By Katherine Hamilton

Chegg recorded a drop in sales in the third quarter, but narrowed its loss as it aims to reposition itself as a workforce reskilling company.

Chegg, which has been known for its online education platform, on Monday posted a loss of $17.5 million, or 16 cents a share, in the quarter ended Sept. 30, compared with a loss of $212.6 million, or $2.05 a share, a year earlier.

Chegg broke even on an adjusted earnings per share basis, compared with analysts' expectations for a 6 cent loss, according to FactSet.

Revenue fell 43% to $77.7 million. Analysts surveyed by FactSet forecast revenue of $76.3 million.

Chegg said in October it plans to restructure and shift its focus toward helping companies retrain their workforces in the era of AI, which will be known as Chegg's skilling business. AI has posed a major threat to Chegg, as Google's AI overviews and ChatGPT's prompt answering has created stiff competition for Chegg's online study assistance.

In the current fourth quarter, Chegg expects revenue to be $70 million to $72 million, compared with the $83.7 million estimated by Wall Street. About $18 million of that is projected to come from the company's new skilling business.

Chegg expects full-year skilling sales to be $70 million.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

November 10, 2025 16:23 ET (21:23 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.