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Chegg Inc Financials

CHGG
FY2025 annual
Revenue $376.9M -39.0% YoY
Net Income -$103.0M +87.7% YoY
EPS (Diluted) -$0.96 +88.1% YoY
Free Cash Flow -$12.6M -125.1% YoY
Source SEC Filings (10-K/10-Q) Data as of Jun 30, 2026 Currency USD FYE December

Chegg Inc (CHGG) reported $376.9M in revenue for fiscal year 2025, down 39.0% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 14 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).

Rhea AI CHGG FY2025

Chegg’s business mechanic is now scale loss outrunning cost cuts, turning historically rich gross margins into real cash pressure.

FY2024’s -$837M loss looks less like cash collapse than a balance-sheet reset: goodwill was written to $0 while operating cash flow stayed positive. The more important shift came in FY2025, when revenue shrinkage finally reached cash generation and free cash flow slipped to -$12.6M after staying positive through the write-down year.

Revenue fell 51.4% from FY2021 to FY2025, but R&D plus SG&A fell only 19.8%; that spread shows a cost base built for a much larger company. Gross margin still held at 59.6% in FY2025, so the operating damage is more about insufficient scale and overhead absorption than a broken gross-profit model.

Liquidity has tightened sharply: cash dropped from $135.8M in FY2023 to $31.1M in FY2025. With the current ratio still below 1x, ordinary working-capital needs no longer sit behind the large cushion visible earlier in the period.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity CashFlow Returns 22 / 100
Financial Health Score 22/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Chegg Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
14

Chegg Inc has an operating margin of -31.0%, meaning the company loses $31 on every $100 of revenue. This results in a profitability score of 14/100. This is up from -119.4% the prior year.

Growth
3

Chegg Inc's revenue declined 39.0% year-over-year, from $617.6M to $376.9M. This contraction results in a growth score of 3/100.

Leverage
40

Chegg Inc has a moderate D/E ratio of 1.32. This balance of debt and equity financing earns a leverage score of 40/100.

Liquidity
14

Chegg Inc's current ratio of 0.86 is below the typical benchmark, resulting in a score of 14/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow
49

While Chegg Inc generated $15.5M in operating cash flow, capex of $28.1M consumed most of it, leaving -$12.6M in free cash flow. This results in a low score of 49/100, reflecting heavy capital investment rather than weak cash generation.

Returns
10

Chegg Inc posts a -86.1% return on equity (ROE), meaning it loses $86 for every $100 of shareholders' equity. This results in a returns score of 10/100. This is up from -433.7% the prior year.

Altman Z-Score Distress
-4.78

Chegg Inc scores -4.78, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($88.9M) relative to total liabilities ($158.4M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial
5/8

Chegg Inc passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Mixed
N/A

Chegg Inc reported a net loss of $103.0M while generating $15.5M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.

Interest Coverage At Risk
N/A

Chegg Inc reported an operating loss of $116.9M against $590K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.

Key Financial Metrics

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Earnings & Revenue

Revenue
$376.9M
YoY-39.0%
5Y CAGR-10.2%
10Y CAGR+2.3%

Chegg Inc generated $376.9M in revenue in fiscal year 2025. This represents a decrease of 39.0% from the prior year.

Net Income
-$103.0M
YoY+87.7%

Chegg Inc reported -$103.0M in net income in fiscal year 2025. This represents an increase of 87.7% from the prior year.

EPS (Diluted)
-$0.96
YoY+88.1%

Chegg Inc earned -$0.96 per diluted share (EPS) in fiscal year 2025. This represents an increase of 88.1% from the prior year.

EBITDA

Not reported for fiscal year 2025.

Cash & Balance Sheet

Free Cash Flow
-$12.6M
YoY-125.1%

Chegg Inc recorded an outflow of $12.6M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents a decrease of 125.1% from the prior year.

Cash & Debt
$31.1M
YoY-80.7%
5Y CAGR-42.1%
10Y CAGR-7.4%

Chegg Inc held $31.1M in cash as of fiscal year 2025; long-term debt is not reported for that period.

Shares Outstanding
111M
YoY+5.6%
5Y CAGR-3.0%
10Y CAGR+2.3%

Chegg Inc had 111M shares outstanding in fiscal year 2025. This represents an increase of 5.6% from the prior year.

Dividends Per Share

Not reported for fiscal year 2025.

Margins & Returns

Gross Margin
59.6%
YoY-11.1pp
5Y CAGR-8.5pp
10Y CAGR+22.6pp

Chegg Inc's gross margin was 59.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 11.1 percentage points from the prior year.

