CHGG's steep slide spotlights its restructuring, skilling momentum and leaner cost base as investors weigh whether the pullback opens opportunity.
Chegg, Inc. CHGG reported break-even earnings in the third quarter of 2025, which topped the Zacks Consensus Estimate but declined year over year. Net revenues topped the consensus mark but tumbled year over year.
Chegg, Inc. ( CHGG ) Q3 2025 Earnings Call November 10, 2025 4:30 PM EST Company Participants Tracey Ford - Vice President of Investor Relations Daniel Rosensweig - Executive Chairman & CEO David Longo - CFO, Principal Financial & Accounting Officer and Treasurer Conference Call Participants Eric Sheridan - Goldman Sachs Group, Inc., Research Division Devin Au - KeyBanc Capital Markets Inc., Research Division Ryan MacDonald - Needham & Company, LLC, Research Division Presentation Operator Ladies and gentlemen, greetings, and welcome to the Chegg, Inc. Third Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
Chegg (CHGG) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to earnings of $0.09 per share a year ago.
Chegg, Inc. CHGG is scheduled to report its third-quarter 2025 results on Nov. 10, after market close. In the last reported quarter, the company's adjusted earnings per share (EPS) and net revenues topped the Zacks Consensus Estimate by 143.5% and 3.7%, respectively.
The shift toward digital learning continues to create both winners and laggards in the education technology or EdTech space. Chegg CHGG and Duolingo DUOL represent two very different trajectories within this transformation.
Educational technology company Chegg said on Monday it would cut 388 roles globally, or about 45% of the workforce, to reduce costs and streamline operations as it works to adapt to the growing shift toward AI-powered tools.
Chegg narrowed its net loss by over 80% as cost-cutting stabilized operations despite continued revenue decline.
Chegg, Inc. CHGG seems to be shifting its focus from a traditional student-focused business model to an advanced professional upskilling business model. The education market is increasingly leaning toward programs that cater to workplace readiness and adult learning through online platforms.
Chegg, Inc. CHGG is navigating a shifting higher education landscape characterized by enrollment volatility, rising competition from AI-driven learning platforms and evolving student preferences. Due to these aspects, the company's top line has been under pressure for some time now.
Chegg, Inc. CHGG witnessed a gloomy second quarter of 2025, with revenues of $105.1 million being down 36% year over year and subscription services revenues falling 39% to $89.7 million. The subscriber base plunged 40% to 2.6 million, largely due to lower traffic stemming from Google's AI Overviews.
The market's inclination toward digital learning, particularly AI-based alternatives, is favoring the edtech market and the firms operating within it, such as Chegg, Inc. CHGG and Udemy, Inc. UDMY. Additionally, the demand for personalized or adaptive learning in K-12, higher education and adult learning programs is also driving the industry.