Duolingo Stock Surges 53% in 2025, Fueled by AI Innovation
Duolingo has had an impressive run in 2025, with its stock price surging 53% despite a tumultuous stock market environment. As artificial intelligence (AI) continues to revolutionize industries, Duolingo's unique AI-driven approach to language learning has played a major role in its market success. As of June 9, 2025, Duolingo’s stock has been soaring while the broader S&P 500 index has remained relatively flat, up by only 2% from the start of the year. Investors are clearly betting on the educational platform's strong growth potential, particularly due to its ability to integrate AI tools into its learning platform.
Impressive Profit Growth and Expanding User Base
Duolingo’s AI-powered language education app has seen extraordinary growth in 2025. In the first quarter alone, the platform grew its daily active users by 49% year-over-year to reach 46.6 million. With a relatively small workforce of just 830 employees at the end of 2024, this level of growth has translated into impressive profits. First-quarter revenue jumped 38% year-over-year to $231 million, while sales and marketing expenses rose a modest 34%. Operating expenses grew by just 33%, resulting in a 44% increase in operating income, which reached $23.6 million. Duolingo’s operating profit margin now stands at 10.2%, and it could expand even further as the company continues to leverage its scalable business model.
Also Read: India's AI Market to Hit $17B by 2027: BCG Report
AI-Powered Features and Expanding Subscriber Base
Duolingo’s top-tier subscription, Duolingo Max, offers exclusive AI-driven features, including video call lessons with a chatbot named Lily. These video calls have the potential to attract a broader user base, particularly those who are less inclined toward the gamified nature of Duolingo’s typical lessons. The upcoming features, such as reviewing past conversations and receiving voice messages, are expected to further lock in subscribers, ensuring long-term growth. With AI at its core, Duolingo is poised to keep its upward trajectory in the competitive language learning space.
