Duolingo, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $271.7 million for the three months ended September 30, 2025, a 41% increase from $192.6 million in the same period last year. For the nine months ending September 30, 2025, total revenues were $754.7 million, up 40% from $538.5 million in the prior year. The company achieved a net income of $292.2 million for the third quarter, compared to $23.4 million in the same quarter of 2024, largely due to a one-time tax benefit from the release of a valuation allowance on deferred tax assets.
The growth in revenue was primarily driven by a 46% increase in subscription revenue, which totaled $229.5 million for the third quarter, attributed to a rise in the average number of paid subscribers. The number of paid subscribers grew to approximately 11.5 million, a 34% increase year-over-year. Additionally, Duolingo's monthly active users (MAUs) reached 135.3 million, up 20% from 113.1 million in the previous year, while daily active users (DAUs) increased by 36% to 50.5 million.
Operationally, Duolingo has made strategic investments in research and development, with expenses rising to $82.7 million in the third quarter, a 32% increase from the previous year. This increase reflects the company's focus on enhancing its product offerings and user engagement. The company also completed an acquisition in July 2025, aimed at bolstering its design and engineering capabilities, with a total consideration of $34.5 million.
Duolingo's cash position improved significantly, with cash and cash equivalents totaling $1.01 billion as of September 30, 2025, compared to $785.8 million at the end of 2024. The company generated $280.5 million in net cash from operating activities during the first nine months of 2025, a 39% increase from $202.2 million in the same period of 2024. Looking ahead, Duolingo anticipates continued growth driven by its expanding user base and product enhancements, while also monitoring market conditions and potential impacts on its operations.
About Duolingo, Inc.
Duolingo is a technology company that offers a mobile-first, gamified platform for language learning, math, and music education. Its freemium model provides free access to courses in over 40 languages, supported by advertising and optional subscriptions. Powered by AI and data analytics, Duolingo emphasizes engaging, personalized, and effective learning experiences for a global user base of over 100 million monthly active learners.
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