The company reported its fourth-quarter earnings and projected its Q1 2026 total net revenues in the range of $60 million to $62 million, missing analysts’ estimates of $64 million, according to data from fiscal.ai.
- The company projected Q1 adjusted EBITDA in the range of $11 million to $12 million.
- CHGG reported an adjusted loss per share of $0.01, compared to a profit of $0.17 per share in the same quarter a year ago.
- Dan Rosensweig, CEO & Executive Chairman at Chegg said that this is a period of reinvention at the company and it is rebuilding with a focus on the $40 billion skilling market.
Chegg Inc. (CHGG) on Monday projected its first-quarter (Q1) 2026 revenues, which missed Wall Street expectations, and sent shares down in the extended hours of trading.
At the time of writing, the stock was down almost 5%.
The company also swung to loss in the fourth-quarter (Q4), further weighing down the stock.
Q4 Results
Chegg reported a 49% drop in its total net revenues in the quarter to $72.7 million. However, it beat analysts' estimate of $71 million, as per data from Fiscal.ai.
It reported an adjusted net loss of $0.7 million or loss per share of $0.01, compared to a profit of $0.17 per share in the same quarter a year ago. Analysts on average projected a loss of $0.1 per share.
“This is a period of reinvention at Chegg. We are rebuilding the company focused on the $40 billion skilling market, which we believe will be a double-digit revenue growth business for Chegg with strong margins and cash flow in the years ahead,” Dan Rosensweig, CEO & Executive Chairman at Chegg said.
Q1 Outlook
Chegg projected its total net revenues in the range of $60 million to $62 million, while analysts on average expected the revenue to be $64 million, according to data from Fiscal.ai.
The company projected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $11 million to $12 million, while analysts on average expected the EBITDA to be $7.2 million, according to data from Fiscal.ai.
“Our 2026 priorities are to accelerate the growth of our skilling business by expanding our offerings and network of partners, domestically and through Europe, increase free cash flow to invest in the future growth of skilling and strengthen our balance sheet by ending the year with zero debt and a meaningful cash balance,” said Rosensweig.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around CHGG shares trended in “extremely bullish” territory amid “high” message volumes.
One user opined that OpenAI should buy Chegg.
Another user said that the stock will get 20%-30% upside on Tuesday.
Shares in the company have fallen 47.5% over the past 12 months.
