Chegg, Inc. (CHGG) AI Stock Analysis

Chegg, Inc. operates as a direct-to-student learning platform that supports students throughout their academic journeys and into their careers. Founded in 2005 and headquartered in Santa Clara, California, the company provides tools designed to enhance students' understanding of academic course materials. Core offerings include subscription-based Chegg Services such as Chegg Study for independent learning, Chegg Writing for plagiarism detection and grammar checking, and Chegg Math for step-by-step math problem solving. The company also offers the Chegg Study Pack bundle, online language learning solution Busuu, and skills-based professional learning platform Thinkful.

Chegg's top line has decreased over recent years, delivering a 5-year revenue CAGR of -10.2% from FY2020 to FY2025. Annual revenue decreased from $776.3M in FY2021 to $766.9M in FY2022, $716.3M in FY2023, $617.6M in FY2024, and $376.9M in FY2025. Gross margin contracted to 60.2% in FY2025 from 70.7% in FY2024. Operating margins registered at -119.4% in FY2024 and -16.8% in FY2025. The company posted a net loss of -$837.1M in FY2024 and a net loss of -$103.4M in FY2025. Over the trailing twelve months, revenue was $265.5M with a profit margin of -20.0%. In the latest quarter ended June 30, 2026, quarterly revenue fell 50.7% year-over-year.

As of June 30, 2026, Chegg held $72.3M in cash and short-term investments against $50.7M in total debt, resulting in net cash of $21.6M. Total assets stood at $227.6M and shareholders' equity was $118.6M, representing a debt-to-equity ratio of 0.43 and a current ratio of 1.17. In FY2025, operating cash flow dropped to $15.5M, capital expenditures were $28.1M, and free cash flow turned negative to -$12.6M. The company's share count declined 33.2% over a 5-year period.

Chegg carries a market capitalization of $81.3M and an enterprise value of $59.8M. The stock trades at a forward P/E of 1.8x, compared to 14.3x for the median of its US-listed Consumer Defensive peers. Its price-to-sales multiple is 0.3x versus the peer median of 0.7x, and its EV/EBITDA is 10.4x compared to the peer median of 11.7x. Over the 1-year period, Chegg shares fell 42.1%, while the S&P 500 (SPY) gained 16.8%. Over 5 years, Chegg returned -98.8% against an 83.0% return for the S&P 500.

Chegg has 1 analyst rating, consisting of 0 Strong Buy, 0 Buy, 1 Hold, 0 Sell, and 0 Strong Sell. The mean price target is $2.79, representing an upside of 282.4% over the last close of $0.73 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $198.0M and an EPS of -$0.13. For the following fiscal year, revenue is projected at $145.8M with an EPS of -$0.07. Chegg beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Chegg, Inc. (CHGG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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