Duolingo, Inc. reported first-quarter 2025 results that exceeded expectations, with revenue 3% above estimates and adjusted EBITDA 11% higher than projected. The company experienced strong subscriber growth, including a 40% increase in paid subscribers and a 49% rise in daily active users, driven in part by the performance of its higher-priced plans such as Duolingo Max. Following these results, analysts from DA Davidson and Scotiabank raised their price targets to $470 from $410 and $405 respectively, while UBS increased its target to $500. Duolingo also announced the launch of 148 new language courses developed using generative AI, marking the largest expansion in its history. CEO Luis von Ahn stated that the company will gradually replace human contractors with AI for tasks that can be automated, allowing human workers to focus on creative and problem-solving roles. This AI-first approach has sparked some user backlash, with concerns about quality and subscription cancellations. The shift at Duolingo reflects broader trends in the technology sector regarding AI's impact on employment, particularly in creative and entry-level positions.