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  Title	Chegg Reports 2025 Fourth Quarter and Full Year Financial Results
  ID	30534365
  External ID	210500216
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  Published Date	Feb. 9, 2026, 3:05 p.m.
  Summary	This is a paid press release. Contact the press release distributor directly with any inquiries. Chegg Reports 2025 Fourth Quarter and Full Year Financial Results Business Wire Mon, February 9, 2026 a
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  URL	https://finance.yahoo.com/news/chegg-reports-2025-fourth-quarter-210500216.html
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  Content ID	37802967
  Key	004066a9-cf4a-413c-9cdc-c9bb8731b915
  Content	This is a paid press release. Contact the press release distributor directly with any inquiries. Chegg Reports 2025 Fourth Quarter and Full Year Financial Results Business Wire Mon, February 9, 2026 at 4:05 PM EST 29 min read CHGG SAN FRANCISCO, February 09, 2026 --( BUSINESS WIRE )--Chegg, Inc. (NYSE:CHGG), a global learning company, today reported financial results for the quarter and year ended December 31, 2025. "We are reinventing Chegg around the $40 billion skilling market, which we believe can drive double-digit growth with strong margins and cash flow in the years to come," said Dan Rosensweig, CEO & Executive Chairman of Chegg, Inc. "We’ve organized the company into two focused businesses: Chegg Skilling as our growth engine and our legacy Academic Services, which generates free cash flow that strengthens our balance sheet and positions us to end 2026 debt-free with a substantial cash balance." Fourth Quarter 2025 Highlights Total Net Revenues of $72.7 million, a decrease of 49% year-over-year Chegg Skilling Revenues of $17.7 million, an increase of 11% year-over-year Gross Margin of 57% Non-GAAP Gross Margin of 60% Net Loss was $32.8 million Non-GAAP Net Loss was $0.7 million Adjusted EBITDA was $12.9 million Full Year 2025 Highlights Total Net Revenues of $376.9 million, a decrease of 39% year-over-year Chegg Skilling Revenues of $68.7 million, a decrease of 7% year-over-year Gross Margin of 60% Non-GAAP Gross Margin of 62% Net Loss was $103.4 million Non-GAAP Net Income was $3.9 million Adjusted EBITDA was $68.5 million For more information about non-GAAP net (loss) income, non-GAAP gross margin and adjusted EBITDA, and a reconciliation of non-GAAP net (loss) income to net loss, gross margin to non-GAAP gross margin and adjusted EBITDA to net loss, see the sections of this press release titled, "Use of Non-GAAP Measures," "Reconciliation of Net Loss to EBITDA and Adjusted EBITDA," and "Reconciliation of GAAP to Non-GAAP Financial Measures." Business Outlook First Quarter 2026 Chegg Skilling Revenues in the range of $17.5 million to $18.0 million Total Net Revenues in the range of $60 million to $62 million Gross Margin between 57% and 58% Adjusted EBITDA in the range of $11 million to $12 million For more information about the use of forward-looking non-GAAP measures, a reconciliation of forward-looking net loss to EBITDA and adjusted EBITDA for the first quarter 2026, see the below sections of the press release titled "Use of Non-GAAP Measures," and "Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA." An updated investor presentation and investor data sheet can be found on Chegg’s Investor Relations website https://investor.chegg.com (such items are not incorporated into any filings Chegg may make with the Securities and Exchange Commission, unless otherwise noted). 繼續閱讀 Prepared Remarks - Dan Rosensweig, CEO & Executive Chairman Chegg, Inc. Thank you, Tracey, and thank you everyone for joining Chegg’s fourth quarter 2025 earnings call. This is a period of reinvention at Chegg. We are rebuilding the company focused on the $40 billion skilling market, which we believe will be a double-digit revenue growth business for Chegg with strong margins and cash flow in the years ahead. To achieve this, we have reorganized Chegg around two focused business units: Chegg Skilling, which is now our growth engine, and our legacy academic learning services, which we are managing to generate free cash flow. Together, this structure gives us the financial flexibility to invest and grow opportunities within skilling while creating long-term shareholder value. We are excited about our future and feel confident that this new structure sets us up for success. We are already seeing positive early signs. In Q4 Chegg Skilling delivered $18 million in revenue, positioning us for double-digit growth for 2026. Our legacy business, Chegg Study, continues to serve more than a million students and, with our new streamlined org structure, is providing meaningful cash flow to fund value creation. As we have expressed, changes in search interfaces continue to impact our traffic. Yet, despite these changes, the quality and accuracy of our services continue to drive high retention rates. We are now focused on optimizing pricing and packaging and testing multiple strategies to extend our operational runway and drive more free cash flow. We have a clear objective - to use that cash to fund new growth opportunities and increase the value for our shareholders. Given the global demand for workforce skilling has already reached $40 billion, we feel it is a huge opportunity for Chegg, and we are well positioned to serve this market - particularly in AI, language, technical fluency, and durable skills. Our brand is trusted by learners worldwide, and our skills courses are grounded in learning science and data-driven instructional design. Our platform tracks learner progress in real