Duolingo, Inc. (DUOL) experienced a sharp 20.77% decline in post-market trading on Thursday, as the language-learning platform announced a significant strategic pivot alongside its quarterly results.

The company revealed it is deliberately shifting its focus from maximizing monetization to prioritizing user growth and improving the free learner experience. This strategic change is expected to weigh on near-term financial performance, with Duolingo forecasting first-quarter bookings of approximately $301.5 million and full-year bookings between $1.27 billion and $1.30 billion, both notably below analyst estimates.

CEO Luis von Ahn stated that while this shift may result in slower bookings growth—projected at about 11% for 2026 compared to a potential 20% under the previous approach—and lower profitability due to increased investment in AI and marketing, the company believes it will build a larger, more durable business in the long term by aiming to reach 100 million daily active users.