Duolingo Talks the Talk — and AI Walks the Walk

AI Lessons Speak Louder Than Words

Duolingo is riding high on surging demand for its AI-enhanced learning tools, prompting the company to raise its revenue forecast for 2025. The language-learning app has seen strong momentum around its higher-tier Duolingo Max subscription, which uses GPT-4 and generative AI features to simulate conversations and provide real-time feedback. CEO Luis von Ahn pointed to expanding engagement and solid user growth driven by AI innovations as key to the upgraded guidance. As education tech becomes more personalized and interactive, Duolingo appears to have found a profitable sweet spot between relevance, utility, and fun.

Subscriptions Drive the Conversation

The company now expects annual bookings between $725 million and $735 million, up from its prior range of $700 million to $715 million. Much of this optimism stems from the traction of its paid offerings, particularly Duolingo Max, which launched last year and continues to gain subscribers. CFO Matt Skaruppa noted that the AI features are compelling enough to convince free users to upgrade, creating a significant monetization pathway without compromising Duolingo’s famously gamified experience. The stock responded positively, climbing roughly 16% in extended trading on the news.