10-K · March 9, 2026
Chegg describes a strategic pivot from legacy academic subscriptions toward a skilling-focused, business-to-business platform that integrates AI and its content library to drive workplace upskilling and language…
Earnings analysis · 10-Q
CHGG earnings analysis
Filed May 11, 2026 · Our reading of the company's report
The latest report
Chegg Inc. reported Q1 2026 earnings with revenue of $63.3 million, surpassing estimates of approximately $60.99 million, and achieving a positive diluted EPS of $0.03 compared to an estimated loss of $0.03. This marks…
Read full summary
Chegg Inc. reported Q1 2026 earnings with revenue of $63.3 million, surpassing estimates of approximately $60.99 million, and achieving a positive diluted EPS of $0.03 compared to an estimated loss of $0.03. This marks a significant revenue drop of 48% year-over-year, primarily due to declining subscriptions in their Academic Services segment. Despite operational challenges, Chegg's focus on skilling initiatives reflects a strategic pivot, albeit against a backdrop of traffic reduction attributed to increased competition from generative AI tools.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.03
- Gross margin
- 60%
What stood out
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Revenue Exceeds Estimates
Actual revenue was $63.3 million, beating estimates of $60.99 million by 3.7%.
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Positive EPS
Reported earnings were $0.03 per share, compared to an estimated loss of $0.03.
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Increased Gross Margin
Gross margin improved to 60%, up from 56% in the previous year.
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Growth in Skilling Segment
Chegg Skilling revenue grew 9% to $17.6 million from $16.1 million year-over-year.
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Operating Expenses Reduced
Total operating expenses fell by 60% to $38.9 million, down from $96.4 million.
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Decrease in Debt
Convertible senior notes decreased by 37% to $33.8 million from $53.8 million.
What to watch
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Severe Revenue Decline
Total revenues fell 48% year-over-year from $121.4 million to $63.3 million.
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Subscriber Losses Impact
Academic Services revenues dropped 57% due to significant subscription declines.
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Dependence on AI Tools
Increased competition from generative AI is negatively impacting customer engagement and subscriptions.
Management's outlook
Guidance for Q2 2026 revenue is projected between $49 million and $50 million, reflecting ongoing challenges.
Earlier filings 4
10-Q · August 8, 2025
Chegg reported Q2 net revenues of $105,120 (in thousands) and a gross profit of $69,642, while operating loss was $(36,458) and GAAP net loss was $(35,663) (net loss per share $(0.33)). Revenue and deferred revenue…
10-Q · May 12, 2025
Chegg reported Q1 2025 revenue of $121,387,000 (down $52,963,000 or 30% YoY) and a net loss of $17,484,000 (loss per share $0.17). Gross margin compressed to 55.5% and operating margin swung to -23.9%, driven by…
10-Q · November 12, 2024
Chegg reported quarterly revenue of $136.6M, down 13% year-over-year, with gross margin expanding to 68.2% but an operating loss driven by a large goodwill/intangible impairment. The company recorded a net loss of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.