Chegg Inc Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Chegg Inc has an operating margin of -119.4%, meaning the company retains $-119 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from -9.4% the prior year.
Chegg Inc's revenue declined 13.8% year-over-year, from $716.3M to $617.6M. This contraction results in a growth score of 0/100.
Chegg Inc has elevated debt relative to equity (D/E of 3.50), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 0/100, reflecting increased financial risk.
Chegg Inc's current ratio of 0.83 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 13/100, which could limit financial flexibility.
Chegg Inc has a free cash flow margin of 8.1%, earning a moderate score of 41/100. The company generates positive cash flow after capital investments, but with room for improvement.
Chegg Inc passes 5 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Chegg Inc generates $-0.15 in operating cash flow ($125.2M OCF vs -$837.1M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Chegg Inc earns $-284.6 in operating income for every $1 of interest expense (-$737.1M vs $2.6M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
This page shows Chegg Inc (CHGG) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Chegg Inc generated $617.6M in revenue in fiscal year 2024. This represents a decrease of 13.8% from the prior year.
Chegg Inc generated $50.3M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 69.2% from the prior year.
Chegg Inc reported -$837.1M in net income in fiscal year 2024. This represents a decrease of 4704.3% from the prior year.
Chegg Inc earned $-8.10 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 2282.4% from the prior year.
Chegg Inc held $161.5M in cash against $0 in long-term debt as of fiscal year 2024.
Chegg Inc had 105M shares outstanding in fiscal year 2024. This represents an increase of 2.1% from the prior year.
Chegg Inc's gross margin was 70.7% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 2.2 percentage points from the prior year.
Chegg Inc's operating margin was -119.4% in fiscal year 2024, reflecting core business profitability. This is down 109.9 percentage points from the prior year.
Chegg Inc's net profit margin was -135.5% in fiscal year 2024, showing the share of revenue converted to profit. This is down 138.1 percentage points from the prior year.
Chegg Inc invested $170.4M in research and development in fiscal year 2024. This represents a decrease of 11.1% from the prior year.
Chegg Inc spent $2.6M on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 99.2% from the prior year.
Chegg Inc invested $75.0M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 9.8% from the prior year.
CHGG Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $77.7M-26.0% | $105.1M-13.4% | $121.4M-15.4% | $143.5M-12.1% | $163.1M-6.4% | $174.3M-7.3% | $188.0M+19.1% | $157.9M |
| Cost of Revenue | $31.7M-10.6% | $35.5M-34.3% | $54.0M+18.4% | $45.6M+0.4% | $45.4M-2.3% | $46.5M+1.5% | $45.8M-45.2% | $83.6M |
| Gross Profit | $46.0M-33.9% | $69.6M+3.3% | $67.4M-31.1% | $97.9M-16.9% | $117.7M-7.9% | $127.9M-10.1% | $142.2M+91.4% | $74.3M |
| R&D Expenses | $18.4M-36.1% | $28.7M-2.4% | $29.4M-28.2% | $41.0M-6.1% | $43.7M-1.8% | $44.4M-2.8% | $45.7M-1.0% | $46.2M |
| SG&A Expenses | $33.2M-44.6% | $60.0M+52.3% | $39.4M-30.1% | $56.3M+4.2% | $54.0M-2.7% | $55.5M+3.9% | $53.4M-0.1% | $53.5M |
