Duolingo is trading 14% down at $115.75 after investors focused on weaker-than-expected third-quarter revenue guidance despite a second-quarter earnings beat.
- Management projected approximately $302 million in Q3 revenue versus analyst expectations of $304 million.
- Adjusted EBITDA margins declined year over year as AI investments and user-growth initiatives increased costs.
- The broader technology selloff may have added pressure, but the primary catalyst was the outlook.