Chegg reported a sharp year-over-year revenue decline in the third quarter and forecast lower revenue for the fourth quarter. The education company says it has completed a balance-sheet reset and is shifting its business from homework help toward career and employability services.
Separately, director Marcela Martin plans to leave Chegg’s board in December. She said her resignation is not related to a dispute with management or the company’s operations, policies or practices.
Third-quarter results and outlook
- Revenue was $46.5 million, down 40% from a year earlier. Gross margin was 52%, or 54% on a non-GAAP basis.
- Chegg reported a $4.7 million net loss and a $5.7 million non-GAAP net loss. Adjusted EBITDA was $5.4 million.
- Chegg ended the quarter with $43.6 million in cash and no debt, according to CEO Dan Rosensweig. He said the company’s balance-sheet reset—focused on reducing costs, building cash and eliminating debt—is complete.
- For the fourth quarter, Chegg expects revenue of $38 million to $40 million, gross margin of 46% to 48%, and adjusted EBITDA of about $1 million.
Strategy and board change
- Chegg says it is repositioning itself as an “employability company,” with a focus on helping people find internships, assess and build job skills, and secure full-time work. The company described this as a shift away from its identity as a homework-help provider.
- Martin’s board resignation takes effect December 10, 2026, after that day’s board meeting.
The reported results show Chegg generating positive adjusted EBITDA while still posting a net loss, alongside a year-over-year revenue decline. Its stated strategic focus is moving toward career services, while its fourth-quarter outlook calls for lower revenue and gross margin than in the third quarter.