New York, Jan 13, 2026, 03:57 EST — Market closed.
Duolingo (DUOL.O) shares slid 8.5% to close Monday at $161.74, setting the stage for Tuesday’s U.S. market open.
The drop has investors scrambling to figure out what shifted. This wasn’t a full earnings report, more an expectations update — mixing management changes with a brief snapshot of fourth-quarter performance.
Duolingo announced that Chief Financial Officer Matt Skaruppa will step down, with board member Gillian Munson stepping into the role. The company also reported preliminary fourth-quarter daily active user growth of roughly 30% year over year, and bookings came in at or just above the top end of its forecast. CEO Luis von Ahn said the focus remains on “prioritizing teaching better and user growth,” while Munson described the CFO role as “an easy yes.” SEC
Bookings remain a key focus for investors. The metric, which tracks subscription and in-app purchase activity ahead of revenue recognition, came in between $329.5 million and $335.5 million for Q4. That compares to a Visible Alpha forecast of $334.2 million, according to Reuters.
A recent filing detailed Duolingo’s compensation package for the transition. Munson’s offer letter specifies an $800,000 annual base salary along with restricted stock units valued at $14 million. The RSU grant is calculated based on the stock’s average closing price during the 30 trading days leading up to the grant date.
Skaruppa’s transition deal keeps him as CFO until a replacement steps in, after which he’ll shift to a part-time advisor role, working roughly 20 hours a week. The transition phase could last until Nov. 20, 2026, unless ended sooner.
The bookings range isn’t new. Duolingo announced that fourth-quarter forecast back in November, when its focus on user growth and teaching quality over short-term monetization spooked investors, pushing the stock down after hours, Reuters reported then.
Still, early data can swing either way. Preliminary figures often shift, and the market reacts sharply if user growth doesn’t translate into rising paid subscriptions amid increased spending.
Trading picks up again Tuesday, with investors eyeing whether selling pressure continues or if the stock steadies. Any fresh analyst revisions as the quarter wraps up will also draw attention. Details on how the company aims to juggle product spending alongside profit goals remain in focus.
The key date to watch is Feb. 23, when Munson officially takes over as CFO. Eyes will then shift to Duolingo’s full Q4 earnings and its 2026 forecast, coinciding with that leadership change.
