Core Insights - Chegg Inc. reported a quarterly loss of one cent per share, outperforming the consensus estimate of a loss of ten cents [2] - Quarterly revenue was $72.66 million, exceeding the Street estimate of $71 million, but down from $143.48 million in the same period last year [2] Financial Highlights - Chegg Skilling revenues reached $17.7 million, marking an 11% year-over-year increase [4] - Non-GAAP gross margin stood at 60% [4] - Non-GAAP net loss was $700,000 [4] - Adjusted EBITDA was reported at $12.9 million [4] Strategic Direction - The company is focusing on the $40 billion skilling market, which is expected to drive double-digit growth with strong margins and cash flow in the future, according to CEO Dan Rosensweig [3] - Chegg has reorganized into two main business segments: Chegg Skilling as the growth engine and legacy Academic Services, which generates free cash flow to strengthen the balance sheet [4]

Core Insights - Chegg Inc. reported a quarterly loss of one cent per share, outperforming the consensus estimate of a loss of ten cents [2] - Quarterly revenue was $72.66 million, exceeding the Street estimate of $71 million, but down from $143.48 million in the same period last year [2] Financial Performance - Chegg Skilling generated revenues of $17.7 million, reflecting an 11% year-over-year increase [4] - Non-GAAP gross margin stood at 60% [4] - Non-GAAP net loss was $700,000 [4] - Adjusted EBITDA was reported at $12.9 million [4] Strategic Direction - The company is focusing on the $40 billion skilling market, which is expected to drive double-digit growth with strong margins and cash flow in the future, according to CEO Dan Rosensweig [3] - Chegg has reorganized into two main business segments: Chegg Skilling as the growth engine and legacy Academic Services, which generates free cash flow to strengthen the balance sheet [4] - The company aims to end 2026 debt-free with a substantial cash balance [4]

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 ...

Core Insights - Chegg, Inc. has appointed Karine Allouche as General Manager of Language Learning, Worldwide, and Skills Integration, Europe, effective February 9, 2026, to enhance its language learning business and skills integration strategy [1][3] Company Strategy - Karine Allouche will focus on strengthening execution, accelerating growth, and enhancing collaboration across Chegg, working closely with the leadership team and board [3] - The role includes leading language learning initiatives and overseeing Chegg's European commercial operations, aiming to unify language and skills in a go-to-market strategy [3] Leadership Background - Karine Allouche has extensive experience in transforming global enterprise businesses in education technology, SaaS, and cloud platforms, previously serving as Vice President and General Manager of Enterprise at Coursera, where she reversed a multi-year decline in a $239 million enterprise business [4][5] - Prior to Coursera, she held a leadership position at NetApp, focusing on cloud ARR growth, and was CEO of GlobalEnglish, where she led a management buyout and built a SaaS and AI-powered learning business [5] Market Context - The skilling market, which Chegg is focused on, is valued at $40 billion and is experiencing growth, indicating significant opportunities for innovative tools in workplace readiness and professional upskilling [7]

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].

Core Viewpoint - Chegg is facing significant financial challenges, with anticipated Q4 earnings showing a negative EPS and declining revenue due to increased competition and a drop in subscribers [1][2][4] Financial Performance - The upcoming Q4 earnings are projected to have an EPS of -$0.11 and revenue of approximately $71 million [1][2] - Chegg experienced a 43% decline in revenue over the past year, indicating substantial revenue pressure [1][2] - In the previous quarter, Chegg exceeded expectations, with adjusted EPS doubling the Zacks Consensus Estimate and net revenues surpassing estimates by 1.8% [2] Financial Ratios - Chegg's negative P/E ratio stands at -0.97, indicating a lack of profitability [3][4] - The price-to-sales ratio is 0.17, suggesting that investors are paying 17 cents for every dollar of sales [3] - The enterprise value to sales ratio is 0.27, providing insight into Chegg's valuation relative to its revenue [3] - The enterprise value to operating cash flow ratio is 2.82, indicating how many times the operating cash flow can cover the enterprise value [3] Debt and Liquidity - Chegg's debt-to-equity ratio is 0.57, suggesting a moderate level of debt relative to equity [4] - The current ratio is 0.95, indicating that Chegg has slightly less current assets than current liabilities, which may impact its short-term financial health [4] Strategic Focus - Chegg's long-term strategy involves focusing on AI and Chegg Skilling, aiming to move beyond traditional study methods [2]

