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Duolingo Q3 2025 earnings
Luis von Ahn, CEO and cofounder of Duolingo (Kevin Dietsch/Getty Images)

Duolingo dives on Q3 user growth miss, uninspiring guidance

Duolingo has run into stiff headwinds this year.

Matt Phillips

Duolingo reported Q3 earnings after the close on Wednesday.

The language-learning app posted:

  • Q3 adjusted EBITDA of $80 million vs. Wall Street expectations for $71.2 million.

  • Q3 sales of $271.1 million vs. estimates for $260.3 million.

  • Daily active users of 50.5 million vs. expectations for 51.1 million.

  • Full-year sales guidance of between $1.028 billion and $1.032 billion vs. expectations for $1.018 billion.

The company’s net income benefited from a one-time tax-related gain of $223 million, which pushed its earnings per share to $5.95. That was far in excess of expectations for $0.76 a share, but not particularly informative.

Duolingo has struggled to regain the market momentum it started the year with. The stock was up nearly 70% for the year by May, before a company memo posted on LinkedIn about Duolingo’s AI-first strategy, which laid out plans to replace some outside contractors with AI, provoked a social media backlash.

The stock began to sputter amid signs that user activity was slowing. Shares got a brief respite after Duolingo posted a strong earnings report for Q2, but the sell-off soon resumed. Through the end of the daily session on Wednesday, the stock was down nearly 20% for the year and at its lowest level of 2025.

From Wall Street’s perspective, the epicenter of concern seems to surround Duolingo’s ability to recover its former growth in daily active users, a key measure of user engagement.

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Ross Stores surges as Q1 results beat expectations, full-year guidance raised

Ross shares are rising after the company delivered strong Q1 results, with sales topping Wall Street’s projections.

The stock soared 6.3% just after the open.

Key numbers:

  • Earnings per share of $2.02 vs. $1.47 year over year (estimate: $1.72).

  • Sales of $6.01 billion, up 21% year over year (estimate: $5.61 billion).

  • Comparable sales growth of 17% (estimate: 8.58%).

CEO Jim Conroy attributed the results to better traffic in stores. “Customer traffic was the primary driver of the strong sales trend as compelling merchandise assortments, higher customer acquisition and engagement from our ongoing marketing initiatives, and an improved in‑store experience are resonating with shoppers.”

The company also noted that transaction volume grew across all key demographics, including “income levels, ethnicities, and age groups, including younger customers.” Sales were also likely buoyed by standard seasonal tailwinds, including consumer spending from tax refunds.

Backed by the strong quarter, the company lifted its full-year targets. Ross now projects same-store sales growth of 6% to 7%, up from the prior forecast of 3% to 4%, topping Wall Street’s estimate of 4.64%. It boosted its annual EPS guidance to a range of $7.50 to $7.74, versus the prior outlook of $7.02 to $7.36.

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