Revenue has plummeted to $63.3 million in 2026Q1, reflecting a severe 47.9% year-over-year contraction as operating margins deteriorated to -1.6%.
Chegg, Inc. (CHGG) annual income statement — 15-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 234.24M | 376.91M | 617.57M | 716.29M | 766.9M | 776.26M | 644.34M | 410.93M | 321.08M | 255.07M | 254.09M | 301.37M | 304.83M | 255.57M | 213.33M | 172.02M |
| Revenue Growth % | -47.68% | -38.97% | -13.78% | -6.6% | -1.21% | 20.47% | 56.8% | 27.98% | 25.88% | 0.38% | -15.69% | -1.14% | 19.27% | 19.8% | 24.02% | - |
| Cost of Goods Sold | 100.07M | 150.05M | 180.93M | 225.94M | 197.4M | 254.9M | 205.42M | 92.18M | 80M | 80.17M | 119.6M | 189.85M | 210.99M | 175.06M | 145.67M | 127.01M |
| COGS % of Revenue | - | 39.81% | 29.3% | 31.54% | 25.74% | 32.84% | 31.88% | 22.43% | 24.91% | 31.43% | 47.07% | 62.99% | 69.21% | 68.5% | 68.28% | 73.84% |
| Gross Profit | 134.17M | 226.86M | 436.65M | 490.35M | 569.5M | 521.36M | 438.92M | 318.74M | 241.09M | 174.89M | 134.49M | 111.52M | 93.85M | 80.52M | 67.67M | 45.01M |
| Gross Margin % | 57.28% | 60.19% | 70.7% | 68.46% | 74.26% | 67.16% | 68.12% | 77.57% | 75.09% | 68.57% | 52.93% | 37.01% | 30.79% | 31.5% | 31.72% | 26.16% |
| Gross Profit Growth % | - | -48.05% | -10.95% | -13.9% | 9.23% | 18.78% | 37.7% | 32.21% | 37.85% | 30.04% | 20.59% | 18.83% | 16.56% | 18.99% | 50.35% | - |
| Operating Expenses | 124.22M | 290.17M | 1.17B | 558.08M | 560.54M | 443.25M | 382.17M | 300.93M | 246.72M | 197.58M | 175.65M | 168.68M | 163.54M | 132.73M | 115.51M | 78.32M |
| OpEx % of Revenue | - | 76.99% | 190.06% | 77.91% | 73.09% | 57.1% | 59.31% | 73.23% | 76.84% | 77.46% | 69.13% | 55.97% | 53.65% | 51.93% | 54.15% | 45.53% |
| Selling, General & Admin | 136.25M | 246.16M | 326.08M | 362.77M | 363.91M | 264.43M | 211.26M | 161.16M | 132.43M | 115.65M | 109.32M | 109.29M | 114.15M | 90.79M | 76.2M | 48.73M |
| SG&A % of Revenue | - | 65.31% | 52.8% | 50.65% | 47.45% | 34.06% | 32.79% | 39.22% | 41.24% | 45.34% | 43.02% | 36.26% | 37.45% | 35.52% | 35.72% | 28.33% |
| Research & Development | 41.7M | 93.45M | 170.43M | 191.71M | 196.64M | 178.82M | 170.91M | 139.77M | 114.29M | 81.93M | 66.33M | 59.39M | 49.39M | 41.94M | 39.31M | 29.59M |
| R&D % of Revenue | - | 24.79% | 27.6% | 26.76% | 25.64% | 23.04% | 26.52% | 34.01% | 35.6% | 32.12% | 26.11% | 19.71% | 16.2% | 16.41% | 18.43% | 17.2% |
| Other Operating Expenses | -1.34M | -49.44M | 677.24M | 3.6M | 0 | 0 | 0 | 0 | 0 | 560K | -297K | 216K | 879K | -359K | 634K | 0 |
| Operating Income | 9.98M | -63.32M | -737.11M | -67.72M | 8.96M | 78.11M | 56.75M | 17.82M | -6.22M | -18.97M | -40.07M | -57.7M | -65.13M | -51.03M | -45.26M | -36.1M |
| Operating Margin % | 4.26% | -16.8% | -119.36% | -9.45% | 1.17% | 10.06% | 8.81% | 4.34% | -1.94% | -7.44% | -15.77% | -19.15% | -21.37% | -19.97% | -21.21% | -20.98% |
| Operating Income Growth % | - | 91.41% | -988.38% | -856.11% | -88.53% | 37.63% | 218.53% | 386.45% | 67.21% | 52.67% | 30.55% | 11.41% | -27.64% | -12.76% | -25.37% | - |
| EBITDA | 64.35M | 15.32M | -658.76M | 61.99M | 100.56M | 152.24M | 119.17M | 48.06M | 16.59M | 370K | -16.28M | -2.64M | 16.17M | 23.81M | 22.72M | 25.89M |
| EBITDA Margin % | 27.47% | 4.06% | -106.67% | 8.65% | 13.11% | 19.61% | 18.49% | 11.7% | 5.17% | 0.15% | -6.41% | -0.87% | 5.31% | 9.31% | 10.65% | 15.05% |
