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Duolingo Stock Crashes 20% After Shocking Growth Pivot — Is This A Bold Reset Or A Red Flag?

Duolingo shares plunged roughly 20% after management unveiled a strategic shift that will prioritize user growth over near-term monetization, a move that immediately rattled Wall Street. While the company delivered a strong 2025 performance — surpassing 50 million daily active users, exceeding $1 billion in bookings, and generating more than $300 million in adjusted EBITDA — the tone changed with its 2026 outlook. Management now expects bookings growth of just 10% to 12% and revenue growth of 15% to 18%, well below prior momentum, as it intentionally reduces friction in the free user experience and experiments with pricing tiers. The decision reflects concerns about decelerating daily active user growth, which is expected to hover around 20% year-over-year in 2026.