Duolingo reported exceptionally strong Q3 results, beating consensus with EPS of $5.95 and revenue of $271.71M, leading the company to significantly raise its FY25 revenue outlook to $1.03B. * The stock reacted positively to the news, closing up 6.04% at $199.75. * The company also increased its adjusted EBITDA range to $296.9M–$300.2M, signaling confidence in its growth trajectory. * Investor confidence is underpinned by Duolingo’s AI-driven strategy, high gross margins (72%), and strong free cash flow of $79.37M.