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Chegg Inc (CHGG)
NYSE:CHGG
Earnings Data
Report Date
May 04, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.02Last Year’s EPS
-0.06Same Quarter Last Year
Moderate Sell
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call balances a clear strategic repositioning toward a higher-growth Chegg Skilling business with early signs of revenue momentum ($18M in Q4) and substantial cost reductions (47% YoY reduction in non-GAAP operating expenses). Management delivered an EBITDA beat and aggressive expense and CapEx cuts, announced strategic partnerships and hires, and set targets for double-digit skilling growth and improved margins. At the same time, material near-term challenges remain: Q4 free cash flow was negative (‑$15M) driven by severance, additional severance cash outflows are expected in 2026, the company received an NYSE delisting notice, and search-driven traffic headwinds continue to pressure the legacy business and acquisition funnel. Overall, positives around strategy execution and cost discipline are balanced by meaningful near-term financial and listing risks.Company Guidance
Chegg Skilling Early Revenue Momentum
Chegg Skilling delivered $18 million in Q4 revenue and the company is guiding Q1 skilling revenue of $17.5M–$18M. Management expects double-digit revenue growth for the skilling business in 2026 and stronger H2 performance.
Adjusted EBITDA Beat and Strong Margin
The company exceeded revenue expectations and surpassed the high end of adjusted EBITDA guidance by $2 million. Q4 adjusted EBITDA was $13 million representing an 18% margin; management targets an adjusted EBITDA margin of at least 20% over the next couple of years.
Major Cost Reductions
Non-GAAP operating expenses were $44.8 million in Q4, down $39.8 million or 47% year-over-year. Company is on track to reduce total non-GAAP expenses to less than $250 million in 2026, a 53% decline from 2024.
CapEx Reduction and AI Efficiency Gains
Q4 capital expenditures were $6 million, down 51% year-over-year. The company expects a further ~60% reduction in CapEx for 2026, with ~90% of spend dedicated to skilling, citing AI investments that lower CapEx needs.
Strategic Reorganization and Focus
Chegg reorganized into two focused units — Chegg Skilling (growth engine) and legacy academic learning services (cash flow managed) — aiming to pivot from D2C to B2B skilling markets (addressable market ~$40B).
Partnerships and Content Expansion
New partnerships announced with DHL GI Group and Wolfe University; extensions with L'Oreal and PPG. Wolfe allows Chegg courses to count toward accredited degree pathways, expanding value proposition.
Leadership Hire for Europe
Karine Alouch (former Coursera/Global English/Microsoft experience) was hired to lead European language learning and skills operations to support international scaling.
Capital Actions and Balance Sheet Steps
Repurchased $9 million of 2026 convertible notes at a discount. Ended the quarter with $85 million in cash and investments and net cash of $31 million. Management aims to end 2026 with zero debt and a meaningful cash balance.
Legacy Academic Business Scale and Retention
Academic services revenue was $55 million in Q4 and Chegg Study continues to serve more than 1 million students. Management reports retention in the legacy business is stronger than expected, aiding cash generation.
CHGG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CHGG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 09, 2026 | $0.75 | $0.67 | -10.27% |
Nov 10, 2025 | $0.89 | $1.14 | +28.09% |
Aug 05, 2025 | $1.29 | $1.11 | -13.95% |
May 12, 2025 | $0.69 | $0.74 | +7.39% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Chegg Inc (CHGG) report earnings?
Chegg Inc (CHGG) is schdueled to report earning on May 04, 2026, After Close (Confirmed).
What is Chegg Inc (CHGG) earnings time?
Chegg Inc (CHGG) earnings time is at May 04, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CHGG EPS forecast?
CHGG EPS forecast for the fiscal quarter 2026 (Q1) is -0.02.
