Key Highlights

  • Net revenues of USD 46.5 million fell 40% year over year but topped the consensus estimate of USD 43.5 million.
  • Loss per share of USD 0.05 was narrower than the consensus estimate of USD 0.09; GAAP loss was USD 0.04.
  • Academic Services Revenue fell 50% to USD 30.0 million, while Chegg Skilling revenue fell 6% to USD 16.4 million.
  • Operating expenses dropped 54% to USD 29.3 million, narrowing the net loss to USD 4.7 million from USD 17.5 million.

Chegg, Inc. (NYSE:CHGG) reported third quarter 2026 net revenues of USD 46.5 million, down 40% from USD 77.7 million a year earlier and above a consensus estimate of USD 43.5 million. The company posted a loss per share of USD 0.05 against a consensus estimate of a loss of USD 0.09. GAAP net loss was USD 4.7 million, or USD 0.04 per basic and diluted share, versus a net loss of USD 17.5 million, or USD 0.16 per share, in the third quarter of 2025. Loss from operations narrowed to USD 5.1 million from USD 17.1 million.

Lower Costs Cushion a Smaller Revenue Base

Academic Services revenue fell USD 30.1 million, or 50%, to USD 30.0 million, which the company attributed to reduced traffic and fewer subscribers. Chegg Skilling revenue slipped 6% to USD 16.4 million on lower enrollments in workforce skilling programs sold through its largest third-party marketplace, and it made up 35% of net revenues versus 23% a year earlier. Gross Margin eased to 52% from 59%. Operating expenses fell by more than half: general and administrative expenses dropped to USD 12.1 million from USD 33.2 million, Research and Development to USD 8.0 million from USD 18.4 million, and sales and Marketing to USD 9.2 million from USD 11.6 million. Share-based compensation fell to USD 2.1 million from USD 5.9 million.

Liquidity, Notes Repayment and Risk Factors

Cash, cash equivalents and investments totaled USD 43.6 million at September 30, 2026, down from USD 85.2 million at year end 2025, after USD 53.3 million went to repay and partially retire the 2026 convertible notes, which now carry no balance. Nine month Operating Cash Flow was USD 21.4 million. The company said existing Liquidity is sufficient to fund operations for at least the next 12 months, while noting cumulative losses of USD 1.0 billion and that further losses and a need for additional financing may arise. It targets substantial completion of its May 2025, October 2025 and July 2026 restructuring plans by the end of fiscal 2026.

Nine Month Revenue, Cash and Cost Comparisons

Nine month net revenues of USD 161.6 million compare with USD 304.2 million a year earlier, a 47% decline, while Chegg Skilling revenue of USD 51.6 million rose 1% from USD 50.9 million. Academic Services fell 57% over the same period to USD 110.0 million. Nine month net loss narrowed to USD 7.4 million from USD 70.6 million, and operating cash flow of USD 21.4 million compares with USD 24.5 million. Capital spending fell to USD 6.4 million from USD 21.7 million, and cumulative charges stand at USD 17.9 million under the October 2025 plan and USD 0.8 million under the July 2026 plan.