DUOL is trading at $90.85 (-22.65%) in pre-market after issuing weak 2026 guidance that signaled a strategic shift toward user expansion over immediate profitability.
- While Q4 revenue of $282.9M beat estimates, the company forecast just 10-12% bookings growth for 2026 as it prioritizes the free user experience over margin expansion.
- Adjusted EBITDA margins are expected to moderate to ~25% as CEO Luis von Ahn focuses on boosting DAU growth, overshadowing the announcement of a new $400M share buyback program.
- The sharp decline follows pre-earnings price target cuts from analysts at Morgan Stanley and DA Davidson.