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Chegg (CHGG) investor relations material
Chegg Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Company reorganized into Chegg Skilling (growth engine) and Academic Services (cash generation) to drive long-term value.
Chegg Skilling delivered $18 million in Q4 2025 revenue, up 11% year-over-year, with a focus on double-digit growth and strong margins.
Strategic focus on the $40 billion global skilling market, especially in AI, language, and technical skills.
New partnerships with DHL, Gi Group, Woolf University, and contract extensions with L'Oréal and PPG expand reach and credential offerings.
Streamlined operations and leadership additions aim for debt-free status and substantial cash by end of 2026.
Financial highlights
Q4 2025 total net revenue: $73 million; Chegg Skilling revenue: $18 million, up 11% year-over-year.
Academic Services revenue: $55 million in Q4 2025, focused on cash generation.
Q4 2025 adjusted EBITDA: $13 million, 18% margin, exceeding guidance by $2 million.
Q4 2025 CapEx: $6 million, down 51% year-over-year; targeting a further 60% reduction in 2026, with 90% allocated to Skilling.
Ended Q4 2025 with $85 million in cash and investments, net cash balance of $31 million.
Outlook and guidance
Q1 2026 Chegg Skilling revenue expected at $17.5–$18 million; total Q1 revenue guidance: $60–$62 million.
Q1 2026 gross margin guidance: 57–58%; adjusted EBITDA: $11–$12 million.
Double-digit Skilling revenue growth expected through 2026, with stronger performance in H2.
Targeting adjusted EBITDA margin of at least 20% for Skilling business in coming years.
Non-GAAP expenses to be reduced to under $250 million in 2026, a 53% decline from 2024.
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