Duolingo (DUOL) · Software
Duolingo Q2 2026 earnings: summary, key numbers & outlook
Results filed 5 Aug 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Duolingo reported second quarter 2026 revenue of $298.5 million, up 18%, net income of $33.2 million, and DAU growth of 23% compared to the prior year.
Duolingo's daily active users grew 23% to 58.7 million, faster than in Q1. Paid subscribers rose 17% to 12.7 million. Revenue grew 18% to $298.5 million. Total bookings grew a slower 8% to $289.1 million against a tough prior-year comparison. Net income fell to $33.2 million from $44.8 million as the company deliberately invested in user growth. A one-time June event let 15.4 million learners revive lost streaks.
Management reaffirmed full-year targets of 10-12% bookings growth and 15-18% revenue growth. It raised its full-year Adjusted EBITDA margin outlook to approximately 26.5%. Q3 guidance calls for bookings of $307 million and revenue of $302 million. The main tension is that user growth is strong while bookings growth is slowing and profit margins are shrinking. Part of the DAU boost came from a one-time event, and foreign exchange moves could shift bookings.
Key numbers
- Revenue · GAAP
- $298.5 million
- Net income · GAAP
- $33.2 million
- Diluted EPS · GAAP
- $0.66
- Gross margin · GAAP
- 72.6%
- Income from operations · GAAP
- $33.9M
- Net cash provided by operating activities · GAAP
- $88.3 million
- Free cash flow · non-GAAP
- $78.6 million
- Adjusted EBITDA · non-GAAP
- $77.3 million
up 18% from a year ago
down 26% from a year ago
down from $0.91 a year ago
up 20 bps from a year ago
up from $33,363 thousand a year ago
down 3% from a year ago
down 9% from a year ago
down 2% from a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Daily active users | 58.7M | up 23% year over year |
| Paid subscribers | 12.7M | up 17% year over year |
| Total bookings | $289.1 million | up 8% year over year |
| Subscription bookings | $250.3M | up 10% year over year |
| Monthly active users | 140.6 million | up 10% year over year |
| Subscription revenue | $258.0M | up 22% year over year |
Where each number comes from
- Revenue: “Revenue increased 18% compared to the prior year, or 17% on a constant-currency basis, to $298.5 million.”
- Net income: “We generated approximately $33.2 million in net income, and $77.3 million in Adjusted EBITDA, representing a 25.9% Adjusted EBITDA margin.”
- Diluted EPS: “Net income per share attributable to Class A and Class B common stockholders, diluted | $0.91 | $0.66”
- Gross margin: “Gross margin was 72.6%, a small improvement over the prior year, and was ahead of our expectation of approximately 71.0%.”
- Income from operations: “Total operating expenses | 149,218 | 182,795 Income from operations | 33,363 | 33,945”
- Net cash provided by operating activities: “Net cash provided by operating activities was approximately $88.3 million. Free cash flow was approximately $78.6 million, representing a 26.3% free cash flow margin.”
- Free cash flow: “Net cash provided by operating activities was approximately $88.3 million. Free cash flow was approximately $78.6 million, representing a 26.3% free cash flow margin.”
- Adjusted EBITDA: “We generated approximately $33.2 million in net income, and $77.3 million in Adjusted EBITDA, representing a 25.9% Adjusted EBITDA margin.”
- Daily active users: “Daily Active Users | 47.7M | 58.7M 23% YoY Paid Subscribers | 10.9M | 12.7M at period end | 17% YoY”
- Paid subscribers: “Daily Active Users | 47.7M | 58.7M 23% YoY Paid Subscribers | 10.9M | 12.7M at period end | 17% YoY”
- Total bookings: “Total Q2 bookings increased 8% compared to the prior year, or 6% on a constant-currency basis, to $289.1 million.”
- Subscription bookings: “Operating Metrics Subscription bookings | $227.3 | $250.3 | 10% Total bookings | $268.0 | $289.1 | 8%”
- Monthly active users: “MAUs were 128.3 million and 140.6 million the three months ended June 30, 2025 and 2026, respectively, representing 10% year-over-year growth.”
