Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Duolingo’s first quarter of 2026 reflected a focus on execution aligned with its strategic shift toward improving teaching quality and user growth.</li><li>The company reported daily active users (DAUs) rising 21% year-over-year, consistent with management’s expectations.</li><li>Several new features aimed at enhancing language learning experience were introduced during the quarter, including a greater emphasis on speaking practice for both free and paid users, the rollout of speaking adventures to simulate real conversational scenarios, and the launch of Flashcards to facilitate word recall.</li></ul>

Duolingo’s first quarter of 2026 reflected a focus on execution aligned with its strategic shift toward improving teaching quality and user growth.The company reported daily active users (DAUs) rising 21% year-over-year, consistent with management’s expectations.Several new features aimed at enhancing language learning experience were introduced during the quarter, including a greater emphasis on speaking practice for both free and paid users, the rollout of speaking adventures to simulate real conversational scenarios, and the launch of Flashcards to facilitate word recall.

Duolingo: The 21% DAU Growth Question Investors Cannot Ignore?

<ul><li>Duolingo's recent earnings highlight both the achievements and challenges faced by the company in 2025.</li><li>On the positive side, the company marked significant milestones, such as achieving over 50 million daily active users and exceeding $1 billion in bookings, alongside $300 million in adjusted EBITDA.</li><li>These figures underscore Duolingo’s continued growth and its capacity to scale operations profitably.</li></ul>

Duolingo's recent earnings highlight both the achievements and challenges faced by the company in 2025.On the positive side, the company marked significant milestones, such as achieving over 50 million daily active users and exceeding $1 billion in bookings, alongside $300 million in adjusted EBITDA.These figures underscore Duolingo’s continued growth and its capacity to scale operations profitably.

Duolingo Is Evolving Beyond Language Learning—AI Tutors

<ul><li>Duolingo shares plunged roughly 20% after management unveiled a strategic shift that will prioritize user growth over near-term monetization, a move that immediately rattled Wall Street.</li><li>While the company delivered a strong 2025 performance — surpassing 50 million daily active users, exceeding $1 billion in bookings, and generating more than $300 million in adjusted EBITDA — the tone changed with its 2026 outlook.</li><li>Management now expects bookings growth of just 10% to 12% and revenue growth of 15% to 18%, well below prior momentum, as it intentionally reduces friction in the free user experience and experiments with pricing tiers.</li></ul>

Duolingo shares plunged roughly 20% after management unveiled a strategic shift that will prioritize user growth over near-term monetization, a move that immediately rattled Wall Street.While the company delivered a strong 2025 performance — surpassing 50 million daily active users, exceeding $1 billion in bookings, and generating more than $300 million in adjusted EBITDA — the tone changed with its 2026 outlook.Management now expects bookings growth of just 10% to 12% and revenue growth of 15% to 18%, well below prior momentum, as it intentionally reduces friction in the free user experience and experiments with pricing tiers.

Duolingo Stock Crashes 20% After Shocking Growth Pivot — Is This A Bold Reset Or A Red Flag?

<ul><li>Duolingo's third quarter results reflect both strengths and areas of potential concern for investors.</li><li>The company continues to show robust daily active user (DAU) growth, with a stated 36% year-over-year increase for Q3.</li><li>Current guidance projects nearly $1.2 billion in bookings by year-end with 33% growth and an adjusted EBITDA margin of 29%.</li></ul>

Duolingo's third quarter results reflect both strengths and areas of potential concern for investors.The company continues to show robust daily active user (DAU) growth, with a stated 36% year-over-year increase for Q3.Current guidance projects nearly $1.2 billion in bookings by year-end with 33% growth and an adjusted EBITDA margin of 29%.

Duolingo Inc: Massive Advances in Adaptive Learning Technology & Key Growth Levers!

Analyst, Schoolhouse Solutions

Daniel Su

Analyst

Schoolhouse Solutions

Schoolhouse is a strategy and research provider for the Education sector. We publish differentiated reports and bespoke research on the sector, focused on private and public companies in Asia-Pacific. Our team has decades of experience working with Education companies ranging from K-12 to Tertiary and Edtech.

