Not less than one firm’s guess on synthetic intelligence seems to be paying off—for now.
Language-learning platform Duolingo reported earnings outcomes for the second quarter of 2025 on Wednesday after the market closed, and the numbers have been eye-opening. The corporate’s income elevated 41% 12 months over 12 months to greater than $252.3 million, and internet revenue tallied $44.8 million, up 84%. Its variety of paid subscribers was 10.9 million (up from 8 million a 12 months in the past), and its every day lively customers neared 48 million (up from 34 million final 12 months).
“I’m completely happy to report one other quarter of nice outcomes, pushed by product-led development, a pleasant studying expertise, and quick iteration,” wrote Luis von Ahn, Duolingo’s cofounder and CEO, in a letter to shareholders. “Our consumer development and engagement stay robust, and our subscription efficiency and profitability exceeded expectations.”
Von Ahn thinks there’s loads of room to develop, too, particularly as AI helps increase consumer engagement and profitability.
“We imagine we’re nonetheless early in our consumer development journey,” he continued. “We’ve delivered innovation whereas rising profitability—by way of robust efficiency throughout all subscription tiers, continued funding in our core product, and new topics that assist us improve engagement. We stay targeted on constructing for long-term engagement and development.”
Notably, the blowout quarter comes after Duolingo was among the many first giant firms to publicly lean into AI—particularly, changing swaths of its human workforce with AI. For some time, it appeared that the technique was backfiring. However now, that’s not so clear.
Buyers appear completely happy, as the value of Duolingo shares shot up considerably after hours. As of the closing bell at 4 p.m. ET, Duolingo inventory was buying and selling for lower than $344 per share—however as of 4:10 p.m. ET, shares have been buying and selling for $426.60. That’s a rise of greater than 24%.
Duolingo’s shares had been on a downward slide in latest weeks. Over the previous month, the inventory was down greater than 13%. However general, it’s greater than doubled in the course of the previous calendar 12 months.
