Chegg, Inc. (CHGG)

Several significant events impacted Chegg's stock price in the past six months. Chegg reported its Q2 2025 earnings in August, with revenues exceeding expectations but EPS lagging. On September 15, 2025, Chegg settled FTC claims regarding its subscription cancellation process for $7.5 million. On October 27, 2025, Chegg announced it would remain a standalone public company after a strategic review and would undertake a restructuring, reducing 388 roles globally and returning Dan Rosensweig as President and CEO. Chegg released its Q3 2025 earnings on November 10, 2025, reporting better-than-expected profitability despite a revenue drop, with shares jumping 5.3% following the report. Throughout the period, analysts weighed in on CHGG shares, with some downgrading the stock due to concerns about market performance and AI competition.

Chegg's business experiences seasonality common in the education sector. Demand typically increases during academic terms and around exam periods, while it may be lower during academic breaks and summer months. The company's shift towards a "skilling" market may introduce new or alter existing seasonality patterns.

Chegg, Inc. is an American educational technology company based in Santa Clara, California, specializing in student-focused learning solutions. It operates primarily in the Educational and Training Services industry, offering services like homework help, textbook rentals, and online tutoring. Chegg's major product offerings include Subscription Services (Chegg Study, Writing, Math, Study Pack, Busuu) and Skills and Other (skills-based learning platforms, professional development, advertising, and textbook rentals). The company is pivoting to focus on a high-growth professional skilling unit.

Chegg, Inc. is headquartered in Santa Clara, California, and has an operational presence in countries including France, Spain, Brazil, the UK, Germany, India, and Israel, with U.S. offices in New York and San Francisco. The company plans to close its U.S. and Canadian offices by the end of 2025 as part of a restructuring.

Chegg's brand reputation in the past year has been influenced by concerns about academic misconduct and a recent settlement. The company has faced criticism for allegedly facilitating cheating through its homework help services and settled with the FTC on September 15, 2025, for $7.5 million due to issues with subscription cancellations. Chegg emphasizes its commitment to academic integrity, social responsibility, and ethical business practices.

Chegg, Inc.'s ownership structure includes institutional, retail, and individual investors. Major institutional owners include Vanguard Group Inc., Acadian Asset Management Llc, Charles Schwab Investment Management Inc., Arrowstreet Capital, Limited Partnership, BlackRock, Inc., Millennium Management Llc, Morgan Stanley, Quinn Opportunity Partners LLC, and Renaissance Technologies Llc. Key individual owners and insiders include Daniel Rosensweig, Insight Venture Partners VI LP, and Kleiner Perkins Caufield Byers XIII LLC.