Strategy and Research Provider

Thematic (Sector/Industry)

<ul>
<li>The education sector remains resilient despite headline privatisations, with market cap only slightly down to US$142bn after the removal of <a href="https://www.smartkarma.com/entities/powerschool-holdings-inc" target="_blank" data-smartkarma-citation="entities:36946:1" rel="noopener">PowerSchool Holdings (PWSC US)</a> and <a href="https://www.smartkarma.com/entities/instructure-holdings-inc" target="_blank" data-smartkarma-citation="entities:26502:1" rel="noopener">Instructure Holdings (INST US)</a>.</li>
<li>AI disruption is reshaping the landscape, with key players like <a href="https://www.smartkarma.com/entities/chegg-inc" target="_blank" data-smartkarma-citation="entities:10114:1" rel="noopener">Chegg Inc (CHGG US)</a> collapsing while innovators like <a href="https://www.smartkarma.com/entities/duolingo-inc" target="_blank" data-smartkarma-citation="entities:33531:1" rel="noopener">Duolingo (DUOL US)</a> surge, highlighting a potential shift in investor focus.</li>
<li>M&amp;A and IPO activity is reawakening, with <a href="https://www.smartkarma.com/entities/kindercare-learning-cos-inc" target="_blank" data-smartkarma-citation="entities:35721:1" rel="noopener">KinderCare Learning (KLC US)</a> 's IPO, India's robust upcoming pipeline, and renewed private equity interest pointing to a cyclical upturn.</li>
</ul>


The education sector remains resilient despite headline privatisations, with market cap only slightly down to US$142bn after the removal of PowerSchool Holdings (PWSC US) and Instructure Holdings (INST US).
AI disruption is reshaping the landscape, with key players like Chegg Inc (CHGG US) collapsing while innovators like Duolingo (DUOL US) surge, highlighting a potential shift in investor focus.
M&amp;A and IPO activity is reawakening, with KinderCare Learning (KLC US) 's IPO, India's robust upcoming pipeline, and renewed private equity interest pointing to a cyclical upturn.


Valuations, Visas & Venture Pullback: An Equity + M&A Overview of the Education Sector in Q1 2025

United States

Duolingo, Inc. designs and develops mobile learning platform. The Company teaches students a foreign language while simultaneously contributing to translate real-world content from the web. Duolingo serves students worldwide.

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Duolingo (DUOL US)

Duolingo: The 21% DAU Growth Question Investors Cannot Ignore?

Duolingo’s first quarter of 2026 reflected a focus on execution aligned with its strategic shift toward improving teaching quality and user...

Baptista Research

Duolingo Is Evolving Beyond Language Learning—AI Tutors

Duolingo's recent earnings highlight both the achievements and challenges faced by the company in 2025. On the positive side, the company marked...

Baptista Research

Duolingo Stock Crashes 20% After Shocking Growth Pivot — Is This A Bold Reset Or A Red Flag?

Duolingo shares plunged roughly 20% after management unveiled a strategic shift that will prioritize user growth over near-term monetization, a...

Baptista Research

Duolingo Inc: Massive Advances in Adaptive Learning Technology & Key Growth Levers!

Duolingo's third quarter results reflect both strengths and areas of potential concern for investors. The company continues to show robust daily...

Baptista Research

Valuations, Visas & Venture Pullback: An Equity + M&A Overview of the Education Sector in Q1 2025

Education sector resilient post-privatisations, AI disruption reshaping landscape, M&A/IPO activity reawakening - potential shift in investor focus.

Daniel Su

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Duolingo: The 21% DAU Growth Question Investors Cannot Ignore?

Duolingo’s first quarter of 2026 reflected a focus on execution aligned with its strategic shift toward improving teaching quality and user...

Baptista Research

Duolingo Is Evolving Beyond Language Learning—AI Tutors

Duolingo's recent earnings highlight both the achievements and challenges faced by the company in 2025. On the positive side, the company marked...

Baptista Research

Duolingo Stock Crashes 20% After Shocking Growth Pivot — Is This A Bold Reset Or A Red Flag?

Duolingo shares plunged roughly 20% after management unveiled a strategic shift that will prioritize user growth over near-term monetization, a...

Baptista Research

Duolingo Inc: Massive Advances in Adaptive Learning Technology & Key Growth Levers!

Duolingo's third quarter results reflect both strengths and areas of potential concern for investors. The company continues to show robust daily...

Baptista Research

Valuations, Visas & Venture Pullback: An Equity + M&A Overview of the Education Sector in Q1 2025

​Education sector resilient post-privatisations, AI disruption reshaping landscape, M&A/IPO activity reawakening - potential shift in investor focus.

Daniel Su

Education sector resilient post-privatisations, AI disruption reshaping landscape, M&A/IPO activity reawakening - potential shift in investor focus.