Duolingo is adjusting its growth strategy to prioritize a frictionless free user experience, after seeing daily active user growth slow in 2025, according to co-founder and CEO Luis von Ahn. While monetization through ads and subscription upsells has boosted revenue, it has come at the cost of user expansion.

Balancing monetization and growth

Currently, only about 10% of Duolingo’s active monthly users pay for its services. Von Ahn explained that while increasing ads or subscription prompts could quickly generate additional revenue, such tactics risk alienating free-tier users. Instead, Duolingo plans to explore more subtle revenue streams, such as avatar customizations and optional in-app purchases, to generate income without adding friction.

Despite slowing growth, Duolingo reached 52.7 million daily active users in Q4 2025, and its revenue rose 35% year-over-year to $282.9 million. Daily active user growth fell to 30% in the fourth quarter of 2025, down from a consistent 40–60% in prior years, reflecting a natural slowdown as the app matures.

Long-term strategy

Duolingo aims for 100 million daily active users by 2028, emphasizing word-of-mouth and user retention driven by an improved free experience. Von Ahn stressed that revenue growth might be slower under this approach, but the company remains confident in finding creative monetization avenues that do not compromise usability.

AI as a growth lever

Despite past controversy over AI integration, Duolingo continues to invest in artificial intelligence. Von Ahn believes that AI advancements can revolutionize language learning and create opportunities for the platform to maintain its leadership as the world’s most popular education app.

“Our goal is to lead the shift in how people learn, combining high engagement with smart monetization strategies,” von Ahn said, highlighting Duolingo’s commitment to innovation while keeping the user experience central.

By focusing on low-friction engagement and selective monetization, Duolingo aims to sustain growth, retain user trust, and leverage AI to enhance its educational offerings.

Source:
https://www.customerexperiencedive.com/news/duolingo-limit-friction-growth-slows/813414/