Duolingo, the popular language-learning platform, is recalibrating its strategy, shifting its focus from rapid financial growth to prioritizing user acquisition and pedagogical improvement amid the accelerating influence of artificial intelligence. The move, announced Thursday, reflects a broader reckoning within the edtech sector as companies grapple with the potential—and disruption—presented by AI-powered learning tools. Duolingo’s decision to emphasize user growth, even if it moderates short-term financial gains, signals a belief that a larger user base will ultimately prove more valuable in a rapidly evolving landscape.
The company reported surpassing 50 million daily active users and exceeding $1 billion in bookings for the first time in 2025, a significant milestone. However, CEO and co-founder Luis von Ahn acknowledged a recent slowdown in user growth, a trend that prompted the strategic pivot. Von Ahn stated that the company believes this is a “pivotal moment” as advances in AI fundamentally reshape how people learn. The company is betting that by focusing on improving the learning experience and expanding its offerings beyond traditional language courses, it can reach 100 million daily active users in the medium term.
Slowing Growth Prompts Strategic Shift
Duolingo’s growth trajectory, while still impressive, has shown signs of deceleration. Year-over-year growth in daily active users (DAUs) remained above 40% in each quarter from the second quarter of 2022 through the second quarter of 2025. However, that figure dipped to 30% in the fourth quarter of 2025, and the company anticipates a further decline to approximately 20% in 2026, according to a shareholder letter released Thursday. Von Ahn attributes some of this slowdown to a natural effect of scaling, but also acknowledges that a recent emphasis on monetization may have played a role.
“Some of this deceleration is natural as we scale, and some of it, we believe, is a function of our increased focus on monetization in recent years,” Von Ahn wrote. The company is now aiming to reverse this trend by prioritizing user growth and improving the quality of its educational offerings, even if it means sacrificing some immediate financial returns.
Expanding Beyond Language Learning
Duolingo’s strategy for attracting new users centers on expanding its curriculum beyond its core language offerings. The company plans to invest in “next user growth engines” such as chess, math, and music, aiming to broaden its appeal and attract a wider audience. This expansion is intended to leverage the platform’s existing infrastructure and user base to drive growth in new areas. The company also intends to make its Video Call feature more widely accessible and provide more AI-powered speaking practice to both free and paid users.
A key component of this strategy involves enhancing the experience for free users. Duolingo plans to reduce friction points that previously encouraged users to subscribe, aiming to boost word-of-mouth referrals and organic growth. The company will also repurpose a portion of its monetization team to focus on user growth initiatives, signaling a clear commitment to this new priority.
The Role of Artificial Intelligence
The shift in strategy comes as artificial intelligence is rapidly transforming the education landscape. PYMNTS reported in May 2024 that AI is increasingly being used to personalize learning experiences, reduce costs, and improve efficiency in employee training and upskilling. Duolingo recognizes the potential of AI to enhance its platform and is actively integrating AI-powered tools into its offerings.
Recent research from Anthropic indicates that both students and educators are developing skills in collaborating with AI tools, suggesting a growing acceptance and integration of AI in educational settings. PYMNTS reported on Thursday that this collaboration is leading to measurable improvements in learning outcomes. Duolingo intends to leverage these advancements to provide more effective and engaging learning experiences for its users.
Looking Ahead
Duolingo’s bet on user growth represents a calculated risk. By prioritizing long-term sustainability over short-term profits, the company is positioning itself to capitalize on the evolving opportunities presented by AI and the growing demand for accessible, effective language learning. The company’s success will depend on its ability to execute its new strategy, attract and retain users, and continue to innovate in the face of increasing competition. Investors will be closely watching Duolingo’s progress in the coming quarters to notice if this shift in focus translates into sustained growth and market leadership.
Duolingo will next report its first-quarter 2026 earnings in May, providing an early indication of the impact of its new strategy.
What are your thoughts on Duolingo’s new approach? Share your comments below.
Keep reading
