Duolingo leaps as AI-powered Max tier lifts outlook and investor confidence

Duolingo

07/08/2025 09:11

Corrects to remove repeated bullets

** Shares of Duolingo DUOL.O jump 18.6% to $407.52 in premarket trading

** Co raised its full-year revenue outlook and surpassed second-quarter expectations, driven by growing global adoption of its AI-powered premium subscription tiers

** Co projects FY 2025 revenue between $1.01 bln–$1.02 bln, up from prior guidance of $987 million–$996 million

** AI-powered "Super" and "Max" tiers gain traction globally; Max includes video-call conversation practice, personalized feedback, and error analysis

** JP Morgan sees Max ramping further via feature upgrades and pricing experiments

** 15 of 24 brokerages rate the stock "Buy" or higher, and nine rate it "Hold"; their median PT is $477-  LSEG

** DUOL up ~6% YTD

 (Reporting by Rashika Singh in Bengaluru)

 ((Rashika.Singh@thomsonreuters.com;))