Duolingo, Inc. (NASDAQ: DUOL)

This lawsuit is for anyone who acquired securities in Duolingo, Inc. (NASDAQ: DUOL) from May 2, 2025 through February 26, 2026.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely warn investors about a slowdown in user growth.

On November 5, 2025, Duolingo, Inc. announced its financial results for the third quarter of 2025. It disclosed that growth in daily active users had slowed for yet another consecutive quarter, falling to 36% from 40% in the second quarter of 2025 and 49% in the first quarter of 2025. The Company also disclosed that it was retreating from its push to increase monetization. It stated that it would now place user growth ahead of monetization and that it needed to invest more heavily in “teaching better across all our subjects.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on January 12, 2026, Duolingo, Inc. disclosed the resignation of its Chief Financial Officer, Matthew Skaruppa. In the same announcement, the Company released limited preliminary operating metrics for the fourth quarter of 2025, which showed growth in daily active users of only 30%. This was a further slowdown of six percentage points from the third quarter of 2025. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on February 26, 2026, Duolingo, Inc. released its financial results for the fourth quarter of 2025. The results confirmed the slowdown in daily active user growth and showed that the financial effects of the Company’s change in strategy would not be “small” or “little.” Instead, they would materially harm its 2026 bookings, daily active user growth rates, revenue, and adjusted EBITDA. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Duolingo, Inc. Duolingo, Inc. (NASDAQ: DUOL) from May 2, 2025 through February 26, 2026 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.