Duolingo (DUOL) · Software
Duolingo Q3 2026 earnings: summary, key numbers & outlook
Results filed 3 Nov 2026 · Quarter ended 30 Sep 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Duolingo's third quarter 2026 revenues were $309.0 million, up 14% year over year, with daily active users of 64.9 million, up 29%, and net income of $27.2 million.
Duolingo's user growth sped up. Daily active users reached 64.9 million, up 29% from a year ago and faster than the 23% in the second quarter. Revenue rose 14% to $309.0 million and bookings rose 12% to $316.1 million. Net income was $27.2 million, down from $292.2 million a year earlier, which included a one-time $222.7 million tax benefit. Adjusted EBITDA was $78.7 million, a 25.5% margin.
Management expects fourth-quarter bookings of $382 million and revenue of $322 million, and says full-year results will land at the high end of its earlier ranges. Fourth-quarter adjusted EBITDA is guided to $84 million. The tension is profitability. Margins fell year over year because of higher costs, including a performance bonus tied to user growth. Gross margin is also guided down to 72.0% as AI features roll out, and Duolingo Max is being retired.
Key numbers
- Revenue · GAAP
- $309.0 million
- Net income · GAAP
- $27.2 million
- Diluted net income per share · GAAP
- $0.54
- Gross margin · GAAP
- 72.9%
- Income from operations · GAAP
- $24.2M
- Net cash provided by operating activities · GAAP
- $89.4 million
- Free cash flow · non-GAAP
- $75.3 million
- Adjusted EBITDA · non-GAAP
- $78.7 million
up 14% over the prior year
down from $292.2 million a year ago
down from $5.95 a year ago
a modest improvement over the prior year
down from 35,159 a year ago
up 6%
down 3%
down 2%
| Segment or metric | Value | Change |
|---|---|---|
| Daily active users | $64.9M | 29% |
| Paid subscribers (period end) | $13.1M | 14% |
| Total bookings | $316.1 million | up 12% over the prior year |
| Subscription bookings | $278.4M | 16% |
| Subscription revenue | $270.0M | 18% |
| Monthly active users | 153.1 million | 13% year-over-year growth |
Where each number comes from
- Revenue: “Revenue grew 14% over the prior year on both a reported and constant-currency basis to $309.0 million.”
- Net income: “We generated $27.2 million in net income, representing an 8.8% margin, down from $292.2 million a year ago, when we recognized a $222.7 million tax benefit”
- Diluted net income per share: “Net income per share attributable to Class A and Class B common stockholders, diluted | $5.95 | $0.54 (1) During the three months ended September 30, 2025, the Company released”
- Gross margin: “Gross margin was 72.9%, a modest improvement over the prior year and above our expectations.”
- Income from operations: “Total operating expenses | 161,752 | 200,936 Income from operations | 35,159 | 24,196 Other expense, net | (503) | (1,055)”
- Net cash provided by operating activities: “Net cash provided by operating activities was $89.4 million, and free cash flow was $75.3 million.”
- Free cash flow: “Net cash provided by operating activities was $89.4 million, and free cash flow was $75.3 million.”
- Adjusted EBITDA: “Adjusted EBITDA was $78.7 million, representing a 25.5% margin.”
- Daily active users: “Summary of Financial and Key Operating Metrics (in millions) | Q3 2025 | Q3 2026 | YoY User Metrics Daily active users (DAUs) (1) | 50.5 | 64.9 | 29% Paid subscribers (period end) | 11.5 | 13.1 | 14%”
- Paid subscribers (period end): “Summary of Financial and Key Operating Metrics (in millions) | Q3 2025 | Q3 2026 | YoY User Metrics Daily active users (DAUs) (1) | 50.5 | 64.9 | 29% Paid subscribers (period end) | 11.5 | 13.1 | 14%”
- Total bookings: “Bookings increased 12% over the prior year on both a reported and constant-currency basis to $316.1 million, accelerating four percentage points sequentially.”
