(Updates with stock movement, booking guidance and buyback information.)
Duolingo (DUOL) shares were down nearly 26% in recent premarket activity Friday after the company overnight provided a downbeat sales outlook.
The company reported Q4 net income late Thursday of $42 million, up from $13.9 million a year earlier.
Revenue for the three months ended Dec. 31 rose to $282.9 million from $209.6 million a year earlier.
Analysts polled by FactSet expected $276 million.
The company expects revenue of $288.5 million in Q1 and about $1.2 billion to $1.22 billion in 2026. Analysts polled by FactSet expect revenue of $291.4 million in Q1 and $1.26 billion in the full year.
"We expect bookings growth of around 11% in 2026, compared to the nearly 20% we believe we could achieve if we operated like we have in past years," the company said in a shareholder letter.
Duolingo said its board authorized a $400 million share repurchase program.
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