Duolingo Reports 18% Revenue Growth to $298.5 Million in Q2 2026

Duolingo, Inc. reported significant financial performance in its latest quarterly filing, with revenues reaching $298.5 million for the three months ended June 30, 2026, an increase of 18% from $252.3 million in the same period last year. For the first half of 2026, revenues totaled $590.4 million, up 22% from $483.0 million in the prior year. The company's net income for the second quarter was $33.2 million, a decrease of 26% compared to $44.8 million in the same quarter of 2025, while net income for the six-month period was $76.6 million, down 4% from $79.9 million.

The filing highlighted a notable increase in operating expenses, which rose by 23% to $182.8 million in the second quarter, driven primarily by higher research and development costs. These expenses increased by 25% to $92.2 million, reflecting a growth in headcount and associated stock-based compensation. Sales and marketing expenses also surged by 35% to $40.0 million, largely due to increased advertising costs. Despite the rise in expenses, the company reported a slight increase in income from operations, which was $33.9 million for the quarter.

Duolingo's user engagement metrics showed positive trends, with daily active users (DAUs) increasing by 23% to 58.7 million compared to 47.7 million in the previous year. The number of paid subscribers also grew by 17% to 12.7 million, up from 10.9 million. Subscription bookings for the second quarter reached $250.3 million, a 10% increase from the prior year, while total bookings rose by 8% to $289.1 million. The company attributed these increases to product initiatives aimed at enhancing user engagement and retention.

In terms of strategic developments, Duolingo's Board of Directors authorized a share repurchase program of up to $400 million in February 2026. During the first half of the year, the company repurchased approximately 695,000 shares of its Class A common stock for a total of $70.3 million. As of June 30, 2026, Duolingo reported cash and cash equivalents of $1.18 billion, alongside $133 million in short-term investments, indicating a strong liquidity position to support future growth initiatives.

Looking ahead, Duolingo expressed optimism about its growth trajectory, emphasizing its commitment to investing in product development and marketing to enhance user experience and expand its market presence. The company remains focused on leveraging its freemium business model and increasing its global footprint, particularly in emerging markets. However, it acknowledged potential challenges, including competition in the online language learning space and macroeconomic factors that could impact consumer spending.