Duolingo Cut Its Priciest AI Feature to Under a Penny a Call. Here’s What That Does to Margins
Duolingo (DUOL) reduced the cost of its AI video call feature from $0.30 to under $0.01 per call, improving margins. The company raised its full-year adjusted EBITDA margin outlook to 26.5% and Q2 EBITDA beat estimates. CEO Luis von Ahn hinted at potentially discontinuing the Max subscription plan. Analysts project significant upside, with a mid-case target price of ~$258, citing user growth and AI cost savings as key drivers.


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