Chegg Stock Drops After Q4 Report Shows Major YoY Revenue Decline

Chegg Inc. (NYSE:CHGG) shares sank in Monday's extended trading after the company released its fourth-quarter earnings report.   

Here's a look at the key figures from the quarter. 

• CHGG stock is moving. Watch the price action here.

The Details: Chegg reported quarterly losses of one cent per share, which beat the consensus estimate for losses of 10 cents.

Quarterly revenue came in at $72.66 million, which beat the Street estimate of $71 million and was down from $143.48 million from the same period last year.

Chegg reported the following fourth highlights:

• Chegg Skilling Revenues of $17.7 million, an increase of 11% year-over-year.
• Non-GAAP Gross Margin of 60%
• Non-GAAP Net Loss was $700,000
• Adjusted EBITDA was $12.9 million

“We are reinventing Chegg around the $40 billion skilling market, which we believe can drive double-digit growth with strong margins and cash flow in the years to come,” said Dan Rosensweig, CEO of Chegg.

“We’ve organized the company into two focused businesses: Chegg Skilling as our growth engine and our legacy Academic Services, which generates free cash flow that strengthens our balance sheet and positions us to end 2026 debt-free with a substantial cash balance,” Rosensweig added.

CHGG Stock Price: According to data from Benzinga Pro, Chegg stock dropped 8% to 69 cents in Monday's extended trading.  

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