Duolingo is entering a critical proving period in 2026, where the market demands tangible evidence that its record scale can translate into durable earnings and margin expansion.
- The strategic prioritization of user acquisition contributed to a 46% stock decline in 2025.
- The company successfully reached over 50 million daily active users (DAUs).
- Market analysis indicates a "fundamental reset of expectations," compressing Duolingo’s valuation near its 3-year low.