# Duolingo (DUOL) Q3 2026 earnings

Results filed 2026-11-03 for the quarter ended 2026-09-30. Source page: https://earnings.opennash.com/companies/duol/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1562088/000162828026069474/0001628280-26-069474-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $309.0 million | up 14% over the prior year | GAAP |
| Net income | $27.2 million | down from $292.2 million a year ago | GAAP |
| Diluted net income per share | $0.54 | down from $5.95 a year ago | GAAP |
| Gross margin | 72.9% | a modest improvement over the prior year | GAAP |
| Income from operations | 24,196 | down from 35,159 a year ago | GAAP |
| Net cash provided by operating activities | $89.4 million | up 6% | GAAP |
| Free cash flow | $75.3 million | down 3% | non-GAAP |
| Adjusted EBITDA | $78.7 million | down 2% | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Daily active users | 64.9 | 29% |
| Paid subscribers (period end) | 13.1 | 14% |
| Total bookings | $316.1 million | up 12% over the prior year |
| Subscription bookings | $278.4 | 16% |
| Subscription revenue | $269,985 | 18% |
| Monthly active users | 153.1 million | 13% year-over-year growth |

## 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

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

## 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.