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Duolingo Raises 2025 Revenue Outlook, Expands AI-Powered Subscription Tiers
6 Aug
Summary
- Duolingo raises 2025 revenue forecast to $1.01-$1.02 billion
- Q2 revenue beats estimates at $252.3 million
- AI-driven features like video-call practice boost subscription growth
As of August 6th, 2025, the language-learning app Duolingo has raised its annual revenue forecast for the year. The company now expects revenue to be in the range of $1.01 billion to $1.02 billion, up from its previous projection of $987 million to $996 million.
Duolingo's strong performance is largely attributed to the growing popularity of its AI-powered subscription tiers. The company's "Super" and "Max" plans, designed for frequent learners and advanced users respectively, offer features such as video-call conversation practice with chatbots, personalized error analysis, and enhanced feedback tools.
In the second quarter of 2025, Duolingo's revenue reached $252.3 million, exceeding analysts' estimates of $240.7 million. The company has been able to leverage its AI capabilities to create and personalize bite-sized lessons across more than 100 language courses, significantly expanding its offerings in the past year.
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Duolingo's CFO, Matt Skaruppa, noted that the cost of using AI tools has decreased, contributing to the company's improved gross margin. Additionally, the firm's advertising revenue has also performed better than expected, further boosting its financial performance.
Looking ahead, Duolingo expects its revenue for the third quarter of 2025 to be in the range of $257 million to $261 million, surpassing the analysts' estimates of $253 million. The company is also forecasting an adjusted core profit of $288.1 million to $295.5 million for the full year 2025.
