Duolingo Inc. reported strong financial results for the second quarter of 2025, with revenue reaching $252.3 million, surpassing analysts' estimates of $240.7 million and marking a 41% year-over-year increase. Subscription revenue rose 46% to $211 million, contributing to a net income of $44.8 million, up 84% from the previous year. The company recorded 47.7 million daily active users (DAUs), a 40% increase year-over-year, and 128.3 million monthly active users (MAUs). Duolingo ended the quarter with 10.9 million paid subscribers. Earnings per share were $0.91, beating the consensus estimate of $0.58. The company raised its full-year 2025 revenue guidance to between $1.011 billion and $1.019 billion, above the prior estimate of $996.6 million, and projected adjusted EBITDA between $288.1 million and $295.5 million. For the third quarter of 2025, Duolingo expects revenue between $257 million and $261 million, exceeding the $253 million consensus, with adjusted EBITDA forecasted at $69.4 million to $73.1 million. CEO Luis von Ahn attributed the growth to AI-powered user engagement and product innovation, including new course offerings in music, mathematics, and chess. The company also acquired the team from music gaming startup NextBeat. Despite initial stock gains of over 30% following the earnings release, Duolingo's shares experienced volatility due to the launch of OpenAI's GPT-5, closing with a 13.75% increase. The company continues to emphasize an AI-first strategy, which began in April 2025, aiming to scale course development and reduce reliance on contractors.