US Stocks Move | Duolingo plunges over 21% in after-hours trading as daily active user growth hits four-year low and Q1 earnings guidance falls short of expectations

Glonghui, February 27｜Language learning platform Duolingo (DUOL.US) plunged more than 21% in after-hours trading, closing at $92.37. In terms of news, Duolingo announced that its revenue for the fourth quarter last year increased by 35% year-on-year to $282.9 million, and adjusted EBITDA was $84.3 million, both exceeding market expectations. During the period, daily active users grew by 30% year-on-year to 52.7 million, marking the slowest growth rate in four years. In addition, the company expects daily active user growth to be around 20% in 2026, far below the previous growth rate of over 40%. Looking ahead to the first quarter, the company expects revenue of $288.5 million and adjusted EBITDA of about $73.6 million, both below the market consensus of $291.8 million and $84 million, respectively. For the full year, the company expects revenue to be between $1.2 billion and $1.22 billion, also below the market expectation of $1.26 billion. Duolingo will increase its investment in artificial intelligence to drive subscriber growth, which will slow short-term profit growth and profit margins. (Glonghui)