Duolingo Reports 41% Revenue Growth to $252.3 Million in Latest Quarter

Duolingo, Inc. reported significant financial growth in its latest quarterly filing, with revenues reaching $252.3 million for the three months ended June 30, 2025, a 41% increase from $178.3 million in the same period last year. For the first half of 2025, the company generated $483 million in revenue, up 40% from $345.9 million in the prior year. The growth was primarily driven by a 46% increase in subscription revenue, which totaled $210.7 million, reflecting a rise in the average number of paid subscribers. Net income for the quarter was $44.8 million, an 84% increase compared to $24.4 million in the previous year, while net income for the six-month period was $79.9 million, up 56% from $51.3 million.

The company also reported a substantial increase in its user base, with monthly active users (MAUs) rising to approximately 128.3 million, a 24% increase year-over-year. Daily active users (DAUs) grew by 40% to 47.7 million. Paid subscribers increased by 37% to 10.9 million, reflecting successful product initiatives aimed at enhancing user engagement and retention. Duolingo's total bookings for the second quarter were $268 million, a 41% increase from the previous year, driven by growth in subscription bookings and advertising revenue.

In terms of operational developments, Duolingo has made strategic investments in research and development, with expenses rising to $73.7 million for the quarter, a 34% increase from the prior year. This increase was largely attributed to higher personnel costs due to headcount growth. The company also expanded its marketing efforts, resulting in a 47% increase in sales and marketing expenses. Additionally, Duolingo announced the acquisition of Music Learning Services Limited, a UK-based entity, for $34.5 million, which is expected to enhance its product offerings.

Duolingo's balance sheet remains strong, with cash and cash equivalents totaling $976.2 million as of June 30, 2025, up from $785.8 million at the end of 2024. The company reported deferred revenues of $431.2 million, indicating a solid pipeline of future revenue. Looking ahead, Duolingo anticipates continued growth driven by its expanding user base and ongoing product enhancements. The company remains focused on leveraging its market position in the online language learning industry while navigating potential challenges related to competition and market conditions.