TLDR
- Duolingo stock rose about 13% in late trading Tuesday to $144.44.
- Q3 EPS of 54 cents missed estimates, but revenue of $309 million beat.
- Daily active users grew 29% to 64.9 million, up from 23% growth in Q2.
- Q4 revenue is guided to $322 million, with bookings expected at $382 million.
- The stock was indicated near $147 in Wednesday premarket trading.
Duolingo (DUOL) stock jumped about 13% in late trading Tuesday after the language app raised its fourth-quarter outlook. The move came right after a rough day for the stock.
The stock closed the regular session down 5.4% at $128.00. After the report, it climbed 12.8% to $144.44.
The company missed on profit but beat on sales. Earnings came in at 54 cents, below the 57 cents analysts expected.
DUOLINGO $DUOL Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $309.0M (Est. $303M) 🟢; +14% YoY
🔹 EPS: $0.54 (Est. $0.56) 🔴; -91% YoYRaises FY26 Guide:
🔹 Revenue: $1.2B (Est. $1.21B) 🟢
🔹 Bookings: $1.3B
🔹 Adjusted EBITDA: $323M; 26.5% marginQ4 Guide:
🔹 Revenue: $322M (Est.… pic.twitter.com/14roMP9nfP— Wall St Engine (@wallstengine) November 3, 2026
Revenue hit $309 million, up 13.7% from a year ago. Wall Street was looking for about $303 million.
Adjusted EBITDA reached $78.7 million, a 25.5% margin. That topped the $76.16 million analysts had penciled in.
Users and Bookings Pick Up Speed
Daily active users rose 29% from a year ago to 64.9 million. That is faster than the 23% growth reported in the second quarter.
Total bookings climbed 12% to $316 million. The users are showing up, and the cash is following.
CEO Luis von Ahn put it this way: “This year, we’re prioritizing teaching better and user growth, and we’re seeing that strategy paying off.”
Not every number moved the right way. Operating margin fell to 7.8% from 12.9% in the same quarter last year.
Free cash flow was $75.34 million, a 24.4% margin. That is down from 26.3% in the previous quarter.
What Duolingo Expects Next
For the fourth quarter, Duolingo guided revenue to $322 million. That is above the $314.8 million analysts were expecting.
Bookings are expected to reach $382 million. That would mean growth of 13% from the prior year, a step up from the 12% just reported.
The company also set a full-year adjusted EBITDA outlook of $323 million. Analysts had been looking for $319.9 million.
Duolingo’s market cap sits at $6.33 billion. Revenue has grown at a 34.7% annual pace over the last three years.
On Wednesday, the stock was indicated near $147 in premarket trading, up about 15% from Tuesday’s $128.00 close.
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