Duolingo, Q3 2026 Earnings Call Transcript

Duolingo’s user growth accelerated for a second consecutive quarter, with daily active users up 29% year over year, driven primarily by product improvements that boost retention. Management expects similar DAU growth in Q4 and bookings slightly above prior guidance, while gradually increasing monetization without adding friction to the free experience. Q4 forecasts call for 13% bookings growth, 14% revenue growth and an adjusted EBITDA margin of 26.1%; higher operating costs and the wider Video Call rollout are expected to weigh on margins. Lower AI inference costs are enabling more AI features in subscriptions, and management sees further potential in monetizing Chess, in-app purchases and improved advertising. It plans to expand monetization testing in 2027, alongside continued investment in user growth and teaching.