Chegg (NYSE:CHGG) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Chegg (NYSE:CHGG) issued its quarterly earnings data on Tuesday. The technology company reported ($0.05) earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.04, FiscalAI reports. The company had revenue of $46.47 million during 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 Price Performance

Shares of CHGG traded up $0.03 during midday trading on Tuesday, reaching $0.70. The stock had a trading volume of 284,615 shares, compared to its average volume of 1,373,129. The company has a market cap of $77.28 million, a price-to-earnings ratio of -1.42 and a beta of 2.16. The company’s fifty day simple moving average is $0.74 and its two-hundred day simple moving average is $0.86. Chegg has a 1-year low of $0.45 and a 1-year high of $1.56.

Insider Transactions at Chegg

In other Chegg news, Director Renee Budig sold 54,347 shares of Chegg stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $0.78, for a total transaction of $42,390.66. Following the completion of the sale, the director directly owned 376,311 shares of the company’s stock, valued at $293,522.58. The trade was a 12.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.00% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

CHGG has been the topic of a number of research analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Chegg in a research note on Friday, September 18th. Zacks Research lowered shares of Chegg from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Reduce”.

Chegg Company Profile

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.