Brief: Chegg Q2 Revenue USD 105.12 Million Vs. IBES Estimate USD 103.1 Million

Chegg

05/08/2025 21:05

Overview

Chegg Q2 2025 rev falls 36% yr/yr but beats analyst expectations

Subscription services rev declines 39% yr/yr, reflecting lower traffic

Adjusted EBITDA for Q2 reaches $23.1 mln

Outlook

Chegg sees Q3 revenue between $75 mln and $77 mln

Chegg expects Q3 subscription revenue between $67 mln and $69 mln

Chegg forecasts Q3 gross margin of 56% to 57%

Chegg anticipates Q3 adjusted EBITDA between $7 mln and $8 mln

Result Drivers

AI TRANSFORMATION - Chegg is leveraging AI to transform Chegg Study into a more efficient and personalized learning platform

BUSUU GROWTH - Busuu, Chegg's language learning platform, achieved a 15% revenue increase, driven by strong B2B growth

SKILLS INVESTMENT - Chegg is investing in its Skills business, focusing on workplace readiness and upskilling, with enrollments up 16% quarter over quarter

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$105.12 mln
$103.10 mln (4 Analysts)
Q2 Adjusted Net Income
$10.80 mln
Q2 Net Income
-$35.66 mln
Q2 Adjusted EBITDA
$23.10 mln
Q2 Gross Profit
$69.64 mln
Q2 Income from operations
-$36.46 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the professional information services peer group is "buy."

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw7dft2Ya

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)