Duolingo Reports Strong Third Quarter User Growth and Reduced AI Costs
Duolingo (DUOL) reported significant growth in its third quarter of 2026, highlighted by a 29% year-over-year increase in daily active users. The company has successfully optimized its artificial intelligence infrastructure, reducing the cost of its 'Video Call' AI feature from $0.30 to less than $0.01 per call by transitioning to open-source and open-weight models. Management is focusing on a strategy that balances user monetization with experience preservation. This includes sunsetting the ultra-premium Duolingo Max tier in favor of integrating features into the Super family plan to drive higher conversion rates. Additionally, the company identified significant expansion opportunities in non-language subjects, noting that its chess platform has reached 10 million daily active users.
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Topics: AI inference costs operating expenses subscription models user growth
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