
Duolingo's Growth Challenges and Stock Decline Amid AI and User Expansion
Duolingo reported strong Q3 2025 performance with 36% YoY growth in daily active users, driven by AI enhancements and international expansion, especially in Asia. The company is focusing on long-term user growth over immediate monetization, leveraging AI to improve educational effectiveness. Despite some deceleration expected in Q4, Duolingo remains optimistic about sustained growth, though it faces competitive and strategic uncertainties.