- Subscription bookings: “Operating Metrics Subscription bookings | $240.3 | $278.4 | 16% Total bookings | $281.9 | $316.1 | 12% GAAP Financial Measures Revenues | $271.7 | $309.0 | 14%”
- Subscription revenue: “The table below provides revenues by product type: (in thousands) | Q3 2025 | Q3 2026 | Change | % Change Subscription | $229,491 | $269,985 | $40,494 | 18%”
- Monthly active users: “MAUs were 135.3 million and 153.1 million for the three months ended September 30, 2025 and 2026, respectively, representing 13% year-over-year growth.”
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 | Q3 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $309.0M | +13.7% | +3.5% |
| Operating income | $24.2M | −31.2% | −28.7% |
| Net income | $27.2M | −90.7% | −18.1% |
| Diluted EPS | $0.54 | −90.9% | −18.2% |
| Free cash flow | $78.5M | −1.1% | −3.6% |
| Gross margin | 72.9% | +0.4 pts | +0.3 pts |
| Operating margin | 7.8% | −5.1 pts | −3.6 pts |
Calculated by code from XBRL, not by the model.
Guidance check
| Metric | Outlook given with Q2 2026 | Reported | Result |
|---|---|---|---|
| Revenue | $302 | $309.0M | see outlook |
| Gross margin (GAAP) | 71.0% | 72.9% | see outlook |
Compared with the company's own guidance, not analyst estimates, and only where the outlook and the reported figure are the same measure on the same basis. Ranges are worked out by code from the company's wording. How this works.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Q4 bookings | Q4 2026 | $382 million |
| Q4 revenue | Q4 2026 | $322 million |
| Q4 gross margin | Q4 2026 | 72.0% |
| Q4 Adjusted EBITDA | Q4 2026 | $84 million |
| Full-year Adjusted EBITDA | full year 2026 | $323 million |
| Effective tax rate | full year 2026 | 23% to 25% |
| Stock-based compensation as % of revenue | full year 2026 | approximately 14% of revenue |
Key takeaways
User growth accelerated for a second quarter
Daily active users grew 29% year over year to 64.9 million, up from 23% growth in Q2. Management expects Q4 DAU growth similar to Q3.
Bookings growth improved, led by subscriptions
Total bookings rose 12% to $316.1 million, accelerating four percentage points sequentially. Subscription bookings rose 16%, up six percentage points from Q2.
Profit margins fell despite higher revenue
Adjusted EBITDA was $78.7 million, a 25.5% margin versus 29.5% a year ago. GAAP operating expenses grew 24%, including an $11.4 million accrual for a performance bonus.
Full-year outlook raised, Q4 gross margin guided lower
Full-year Adjusted EBITDA guidance is $323 million, up $3 million from the prior outlook. Q4 gross margin is expected at 72.0%, down 90 basis points sequentially as AI features expand.
Duolingo Max retired as Video Call goes to Super
Duolingo will stop selling new Max subscriptions and move existing Max individual subscribers to a Super family plan at the same price. Management says the bookings effect should be minimal and is reflected in Q4 guidance.
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 Q3 2026 results?
Revenue was $309.0 million, up 14%, and bookings were $316.1 million, up 12%. Daily active users reached 64.9 million, up 29%, and paid subscribers were 13.1 million, up 14%.
Why did net income fall so much from a year ago?
Net income was $27.2 million versus $292.2 million in Q3 2025, which included a one-time $222.7 million tax benefit from releasing a valuation allowance. Operating income also fell to $24,196 thousand from $35,159 thousand.
What is Duolingo's guidance for Q4 2026?
It expects bookings of $382 million, revenue of $322 million, Adjusted EBITDA of $84 million (a 26.1% margin) and gross margin of 72.0%. It also expects Q4 DAU growth similar to Q3.
Did Duolingo change its full-year 2026 outlook?
Yes, it raised guidance across all key financial metrics. It expects to finish at the high end of its 10% to 12% bookings growth and 15% to 18% revenue growth targets, with full-year Adjusted EBITDA of $323 million.
What is happening to Duolingo Max?
Duolingo will stop selling new Max subscriptions this month and move existing Max individual subscribers to a Super family plan at the same price. Unlimited Video Call will be part of Super, and options for legacy Max family plan subscribers will be addressed in 2027.
Documents
SEC filing