US Stock Movement | Duolingo drops nearly 23% pre-market, daily active user growth continues to slow, and Q1 guidance is more conservative

LootboxPhobia · 2026-02-27T12:44:59+00:00

Duolingo(DUOL.US) fell nearly 23% in pre-market trading after reporting a 35% increase in Q4 revenue to $282.9 million. Although daily active users grew by 30%, the growth rate slowed, and future revenue expectations are below market estimates. The company plans to increase AI investments to drive subscriber growth, which will lead to a slowdown in profit growth and profit margins in the short term. Analysts have lowered the target price from $300 to $145.

LootboxPhobia

2026-02-27 12:44:59

Abstract generation in progress

Gelonghui February 27 | Language learning platform Duolingo (DUOL.US) pre-market drops nearly 23%, trading at $90.60.

On the news front, Duolingo announced that its revenue in the fourth quarter of last year increased 35% year-over-year to $282.9 million, with adjusted EBITDA of $84.3 million, both exceeding market expectations. During the period, daily active users grew 30% year-over-year to 52.7 million, the slowest growth in four years. Looking ahead to the first quarter, the company expects revenue of $288.5 million and adjusted EBITDA of approximately $73.6 million, both below the market consensus of $291.8 million and $84 million. To boost subscriber growth, Duolingo will increase investment in artificial intelligence, which may slow short-term profit growth and profit margins. After the earnings release, Needham cut Duolingo’s target price from $300 to $145. (Gelonghui)

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