| Operating Income | -$17.1M+53.0% | -$36.5M-25.7% | -$29.0M-6.2% | -$27.3M+94.4% | -$485.0M-19370.4% | -$2.5M-118.7% | $13.3M+123.0% | -$57.9M |
| Interest Expense | $41K0.0% | $41K-91.2% | $467K-26.0% | $631K-3.1% | $651K+0.2% | $650K-79.6% | $3.2M+335.7% | $733K |
| Income Tax | $1.7M+37.6% | $1.2M+20.8% | $1.0M-74.8% | $4.0M-97.1% | $138.3M+1427.2% | $9.1M+11.8% | $8.1M+4611.0% | $172K |
| Net Income | -$17.5M+51.0% | -$35.7M-104.0% | -$17.5M-185.5% | -$6.1M+99.0% | -$616.9M-43342.5% | -$1.4M-114.7% | $9.7M+152.9% | -$18.3M |
| EPS (Diluted) | $-0.16+51.5% | $-0.33-94.1% | $-0.17-466.7% | $-0.03+99.5% | $-6.01-60000.0% | $-0.01+88.9% | $-0.09+43.8% | $-0.16 |
CHGG Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $378.3M-6.5% | $404.5M-7.8% | $438.8M-49.5% | $869.0M-22.0% | $1.1B-35.7% | $1.7B+0.3% | $1.7B-4.3% | $1.8B |
| Current Assets | $203.4M-0.3% | $203.9M-2.8% | $209.8M-52.1% | $437.6M+0.9% | $433.5M-7.0% | $465.9M+12.3% | $414.8M+19.3% | $347.7M |
| Cash & Equivalents | $38.2M+3.7% | $36.8M-16.5% | $44.1M-72.7% | $161.5M+21.3% | $133.1M-7.4% | $143.7M+5.9% | $135.8M+43.8% | $94.4M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $15.4M-14.5% | $18.1M-36.8% | $28.5M+20.8% | $23.6M+12.8% | $21.0M-15.3% | $24.7M-21.2% | $31.4M+3.0% | $30.5M |
| Goodwill | N/A | N/A | N/A | $0-100.0% | $189.8M-69.8% | $628.8M-0.5% | $632.0M+2.3% | $617.7M |
| Total Liabilities | $232.2M-5.8% | $246.6M-2.6% | $253.1M-62.6% | $676.0M-9.7% | $748.8M-2.6% | $769.2M-1.7% | $782.6M+1.5% | $771.3M |
| Current Liabilities | $214.6M-5.4% | $227.0M+32.7% | $171.0M-67.6% | $528.3M+8.9% | $485.3M-3.9% | $505.2M-2.6% | $518.5M+245.1% | $150.2M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $146.1M-7.5% | $157.9M-15.0% | $185.7M-3.8% | $193.0M-47.2% | $365.5M-62.1% | $963.5M+2.0% | $944.6M-8.6% | $1.0B |
| Retained Earnings | -$960.1M-1.9% | -$942.6M-3.9% | -$906.9M-2.0% | -$889.4M-32.6% | -$670.7M-1146.8% | -$53.8M-2.7% | -$52.4M+15.6% | -$62.0M |
CHGG Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $4.8M+199.4% | -$4.8M-119.7% | $24.5M+35.3% | $18.1M+27.4% | $14.2M-73.3% | $53.3M-31.2% | $77.5M+136.2% | $32.8M |
| Capital Expenditures | $5.8M-20.4% | $7.2M-16.6% | $8.7M-34.8% | $13.3M-25.3% | $17.8M-36.5% | $28.0M+8.8% | $25.8M+9.9% | $23.4M |
| Free Cash Flow | -$943K+92.2% | -$12.1M-176.1% | $15.9M+228.1% | $4.8M+235.3% | -$3.6M-114.1% | $25.3M-51.1% | $51.7M+451.9% | $9.4M |
| Investing Cash Flow | -$2.3M+14.3% | -$2.7M-101.0% | $274.9M+190.0% | $94.8M+507.2% | -$23.3M+43.0% | -$40.8M-136.0% | $113.4M+339.9% | $25.8M |
| Financing Cash Flow | -$604K-241.2% | -$177K+100.0% | -$417.0M-306.1% | -$102.7M-7557.3% | -$1.3M+68.8% | -$4.3M+97.1% | -$150.0M-7.9% | -$139.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | $2.6M | $0 | $0-100.0% | $148.4M | $0 |
CHGG Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.2%-7.0pp | 66.3%+10.7pp | 55.5%-12.7pp | 68.2%-3.9pp | 72.2%-1.2pp | 73.3%-2.3pp | 75.6%+28.6pp | 47.1% |
| Operating Margin | -22.0%+12.7pp | -34.7%-10.8pp | -23.9%-4.8pp | -19.0%+278.2pp | -297.3%-295.8pp | -1.4%-8.5pp | 7.1%+43.7pp | -36.7% |
| Net Margin | -22.5%+11.5pp | -33.9%-19.5pp | -14.4%-10.1pp | -4.3%+373.9pp | -378.1%-377.3pp | -0.8%-5.9pp | 5.1%+16.7pp | -11.6% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | 1.0% | N/A |
| Return on Assets | -4.6%+4.2pp | -8.8%-4.8pp | -4.0%-3.3pp | -0.7%+54.7pp | -55.4%-55.3pp | -0.1%-0.6pp | 0.6%+1.6pp | -1.0% |
