sales ratio around 18x. Duolingo’s premium valuation assumes strong execution, but its growth runway—powered by AI, global reach, and expanding subject matter—positions it as a unique player in education. If it delivers on its roadmap, the stock could have meaningful upside from current levels.

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