Core Insights - Chegg, Inc. (CHGG) is set to report its fourth-quarter 2025 results on February 9, with expectations of significant declines in both revenue and earnings per share compared to the previous year [1][3]. Financial Performance - In the last reported quarter, Chegg's adjusted earnings per share (EPS) exceeded the Zacks Consensus Estimate by 100%, while net revenues surpassed the estimate by 1.8%. However, year-over-year, the top line fell by 43% [1]. - The Zacks Consensus Estimate for the upcoming fourth-quarter adjusted loss per share is unchanged at 11 cents, reflecting a 164.7% decline from the adjusted EPS of 17 cents reported in the same quarter last year [3]. - The estimated net revenues for the fourth quarter are projected at $71.3 million, indicating a 50.3% decrease from $143.5 million reported in the year-ago quarter [3]. Revenue Breakdown - The decline in revenue is attributed to reduced contributions from Subscription Services, which accounted for 88.9% of third-quarter 2025 net revenues, and Skills and Other segments, which contributed 11.1% [4]. - For the upcoming quarter, revenues from Subscription Services are estimated at $64 million, down from $129 million, while revenues from Skills and Other are expected to be $7.47 million, down from $14.94 million [6]. Subscriber Metrics - Chegg anticipates a significant drop in its subscriber base, with estimates pegged at 1,855, representing a 48.5% year-over-year decline from 3,600 [6]. Margin Expectations - The company's gross margin is expected to range between 57% and 58%, a decrease from 68% reported in the previous year [8]. - Adjusted EBITDA is anticipated to be between $10 million and $11 million, significantly down from $36.6 million reported in the year-ago quarter [8]. Strategic Focus - Chegg is focusing on AI integration and transitioning towards advanced professional upskilling, although it faces challenges from declining subscriber numbers and competition from AI tools [8]. - The company is undergoing restructuring, which is likely to incur additional expenses, further impacting the bottom line despite efforts to control costs [7][8].

Core Insights - Chegg, Inc. (CHGG) is expanding its learning platform through a partnership with Woolf, allowing select programs to count toward accredited undergraduate and postgraduate degrees [1][9] - The partnership aims to bridge the gap between job-ready skills and formal academic credentials, enhancing the value of Chegg's offerings [5] Group 1: Partnership and Educational Framework - Chegg's workforce business focuses on short, outcomes-oriented courses that provide practical skills valued by employers [2] - Eligible coursework will be integrated into Woolf's academic framework, undergoing independent review to meet accredited standards [2][9] - This collaboration allows learners to apply completed training toward recognized academic credits, linking skill development directly to formal qualifications [3] Group 2: Accreditation and Global Recognition - Woolf degrees adhere to European Higher Education Area (EHEA) standards and utilize the European Credit Transfer and Accumulation System (ECTS), recognized in over 60 countries [4][9] - The broader acceptance of these degrees may enhance the attractiveness of Chegg's programs for working professionals seeking further education or global career opportunities [4] Group 3: Competitive Landscape - Chegg operates in a competitive EdTech market alongside notable companies like Duolingo, Inc. and Udemy, Inc. [6] - Duolingo excels in language learning with a gamified app, while Udemy focuses on professional skill development and workforce transformation [7] Group 4: Stock Performance and Valuation - Chegg's stock has decreased by 44.2% over the past six months, underperforming compared to Duolingo and Udemy, which saw declines of 64.7% and 36.8%, respectively [8] - Currently, Chegg's stock trades at a forward 12-month price-to-sales (P/S) ratio of 0.28, indicating a discount compared to industry peers [11] Group 5: Earnings Estimates - The earnings estimate for Chegg in 2026 remains unchanged at 9 cents per share, with an expected growth of 221.4% [13] - Current earnings projections indicate a loss of $0.11 for the current quarter, with a forecasted profit of $0.10 for the next quarter [14]

Core Insights - Chegg, Inc. reported negative free cash flow of $900 million in Q3 2025, primarily due to a one-time settlement payment and restructuring costs, indicating a potential transitional rather than structural issue in its financial trajectory [1][9] - The company experienced a significant revenue decline of 35.8% year over year in the first nine months of 2025, driven by reduced contributions from its Subscription Services and Skills segments [2] - Chegg is pivoting towards its Chegg Skilling unit, which is expected to grow by 14% year over year in Q4 2025, as demand for AI and workforce reskilling programs increases [3] Financial Performance - Free cash flow decreased by 93.7% year over year in Q3 2025, dropping to $2.8 million [1] - Chegg's legacy subscription revenues are declining due to competition from AI solutions and changes in search behavior [9] - The Zacks Consensus Estimate for 2026 earnings remains stable at nine cents per share, indicating a projected 221.4% year-over-year growth [12] Competitive Landscape - Chegg faces intense competition from companies like Udemy and Duolingo, which have maintained positive cash flow and strong engagement [5][6][7] - Udemy has consistently delivered positive operating cash flow, supported by strong subscription uptake and B2B relationships [6] - Duolingo's gamified platform has allowed it to maintain positive cash flow amid rapid growth, differentiating it from Chegg [7] Stock Performance - Chegg's stock has declined by 21.7% over the past three months, underperforming compared to industry peers and major indices [8] - The stock is currently trading at a forward P/E ratio of 7.25, indicating a discounted valuation relative to industry peers [11]