Chegg (CHGG) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +90.91%. A quarter ago, it was expected that this an online learning platform would post a loss of $0.14 per share when it actually produced break-even earnings, delivering a surprise of +100%.Over the last four quarters, the co ...

Financial Data and Key Metrics Changes - In Q4 2025, Chegg delivered $18 million in revenue from its skilling business, indicating a strong start for double-digit growth in 2026 [6][12] - Academic services revenue was $55 million, with a focus on cash generation [13] - Non-GAAP operating expenses were reduced to $44.8 million, a 47% decrease year-over-year, reflecting successful restructuring efforts [13][14] - Adjusted EBITDA for Q4 was $13 million, representing an 18% margin [13] - Free Cash Flow in Q4 was -$15 million, primarily due to $12 million in severance payments related to restructuring [14] Business Line Data and Key Metrics Changes - Chegg Skilling is now the growth engine, while the legacy academic learning services are managed for free cash flow generation [5][6] - The legacy business, Chegg Study, continues to serve over a million students and is generating meaningful cash flow [6][11] - The company is testing pricing and packaging strategies to extend the operational runway of its legacy business [7][13] Market Data and Key Metrics Changes - The global demand for workforce skilling has reached $40 billion, presenting a significant opportunity for Chegg [8] - Chegg is expanding its course catalog in high-demand areas such as AI, language, and technical skills [8][9] Company Strategy and Development Direction - Chegg is focused on the $40 billion skilling market, aiming for double-digit revenue growth with strong margins and cash flow [5][10] - The company plans to strengthen its balance sheet by ending the year with zero debt and a meaningful cash balance [10][16] - New partnerships with companies like DHL and Woolf University are aimed at expanding Chegg's reach into global enterprise and academic markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the new business structure and its potential for success, noting positive early signs [5][11] - The company is transitioning from a direct-to-consumer (D2C) model to a business-to-business (B2B) skills learning platform [11] - Management anticipates stronger performance in the second half of 2026, driven by continued investment and new distribution partners [16] Other Important Information - Chegg repurchased $9 million of its 2026 convertible notes at a discount, enhancing its capital structure [12] - The company received a delisting notice from the NYSE but has multiple avenues to regain compliance [15] Q&A Session Summary Question: Key drivers of skilling growth and core business performance - Management highlighted that the core business is now skilling, with strong retention rates and positive early results from pricing tests [19][20] Question: Opportunities from the Coursera/Udemy merger - Management sees potential partnerships with Coursera and Udemy rather than competition, focusing on content creation and distribution [28][30] Question: Demand for AI learning content - There is a growing demand for AI learning content across all employee levels, with Chegg expanding its course offerings to meet this need [32][33]

Chegg (NYSE:CHGG) Q4 2025 Earnings call February 09, 2026 04:30 PM ET Company ParticipantsBryan Smilek - VPDan Rosensweig - President and CEODavid Longo - CFOTracey Ford - VP of Investor RelationsConference Call ParticipantsRyan MacDonald - Senior AnalystOperatorGood evening and welcome to the Chegg, Inc. 4th Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator ass ...

Chegg (NYSE:CHGG) Q4 2025 Earnings call February 09, 2026 04:30 PM ET Speaker3Good evening and welcome to the Chegg, Inc. 4th Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press *0 on your telephone keypad. It is now my pleasure to introduce your host, Tracey Ford, Vice President of Investor Relations. Thank you. You may begin.Speaker5Good ...

Chegg Inc. (NYSE:CHGG) shares sank in Monday's extended trading after the company released its fourth-quarter earnings report.   Here's a look at the key figures from the quarter. CHGG stock is moving. Watch the price action here.The Details: Chegg reported quarterly losses of one cent per share, which beat the consensus estimate for losses of 10 cents.Quarterly revenue came in at $72.66 million, which beat the Street estimate of $71 million and was down from $143.48 million from the same period last year.C ...

