Earnings Releases·Nov 3, 2026, 8:10 AM ET

Chegg — Third Quarter 2026 Earnings Summary

Total net revenues declined 40% year-over-year to $46.5 million, while net loss narrowed to $4.7 million from $17.5 million in Q3 2025; non-GAAP gross margin fell to 54% from 59% and adjusted EBITDA dropped to $5.4 million from $13.3 million.
The company fully repaid all remaining convertible senior notes, eliminating all debt, and generated $5.5 million in free cash flow with $43.6 million in cash and investments.
Q4 2026 guidance sets total net revenue between $38 million and $40 million, gross margin between 46% and 48%, and adjusted EBITDA at approximately $1 million.
Strategic pivot to an employability platform continues with the September launch of Internships.com, 11 new distribution partners, and plans to add 70,000 early career listings, while management targets a >60% reduction in full-year 2026 capital expenditures.
Management is reviewing companies with strong IP and customer bases for potential acquisition to leverage the new employability platform, though risks remain regarding AI impact on the legacy homework business and potential NYSE delisting.