Duolingo (DUOL) Reiterated at Market Perform by Citizens: Can Sustain Bookings, Revenue

Citizens analyst Andrew Boone reiterated a Market Perform rating price target on Duolingo Inc. (NASDAQ: DUOL).

The analyst commented, "Duolingo in October 2025 announced its character-led ads that promote sponsors' products, which we believe are now ramping. This ad format allows Duolingo characters, such as Oscar, Lily, Falstaff (the bear), and others (though our understanding is that Duo is not available) to offer 15-second sponsored messages with a call to action button (see below). Given the success of native ad placement and influencers, we expect this ad to be highly performant, while early testing was positive, with 96% video completion rates and up to 30% click-through rates. While advertising is just 8% of Duolingo's revenue, better monetization of free users is a significant potential lever for revenue growth, while ad revenue per MAU grew 25% Y/Y and 22% Y/Y in 2Q25 and 3Q25, respectively, yet we estimate ads will generate just $1.65 per DAU or $0.61 per MAU in 2025, which is well below peers. While we continue to worry about Duolingo's user growth, which keeps us at Market Perform, we believe the company has multiple levers to sustain bookings, revenue, and EBITDA growth as advertising appears to be ramping in 2026."

For an analyst ratings summary and ratings history on Duolingo Inc. click here. For more ratings news on Duolingo Inc. click here.

Shares of Duolingo Inc. closed at $134.06 yesterday.

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