Duolingo, Inc. (DUOL) shares are set to surge 18.60% in pre-market trading on Thursday, following the release of impressive second-quarter 2025 financial results, raised full-year guidance, and the announcement of a strategic acquisition. The language-learning platform demonstrated robust growth across key metrics, significantly outperforming analyst expectations.

For Q2 2025, Duolingo reported earnings per share of $0.91, substantially beating the analyst consensus of $0.59. Revenue climbed to $252.3 million, a 41% year-over-year increase, surpassing estimates of $240.7 million. The company's user base showed strong growth, with daily active users reaching 47.7 million, up 40% from the same period last year. Subscription revenue, a crucial indicator for the company, grew by an impressive 46%.

Adding to the positive momentum, Duolingo raised its full-year 2025 guidance, now expecting annual revenue between $1.011 billion and $1.019 billion, exceeding previous estimates of $996.6 million. The company also announced the acquisition of NextBeat, a London-based music gaming startup, bringing in 23 experts in game design and music licensing. This strategic move aims to enhance Duolingo's offerings and potentially make its platform more engaging for learners. The combination of strong financial performance, optimistic future outlook, and strategic expansion has fueled investor enthusiasm, driving the significant pre-market stock surge.