Faruqi & Faruqi, LLP is investigating potential claims against Duolingo following significant investor losses. The company's stock fell as much as 22% after its recent earnings announcement and 2026 forecast.
The probe centers on a strategic shift prioritizing user growth over short-term profitability. Duolingo's 2026 guidance for bookings and revenue missed Wall Street expectations.
The company also projected lower adjusted EBITDA margins for the year. These factors triggered a steep sell-off and multiple analyst downgrades.