Duolingo, Inc.
Securities Class Action
Company Name: Duolingo, Inc. (DUOL)
Download ComplaintMay 2, 2025 - February 26, 2026
December 7, 2026|58 days left
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Allegations
A complaint has been filed against Duolingo, Inc. (DUOL) (“Duolingo” or the “Company”) alleging violations of the federal securities laws. On November 5, 2025, the Company reported its third quarter (“3Q”) financial results, revealing another sequential decline in daily active user (“DAU”) growth to 36%, a substantial drop from 49% in 1Q 2025 and 40% during 2Q 2025. Duolingo revealed a reversal of the Company’s monetization push and stated that going forward, the Company would prioritize user growth over monetization and that the Company needed to invest more in “teaching better across all our subjects.” On this news, Duolingo’s stock price fell $66.28 per share, or 25%, to close at $193.74 per share on November 6, 2025. Then, on January 12, 2026, Duolingo announced that its Chief Financial Officer, Matthew Skaruppa, had resigned. The Company also provided limited, preliminary fourth quarter (“4Q”) 2025 operating metrics, shocking investors by revealing DAU growth of only 30% – nearly six points of additional deceleration from 3Q 2025. On this news, Duolingo’s stock price fell $14.92 per share, or 8.5%, to close at $161.74 per share on January 12, 2026. Finally, on February 26, 2026, Duolingo announced its 4Q 2025 financial results, confirmed the slowdown in DAU growth, and revealed the financial consequences of its strategy shift were neither “small” nor “little”; rather, they would result in material negative impacts on 2026 bookings, DAU growth rates, revenue, and adjusted EBITDA. To that end, Duolingo stated 2026 DAU growth would come in at a mere 20% and be accompanied by lower bookings and less profitability. On this news, Duolingo’s stock price fell $16.45 per share, or 14%, to close at $101.00 per share on February 27, 2026.
Lead Plaintiff
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