time, delivering predictive nudges and timely interventions that improve engagement, retention, and completion rates. This combination of brand credibility, evidence-based course design, and intelligent learner support consistently leads our channel partners to report stronger outcomes versus our competitors. To capture the growth opportunity we see ahead, we are expanding our course catalog with high-demand technical, AI, language, and professional skills while simultaneously broadening our global footprint across B2B distribution channels. As part of this strategy, we are excited to announce new partnerships with DHL, Gi Group and Woolf University. Woolf specifically expands how we can serve learners, as they provide accredited degree pathways that allow for acquired skills to count towards recognized credentials. We also have extended key contracts from companies like L’Oreal and PPG. Our goal is to further extend our reach into global enterprise, institutional, and academic markets. Looking ahead to 2026, we plan to onboard additional employer and institutional partners, both directly and through leading marketplaces. We continue to expand the depth and breadth of our curriculum. To support this opportunity, I am thrilled to announce Karine Allouche is joining our team to run our European language learning and skills operation. Karine brings deep experience in building and scaling enterprise businesses across Microsoft, NetApp, Global English and – most recently – at Coursera, where she led the transformation of their enterprise business. We are thrilled to have her leadership and expertise as we scale our skilling business around the world. We have made significant progress in the reinvention of Chegg. Our goal is to continue to grow our skilling business by double-digits annually, and over the next couple of years to achieve an adjusted EBITDA margin of at least 20%. To achieve that, our 2026 priorities are straightforward: Accelerate the growth of our skilling business by expanding our offerings and network of partners, domestically and through Europe Increase free cash flow to invest in the future growth of skilling And strengthen our balance sheet by ending the year with zero debt and a meaningful cash balance. We are encouraged by the results we are seeing in the skills business and are excited about the path ahead. We successfully transformed our business from a print textbook rental business to an online learning company and now we are transitioning from a D2C business to a B2B skills learning platform. We are excited about the work we have done so far, and we look forward to updating you again next quarter. With that, I’ll turn it over to David. Prepared Remarks - David Longo, CFO Chegg, Inc. Thank you, Dan and good afternoon. Today, I will be presenting our financial performance for the fourth quarter of 2025, along with the company’s outlook for the first quarter of 2026. We are introducing our new revenue breakout to provide transparency into our Chegg Skilling business. The historical revenue breakout for the past three years can be found on our data sheet on our investor relations website. We delivered a good fourth quarter. We exceeded our revenue expectations and surpassed the high-end of our adjusted EBITDA guidance by $2 million, reflecting the initial positive impact of our new focus and turnaround efforts. Our strategic shift into the large skilling market positions us for the next phase of long-term, sustainable growth with strong margins. During the quarter, we also took steps to enhance our capital structure, repurchasing $9 million of our 2026 convertible notes at a discount. In the fourth quarter, we delivered $18 million in Skilling revenue, with double-digit growth, underscoring the significant market opportunity and the momentum we are seeing. Academic Services revenue was $55 million, as we continue to operate that business with a focus on cash generation. As Dan mentioned earlier, we are testing different pricing and packaging strategies to extend its operational runway. Moving on to expenses, non-GAAP operating expenses were $44.8 million in the quarter, a reduction of $39.8 million, or 47% year-over-year, as we maintain fiscal discipline and continue to benefit from the successful execution of our restructuring activities. Our fourth quarter adjusted EBITDA was $13 million, representing a margin of 18%. Our adoption of AI, along with our new business structure, has enabled us to significantly lower expenses while preserving our ability to grow. We overhauled our cost structure to improve efficiency and create capacity for reinvestment in Chegg Skilling. We are on track to reduce total non-GAAP expenses to less than $250 million in 2026, a 53% decline from 2024. Our strategic investments in AI have allowed us to significantly reduce CapEx without compromising quality. Q4 CapEx was $6 million, down 51% year over year. For 2026, we are targeting a further 60% reduction in CapEx, with approximately 90% dedicated to our growing Skilling business. Free cash flow in the fourth quarter was negative $15 million, which was primarily impacted by $12 million in employee severance payments related to our restructuring activities. In 2026 we expect $18 million in severance-related cash expenditures related to our last two restructurings, with approximately 80% occurring in the first quarter. Despite these items, we expect to generate meaningful free cash flow in 2026. Looking at the balance sheet, we concluded the quarter with cash and investments of $85 million and a net cash balance of $31 million. Before I move to guidance, I’d like to quickly address the