Duolingo [DUOL −25.17%] shares fell more than 24% in pre-market trading on 6 November 2025, even though the company’s third-quarter report showed revenue up 41% to USD 271.7 million and daily active users topping 50 million for the first time.
The main reason for the sharp drop was the company’s weak forecast for fourth-quarter total bookings of USD 329.5–335.5 million — well below Wall Street expectations and signalling slower growth than the 33–42% levels seen previously.
CEO Luis von Ahn announced a change in strategy, saying Duolingo intends to focus on product quality and user growth over immediate monetisation. He added that the company is increasing investment in growth and focusing on AI-powered learning features.
The fall capped a tough year for Duolingo: even before the results, its shares had dropped nearly 20% in 2025 and had been in steady decline since their all-time high of USD 544 in May.
