Duolingo, Inc. (DUOL) shares surged 7.50% in after-hours trading on Thursday following the release of its impressive first-quarter 2025 results and raised full-year guidance. The language learning app provider demonstrated strong growth across key metrics, driven by the success of its AI-powered subscription tiers.

The company reported quarterly earnings of $0.72 per share, significantly beating the analyst consensus estimate of $0.51. Revenue for the quarter came in at $230.7 million, surpassing the expected $223 million and representing a 37.71% increase from the same period last year. Duolingo also announced that it had surpassed 10 million paid subscribers and achieved a record number of daily active users (DAUs) during the quarter.

Investors were particularly encouraged by Duolingo's raised guidance for the full year 2025. The company now expects revenue between $987 million and $996 million, up from its previous forecast of $962.5 million to $978.5 million. This new outlook surpasses the analyst consensus of $977.2 million. Additionally, Duolingo increased its adjusted EBITDA guidance to a range of $271.4 million to $283.9 million for the year.