Chegg Q4 revenue falls 49%

Chegg

09/02/2026 21:12

Overview

Global learning company's Q4 revenue fell 49% yr/yr

Chegg Skilling Q4 revenue grew 11% yr/yr

Adjusted EBITDA for Q4 was $12.9 mln

Outlook

Chegg expects Q1 2026 total net revenues between $60 mln and $62 mln

Company forecasts Q1 2026 Chegg Skilling revenues of $17.5 mln to $18.0 mln

Chegg anticipates Q1 2026 adjusted EBITDA between $11 mln and $12 mln

Result Drivers

SKILLING MARKET FOCUS - Chegg is focusing on the $40 bln skilling market as a growth driver, with Chegg Skilling revenues increasing 11% yr/yr

RESTRUCTURING IMPACT - Non-GAAP operating expenses reduced by 47% yr/yr due to restructuring activities

AI INVESTMENTS - Strategic investments in AI have significantly reduced expenses and improved efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$72.66 mln
$71 mln (1 Analyst)
Q4 EPS
-$0.30
Q4 Adjusted Net Income
-$700,000
Q4 Net Income
-$32.80 mln
Q4 Adjusted EBITDA
$12.90 mln
Q4 Gross Profit
$41.66 mln
Q4 Income from operations
-$34.27 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "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 79 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw2K01lDa

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(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.)