Chegg returns to profit in Q1

Chegg

06/05/2026 21:17

Overview

Global learning platform's Q1 revenue fell 48% yr/yr, but company achieved positive net income

Chegg Skilling segment revenue grew 9% yr/yr, driven by new enterprise partnerships

Company reduced operating expenses by 55% yr/yr, supporting profitability and future investment

Outlook

Chegg sees Q2 total net revenues between $49 mln and $50 mln

Company expects Q2 Chegg Skilling revenues of $17.5 mln to $18 mln

Chegg continues to expect double-digit skilling revenue growth for full-year 2026

Result Drivers

COST REDUCTIONS - Co said it removed about 40% of costs and reduced operating expenses by 55% yr/yr, supporting profitability

SKILLING SEGMENT GROWTH - 9% yr/yr revenue growth in Skilling segment attributed to new enterprise partnerships and accredited offerings

AI-DRIVEN EFFICIENCY - Co said leveraging AI improved efficiency, enabled product personalization, and helped control costs

Company press release: ID:nBw2ydbMNa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$63.26 mln
$61.007 mln (2 Analysts)
Q1 Adjusted Net Income
$3.50 mln
Q1 Net Income
$228,000
Q1 Adjusted EBITDA
$15.50 mln
Q1 Gross Profit
$37.89 mln
Q1 Income from operations
-$1.04 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."

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)