Operating Margin
-31.0%
5Y CAGR-39.8pp
10Y CAGR-11.8pp

Chegg Inc's operating margin was -31.0% in fiscal year 2025, reflecting core business profitability. No change is given against fiscal year 2024: its reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.

Net Margin
-27.3%
5Y CAGR-26.4pp
10Y CAGR-7.7pp

Chegg Inc's net profit margin was -27.3% in fiscal year 2025, showing the share of revenue converted to profit. No change is given against fiscal year 2024: its reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.

Return on Equity
-86.1%
YoY+347.6pp
5Y CAGR-85.1pp
10Y CAGR-60.5pp

Chegg Inc's ROE was -86.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 347.6 percentage points from the prior year.

Capital Allocation

R&D Spending
$93.5M
YoY-45.2%
5Y CAGR-11.4%
10Y CAGR+4.6%

Chegg Inc invested $93.5M in research and development in fiscal year 2025. This represents a decrease of 45.2% from the prior year.

Share Buybacks
$0
YoY-100.0%

Chegg Inc repurchased no shares in fiscal year 2025. This represents a decrease of 100.0% from the prior year.

Capital Expenditures
$28.1M
YoY-62.5%
5Y CAGR-19.1%
10Y CAGR+13.0%

Chegg Inc invested $28.1M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 62.5% from the prior year.

CHGG Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

CHGG annual income statement
MetricTTMFY25FY24FY23FY22FY21FY20FY19FY18FY17FY16FY15FY14FY13FY12
Revenue$265.5M$376.9M-39.0%$617.6M-13.8%$716.3M-6.6%$766.9M-1.2%$776.3M+20.5%$644.3M+56.8%$410.9M+28.0%$321.1M+25.9%$255.1M+0.4%$254.1M-15.7%$301.4M-1.1%$304.8M+19.3%$255.6M+19.8%$213.3M
Cost of Revenue$111.6M$152.2M-15.9%$180.9M-19.9%$225.9M+14.5%$197.4M-22.6%$254.9M+24.1%$205.4M+122.8%$92.2M+15.2%$80.0M-0.2%$80.2M-33.0%$119.6M-37.0%$189.8M-10.0%$211.0M+20.5%$175.1M+20.2%$145.7M
Gross Profit$153.9M$224.8M-48.5%$436.6M-11.0%$490.4M-13.9%$569.5M+9.2%$521.4M+18.8%$438.9M+37.7%$318.7M+32.2%$241.1M+37.9%$174.9M+30.0%$134.5M+20.6%$111.5M+18.8%$93.8M+16.6%$80.5M+19.0%$67.7M
R&D Expenses$51.8M$93.5M-45.2%$170.4M-11.1%$191.7M-2.5%$196.6M+10.0%$178.8M+4.6%$170.9M+22.3%$139.8M+22.3%$114.3M+39.5%$81.9M+23.5%$66.3M+11.7%$59.4M+20.3%$49.4M+17.7%$41.9M+6.7%$39.3M
SG&A Expenses$111.8M$177.4M-18.5%$217.8M-7.8%$236.2M+9.2%$216.2M+36.0%$159.0M+22.9%$129.3M+32.5%$97.6M+25.6%$77.7M+20.7%$64.4M+16.3%$55.4M+22.5%$45.2M+8.1%$41.8M+3.3%$40.5M+61.2%$25.1M
Operating Income-$55.6M-$116.9M+84.1%-$737.1M-988.4%-$67.7M-856.1%$9.0M-88.5%$78.1M+37.6%$56.8M+218.5%$17.8M+386.4%-$6.2M+67.2%-$19.0M+52.7%-$40.1M+30.6%-$57.7M+11.4%-$65.1M-27.6%-$51.0M-12.8%-$45.3M
Interest Expense$135K$590K-77.2%$2.6M-31.4%$3.8M-37.5%$6.0M+187.6%-$6.9M+89.6%-$66.3M-47.8%-$44.9M-299.6%-$11.2M-15068.9%-$74K+56.7%-$171K+30.8%-$247K-177.9%$317K-91.7%$3.8M-13.1%$4.4M
Income Tax$1.3M$3.3M-97.8%$148.7M+362.8%$32.1M+119.8%-$162.7M-2360.6%$7.2M+34.3%$5.4M+103.5%$2.6M+84.2%$1.4M-20.6%$1.8M+5.6%$1.7M+15.4%$1.5M+695.2%$186K-71.0%$642K+2113.8%$29K
Net Income-$52.6M-$103.0M+87.7%-$837.0M-4750.0%$18.0M-93.2%$266.6M+18387.9%-$1.5M+76.6%-$6.2M+35.2%-$9.6M+35.5%-$14.9M+26.6%-$20.3M+52.0%-$42.2M+28.7%-$59.2M+8.6%-$64.8M-15.9%-$55.9M-13.9%-$49.0M
EPS (Diluted)-$0.96+88.1%-$8.10-2282.4%-$0.34-125.4%$1.34+13500.0%-$0.01+80.0%-$0.05+37.5%-$0.08N/AN/AN/AN/AN/AN/AN/A

TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.

