Duolingo Shares Drop 13.8% on Revenue Outlook

Duolingo posted Q1 adjusted EPS $0.89 beating consensus $0.76 and revenue $292 million, up 27% YoY, surpassing estimates.
Despite beat, shares fell 13.8% after‑hours as full‑year 2026 revenue guidance of $1.205 billion missed the $1.21 billion consensus.
Company projected Q4 gross margin to drop to ~69% from 73% and full‑year adjusted EBITDA margin at 25.7%.
Daily active users rose 21% YoY to 56.5 million, paid subscribers to 12.5 million, and free cash flow hit $147.8 million (50.6% margin).