# Duolingo (DUOL) Q2 2026 earnings

Results filed 2026-08-05 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/duol/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1562088/000162828026053299/0001628280-26-053299-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $298.5 million | up 18% from a year ago | GAAP |
| Net income | $33.2 million | down 26% from a year ago | GAAP |
| Diluted EPS | $0.66 | down from $0.91 a year ago | GAAP |
| Gross margin | 72.6% | up 20 bps from a year ago | GAAP |
| Income from operations | $33,945 | up from $33,363 thousand a year ago | GAAP |
| Net cash provided by operating activities | $88.3 million | down 3% from a year ago | GAAP |
| Free cash flow | $78.6 million | down 9% from a year ago | non-GAAP |
| Adjusted EBITDA | $77.3 million | down 2% from a year ago | non-GAAP |

## Segments and operating metrics

| Name | 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 | $250.3 | up 10% year over year |
| Monthly active users | 140.6 million | up 10% year over year |
| Subscription revenue | $258,035 | up 22% year over year |

## 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

1. **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.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.