Analysts Turn Bullish on Duolingo Ahead of Q2 Earnings
Hey, so here’s what’s going on with Duolingo stock right now—it’s getting a lot of attention, especially with Q2 earnings just around the corner. The company’s expected to report on Wednesday afternoon, and analysts are forecasting around 35% year-over-year revenue growth , bringing the total to about $240.8 million . Now, while that’s still pretty impressive, it does represent a bit of a slowdown compared to last year’s growth. But here’s the twist—despite that slower pace, analysts are getting more optimistic.
In the past month alone, there’ve been five upward revisions to Duolingo’s revenue estimates. That’s a pretty strong signal that expectations are rising. And whenever analysts start upping their estimates right before earnings, it usually hints at something interesting brewing under the surface. It doesn't guarantee a blowout quarter, of course, but it does suggest that confidence in the company’s near-term performance is climbing.
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What’s driving that optimism? Well, there’s been a lot of excitement around Duolingo’s expanding content strategy . Back in April, they launched a huge batch of 148 new language courses , effectively doubling their course catalog. That’s a big move that could attract a wider user base globally. More users could potentially lead to higher revenue, which is exactly what investors and analysts want to see.
But it’s not all rosy. One of the risks hanging in the background is the pressure on gross margins . While user growth is strong—they hit over 130 million users last quarter , up more than 33%—the real challenge is turning those users into paying subscribers. If most of the growth comes from free users, then the revenue gains might not keep pace with the costs of expanding content and maintaining the platform. That’s something analysts are definitely watching.
Still, Duolingo has a solid track record. They’ve beaten Wall Street’s revenue expectations in all but one quarter over the past two years , which gives some confidence heading into earnings. And looking further ahead, there’s a big goal in sight: the company is projecting $1.7 billion in revenue and $343.7 million in earnings by 2028 . That would require them to keep up an ambitious 27% annual growth rate.
Right now, Duolingo’s average price target sits at $492 , which is around 40% higher than where the stock is currently trading. So, if the company can deliver solid results this quarter—or even just meet those rising expectations—it could change the story for investors who’ve been on the fence.
Let’s see what happens Wednesday.
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