Chegg Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 delivered strong revenue, profitability, and free cash flow, driven by AI-led cost optimization and growth in Skilling. New partnerships and product innovations position the business for double-digit Skilling revenue growth and sustained profitability in 2026.
Fiscal Year 2025
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Q4 saw $18M in skilling revenue and $55M in academic services, with adjusted EBITDA margin at 18%. Double-digit skilling growth is expected in 2026, supported by new partnerships, cost reductions, and a focus on B2B expansion. Cash flow is projected to turn positive as restructuring winds down.
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Q3 revenue fell 42% year-over-year to $78M, but cost cuts drove Adjusted EBITDA to $13M (17% margin). The skilling business is now the growth focus, expected to deliver 14% year-over-year growth in Q4, while legacy academic services generate cash.
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Q2 2025 revenue and adjusted EBITDA exceeded guidance, driven by strong growth in Busuu and Skills, despite a 36% year-over-year revenue decline and lower subscriber count. Strategic review and cost-saving initiatives continue, with positive outlook for Busuu and Skills.
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The meeting introduced board and executive members, addressed four key proposals, and confirmed all were approved by shareholders. No questions were raised during the Q&A session. Final voting results will be reported in a Form 8-K filing.
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Q1 2025 results exceeded guidance despite a 30% revenue decline and 31% drop in subscribers. Cost-saving restructurings and new content licensing deals are underway, with Busuu and Skills segments showing growth and positive outlooks.
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The session highlighted a strategic shift toward AI-driven personalization, cost reduction, and new marketing channels to drive engagement and retention. Expansion into B2B, international markets, and holistic student support are key growth pillars for 2025 and beyond.
Fiscal Year 2024
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Q4 2024 revenue fell 24% year-over-year amid a 21% subscriber decline, with ongoing traffic and acquisition headwinds from Google's AI Overviews. Strategic alternatives are under review, and a lawsuit has been filed against Google. Adjusted EBITDA margin was 25% for the quarter.
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Q3 revenue and Adjusted EBITDA exceeded guidance but declined year-over-year amid sharp drops in traffic and subscribers due to generative AI and Google AI Overviews. Major restructuring and cost-saving initiatives are underway, with a cautious outlook for 2025.
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Q2 revenue and Adjusted EBITDA exceeded guidance, but revenue declined 11% year-over-year amid industry pressures. Restructuring is underway to drive $40-$50 million in savings for 2025, with a focus on AI-driven product innovation and international expansion, especially in Mexico.
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The meeting covered board and executive introductions, four key shareholder proposals, and voting. All proposals, including director elections and auditor ratification, were approved. No questions were raised during the Q&A.