Duolingo's first quarter 2026 revenue beat estimates with 27% growth, but daily active users missed expectations.

Duolingo reported first quarter revenue of $292.0 million, up 27% year-over-year, and diluted EPS of $0.89, beating analyst estimates. The results reflect strong subscription growth, though key user engagement metrics showed signs of deceleration.

Key Highlights

• Daily Active Users (DAUs) grew 21% year-over-year to 56.5 million, missing analyst expectations of 63.2 million.
• Total bookings increased 14% to $308.5 million, driven by a 21% year-over-year increase in paid subscribers, which reached 12.5 million.
• Gross margin expanded by 190 basis points to 73.0%, which management attributed primarily to ongoing reductions in per-unit AI costs.
• The company guided full-year 2026 revenue to approximately $1.205 billion, implying 16.1% year-over-year growth.