| EBITDA Growth % | 339.36% | 102.33% | -1162.64% | -38.35% | -33.94% | 27.75% | 147.94% | 189.8% | 4382.43% | 102.27% | -517.72% | -116.3% | -32.07% | 4.79% | -12.25% | - |
| D&A (Non-Cash Add-back) | 54.37M | 78.64M | 78.34M | 129.72M | 91.61M | 74.13M | 62.41M | 30.25M | 22.8M | 19.34M | 23.79M | 55.06M | 81.31M | 74.84M | 67.97M | 61.99M |
| EBIT | -4.04M | -99.55M | -685.78M | 54.09M | 109.99M | 12.63M | 65.44M | 37.88M | -2.23M | -18.41M | -40.37M | -57.48M | -64.25M | -51.39M | -44.62M | -34.24M |
| Net Interest Income | -47K | -590K | 25.46M | 33.64M | 6.39M | -196K | -66.3M | -44.85M | -11.22M | -74K | -171K | -247K | -317K | -3.82M | -4.39M | -3.56M |
| Interest Income | 0 | 0 | 28.05M | 37.41M | 12.43M | 6.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 47K | 590K | 2.59M | 3.77M | 6.04M | 6.9M | 66.3M | 44.85M | 11.22M | 74K | 171K | 247K | 317K | 3.82M | 4.39M | 3.56M |
| Other Income/Expense | -50.31M | -36.83M | 48.74M | 118.04M | 94.99M | -72.37M | -57.61M | -24.79M | -7.24M | 486K | -468K | -31K | 562K | -4.18M | -6.36M | -1.7M |
| Pretax Income | -40.33M | -100.14M | -688.37M | 50.31M | 103.95M | 5.74M | -861K | -6.97M | -13.46M | -18.48M | -40.54M | -57.73M | -64.57M | -55.21M | -49.01M | -37.8M |
| Pretax Margin % | -17.22% | -26.57% | -111.46% | 7.02% | 13.55% | 0.74% | -0.13% | -1.7% | -4.19% | -7.25% | -15.95% | -19.16% | -21.18% | -21.6% | -22.98% | -21.98% |
| Income Tax | -110K | 3.28M | 148.7M | 32.13M | -162.69M | 7.2M | 5.36M | 2.63M | 1.43M | 1.8M | 1.71M | 1.48M | 186K | 642K | 29K | -200K |
| Effective Tax Rate % | 0.27% | -3.27% | -21.6% | 63.87% | -156.52% | 125.41% | -622.53% | -37.79% | -10.63% | -9.75% | -4.21% | -2.56% | -0.29% | -1.16% | -0.06% | 0.53% |
| Net Income | -40.22M | -103.42M | -837.07M | 18.18M | 266.64M | -1.46M | -6.22M | -9.61M | -14.89M | -20.28M | -42.24M | -59.21M | -64.76M | -55.85M | -49.04M | -37.6M |
| Net Margin % | -17.17% | -27.44% | -135.54% | 2.54% | 34.77% | -0.19% | -0.97% | -2.34% | -4.64% | -7.95% | -16.63% | -19.65% | -21.24% | -21.85% | -22.99% | -21.86% |
| Net Income Growth % | 47.6% | 87.64% | -4704.33% | -93.18% | 18387.93% | 76.56% | 35.23% | 35.48% | 26.6% | 51.99% | 28.65% | 8.57% | -15.95% | -13.88% | -30.43% | - |
| Net Income (Continuing) | -40.22M | -103.42M | -837.07M | 18.18M | 266.64M | -1.46M | -6.22M | -9.61M | -14.89M | -20.28M | -42.24M | -59.21M | -64.76M | -55.85M | -49.04M | -37.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.36 | -0.96 | -8.10 | -0.34 | 1.34 | -0.01 | -0.05 | -0.08 | -0.13 | -0.20 | -0.47 | -0.68 | -0.78 | -0.68 | -0.74 | -0.56 |
| EPS Growth % | 48.79% | 88.15% | -2282.35% | -125.37% | 13109.71% | 79.23% | 38.46% | 38% | 35% | 57.45% | 30.88% | 12.82% | -14.71% | 8.11% | -32.14% | - |
| EPS (Basic) | - | -0.96 | -8.10 | -0.37 | 2.09 | -0.01 | -0.05 | -0.08 | -0.13 | -0.20 | -0.47 | -0.68 | -0.78 | -0.68 | -0.74 | -0.56 |
| Diluted Shares Outstanding | 111.03M | 107.48M | 103.3M | 128.57M | 149.86M | 141.26M | 125.37M | 119.2M | 113.25M | 100.02M | 90.53M | 86.82M | 83.2M | 81.95M | 66.71M | 66.71M |
| Basic Shares Outstanding | 111.03M | 107.48M | 103.3M | 116.5M | 127.56M | 141.26M | 125.37M | 119.2M | 113.25M | 100.02M | 90.53M | 86.82M | 83.2M | 81.95M | 66.71M | 66.71M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CHGG stock.
