Duolingo Stock Surges 12%: Daily Users Jump 29% to 64.9 Million

Duolingo stock surged more than 11% overnight after the language-learning company reported third-quarter daily active users up 29% to 64.9 million, revenue up 14% to $309 million, and a stronger outlook for the rest of 2026. The move, which traders said could be the stock's best day in more than a year if it holds into Wednesday's session, came even though earnings per share of $0.54 landed just below Wall Street estimates.

What happened

Duolingo reported third-quarter results after Tuesday's close that showed its user growth re-accelerating. Daily active users climbed 29% year over year to 64.9 million, picking up speed from 23% growth in the second quarter. Paid subscribers rose 14% to 13.1 million, bookings advanced 12% to $316.1 million, and revenue rose 14% to $309 million, ahead of the roughly $303 million analysts had expected. Net income was $27.2 million.

The one soft spot was the bottom line. Earnings of $0.54 per share missed consensus estimates of around $0.56 to $0.57, and adjusted EBITDA slipped 2% to $78.7 million. The company also recorded an $11.4 million accrual for a performance bonus tied to its fourth-quarter daily-user growth goal. Investors looked past all of that and focused on the user numbers and the guidance.

Why it is blowing up

For a stock that had fallen about 27% this year before the report, the quarter answered the biggest question hanging over Duolingo: whether its audience growth was slowing for good. Instead, growth accelerated for a second straight quarter, and chief executive Luis von Ahn said the company's twin focus this year — making its teaching products more effective and expanding its audience — is paying off. Evercore ISI analyst Mark Mahaney reiterated an Outperform rating after the report, citing the stronger user growth and bookings.

The outlook added fuel. Duolingo raised its full-year 2026 revenue growth forecast to 18%, with revenue expected to reach $1.221 billion, bookings of $1.296 billion and adjusted EBITDA of $323 million. For the fourth quarter, the company expects bookings of about $382 million and revenue of about $322 million, and it told investors to expect daily-user growth in the fourth quarter similar to the third quarter's pace.

Key facts

• Daily active users: 64.9 million, up 29% year over year, versus 23% growth in Q2.
• Revenue: $309 million, up 14%, beating the roughly $303 million consensus.
• Paid subscribers: 13.1 million, up 14%; bookings: $316.1 million, up 12%.
• Earnings: $0.54 per share on net income of $27.2 million, just below estimates.
• Full-year 2026 outlook raised: revenue of $1.221 billion and bookings of $1.296 billion.
• The stock traded more than 11% higher overnight, after falling about 27% year to date.

What's next

The test now is whether the premarket gain survives Wednesday's regular session and whether fourth-quarter user growth really does match the third quarter's 29% pace, as management guided. The $11.4 million bonus accrual is payable only if that user-growth goal is met, which gives investors a clean, public scoreboard for the next report. This report describes market reaction and company results only; it is not financial advice.

Sources

Stocktwits — Why Is DUOL Stock Surging Over 11% Overnight Today?
TipRanks — Duolingo Stock Is Surging in Premarket Despite Q3 Earnings Miss
Invezz — Duolingo stock is soaring after its earnings
Zacks — Duolingo Q3 Earnings: Key Metrics Versus Estimates

FAQ

Why is Duolingo stock surging today?

Duolingo beat revenue expectations and reported daily active users up 29% to 64.9 million, a re-acceleration from 23% growth in the prior quarter, and it raised its full-year revenue outlook.

Did Duolingo beat earnings estimates?

Partly. Revenue of $309 million beat the roughly $303 million consensus, but earnings of $0.54 per share came in just below estimates of about $0.56 to $0.57.

How many people use Duolingo every day?

Duolingo reported 64.9 million daily active users in the third quarter, up 29% from a year earlier, alongside 13.1 million paid subscribers.

What did Duolingo guide for the rest of 2026?

It raised its full-year outlook to revenue of $1.221 billion, bookings of $1.296 billion and adjusted EBITDA of $323 million, and expects fourth-quarter user growth similar to the third quarter.