what is managements long term revenue growth guidance?

Certainly! Here is the same information regarding Duolingo management's long‑term revenue growth guidance, now in English.

Management’s Official Guidance (Fiscal Year 2026)

Duolingo’s management has framed 2026 as a “strategic investment year.” They are deliberately shifting focus from short‑term monetization to user growth and product quality. This trade‑off is clearly reflected in their official 2026 guidance:

| Metric | FY 2026 Guidance | Comparison / Trend |

| :--- | :--- | :--- |

| Revenue Growth | 15% – 18% | Slowing from 38.7% growth in FY 2025 |

| Total Bookings Growth | 10% – 12% | Down sharply from 33% growth in FY 2025 |

| Adjusted EBITDA Margin | ~25% | Below the 29.5% reported in FY 2025 |

The guidance reflects deliberate decisions to reduce friction in the free experience (e.g., fewer ads, more generous energy system, wider access to AI features), which will reduce near‑term bookings by over $50 million in 2026.

Long‑Term Vision & Commentary from Management

• CFO Gillian Munson: “We are making long‑term bets. The returns on these investments will materialize in 2027 and beyond.”

The company is prioritizing Daily Active User (DAU) growth over immediate profit margins.

• Hard DAU Target: Management has set a goal to reach 100 million DAUs by 2028 (from ~50 million today). Nearly all strategic decisions – including the 2026 guidance – are aimed at hitting that target.

• New Growth Engines:

• Duolingo Max (AI‑powered subscription tier)

• New subjects: Music (launched 2024) and Chess (reached 7 million DAUs in under a year)

• Duolingo Ads platform (allowing brands to advertise inside the app)

These are expected to drive revenue acceleration after the 2026–2027 investment period.

Analyst Expectations for Long‑Term Revenue

Based on the guidance and management’s strategy, Wall Street models currently project:

| Year | Projected Revenue | Implied Growth |

| :--- | :--- | :--- |

| 2026 | ~$1.21 billion | ~16% (in line with guidance) |

| 2027 | ~$1.39 billion | ~15% (continued moderation) |

| 2028 | ~$1.70 billion | Re‑acceleration to ~22%+ |

The re‑acceleration in 2028 is expected to come from: (1) the larger DAU base beginning to monetize, (2) higher penetration of Duolingo Max, and (3) new subject adoption (music, chess) moving into paid tiers.

Summary

Duolingo’s management is willing to accept slower revenue growth in 2026–2027 (15–18%) in exchange for building a larger, more engaged user base. They believe this will lead to faster, more sustainable revenue growth starting in 2028, driven by AI features, new subjects, and their ad platform.

If you would like the latest quarterly numbers or more detail on any of the new growth engines, feel free to ask.