Duolingo Shares Slide on Disappointing Q4 Bookings Guidance

Duolingo (DUOL) stock dropped as much as 20% after hours following the company’s Q4 forecast that fell short of Wall Street’s estimates — overshadowing otherwise solid quarterly results.

Financial Highlights

Q4 Bookings Outlook: $329.5M–$335.5M vs. $344.1M expected (Bloomberg)
Full-Year Bookings: Nearly $1.2B, representing 33% growth and 29% adjusted EBITDA margin
Q3 Performance: Beat earnings expectations, but management warned of slowing daily active user (DAU) growth

Management Commentary

CEO Luis von Ahn attributed the deceleration to a shift toward longer-term initiatives, saying:

“The change in Q4 is pretty much because of the shift to go to longer-term initiatives... it’s not a huge thing, but it is a shift.”

CFO Matthew Skaruppa added that the change could bring short-term pressure on bookings, but some effects may persist into 2026.

Despite the near-term headwinds, management emphasized optimism, repeatedly calling the long-term opportunity “huge” and maintaining a bullish stance on growth investments.

Risks and Market Reaction

China exposure remains a risk amid geopolitical tensions.
Shares fell up to 20% post-market, as investors weighed the near-term slowdown against strong fundamentals and growth momentum.