- Subscription revenue: “Subscription | $210,678 | $258,035 | $47,357 | 22% Advertising | 20,603 | 21,052 | 449 | 2%”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $298.5M | +18.3% | +2.2% |
| Operating income | $33.9M | +1.7% | −23.8% |
| Net income | $33.2M | −26.0% | −23.7% |
| Diluted EPS | $0.66 | −27.5% | −25.8% |
| Free cash flow | $81.4M | −9.1% | −46.0% |
| Gross margin | 72.6% | +0.2 pts | −0.4 pts |
| Operating margin | 11.4% | −1.8 pts | −3.9 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Q3 2026 revenue ($ millions) | third quarter ending September 30, 2026 | $302 |
| Q3 2026 bookings ($ millions) | third quarter ending September 30, 2026 | $307 |
| Q3 2026 year-over-year revenue growth | third quarter ending September 30, 2026 | approximately 11.1% |
| FY 2026 revenue ($ millions) | full year ending December 31, 2026 | $1,207 |
| FY 2026 year-over-year revenue growth target | full year 2026 | 15-18% |
| FY 2026 year-over-year bookings growth target | full year 2026 | 10-12% |
| FY 2026 bookings ($ millions) | full year ending December 31, 2026 | $1,285 |
| Q3 2026 gross margin | third quarter 2026 | 71.0% |
| FY 2026 gross margin | full year 2026 | 71.6% |
| Q3 2026 Adjusted EBITDA | third quarter 2026 | $76.0 million |
| Q3 2026 Adjusted EBITDA margin | third quarter 2026 | 25.2% |
| FY 2026 Adjusted EBITDA | full year 2026 | $320.0 million |
| FY 2026 Adjusted EBITDA margin | full year 2026 | 26.5% |
| Stock-based compensation as share of revenue | full year 2026 | 15.0% |
| Effective tax rate | full year 2026 | 23-25% |
| Dilution from equity grants before repurchases | full year 2026 | 3.5-4.0% |
| DAU year-over-year growth for the rest of 2026 | rest of 2026 | above the 20% |
Key takeaways
User growth accelerated to 23% DAU growth
Daily active users reached 58.7M, up 23% year over year and two percentage points faster than Q1. Management credits product changes, marketing impact, and a one-time streak revival event.
Bookings growth slowed to 8% year over year
Total bookings were $289.1 million, up 8% or 6% in constant currency. Management cited a tough prior-year comparison from the Energy rollout, a price increase, and advertising outperformance.
Profitability fell as investment in users continued
Net income was $33.2 million versus $44.8 million a year ago, and Adjusted EBITDA margin was 25.9% versus 31.2%. Management said the decline is within its expectations.
Full-year Adjusted EBITDA margin outlook was raised
Duolingo raised its FY 2026 Adjusted EBITDA margin outlook to approximately 26.5%, citing stronger gross margin. It reaffirmed 10-12% bookings growth and 15-18% revenue growth.
Streak Revival event drove a large user response
15.4 million learners revived their streaks in the June event, including nearly 8 million with no active streak. Because the event was one-time, it may flatter Q2 DAU growth.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $209.6M * |
| Q1 2025 | $230.7M |
| Q2 2025 | $252.3M |
| Q3 2025 | $271.7M |
| Q4 2025 | $282.9M * |
| Q1 2026 | $292.0M |
| Q2 2026 | $298.5M |
| Q3 2026 | $309.0M |
Data
| Q1 2025 | $0.72 |
| Q2 2025 | $0.91 |
| Q3 2025 | $5.95 |
| Q1 2026 | $0.89 |
| Q2 2026 | $0.66 |
| Q3 2026 | $0.54 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 6.6% |
| Q1 2025 | 10.2% |
| Q2 2025 | 13.2% |
| Q3 2025 | 12.9% |
| Q4 2025 | 15.4% |
| Q1 2026 | 15.3% |
| Q2 2026 | 11.4% |
| Q3 2026 | 7.8% |
Data
| Q4 2024 | $81.4M |
| Q1 2025 | $104.3M |
| Q2 2025 | $89.5M |
| Q3 2025 | $79.4M |
| Q4 2025 | $96.6M |
| Q1 2026 | $150.6M |
| Q2 2026 | $81.4M |
| Q3 2026 | $78.5M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Duolingo's main results in Q2 2026?
Revenue was $298.5 million, up 18%, net income was $33.2 million, and diluted EPS was $0.66. DAUs reached 58.7M, up 23%, and paid subscribers reached 12.7M, up 17%.
Why did Duolingo's net income decline?
Net income fell to $33.2 million from $44.8 million as operating expenses rose to $182,795 thousand from $149,218 thousand and the tax provision rose to $12,208 thousand from $1,669 thousand. Management said the lower margin reflects a deliberate choice to invest in user growth.
What is Duolingo's guidance for Q3 2026?
Duolingo guided to Q3 bookings of $307 million and revenue of $302 million, with gross margin of approximately 71.0%. It also guided to Adjusted EBITDA of approximately $76.0 million, a 25.2% margin.
Did Duolingo change its full-year 2026 outlook?
It reaffirmed its targets of 10-12% bookings growth and 15-18% revenue growth. It raised its full-year Adjusted EBITDA margin outlook by nearly one point to approximately 26.5%.
How much cash does Duolingo have and what is it doing with it?
Duolingo ended the quarter with approximately $1.3 billion in cash and short-term investments. It repurchased approximately $44.4 million of stock in Q2 under its $400 million program, and $71.9 million through August 1, 2026.
Documents
SEC filing