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

Chegg (NYSE:CHGG) released its quarterly earnings results on Tuesday. The technology company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.09) by $0.04, FiscalAI reports. The firm had revenue of $46.47 million for the quarter, compared to analyst estimates of $43.50 million. Chegg had a negative return on equity of 13.38% and a negative net margin of 19.96%.

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 Stock Performance

Shares of NYSE CHGG traded up $0.03 during midday trading on Tuesday, reaching $0.70. 267,513 shares of the company’s stock were exchanged, compared to its average volume of 1,372,692. Chegg has a 52-week low of $0.45 and a 52-week high of $1.56. The stock has a market capitalization of $78.17 million, a PE ratio of -1.43 and a beta of 2.16. The business’s fifty day moving average price is $0.74 and its two-hundred day moving average price is $0.86.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Chegg in a research note on Friday, September 18th. Zacks Research downgraded shares of Chegg from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce”.

Insider Buying and Selling

In related news, Director Renee Budig sold 54,347 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $0.78, for a total value of $42,390.66. Following the completion of the transaction, the director owned 376,311 shares of the company’s stock, valued at approximately $293,522.58. This represents a 12.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.00% of the company’s stock.

About Chegg

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.