Is Chegg Quietly Pivoting From Students Toward Professionals?

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. In sync with this market shift, the company is readying itself in this genre and working out ways to incorporate AI into its system.

Chegg’s investments in the Busuu and Skills business highlight these growth areas, which include language learning, workplace readiness and upskilling. Busuu’s revenues grew 15% year over year in the second quarter of 2025, reflecting impressive contributions from the B2C (6% year-over-year revenue growth) and B2B (39% year-over-year revenue growth) segments. Busuu’s robust growth, particularly in corporate training and adult language learning, has given Chegg a foothold in the fast-growing global upskilling market, which is expected to drive its growth in the upcoming period.

During the second quarter of 2025 earnings call, CHGG highlighted that it is continuing to roll out Guild into the English language learning vertical and expanding its offering with Learning Pathways, which offers personalized courses focused on key language and professional skills for specific roles and industries. Chegg has partnered with Guild mainly to offer skills-based learning programs for frontline workers.

With the investments across modernizing and diversifying its product offerings across practical skills, certification readiness and real-world employability, CHGG is well-positioned to scale opportunities in this section. However, this pivot carries execution risk as expansion into professional education involves new content partnerships, brand repositioning and competitive agility.

Nonetheless, Chegg’s strategic pivot suggests ambition, but its long-term success hinges on convincing professionals that it is more than just a study aid.

CHGG’s Market Competition Position

Chegg operates in a highly competitive landscape, with renowned names like Coursera, Inc. COUR and Duolingo, Inc. DUOL operating beside it in the education market.

Coursera offers a massive library of university-backed courses and certifications, positioning itself as a leader in academic partnerships and professional development. For students seeking career-oriented learning, Coursera creates a formidable option. Duolingo, on the other hand, dominates the language-learning niche with its gamified app and AI-driven engagement. With a strong mobile presence and daily user engagement, Duolingo has built a brand synonymous with accessible, bite-sized learning.

While Coursera and Duolingo each carve out specialized markets, Chegg’s competitive advantage lies in its subscription-based ecosystem, which integrates study help, textbooks, skills and now AI-enabled support. This combination creates stickiness and convenience for students, making Chegg a one-stop platform for learning services in a fragmented edtech environment.

CHGG Stock’s Price Performance & Valuation Trend

Shares of this California-based education technology company have surged 119.7% in the past six months, significantly outperforming the Zacks Internet - Software industry, the Zacks Computer and Technology sector and the S&P 500 Index.

CHGG stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 0.41, as evidenced by the chart below. The discounted valuation of the stock, compared with its peers, advocates for an attractive entry point for investors.

Earnings Estimate Trend of CHGG

The Zacks Consensus Estimate for 2025 loss is pegged at 11 cents per share, while the same for 2026 stands at breakeven earnings. Both metrics have remained constant in the past 60 days.

While the estimated figure for 2025 indicates a decline of 114.7% year over year, estimates for 2026 indicate 100% growth.

Chegg stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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