| Current Ratio | 0.95+0.0 | 0.90-0.3 | 1.23+0.4 | 0.83-0.1 | 0.89-0.0 | 0.92+0.1 | 0.80-1.5 | 2.31 |
| Debt-to-Equity | 1.59+0.0 | 1.56+0.2 | 1.36-2.1 | 3.50+1.5 | 2.05+1.3 | 0.80-0.0 | 0.83+0.1 | 0.75 |
| FCF Margin | -1.2%+10.3pp | -11.5%-24.6pp | 13.1%+9.7pp | 3.4%+5.6pp | -2.2%-16.7pp | 14.5%-13.0pp | 27.5%+21.6pp | 5.9% |
Note: The current ratio is below 1.0 (0.83), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Chegg Inc's annual revenue?
Chegg Inc (CHGG) reported $617.6M in total revenue for fiscal year 2024. This represents a -13.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Chegg Inc's revenue growing?
Chegg Inc (CHGG) revenue declined by 13.8% year-over-year, from $716.3M to $617.6M in fiscal year 2024.
Is Chegg Inc profitable?
No, Chegg Inc (CHGG) reported a net income of -$837.1M in fiscal year 2024, with a net profit margin of -135.5%.
What is Chegg Inc's earnings per share (EPS)?
Chegg Inc (CHGG) reported diluted earnings per share of $-8.10 for fiscal year 2024. This represents a -2282.4% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Chegg Inc's gross margin?
Chegg Inc (CHGG) had a gross margin of 70.7% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Chegg Inc's operating margin?
Chegg Inc (CHGG) had an operating margin of -119.4% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Chegg Inc's net profit margin?
Chegg Inc (CHGG) had a net profit margin of -135.5% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Chegg Inc's free cash flow?
Chegg Inc (CHGG) generated $50.3M in free cash flow during fiscal year 2024. This represents a -69.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Chegg Inc's operating cash flow?
Chegg Inc (CHGG) generated $125.2M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Chegg Inc's total assets?
Chegg Inc (CHGG) had $869.0M in total assets as of fiscal year 2024, including both current and long-term assets.
What are Chegg Inc's capital expenditures?
Chegg Inc (CHGG) invested $75.0M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Chegg Inc spend on research and development?
Chegg Inc (CHGG) invested $170.4M in research and development during fiscal year 2024.
Does Chegg Inc buy back shares?
Yes, Chegg Inc (CHGG) spent $2.6M on share buybacks during fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
How many shares does Chegg Inc have outstanding?
Chegg Inc (CHGG) had 105M shares outstanding as of fiscal year 2024.
What is Chegg Inc's current ratio?
Chegg Inc (CHGG) had a current ratio of 0.83 as of fiscal year 2024, which is below 1.0, which may suggest potential liquidity concerns.
What is Chegg Inc's debt-to-equity ratio?
Chegg Inc (CHGG) had a debt-to-equity ratio of 3.50 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Chegg Inc's return on assets (ROA)?
Chegg Inc (CHGG) had a return on assets of -96.3% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Chegg Inc's Piotroski F-Score?
Chegg Inc (CHGG) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Chegg Inc's earnings high quality?
Chegg Inc (CHGG) has an earnings quality ratio of -0.15x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Chegg Inc cover its interest payments?
Chegg Inc (CHGG) has an interest coverage ratio of -284.6x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Chegg Inc?
Chegg Inc (CHGG) scores 11 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.