Chegg, Inc. (CHGG) Stock

Chegg, Inc. (CHGG) is a Consumer Discretionary stock trading at $0.76 (as of 2026-08-20), with a market capitalization of $84.09M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Chegg, Inc. provides a learning and educational support platform for students through subscription services and course materials. Its offerings include Chegg Study, Chegg Writing, and Chegg Math (including the Chegg Study Pack bundle), as well as print textbooks and eTextbooks, and its Busuu language learning solution.

Understand Chegg, Inc.: how it makes money

Chegg runs a direct-to-student learning platform, monetizing student demand through subscription services like Chegg Study and Chegg Writing, plus other academic offerings such as required materials (print textbooks and eTextbooks).

Cheggs revenue and scalability are primarily driven by how many students subscribe to Chegg Services, with take-rate and related subscription mix (for example, Chegg Study pack take rate) shaping the monetization level per student.

Revenue by segment (latest quarter)
Sub$0.1B
Skilling$0.0B

Business quality (Weak): The model shows strong gross margin (59.9%) alongside a still-negative operating margin (-1.6%), so investor focus is likely on sustaining subscriber-led revenue while improving operating efficiency.

Bull case

  • Large student subscription base: Chegg Services has 2,600,000 subscribers in the latest period provided.
  • Customer-reported learning outcomes: Students reporting better grades when using Chegg is 91%, students reporting Chegg helps them learn course material is 89%, and students reporting Chegg helps them work more efficiently is 90% (all from the provided metrics).
  • Healthy gross margin: Gross margin is 59.9% in the latest period provided.

Bear case

  • Not yet operating at a profit: Operating margin is -1.6% in the latest period provided.
  • Limited diversification into content licensing (in the provided quarter): Content Licensing Revenue is 0.0 in the latest period provided.
  • Non-core revenue lines appear small vs subscription: The provided segment candidates show smaller values outside Subscription Services (for example, Chegg Skilling Revenue is 0.02, and other categories are also 0.01 to 0.02).
Valuation — source: SEC EDGAR (first-party)
Price$0.76
Market Cap$84.09M
Price / Book0.71
Price / Sales0.32
FCF Yield-8.3%
DCF Value (model)$7.07
DCF Upside vs Price833.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$376.91M
Net Margin-27.4%
Revenue Growth (YoY)-50.7%
EPS Growth (YoY)-90.9%
FCF Growth (YoY)-153.0%
Financial Health — source: SEC EDGAR
Altman Z-Score-4.79 (distress)
Valuation vs Sector & Industry
Sector P/E (Consumer Discretionary)20.5
Industry P/E (Personal Services)13.9
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderMETEORA CAPITAL, LLC ($770.80M)
Institutional Holders Tracked10
Company
SectorConsumer Discretionary
IndustryPersonal Services
CEODaniel Lee Rosensweig
Employees1,241
CountryUS
IPO Date2013-11-13

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CHGG earnings history · CHGG institutional & insider holders · CHGG KPIs & operating metrics · CHGG financials · CHGG investor presentations & press releases · CHGG SEC filings · CHGG peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.