CHGG

Revenue: As of FY2026 Q3, the actual value is USD 46.47 M, compared to the market estimate of USD 43.52 M.

EPS: As of FY2026 Q3, the actual value is USD -0.04.

EBIT: As of FY2026 Q3, the actual value is USD -4.398 M.

Financial and Operational Highlights for Q3 2026

Revenue

Chegg, Inc. reported Total Net Revenues of $46.5 million for the third quarter of 2026, which represents a decrease of 40% year-over-year.

Profitability

The GAAP Gross Margin was 52%, while the Non-GAAP Gross Margin was 54%. The company reported a Net Loss of - $4.7 million and a Non-GAAP Net Loss of - $5.7 million. Loss from operations was - $5.102 million, and Non-GAAP loss from operations was - $6.013 million. Adjusted EBITDA for the quarter was $5.4 million, representing a margin of 12%.

Operating Costs

Non-GAAP operating expenses were $31.2 million, which was down 36% year-over-year.

Cash Flow and Capital Expenditures

Free cash flow in the third quarter was $5.5 million. For the nine months ended September 30, 2026, free cash flow was $14.965 million. Net cash provided by operating activities for the nine months ended September 30, 2026, was $21.376 million. Third-quarter Capital Expenditure (CapEx) was $1.7 million, marking a decrease of 71% year-over-year.

Balance Sheet

Chegg, Inc. ended the third quarter of 2026 with $43.6 million in cash and investments and had fully repaid its remaining convertible debt.

Business Outlook for Fourth Quarter 2026

For the fourth quarter of 2026, Chegg, Inc. anticipates Total Net Revenues between $38 million and $40 million, with a Gross Margin of 46% to 48% and Adjusted EBITDA of approximately $1 million. The company’s capital allocation strategy, following debt repayment, prioritizes generating free cash flow and maintaining a strong balance sheet. This approach aims to thoughtfully deploy capital to create long-term shareholder value.