CHGG Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

CHGG annual balance sheet
MetricFY25FY24FY23FY22FY21FY20FY19FY18FY17FY16FY15FY14FY13FY12
Total Assets$278.0M-68.0%$869.0M-49.7%$1.7B-29.9%$2.5B-15.5%$2.9B+29.7%$2.3B+51.2%$1.5B+95.7%$760.9M+70.3%$446.9M+53.8%$290.7M-0.2%$291.4M-8.4%$318.1M-2.8%$327.4MN/A
Current Assets$121.6M-72.2%$437.6M+5.5%$414.8M-63.8%$1.1B-29.5%$1.6B+37.2%$1.2B+46.5%$807.3M+63.1%$494.9M+116.2%$228.9M+105.6%$111.4M-16.2%$132.8M+19.9%$110.8M-10.9%$124.3MN/A
Cash & Equivalents$31.1M-80.7%$161.5M+18.9%$135.8M-71.3%$473.7M-44.5%$854.1M+78.0%$479.9M+23.8%$387.5M+3.4%$374.7M+196.3%$126.5M+63.5%$77.3M+15.4%$67.0M+19.4%$56.1M-27.0%$76.9M+265.5%$21.0M
Accounts Receivable$15.6M-34.0%$23.6M-24.7%$31.4M+33.5%$23.5M+31.7%$17.9M+38.2%$12.9M+12.0%$11.5M-9.5%$12.7M+17.3%$10.9M+3.9%$10.5M-20.6%$13.2M-8.6%$14.4M+103.0%$7.1MN/A
GoodwillN/A$0-100.0%$632.0M+2.7%$615.1M+112.3%$289.8M+1.6%$285.2M+33.0%$214.5M+43.5%$149.5M+19.4%$125.3M+7.8%$116.2M+27.3%$91.3M0.0%$91.3M+84.3%$49.5M0.0%$49.5M
Total Liabilities$158.4M-76.6%$676.0M-13.6%$782.6M-42.0%$1.3B-25.6%$1.8B+10.4%$1.6B+65.8%$990.2M+182.7%$350.3M+527.0%$55.9M-18.7%$68.7M+14.0%$60.3M-15.2%$71.1M+33.8%$53.1MN/A
Current Liabilities$140.9M-73.3%$528.3M+1.9%$518.5M+273.3%$138.9M+21.5%$114.3M+4.2%$109.7M+53.7%$71.4M+19.6%$59.7M+15.7%$51.6M-19.8%$64.3M+14.6%$56.1M-15.9%$66.7M+38.6%$48.2MN/A
Total Equity$119.6M-38.0%$193.0M-79.6%$944.6M-15.4%$1.1B+0.9%$1.1B+81.6%$609.6M+22.2%$498.8M+21.5%$410.6M+5.0%$391.1M+76.2%$221.9M-4.0%$231.1M-6.5%$247.0M-9.9%$274.2M+418.4%-$86.1M
Retained Earnings-$992.9M-11.6%-$889.4M-1598.3%-$52.4M+25.8%-$70.6M+79.1%-$337.2M+20.2%-$422.6M-1.5%-$416.3M-2.4%-$406.6M-3.8%-$391.6M-5.5%-$371.3M-12.8%-$329.1M-21.9%-$269.9M-31.6%-$205.1MN/A

Not reported in any period shown, so not listed: Inventory, Long-Term Debt.