delisting notice we received from the NYSE. The notice has no immediate impact on our listing status, and we have ample time and multiple avenues available to regain compliance, including a potential reverse stock split. Our primary focus is on strengthening the fundamentals of the business. We believe that executing on our priorities will be the most effective path to restoring compliance and delivering long-term shareholder value. Looking ahead at Q1 guidance, we expect: $17.5 to $18.0 million of revenue from our Chegg Skilling business. We expect double-digit growth for the year and anticipate stronger performance in the second half than in the first, driven by continued investment in the business and the addition of new distribution partners. Total revenue between $60 and $62 million; Gross margin to be in the range of 57 to 58 percent; And adjusted EBITDA between $11 and $12 million. In 2026, our capital allocation strategy is focused on optimizing free cash flow, strengthening our cash position, and eliminating our debt to create a more flexible and resilient balance sheet. We will also evaluate opportunities to deploy capital through a disciplined approach that supports sustainable growth and generates long-term shareholder value. In closing, we have taken deliberate actions to strengthen the company for long-term success. We are leaner, more efficient, and poised for double digit revenue growth in our Chegg Skilling business and meaningful free cash flow in 2026. We believe we are turning the corner and are on a clear path toward future growth, profitability, and increased shareholder value. With that, I will turn the call over to the operator for your questions. Conference Call and Webcast Information To access the call, please dial 1-877-407-4018 or outside the U.S. +1-201-689-8471. A live webcast of the call will also be available at https://investor.chegg.com under the Events & Presentations menu. Participants can also access the call using the Call me™ link for instant telephone access to the event, which will be active 15 minutes before the scheduled start time. An audio replay will be available from 7:30 p.m. Eastern Time on February 9, 2026, until 11:59 p.m. Eastern Time on Monday, February 23, 2026, by calling 1-844-512-2921 or outside the U.S. +1-412-317-6671, with Access ID 13758125. An audio archive of the call will also be available at https://investor.chegg.com . Use of Investor Relations Website for Regulation FD Purposes Chegg also uses its Investor Relations website, https://www.chegg.com/press , as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor https://www.chegg.com/press , in addition to following press releases, Securities and Exchange Commission filings and public conference calls and webcasts. About Chegg Chegg is a learning platform helping businesses bring new skills to their workforce and giving lifelong learners and students the skills and confidence to succeed. Focused on the skilling market, which is $40 billion and growing, Chegg offers innovative tools for workplace readiness, professional upskilling, and language learning. Chegg also continues to offer students artificial intelligence (AI)-driven, personalized support. Chegg remains committed to its mission of improving learning outcomes and career opportunities for millions around the world. Chegg is a publicly held company and trades on the NYSE under the symbol CHGG. For more information, visit www.chegg.com . Use of Non-GAAP Measures To supplement Chegg’s financial results presented in accordance with generally accepted accounting principles in the United States (GAAP), this press release and the accompanying tables and the related earnings conference call contain non-GAAP financial measures, including adjusted EBITDA, non-GAAP cost of revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net (loss) income, non-GAAP weighted average shares, non-GAAP net (loss) income per share, and free cash flow. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "Reconciliation of Net Loss to EBITDA and Adjusted EBITDA," "Reconciliation of GAAP to Non-GAAP Financial Measures," "Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow," and "Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA." We have not reconciled 2026 total non-GAAP expenses to total expenses, which is comprised of cost of revenues and total operating expenses, because we do not provide guidance on total expenses or the reconciling items as a result of the uncertainty, timing, and the potential variability of these items. The actual amount of total expenses and such reconciling items will have a significant impact on our 2026 total non-GAAP expenses. Accordingly, a reconciliation of 2026 total non-GAAP expenses to total expenses is not available. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Chegg defines (1) adjusted EBITDA as earnings before interest, taxes, depreciation and amortization or EBITDA, adjusted for share-based compensation expense, other income, net, acquisition-related compensation costs, impairment expense, restructuring charges, content and related assets charge, impairment of lease related assets, impairment of equity investment, and loss contingency; (2) non-GAAP cost of revenues as cost of revenues excluding amortization of intangible assets, share-based compensation expense, acquisition-related compensation costs, restructuring charges, and content and related assets charge, (3) non-GAAP gross profit as gross profit excluding amortization of intangible assets, share-based compensation expense, acquisition-related compensation costs, restructuring charges, and content and related assets charge, (4) non-GAAP gross margin is defined as non-GAAP gross profit divided by net revenues, (5) non-GAAP operating expenses as operating expenses excluding share-based compensation expense, amortization of intangible assets, acquisition-related compensation costs, restructuring charges, impairment expense, impairment of lease related assets, impairment of equity investment and loss contingency; (6) non-GAAP income from operations as loss from operations excluding share-based compensation expense, amortization of intangible assets, acquisition-related compensation costs, restructuring charges, impairment expense, content and related assets charge, impairment of lease related assets, impairment of equity investment, and loss contingency, (7) non-GAAP net (loss) income as net loss excluding share-based compensation expense, amortization of intangible assets, acquisition-related compensation costs, amortization of debt issuance costs, the income tax effect of non-GAAP adjustments, restructuring charges, impairment expense, content and related assets charge, impairment of lease related assets, impairment of equity investment, gain on sale of equity investment, gain on early extinguishment of debt, and loss contingency (8) non-GAAP weighted average shares outstanding as weighted average shares outstanding adjusted for the effect of shares for stock plan activity and shares related to our convertible senior notes, to the extent such shares are not already included in our weighted average shares outstanding; (9) non-GAAP net (loss) income per share is defined as non-GAAP net (loss) income divided by non-GAAP weighted average shares outstanding; and (10) free cash flow as net cash provided by operating activities adjusted for purchases of property and equipment. To the extent additional significant non-recurring items arise in the future, Chegg may consider whether to exclude such items in calculating the non-GAAP financial measures it uses. Chegg believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding Chegg’s performance by excluding items that may not be indicative of Chegg’s core business, operating results or future outlook. Chegg management uses these non-GAAP financial measures in assessing Chegg’s operating results, as well as when planning, forecasting and analyzing future periods and believes that such measures enhance investors’ overall understanding of our current financial performance. These non-GAAP financial measures also facilitate comparisons of Chegg’s performance to prior periods. As presented in the "Reconciliation of Net Loss to EBITDA and Adjusted EBITDA," "Reconciliation of GAAP to Non-GAAP Financial Measures," "Reconciliation of Forward-Looking Net Loss to EBITDA and Adjusted EBITDA," and "Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow" tables below, each of the non-GAAP financial measures excludes or includes one or more of the following items: Share-based compensation expense Share-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond Chegg's control. As a result, management excludes this item from Chegg's internal operating forecasts and models. Management believes that non-GAAP measures adjusted for share-based compensation expense provide investors with a basis to measure Chegg's core performance against the performance of other companies without the variability created by share-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used. Amortization of intangible assets Chegg amortizes intangible assets, including those that contribute to generating revenues, that it acquires in conjunction with acquisitions, which results in non‑cash expenses that may not otherwise have been incurred. Chegg believes excluding the expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of its ongoing operations and provides investors with a better comparison of period-over-period operating results. No corresponding adjustments have been made related to revenues generated from acquired intangible assets. Acquisition-related compensation costs Acquisition-related compensation costs include compensation expense resulting from the employment retention of certain key employees established in accordance with the terms of the acquisitions. In most cases, these acquisition-related compensation costs are not factored into management's evaluation of potential acquisitions or Chegg's performance after completion of acquisitions, because they are not related to Chegg's core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare Chegg’s results against those of other companies without the variability caused by purchase accounting. Amortization of debt issuance costs The difference between the effective interest expense and the contractual interest expense are excluded from management's assessment of our operating performance because management believes that these non-cash expenses are not indicative of ongoing operating performance. Chegg believes that the exclusion of the non-cash interest expense provides investors with a better comparison of period-over-period operating results. Income tax effect of non-GAAP adjustments We utilize a non-GAAP effective tax rate for evaluating our operating results, which is based on our current mid-term projections. This non-GAAP tax rate could change for various reasons including, but not limited to, significant changes resulting from tax legislation, changes to our corporate structure and other significant events. Chegg believes that the inclusion of the income tax effect of non-GAAP adjustments provides investors with a better comparison of period-over-period operating results. Restructuring charges Restructuring charges represent expenses incurred in conjunction with a reduction in workforce. Chegg believes that it is appropriate to exclude them from non-GAAP financial measures because they are nonrecurring and the result of an event that is not considered a core-operating activity. Chegg believes that it is appropriate to exclude the restructuring charges from non-GAAP financial measures because it provides investors with a better comparison of period-over-period operating results. Impairment expense Impairment expense represents the impairment of goodwill, intangible assets, and property and equipment. Chegg believes that it is appropriate to exclude them from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities and are not indicative of our ongoing operating performance. Chegg believes that it is appropriate to exclude the impairment expense from non-GAAP financial measures because it provides investors with a better comparison of period-over-period operating results. Impairment of lease related assets The impairment of lease related assets represents impairment charge recorded on the ROU asset and leasehold improvements associated with the closure of our offices. The impairment of lease related assets is the result of an event that is not considered a core-operating activity and we believe its exclusion provides investors with a better comparison of period-over-period operating results. Content and related assets charge The content and related assets charge represents a write off of certain content and related assets. The content and related assets charge is excluded from non-GAAP financial measures because it is the result of a discrete event that is not considered core-operating activities. Chegg believes that it is appropriate to exclude the content and related assets charge from non-GAAP financial measures because it enables the comparison of period-over-period operating results. Gain on sale of equity investment The gain on sale of equity investment represents a one-time event to record the sale of our equity investment in Sound Ventures. We believe that it is appropriate to exclude the gain from non-GAAP financial measure because it is the result of an event that is not considered a core-operating activity and we believe its exclusion provides investors with a better comparison of period-over-period operating results. Impairment of equity investment The impairment of equity investment represents a one-time event to record an impairment charge on our equity investment. The impairment of equity investment is a non-cash expense and we believe the exclusion from non-GAAP financial measures provides investors with a better comparison of period-over-period results. Gain on early extinguishment of debt The difference between the carrying amount of early extinguished debt and the reacquisition price is excluded from management's assessment of our operating performance because management believes that these non-cash gains are not indicative of ongoing operating performance. Chegg believes that the exclusion of the gain on early extinguishment of debt provides investors with a better comparison of period-over-period operating results. Loss contingency We record a contingent liability for a loss contingency related to legal matters when a loss is both probable and reasonably estimable. The loss contingency is excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. Chegg believes that it is appropriate to exclude the loss contingency from non-GAAP financial measures because it enables the comparison of period-over-period operating results. Effect of shares for stock plan activity The effect of shares for stock plan activity represents the dilutive impact of outstanding stock options, RSUs and PSUs, to the extent such shares are not already included in our weighted average shares outstanding. Effect of shares related to convertible senior notes The effect of shares related to convertible senior notes represents the dilutive impact of our convertible senior notes, to the extent such shares are not already included in our weighted average shares outstanding. Free cash flow Free cash flow represents net cash provided by operating activities adjusted for purchases of property and equipment. Chegg considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property and equipment, which can then be used to, among other things, invest in Chegg's business and make strategic acquisitions. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in Chegg's cash balance for the period. Forward-Looking Statements This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which include, without limitation, that there continues to be a large market for the high-quality, proven, and differentiated learning expertise and experience that Chegg provides, that we will continue to enthusiastically serve this audience, our strategy and intent to extend our brand, tailor our products to customer needs and our ability to weather current and future business challenges, our strategy to expand our product set to offer unique solutions that increase the frequency of use and create clear and differentiated value for us, our strategy to profitably grow our skilling business with business-to-institution programs and other enterprise offerings, the expected timing, volume and nature of our existing securities repurchase program, the disintermediation of content sites like Chegg, the ability to achieve the expected benefits of the use of AI as part of our business operations, the impact of generative AI on our businesses, the speed, scale and potential impact of Google's AIOs, our litigation commenced against Google and its outcome, student adoption of