Duolingo Posts Lower 2Q Profit, Higher Sales

By Grace Yoon

Duolingo posted lower profit but higher sales in its second quarter, as the company focuses on investing in its app, marketing and artificial intelligence tools to drive growth.

The educational technology company reported profit of $33.2 million, or 66 cents a share, compared with profit of $44.8 million, or 72 cents a share, a year earlier.

Revenue rose 18% to $298.5 million. Analysts polled by FactSet were expecting $295.6 million.

Daily active users grew 23% to 58.7 million during the quarter. Total bookings grew 8% to $289.1 million.

Chief Financial Officer Gillian Munson said the company delivered strong user growth and healthy profitability in a year of deliberate investment.

Munson said that year-over-year growth slowed due to tough prior-year comparisons given the rollout of Energy, a price increase and advertising outperformance a year earlier.

Duolingo forecast third quarter revenue of $302 million and bookings of $307 million, compared with analyst estimates for sales of $303.9 million and bookings of $308.8 million.

For fiscal 2026, Duolingo expects revenue of $1.21 billion and bookings of $1.29 billion. Analysts polled by FactSet expect revenue of $1.21 billion and bookings of $1.28 billion.

The company raised its guidance for adjusted earnings before interest, taxes, depreciation and amortization margin by nearly one point to 26.5%.

Write to Grace Yoon at grace.yoon@wsj.com

(END) Dow Jones Newswires

August 05, 2026 16:37 ET (20:37 GMT)