Guidance for Q3 total revenue of $43-44M confirms accelerating erosion in the legacy Academic Services business. Watch for the employability platform pivot and any further cost restructuring to stem cash burn. The stock's low $115M valuation already reflects deep distress, but the lowered EBITDA guide ($1-2M) leaves little room for error.
Price Chart
Executive Summary
Chegg reported Q2 2026 revenue of $51.8M, down 51% YoY, missing the prior year's $105.1M, and posted a GAAP net loss of $3.0M ($0.03/sh) vs a year-ago loss of $35.7M. Non-GAAP EPS of -$0.02 beat consensus of -$0.05. However, guidance for Q3 total revenue of $43-44M signals accelerating top-line contraction, with adjusted EBITDA falling to $1-2M from $9.1M in Q2.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $51.8M, -51% YoY ($105.1M)
- Chegg Skilling revenue $17.5M, +2% YoY
- GAAP net loss $3.0M ($0.03/sh) vs $35.7M loss a year ago
- Non-GAAP EPS -$0.02 vs consensus -$0.05 (60% beat)
- Adjusted EBITDA $9.1M (17% margin)
- Q3 guidance: revenue $43-44M, gross margin 48-49%, adjusted EBITDA $1-2M
- Ended Q2 with $72.3M cash & investments; net cash $38.5M
- Repurchased $1.7M of stock in Q2; $120.7M remaining on buyback authorization
- Expects to fully repay convertible debt in Q3
Financial Impact
51% revenue decline to $51.8M; Q3 guidance midpoint $43.5M implies further sequential decline of ~16%
Risk Factors
- Continued structural decline in Academic Services due to AI search headwinds
- Guidance implies Q3 EBITDA margin collapse to ~3% from Q2's 17%
- Skilling growth decelerated to 2% YoY (from 9% in Q1), raising doubts about the pivot
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001364954-26-000085 |
| Document: chgg-20260806.htm | 0001364954-26-000085 |
| Document: 0001364954-26-000085-index-headers.html | 0001364954-26-000085 |
| Document: 0001364954-26-000085-index.html | 0001364954-26-000085 |
| Document: 0001364954-26-000085.txt | 0001364954-26-000085 |
| 8-K Data (Synthetic) | 0001364954-26-000085 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | 8-K | $0.8786 $0.9788 | ▼ −11.40% | ▼ −10.80% | $0.7380 (+16.00%) |
Jun 12, 2026 16w ago | Institutional Cluster | $1.11 $0.8535 | ▲ +23.11% | ▲ +24.89% | $0.7380 (+33.51%) |
Jun 11, 2026 16w ago | Institutional Cluster | $1.15 $0.8939 | ▼ −22.27% | ▼ −24.16% | $0.7380 (−35.83%) |
Apr 15, 2026 24w ago | 8-K | $1.09 $0.9300 | ▼ −14.68% | ▼ −20.72% | $0.7380 (−32.29%) |
US Market Status
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