Chegg, Inc. (NYSE: CHGG) posted total revenue of $72.7 million. Chegg Q4 2025 earnings showed a mixed picture. This marks a 49% drop from a year ago. But the Skilling segment rose 11% to $17.7 million. The firm is now focused on the $40 billion skilling market.
Market Context
Chegg trades on the NYSE under ticker CHGG. The company split into two units. Chegg Skilling is the growth engine. Also, Academic Services now serves as a cash flow source. This new setup aims to drive long-term value.
Chegg Q4 2025 Earnings: Financial Results
Total revenue was $72.7 million in Q4 2025. This fell 49% from $143.5 million a year ago. Gross margin came in at 57%. Also, non-GAAP gross margin reached 60%. Adjusted EBITDA hit $12.9 million. This beat guidance by $2 million.
Skilling revenue grew to $17.7 million. That is up 11% from Q4 2024. So, this segment shows real promise. Academic Services brought in $55 million. Still, the legacy unit focuses on cash flow.
Full Year 2025 Results
Full year 2025 revenue totaled $376.9 million. This marks a 39% decline from 2024. Skilling revenue reached $68.7 million for the year. Also, full year gross margin was 60%. Adjusted EBITDA hit $68.5 million.
Quarterly Revenue Trend
Chart: Chegg quarterly revenue trend from Q1 2024 to Q4 2025
Chegg Q4 2025: Strategic Pivot to Skilling Market
Chegg now targets the $40 billion skilling market. The firm offers AI, language, and tech fluency courses. Plus, new deals came with DHL, GiGroup, and Woolf. Woolf provides degree paths for skills credits. So, these moves expand Chegg’s reach.
“We are reinventing Chegg around the $40 billion skilling market,” said Dan Rosensweig, CEO. “This can drive double-digit growth with margins and cash flow.”
Chegg Q4 2025: Skilling Revenue Growth
Chart: Chegg Skilling revenue trend from Q1 2024 to Q4 2025
Cost Cuts and Efficiency Gains
Non-GAAP costs fell 47% from last year. AI tools helped cut CapEx by 51%. Q4 CapEx was just $6 million. Also, 2026 targets a 60% drop in CapEx. So, the firm runs leaner now.
Q4 2025 Balance Sheet Position
Cash and assets totaled $85 million. Net cash stood at $31 million. The firm aims to end 2026 debt-free. Still, Q4 free cash flow was negative $15 million. Severance costs of $12 million drove this.
Q1 2026 Outlook
Q1 2026 revenue is guided at $60 million-$62 million. Skilling revenue targets $17.5 million-$18.0 million. Gross margin should be 57%-58%. Also, adjusted EBITDA aims for $11 million-$12 million. The firm sees double-digit Skilling growth for 2026.
Chegg Q4 2025 Earnings: Key Takeaways
Chegg Q4 2025 earnings reveal a firm in change. Total revenue fell 49% to $72.7 million. But Skilling grew 11% to $17.7 million. So, the pivot shows early signs of success. New deals with DHL and Woolf expand reach. Also, cost cuts helped beat EBITDA targets. The goal is debt-free status by end of 2026. For more details, see the Chegg Q4 2025 earnings press release. Also, visit Yahoo Finance CHGG for stock data.
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