Duolingo stock fell 28% post third-quarter results, citing lower growth guidance for the fourth quarter. Despite exceeding expectations in revenue and subscribers, the stock plummeted due to softer Q4 projections. However, the company is retaining users well, with a 36% increase in daily active users, offering an attractive investment opportunity at a discount.

Duolingo, founded in 2011, has expanded its course curriculum and boasts 135 million monthly active users, growing by 20% year-over-year. Subscription revenue surged by 46% YoY to $229 million, indicating high customer satisfaction. Despite weak Q4 guidance, the company is focused on growing user numbers rather than maximizing revenue in the short term.

Investors interpreted Duolingo’s decelerating growth as losing ground to competitors, but the company continues to retain users and increase daily active users by 36% YoY to 50 million. With the stock trading at a price-to-free-cash-flow multiple of 26, which is a bargain, it presents a compelling opportunity to invest in this educational platform.

Read more at Yahoo Finance: 1 Reason Duolingo Stock Could Surprise Investors in 2026