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  • 9 hours ago
Duolingo shares fell sharply in premarket trading after the company reported strong user growth but issued fiscal 2026 revenue guidance below expectations. Daily active users and paid subscribers rose solidly, but management said it will focus on improving the free learner experience. Morgan Stanley downgraded the stock and cut its price target.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Duolingo shares fell in Friday's pre-market session after the company reported strong user growth,
00:07but said it will prioritize improving the free learner experience, according to Benzinga.
00:12The company reported fourth quarter sales of $282.87 million, up 35% year-over-year,
00:20beating consensus of $275.93 million. Daily active users rose 30% year-over-year to $52.7 million,
00:29while paid subscribers increased 28% to $12.2 million.
00:34Total bookings grew 24% to $336.8 million.
00:39Duolingo expects fiscal 2026 sales of $1.197 billion to $1.221 billion,
00:47below the consensus of $1.264 billion.
00:51Morgan Stanley downgraded the stock to equal weight and cut its price target to $100 from $245.
00:57Shares were down 23.88% at $89.40 during pre-market trading on Friday, according to Benzinga ProData.
01:07For all things money, visit Benzinga.com.
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