Chegg (NYSE:CHGG) Releases Earnings Results, Beats Estimates By $0.04 EPS

by · The Markets Daily

Chegg (NYSE:CHGG – Get Free Report) issued its quarterly earnings data on Tuesday. The technology company reported ($0.05) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.04, FiscalAI reports. The business had revenue of $46.47 million during the quarter, compared to analysts’ expectations of $43.50 million. Chegg had a negative net margin of 17.17% and a negative return on equity of 15.97%.

Here are the key takeaways from Chegg’s conference call:

  • Chegg eliminated its remaining convertible debt and ended Q3 with $43.6 million in cash and investments, while generating $5.5 million in free cash flow.
  • The company launched a new employability platform on Internships.com, attracting more than 100,000 visitors in its first eight weeks, with early engagement in resume uploads, job searches, applications, and interview-related tools described as encouraging.
  • Chegg signed pilot programs with four universities and is pursuing additional institutional partnerships, offering schools employment-outcome data and tools intended to improve students’ access to internships and jobs.
  • The skilling business is expected to generate more than $65 million in 2026 revenue, and Chegg has added 11 distribution partners; however, partner rollouts have taken longer than expected, leaving the timing and scale of growth uncertain.
  • The legacy homework-help business continues to decline, and management guided for Q4 revenue of $38 million to $40 million and adjusted EBITDA of approximately $1 million, down from Q3 revenue of $46.5 million and adjusted EBITDA of $5.4 million.

Chegg Trading Down 1.9%

Shares of Chegg stock opened at $0.64 on Thursday. The company’s fifty day simple moving average is $0.74 and its 200-day simple moving average is $0.86. The company has a market cap of $71.06 million, a price-to-earnings ratio of -1.73 and a beta of 2.26. Chegg has a 1 year low of $0.45 and a 1 year high of $1.56.

Insider Buying and Selling

In other Chegg news, Director Renee Budig sold 54,347 shares of the firm’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $0.78, for a total value of $42,390.66. Following the sale, the director directly owned 376,311 shares in the company, valued at $293,522.58. This trade represents a 12.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.00% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Chegg in a research note on Friday, September 18th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Chegg has an average rating of “Reduce”.

View Our Latest Stock Analysis on CHGG

Chegg Company Profile

(Get Free Report)

Chegg, Inc is an education technology company that provides digital learning tools and academic support services to students. Its platform offers study assistance, expert answers, practice materials, writing support, and other resources intended to help students understand course content and complete academic work.

The company’s products have included Chegg Study, Chegg Writing, and Mathway, a mobile mathematics problem-solving service. Chegg has also offered language-learning services through Busuu, which it acquired in 2022.

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