CHEGG, INC SEC 10-Q Report

Chegg, Inc., a leading provider of educational services and resources, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the challenges and strategic initiatives undertaken during the period.

Financial Highlights

Net Revenues: $105.1 million, a decrease of 36% compared to the same period in 2024, primarily due to a decline in subscribers and lower enrollments in Chegg Skills.

Gross Profit: $69.6 million, representing a gross margin of 66%, down from 72% in the same period in 2024, mainly due to lower revenues.

Loss from Operations: $(36.5) million, a significant reduction from the $(485.0) million loss in the same period in 2024, largely due to the absence of impairment expenses.

Net Loss: $(35.7) million, an improvement from a net loss of $(616.9) million in the same period in 2024, primarily due to the absence of impairment expenses and effective cost management.

Net Loss Per Share, Basic and Diluted: $(0.33), compared to $(6.01) in the same period in 2024, reflecting the improved net loss position.

Business Highlights

Revenue Segments: The company's revenue is divided into two main product lines: Subscription Services and Skills and Other. Subscription Services include Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu, while Skills and Other encompass Chegg Skills, advertising services, content licensing, print textbooks, and eTextbooks.

Geographical Performance: For the six months ended June 30, 2025, the United States contributed $195.6 million in revenue, while international markets contributed $30.9 million.

Operational Challenges: Chegg is facing headwinds due to technological shifts, notably Google's AI Overviews search experience, which has reduced traffic to Chegg's website. Additionally, the adoption of generative AI products by students is impacting the company's subscriber base.

Restructuring Efforts: In May 2025, Chegg announced a restructuring plan to manage costs, which includes workforce reductions and office closures. This plan is expected to be substantially completed by the first quarter of fiscal year 2026.

Future Outlook: Chegg is exploring strategic alternatives to maximize shareholder value, including potential acquisition or going private. The company is also focused on integrating AI into its platform to enhance student engagement and return to revenue growth over time.

SEC Filing: CHEGG, INC [ CHGG ] - 10-Q - Aug. 08, 2025