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Duolingo shares plunged 27% after the language app issued lighter guidance while prioritizing user growth over near-term monetization. CEO Luis von Ahn said the company is shifting investment to long-term bets. For the quarter, bookings and adjusted EBITDA forecasts trailed estimates, and daily and monthly active users missed, though paid subscribers rose to 11.5 million. Duolingo rolled out new AI features to attract paying users. Results beat on revenue and bookings, with net income boosted by a $222.7 million one-time tax benefit. The company raised full-year revenue guidance as KeyBanc downgraded the stock.

Prepared by Christopher Adams and reviewed by editorial team.