For fiscal year 2025, Chegg, Inc. (CHGG) reported total revenue of $376.9M. This represents a 119.1% increase compared to $172.0M in 2011.
Chegg, Inc. (CHGG) reported a net loss of $103.4M for the fiscal year ending 2025.
Chegg, Inc. (CHGG) reported an operating income of $-63.3M, resulting in an operating profit margin of -16.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Chegg, Inc. (CHGG) generated $226.9M in gross profit for the year, representing a gross profit margin of 60.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Rapid AI-driven revenue erosion
Metrics are mathematically derived from official filings.
Persistent Revenue Contraction Trends
As indicated by the most recent quarterly data, Chegg's revenue has plummeted to $63.3 million, representing a severe -47.9% year-over-year decline that underscores the rapid erosion of the company's core subscription-based academic assistance model in the face of widespread generative AI adoption.
The consistent double-digit revenue decay across the last ten quarters suggests that the company's value proposition is facing a structural, rather than cyclical, challenge. Investors should monitor whether the current revenue floor is sustainable or if the business is entering a terminal decline phase as students migrate to free, AI-powered alternatives.
Structural Margin Compression Under Pressure
According to the provided financial statements, gross margins have compressed from historical peaks above 75% down to 59.9% in 2026Q1, reflecting a diminished ability to maintain pricing power while the cost of content delivery remains relatively fixed despite the shrinking top-line.
The inability to protect gross margins during a period of rapid revenue contraction suggests that the company's content library may be losing its competitive moat. This margin degradation implies that the firm is struggling to achieve the necessary scale to offset the high fixed costs associated with its proprietary Q&A database.
Operating Leverage Remains Severely Impaired
Based on reported figures, Chegg's operating margin has fluctuated wildly into negative territory, reaching -1.6% in the most recent quarter, which highlights the company's failure to scale operating expenses efficiently in response to the significant contraction in gross profit generation.
The persistent inability to achieve positive operating income suggests that the current cost structure is misaligned with the company's reduced revenue scale. Management's efforts to right-size the organization appear insufficient, as SG&A and R&D expenses continue to weigh heavily on the bottom line despite aggressive headcount or operational adjustments.
Earnings Quality Obscured by Volatility
As documented in the income statement history, the company's net income has been characterized by extreme volatility and frequent losses, with stock-based compensation historically masking the true cash-burn nature of the business before recent efforts to reduce such non-cash expenses were implemented.
The wide variance between operating income and net income in prior periods suggests that non-operating items and significant dilution have historically distorted the company's true profitability. Investors should remain cautious, as the recent shift toward near-zero stock-based compensation may be a reactive measure to preserve liquidity rather than a sign of improved earnings quality.
Liquidity Risks and Terminal Value
Data from recent filings reveals a precarious cash position of only $31.1 million, which warrants significant concern regarding the company's ability to fund its ongoing operations and strategic pivots without resorting to dilutive financing or further aggressive cost-cutting measures.
Short-sellers would likely focus on the mismatch between the company's high fixed-cost base and its rapidly dwindling cash reserves. This liquidity constraint suggests that the firm has a very limited runway to prove that its 'verified' content library can be successfully monetized in a post-AI academic landscape.