Duolingo, Inc. (NASDAQ:DUOL) shares fell in Tuesday’s premarket after the company reported first-quarter results and issued softer-than-expected full-year guidance.

Strong Q1 Beat Expectations

Duolingo reported first-quarter revenue of $291.97 million, beating the $288.49 million estimate and rising 27% year over year. Diluted earnings came in at 89 cents per share, ahead of the 79 cents estimate.

User growth remained strong, with daily active users increasing 21% to 56.5 million and paid subscribers rising 21% to 12.5 million.

Profitability and Cash Flow Improve

Total bookings grew 14% to $308.5 million, supported by subscriber growth and advertising trends.

Net income reached $43.5 million, while adjusted EBITDA rose to $83.4 million, with margins expanding to 28.6%. Free cash flow was $147.8 million, representing a 50.6% margin.

Mixed Outlook Weighs on Sentiment

For fiscal 2026, Duolingo guided revenue of $1.205 billion, below the $1.209 billion estimate, narrowing its prior range ...