Chegg Inc. (NYSE:CHGG) shares sank in Monday's extended trading after the company released its fourth-quarter earnings report.   Here's a look at the key figures from the quarter. CHGG stock is moving. Watch the price action here.The Details: Chegg reported quarterly losses of one cent per share, which beat the consensus estimate for losses of 10 cents.Quarterly revenue came in at $72.66 million, which beat the Street estimate of $71 million and was down from $143.48 million from the same period last year.C ...

Q4-25 Investor Presentation February 9, 2026 © 2024 Chegg, Inc. / All Rights Reserved Safe Harbor Statement Forward-Looking Statements This investor presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which include, without limitation, our restructuring plans, including their size, the amount and timing of the charges we will incur in connection with them and the amount and timing of cost savings; our expectati ...

Chegg Reports 2025 Fourth Quarter and Full Year Financial Results EXHIBIT 99.01 SAN FRANCISCO, Calif., February 9, 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 ...

SAN FRANCISCO--(BUSINESS WIRE)--Chegg, Inc. (NYSE: CHGG), a global learning company, today announced that Karine Allouche will join Busuu, Chegg's language learning business, as General Manager of Language Learning, Worldwide, and Skills Integration, Europe, effective February 9, 2026. Prior to her role at Coursera, Karine was the Vice President of Cloud and Data Services at NetApp, a data infrastructure company, where she grew significant cloud ARR growth through new GTM models with hyperscaler partners. E ...

Core Viewpoint - The article discusses the recent sell-off in global software stocks, termed "SaaSpocalypse," triggered by the launch of Anthropic's Claude Cowork, which poses a significant challenge to traditional SaaS business models by offering high-level results at lower costs [5][10]. Group 1: Market Reaction - On February 4, major software companies experienced significant stock declines, with Thomson Reuters dropping 15.8%, LegalZoom nearly 20%, and Salesforce and Workday also seeing notable decreases [5]. - The S&P 500 Software and Services Index fell nearly 13% over five trading days, marking a 26% drop from its October peak [5]. - The sell-off is compared to a previous market panic caused by DeepSeek, highlighting the similarities in market reactions to disruptive AI technologies [7][10]. Group 2: Comparison of Two Market Panics - The panic caused by Cowork is expected to be more prolonged than that of DeepSeek, as Cowork represents a novel AI application, while DeepSeek was a cheaper alternative to existing models [10]. - The market's response to both events shows a pattern of overreaction, with analysts suggesting that the fears may be exaggerated [9][10]. - Cowork's impact has spread beyond the U.S. to global markets, affecting stocks in London, Tokyo, and India, indicating a broader concern within the tech industry [11]. Group 3: SaaS Pricing Models and Challenges - Traditional SaaS pricing models are under pressure, with many companies shifting from fixed pricing to usage-based models due to increased efficiency and cost-cutting measures [14][15]. - The average SaaS company in the PricingSaaS 500 index has experienced 3.6 pricing changes per year, with a significant increase in companies adopting usage-based pricing [15]. - Companies like Salesforce have struggled with pricing strategies, leading to a transition from fixed pricing to more flexible models to accommodate rising operational costs [15][17]. Group 4: Emergence of AI-Native Startups - AI-native startups are gaining traction, with their revenue growth rates significantly outpacing traditional SaaS companies, highlighting a shift in enterprise spending towards these new players [18]. - For instance, companies like Harvey and Glean have achieved valuations of $5 billion and $7.25 billion, respectively, indicating strong investor interest in AI-driven solutions [18]. - The article notes that AI-native companies are expected to capture over half of enterprise AI spending, reflecting a fundamental change in the software landscape [18]. Group 5: Vibe Coding and Its Implications - The rise of Vibe Coding could lead enterprises to create their own tools rather than relying on third-party SaaS products, potentially disrupting traditional software markets [20][21]. - If Vibe Coding matures, it may enable employees to develop solutions quickly, reducing reliance on complex software development processes [21]. - The article suggests that traditional software companies may face a "three-step path to extinction" if they fail to adapt to these emerging trends [22].