Duolingo shares jumped 10% after the language learning company reported a 29% rise in daily active users and lifted its guidance across every key financial metric for the year. Daily active users reached 64.9 million in the third quarter, while paid subscribers grew 14% year on year to 13.1 million.

Revenue came in at $309 million, up 12% on the same period last year and ahead of the $303 million analysts had expected, according to estimates compiled by S&P Global Market Intelligence. Earnings per share of $0.58 also beat the $0.56 forecast.

The company raised its full-year revenue guidance to $1.22 billion, above the $1.20 billion the market had pencilled in. Duolingo said it now expects to finish 2026 at the high end of both its 10% to 12% bookings growth target and its 15% to 18% revenue growth target, the figures it set at the start of the year. It also lifted its full-year adjusted EBITDA forecast to $323 million, a 26.5% margin, up $3 million from its previous guidance and $21 million above the midpoint of the original 2026 guidance it gave in February.

Duolingo is aiming far higher on users, with a stated goal of reaching 1 billion. Operating expenses rose 24% year on year during the quarter. That figure included $11.4 million the company set aside for a firm-wide performance bonus, payable to employees if daily active user growth hits 25% or more in the fourth quarter.

The results arrived during a busy stretch of third quarter earnings, with roughly 60% of S&P 500 companies having reported and an overall earnings growth rate of 30.2%. If that rate holds, it would be the third straight quarter of earnings growth above 25% for the index.