Duolingo, Inc. Q1 FY26 Results

"In Q1, we made progress on the strategy we laid out last quarter," said Luis von Ahn, Co-Founder and CEO of Duolingo. "We've made speaking a core part of the learning experience, and we’ve added more features and content to continue to support learners." "We're still early in executing our 2026 plan, and we're building a product that drives long-term engagement and loyalty. We believe that's what will make Duolingo a much larger and more durable business over time."

Q1 was a solid start to the year. DAUs grew 21% year over year to 56.5 million, lapping 49% growth in Q1 2025 when we benefitted from our 'Dead Duo' campaign. Total bookings grew 14% year over year, or 9% on a constant currency basis, to $308.5 million, driven by continued growth in subscribers and favorable advertising trends. Revenue grew 27% year over year, or 22% on a constant currency basis, to $292.0 million. Gross margin expanded 190 basis points year over year to 73.0%, driven primarily by continued reductions in per-unit AI costs. We generated $43.5 million in net income and $83.4 million in Adjusted EBITDA. Adjusted EBITDA margin increased 140 basis points year over year to 28.6%. We ended the quarter with $1.1 billion in cash and cash equivalents. Net cash from operating activities for the quarter was $150.8 million, and free cash flow (FCF) for the quarter was $147.8 million, representing a 50.6% FCF margin. Fully diluted shares outstanding ended the quarter at approximately 49.7 million. We remain committed to managing dilution while retaining the financial flexibility to invest in our long-term growth priorities. Since initiating our $400 million repurchase program in February, we have repurchased approximately $50.6 million, or roughly 514,000 shares, through May 1, 2026. This represents more than 100% of our 2025 net dilution from equity awards.