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Dec 31, 2025
Chegg Q4 2025 Earnings Report
Chegg reported lower fourth-quarter revenue with continued losses as the company advanced its transition toward skilling-focused offerings.
Key Takeaways
Chegg posted a significant year-over-year revenue decline in Q4, reflecting pressure in Academic Services, partially offset by growth in Chegg Skilling, while profitability remained negative despite positive adjusted EBITDA.
Total Q4 revenue declined sharply year over year to $72.66 million.
Chegg Skilling revenue grew to $17.72 million, showing momentum in the new growth engine.
The company reported a GAAP net loss of $32.80 million for the quarter.
Adjusted EBITDA was positive at $12.89 million, reflecting cost discipline.
Revenue by Segment
Forward Guidance
For Q1 2026, Chegg guided to lower revenue with stable margins as it continues its strategic transition.
Positive Outlook
- Expected continued growth in Chegg Skilling revenues.
- Adjusted EBITDA expected to remain positive.
- Gross margin expected to remain in the high-50% range.
- Lower cost structure following restructuring actions.
- Focus on achieving meaningful free cash flow in 2026.
Challenges Ahead
- Total revenue expected to decline further in the near term.
- Academic Services business continues to face structural pressure.
- Ongoing impact from changes in search and traffic patterns.
- Macroeconomic uncertainty affecting learner demand.
- Continued GAAP net losses expected in the short term.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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