The earnings call highlights Chegg's strategic shift towards the growing skilling market, noting significant cost reductions and growth in the skilling business. However, the overall financial performance was negatively impacted by a substantial revenue decline and negative free cash flow, primarily due to challenges from AI and reduced Google traffic.
Company Guidance
During the Chegg, Inc. Third Quarter 2025 Earnings Conference Call, the company provided guidance reflecting a strategic shift towards the skilling market, aiming for sustainable double-digit growth. Chegg Skilling, encompassing Busuu and Chegg Skills, is expected to end 2025 with a 14% year-over-year growth, achieving $70 million in revenue. For the fourth quarter, the skilling business is projected to generate $18 million in revenue, also reflecting a 14% increase year-over-year. Total revenue for Q4 is anticipated to range between $70 million and $72 million, with a gross margin of 57% to 58% and adjusted EBITDA of $10 million to $11 million. The company is undergoing restructuring to enhance efficiency, projecting a reduction in non-GAAP expenses to under $250 million by 2026, down from $536 million in 2024. Chegg also plans to cut its CapEx, aiming for a 60% reduction in 2026 from 2025's $27 million, while maintaining a high-quality user experience. Despite challenges, Chegg is positioned to capitalize on the growing demand for workforce skilling and aims to generate meaningful free cash flow by 2026.
Chegg Skilling Business Growth
Chegg Skilling is ending 2025 with strong momentum, expecting a 14% year-over-year growth and a full year revenue of $70 million. The business is experiencing tailwinds and generating double-digit growth.
Cost Reduction and Efficiency
Non-GAAP operating expenses were reduced by $41 million or 46% year-over-year, resulting in a leaner and more efficient company structure.
Positive Adjusted EBITDA Outcome
Chegg outperformed its adjusted EBITDA guidance by $5 million, achieving an adjusted EBITDA of $13 million with a margin of 17%.
Chegg (CHGG) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
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
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
+7.25%
Feb 24, 2025
$1.56
$1.07
-31.41%
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 Feb 09, 2026, After Close (Confirmed).
What is Chegg Inc (CHGG) earnings time?
Chegg Inc (CHGG) earnings time is at Feb 09, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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