generative AI products, our expectation that our new vendor-based commerce platform will reduce our costs, provide flexibility and allow us to move faster as we continue to evolve our pricing and packaging programs, our commitment to building and generating momentum with our brand, traffic, and product capabilities, that we will bring both audience expansion and acquisition efficiency, that our brand and product experiences are resilient, our ability to increase efficiency across the business and to manage our expenses prudently as the competitive landscape evolves, all statements about Chegg’s outlook under "Business Outlook", including our Q1 2026 guidance, including total revenue, gross margin, and adjusted EBITDA, the time it will take to adjust to Chegg's new opportunity and see the benefits in our business results and our ability to transform Chegg's business, as well as those included in the investor presentation referenced above and those included in the "Prepared Remarks" sections above. The words "anticipate," "believe," "estimate," "expect," "intend," "project," "endeavor," "will," "should," "future," "transition," "outlook" and similar expressions, as they relate to Chegg, are intended to identify forward-looking statements. These statements are not guarantees of future performance, and are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: the effects of AI technology on Chegg’s business and the economy generally; Chegg’s ability to retain existing learners on our learning platform in light of declining revenue and user traffic; Chegg's ability to innovate and offer new products and services in response to competitive technology and market developments, including generative AI; Chegg’s ability to diversify its revenue streams with business-to-institution programs and other enterprise offerings; the uncertainty surrounding the evolving educational landscape; enrollment and student behavior, including the impact of generative AI; Chegg’s ability to expand internationally; the efficacy of Chegg's marketing efforts; the efficacy of Chegg’s efforts to build and maintain strong brands and reputation; the success of Chegg’s new product offerings; competition in all aspects of Chegg’s business, including with respect to AI and Chegg's expectation that such competition will increase; the outcome of Chegg’s litigation against Google; Chegg’s ability to maintain its services and systems without interruption, including as a result of technical issues, cybersecurity threats, or cyber-attacks; third-party payment processing risks; adoption of government regulation of education unfavorable to Chegg; the rate of adoption of Chegg’s offerings; Chegg’s ability to strategically take advantage of new opportunities; competitive developments, including pricing pressures and other services; Chegg’s ability to build and expand its services offerings; Chegg’s ability to integrate acquired businesses and assets; the impact of seasonality and student behavior on the business; the outcome of any current litigation and investigations; misuse of Chegg’s platform and content; Chegg’s ability to effectively control operating costs; the impact and effectiveness of Chegg’s internal restructuring activities; regulatory changes, in particular concerning privacy, marketing, and education; changes in the education market, including as a result of AI technology; and general economic, political and industry conditions, including inflation, recession and war. All information provided in this release and in the conference call is as of the date hereof, and Chegg undertakes no duty to update this information except as required by law. These and other important risk factors are described more fully in documents filed with the Securities and Exchange Commission, including Chegg's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission, which could cause actual results to differ materially from expectations. CHEGG, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except for number of shares and par value) December 31, 2025 2024 Assets Current assets Cash and cash equivalents $ 31,146 $ 161,475 Short-term investments 41,674 154,249 Accounts receivable, net of allowance of $156 and $190 at December 31, 2025 and December 31, 2024, respectively 15,604 23,641 Prepaid expenses 16,331 17,100 Other current assets 15,667 81,094 Total current assets 120,422 437,559 Long-term investments 12,392 212,650 Property and equipment, net 115,168 170,648 Intangible assets, net 6,041 10,347 Right of use assets 13,188 22,256 Other assets 9,613 15,491 Total assets $ 276,824 $ 868,951 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 3,258 $ 15,159 Deferred revenue 29,675 39,217 Accrued liabilities 53,059 115,360 Current portion of convertible senior notes, net 53,765 358,605 Total current liabilities 139,757 528,341 Long-term liabilities Convertible senior notes, net — 127,344 Long-term operating lease liabilities 15,205 18,509 Other long-term liabilities 2,239 1,776 Total long-term liabilities 17,444 147,629 Total liabilities 157,201 675,970 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.001 par value – 10,000,000 shares authorized, no shares issued and outstanding at December 31, 2025 and December 31, 2024 — — Common stock, $0.001 par value – 400,000,000 shares authorized; 110,985,562 and 104,880,048 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively 111 105 Additional paid-in capital 1,145,371 1,114,550 Accumulated other comprehensive loss (32,997 ) (32,233 ) Accumulated deficit (992,862 ) (889,441 ) Total stockholders’ equity 119,623 192,981 Total liabilities and stockholders’ equity $ 276,824 $ 868,951 