CHGG Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

CHGG annual cash flow statement
MetricTTMFY25FY24FY23FY22FY21FY20FY19FY18FY17FY16FY15FY14FY13FY12
Operating Cash Flow$10.0M$15.5M-87.6%$125.2M-49.1%$246.2M-3.7%$255.7M-6.4%$273.2M+15.6%$236.4M+108.5%$113.4M+51.0%$75.1M+45.7%$51.5M+112.5%$24.3M+29687.8%-$82K-100.1%$68.5M+7.5%$63.7M+16.5%$54.7M
Capital Expenditures$16.9M$28.1M-62.5%$75.0M-9.8%$83.1M-19.4%$103.1M+9.5%$94.2M+15.8%$81.3M+92.1%$42.3M+35.6%$31.2M+19.4%$26.1M+5.9%$24.7M+199.2%$8.3M+62.4%$5.1M-31.0%$7.4M-51.4%$15.1M
Free Cash Flow-$7.0M-$12.6M-125.1%$50.3M-69.2%$163.1M+6.9%$152.6M-14.7%$179.0M+15.4%$155.1M+118.2%$71.1M+61.9%$43.9M+72.7%$25.4M+6050.4%-$427K+94.9%-$8.3M-113.1%$63.4M+12.5%$56.3M+42.5%$39.5M
Investing Cash Flow$31.1M$282.3M+2388.3%$11.3M-95.8%$268.7M+156.1%$104.9M+128.7%-$365.8M+50.1%-$732.8M-4.2%-$703.4M-752.1%-$82.5M+39.4%-$136.2M-2184.7%-$6.0M-172.1%$8.3MN/AN/AN/A
Financing Cash Flow-$33.2M-$428.5M-292.6%-$109.1M+87.2%-$852.8M-14.5%-$744.8M-259.6%$466.7M-20.7%$588.6M-2.5%$603.5M+135.4%$256.4M+91.1%$134.2M+1647.1%-$8.7M-418.6%$2.7MN/AN/AN/A
Share BuybacksN/A$0-100.0%$2.6M-99.2%$334.8M+3.5%$323.5M+7.8%$300.0M$0-100.0%$20.0MN/AN/AN/AN/AN/AN/AN/A

Not reported in any period shown, so not listed: Dividends Paid.

TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.

CHGG Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples.

CHGG annual financial ratios
MetricFY25FY24FY23FY22FY21FY20FY19FY18FY17FY16FY15FY14FY13FY12
Gross Margin59.6%-11.1pp70.7%+2.2pp68.5%-5.8pp74.3%+7.1pp67.2%-1.0pp68.1%-9.4pp77.6%+2.5pp75.1%+6.5pp68.6%+15.6pp52.9%+15.9pp37.0%+6.2pp30.8%-0.7pp31.5%-0.2pp31.7%
Operating Margin-31.0%-119.4%-9.4%-10.6pp1.2%-8.9pp10.1%+1.2pp8.8%+4.5pp4.3%+6.3pp-1.9%+5.5pp-7.4%+8.3pp-15.8%+3.4pp-19.1%+2.2pp-21.4%-1.4pp-20.0%+1.2pp-21.2%
Net Margin-27.3%-135.5%2.5%-32.3pp34.8%+35.0pp-0.2%+0.8pp-1.0%+1.4pp-2.3%+2.3pp-4.6%+3.3pp-8.0%+8.7pp-16.6%+3.0pp-19.7%+1.6pp-21.2%+0.6pp-21.9%+1.1pp-23.0%
Return on Equity-86.1%+347.6pp-433.7%-435.6pp1.9%-22.0pp23.9%+24.0pp-0.1%+0.9pp-1.0%+0.9pp-1.9%+1.7pp-3.6%+1.6pp-5.2%+13.8pp-19.0%+6.6pp-25.6%+0.6pp-26.2%-5.8pp-20.4%N/A
Return on Assets-37.0%+59.3pp-96.3%-97.4pp1.0%-9.8pp10.8%+10.9pp-0.1%+0.2pp-0.3%+0.4pp-0.7%+1.3pp-2.0%+2.6pp-4.5%+10.0pp-14.5%+5.8pp-20.3%0.0pp-20.4%-3.3pp-17.1%N/A
Current Ratio0.860.0x0.830.0x0.80-7.4x8.24-6.0x14.19+3.4x10.78-0.5x11.31+3.0x8.29+3.9x4.44+2.7x1.73-0.6x2.37+0.7x1.66-0.9x2.58N/A
Debt-to-Equity1.32-2.2x3.50+2.7x0.83-0.4x1.21-0.4x1.64-1.1x2.69+0.7x1.99+1.1x0.85+0.7x0.14-0.2x0.310.0x0.260.0x0.29+0.1x0.19N/A
FCF Margin-3.4%-11.5pp8.1%-14.6pp22.8%+2.9pp19.9%-3.2pp23.1%-1.0pp24.1%+6.8pp17.3%+3.6pp13.7%+3.7pp10.0%+10.1pp-0.2%+2.6pp-2.8%-23.6pp20.8%-1.2pp22.0%+3.5pp18.5%

Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin.

Note: The current ratio is below 1.0 (0.86), 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 $376.9M in total revenue for fiscal year 2025. This represents a -39.0% 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 39.0% year-over-year, from $617.6M to $376.9M in fiscal year 2025.

Is Chegg Inc profitable?

No, