Overview
Chegg Q3 2025 revenue fell 43% yr/yr but beat analyst expectations
Company reports adjusted EBITDA of $13.3 mln for Q3 2025
Chegg focuses on skilling market, driven by AI demand and restructuring efforts
Outlook
Chegg expects Q4 2025 total net revenues between $70 mln and $72 mln
Chegg forecasts Q4 2025 adjusted EBITDA between $10 mln and $11 mln
Chegg anticipates full-year 2025 capital expenditures of approximately $27 mln
Result Drivers
AI TAILWINDS - Chegg's skilling business benefits from AI-driven demand for employee reskilling
RESTRUCTURING IMPACT - Cost-cutting and restructuring efforts improved adjusted EBITDA by $5 mln
REVENUE DECLINE - Revenue fell 43% yr/yr due to reduced traffic affecting subscriptions and advertising
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $77.74 mln | $76.20 mln (4 Analysts) |
Q3 Adjusted Net Income | $400,000 | ||
Q3 Net Income | -$17.47 mln | ||
Q3 Adjusted EBITDA | $13.30 mln | ||
Q3 Gross Profit | $46.04 mln | ||
Q3 Income from operations | -$17.12 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the professional information services peer group is "buy."
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nBw5G3N9da
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)