CHEGG, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 Net revenues $ 72,659 $ 143,484 $ 376,908 $ 617,574 Cost of revenues (1) 30,999 45,599 152,151 180,927 Gross profit 41,660 97,885 224,757 436,647 Operating expenses: Research and development (1) 16,958 41,008 93,453 170,431 Sales and marketing (1) 14,140 27,901 68,754 108,329 General and administrative (1) 44,834 56,296 177,406 217,756 Impairment expense — — 2,000 677,239 Total operating expenses 75,932 125,205 341,613 1,173,755 Loss from operations (34,272 ) (27,320 ) (116,856 ) (737,108 ) Interest expense, net and other income, net: Interest expense, net (41 ) (631 ) (590 ) (2,590 ) Other income, net 871 25,847 17,304 51,332 Total interest expense, net and other income, net 830 25,216 16,714 48,742 Loss before benefit from (provision for) income taxes (33,442 ) (2,104 ) (100,142 ) (688,366 ) Benefit from (provision for) income taxes 639 (4,021 ) (3,279 ) (148,702 ) Net loss $ (32,803 ) $ (6,125 ) $ (103,421 ) $ (837,068 ) Net loss per share, basic and diluted $ (0.30 ) $ (0.06 ) $ (0.96 ) $ (8.10 ) Weighted average shares used to compute net loss per share, basic and diluted 109,360 104,513 107,484 103,300 (1) Includes share-based compensation expense and restructuring charges as follows: Share-based compensation expense: Cost of revenues $ 32 $ 336 $ 503 $ 1,786 Research and development 875 4,220 6,812 28,044 Sales and marketing 348 1,500 2,174 7,466 General and administrative 5,515 9,291 22,375 47,318 Total share-based compensation expense $ 6,770 $ 15,347 $ 31,864 $ 84,614 Restructuring charges: Cost of revenues $ 443 $ 559 $ 2,099 $ 762 Research and development 5,073 8,478 15,376 11,387 Sales and marketing 2,559 1,724 4,793 2,630 General and administrative 12,490 5,002 29,271 9,824 Total restructuring charges $ 20,565 $ 15,763 $ 51,539 $ 24,603 CHEGG, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years Ended December 31, 2025 2024 2023 Cash flows from operating activities Net (loss) income $ (103,421 ) $ (837,068 ) $ 18,180 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Share-based compensation expense 31,864 84,614 133,502 Depreciation and amortization expense 78,637 78,344 129,718 Deferred tax assets 1,011 143,319 26,575 Gain on early extinguishments of debt (7,838 ) (19,515 ) (85,926 ) Loss contingency — — 7,000 Impairment expense 2,000 677,239 3,600 Loss from write-offs of property and equipment 1,959 5,795 4,137 Amortization of debt issuance costs 500 2,147 3,156 Operating lease expense, net of accretion 3,641 5,864 6,079 Realized (gain) loss on sale of investments (752 ) 27 2,106 Impairment of lease related assets 7,315 5,557 — Impairment of equity investment 6,000 — — Other non-cash items 1,423 656 (1,228 ) Change in assets and liabilities: Accounts receivable 8,439 7,771 (7,799 ) Prepaid expenses and other current assets 67,560 (41,732 ) 3,476 Other assets 358 1,130 10,829 Accounts payable (9,660 ) (12,376 ) 13,057 Deferred revenue (10,677 ) (15,885 ) (1,585 ) Accrued liabilities (60,913 ) 47,103 (7,342 ) Other liabilities (1,956 ) (7,785 ) (11,337 ) Net cash provided by operating activities 15,490 125,205 246,198 Cash flows from investing activities Purchases of property and equipment (28,123 ) (74,953 ) (83,052 ) Proceeds from disposition of textbooks — — 9,787 Purchases of investments (793 ) (170,950 ) (637,939 ) Proceeds from sale of investments 181,158 70,077 394,533 Maturities of investments 130,055 171,671 597,197 Proceeds from sale of equity investments — 15,500 — Purchases of equity investments — — (11,853 ) Net cash provided by investing activities 282,297 11,345 268,673 Cash flows from financing activities Proceeds from common stock issued under stock plans 590 2,636 4,165 Payment of taxes related to the net share settlement of equity awards (2,600 ) (9,239 ) (16,440 ) Repayment of convertible senior notes (424,848 ) (96,520 ) (505,986 ) Proceeds from exercise of convertible senior notes capped call — — 297 Payment of withholding tax (1,621 ) (3,450 ) — Repurchase of common stock — (2,569 ) (334,806 ) Net cash used in financing activities (428,479 ) (109,142 ) (852,770 ) Effect of exchange rate changes (256 ) (1,025 ) 21 Net (decrease) increase in cash, cash equivalents and restricted cash (130,948 ) 26,383 (337,878 ) Cash, cash equivalents and restricted cash, beginning of period 164,359 137,976 475,854 Cash, cash equivalents and restricted cash, end of period $ 33,411 $ 164,359 $ 137,976 CHEGG, INC. RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (in thousands) Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 Net loss $ (32,803 ) $ (6,125 ) $ (103,421 ) $ (837,068 ) Depreciation and amortization expense 14,996 19,378 78,637 78,344 (Benefit from) provision for income taxes (639 ) 4,021 3,279 148,702 Interest expense, net 41 631 590 2,590 EBITDA (18,405 ) 17,905 (20,915 ) (607,432 ) Share-based compensation expense 6,770 15,347 31,864 84,614 Restructuring charges 20,565 15,763 51,539 24,603 Impairment of lease related assets 4,311 3,368 7,315 5,557 Loss contingency — 6,900 7,500 12,000 Impairment of equity investment — — 6,000 — Impairment expense — — 2,000 677,239 Content and related assets charge 522 2,937 522 3,666 Other income, net (871 ) (25,847 ) (17,304 ) (51,332 ) Acquisition-related compensation costs — 192 — 752 Adjusted EBITDA $ 12,892 $ 36,565 $ 68,521 $ 149,667 CHEGG, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, except percentages and per share amounts) Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 Cost of revenues $ 30,999 $ 45,599 $ 152,151 $ 180,927 Amortization of intangible assets (1,077 ) (1,077 ) (4,307 ) (8,713 ) Restructuring charges (443 ) (559 ) (2,099 ) (762 ) Content and related assets charge (522 ) (2,937 ) (522 ) (3,666 ) Share-based compensation expense (32 ) (336 ) (503 ) (1,786 ) Acquisition-related compensation costs — (5 ) — (21 ) Non-GAAP cost of revenues $ 28,925 $ 40,685 $ 144,720 $ 165,979 Gross profit $ 41,660 $ 97,885 $ 224,757 $ 436,647 Amortization of intangible assets 1,077 1,077 4,307 8,713 Restructuring charges 443 559 2,099 762 Content and related assets charge 522 2,937 522 3,666 Share-based compensation expense 32 336 503 1,786 Acquisition-related compensation costs — 5 — 21 Non-GAAP gross profit $ 43,734 $ 102,799 $ 232,188 $ 451,595 Gross margin % 57 % 68 % 60 % 71 % Non-GAAP gross margin % 60 % 72 % 62 % 73 % Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 Operating expenses $ 75,932 $ 125,205 $ 341,613 $ 1,173,755 Share-based compensation expense (6,738 ) (15,011 ) (31,361 ) (82,828 ) Restructuring charges (20,122 ) (15,204 ) (49,440 ) (23,841 ) Impairment of lease related assets (4,311 ) (3,368 ) (7,315 ) (5,557 ) Loss contingency — (6,900 ) (7,500 ) (12,000 ) Impairment expense — — (2,000 ) (677,239 ) Impairment of equity investment — — (6,000 ) — Amortization of intangible assets — — — (1,291 ) Acquisition-related compensation costs — (187 ) — (731 ) Non-GAAP operating expenses $ 44,761 $ 84,535 $ 237,997 $ 370,268 Loss from operations $ (34,272 ) $ (27,320 ) $ (116,856 ) $ (737,108 ) Share-based compensation expense 6,770 15,347 31,864 84,614 Restructuring charges 20,565 15,763 51,539 24,603 Impairment of lease related assets 4,311 3,368 7,315 5,557 Loss contingency — 6,900 7,500 12,000 Impairment expense — — 2,000 677,239 Content and related assets charge 522 2,937 522 3,666 Amortization of intangible assets 1,077 1,077 4,307 10,004 Impairment of equity investment — — 6,000 — Acquisition-related compensation costs — 192 — 752 Non-GAAP (loss) income from operations $ (1,027 ) $ 18,264 $ (5,809 ) $ 81,327 Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 Net loss $ (32,803 ) $ (6,125 ) $ (103,421 ) $ (837,068 ) Share-based compensation expense 6,770 15,347 31,864 84,614 Restructuring charges 20,565 15,763 51,539 24,603 Loss contingency — 6,900 7,500 12,000 Impairment of lease related assets 4,311 3,368 7,315 5,557 Gain on early extinguishment of debt (478 ) (19,515 ) (7,838 ) (19,515 ) Income tax effect of non-GAAP adjustments (690 ) (1,442 ) 3,564 124,740 Amortization of intangible assets 1,077 1,077 4,307 10,004 Impairment expense — — 2,000 677,239 Content and related assets charge 522 2,937 522 3,666 Amortization of debt issuance costs 41 519 500 2,147 Impairment of equity investment — — 6,000 — Gain on sale of equity investment — — — (3,783 ) Acquisition-related compensation costs — 192 — 752 Non-GAAP net (loss) income $ (685 ) $ 19,021 $ 3,852 $ 84,956 Weighted average shares used to compute net loss per share, basic and diluted 109,360 104,513 107,484 103,300 Effect of shares for stock plan activity — 297 1,660 1,019 Effect of shares related to convertible senior notes — 9,234 2,069 9,234 Non-GAAP weighted average shares used to compute non-GAAP net (loss) income per share, basic and diluted 109,360 114,044 111,213 113,553 Net loss per share $ (0.30 ) $ (0.06 ) $ (0.96 ) $ (8.10 ) Adjustments 0.29 0.23 0.99 8.85 Non-GAAP net (loss) income per share $ (0.01 ) $ 0.17 $ 0.03 $ 0.75 CHEGG, INC. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (in thousands) Years Ended December 31, 2025 2024 Net cash provided by operating activities $ 15,490 $ 125,205 Purchases of property and equipment (28,123 ) (74,953 ) Free cash flow $ (12,633 ) $ 50,252 CHEGG, INC. SELECTED QUARTERLY FINANCIAL DATA (in thousands) (unaudited) Three Months Ended March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Chegg Skilling $ 16,135 $ 17,217 $ 17,583 $ 17,719 Academic Services 105,252 87,903 60,159 54,940 Total net revenues $ 121,387 $ 105,120 $ 77,742 $ 72,659 Gross profit 67,414 69,642 46,041 41,660 Loss from operations (29,002 ) (36,458 ) (17,124 ) (34,272 ) Net loss (17,484 ) (35,663 ) (17,471 ) (32,803 ) Weighted average shares used to compute net loss per share, basic and diluted 105,159 106,908 108,450 109,360 Net loss per share, basic and diluted $ (0.17 ) $ (0.33 ) $ (0.16 ) $ (0.30 ) Three Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Chegg Skilling $ 20,358 $ 18,887 $ 18,755 $ 15,960 Academic Services 153,992 144,260 117,838 127,524 Total net revenues $ 174,350 $ 163,147 $ 136,593 $ 143,484 Gross profit 127,853 117,736 93,173 97,885 Loss from operations (2,491 ) (485,007 ) (222,290 ) (27,320 ) Net loss (1,420 ) (616,884 ) (212,639 ) (6,125 ) Weighted average shares used to compute net loss per share, basic and diluted 102,343 102,604 103,723 104,513 Net loss per share, basic and diluted $ (0.01 ) $ (6.01 ) $ (2.05 ) $ (0.06 ) CHEGG, INC. RECONCILIATION OF FORWARD-LOOKING NET LOSS TO EBITDA AND ADJUSTED EBITDA (in thousands) (unaudited) Three Months Ending March 31, 2026 Net loss $ (7,700 ) Depreciation and amortization expense 14,000 Provision for income taxes 600 EBITDA 6,900 Share-based compensation expense 2,900 Restructuring charges 2,500 Other income, net (800 ) Adjusted EBITDA $ 11,500 * Adjusted EBITDA guidance for the three months ending March 31, 2026 represents the midpoint of the range of $11 million to $12 million. View source version on businesswire.com: https://www.businesswire.com/news/home/20260209620934/en/ Contacts Media Contact: press@chegg.com Investor Contact: IR@chegg.com 查看留言 條款 及 私隱政策 Privacy Dashboard More Info
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  Data Source Name	Yahoo Finance News (#2)
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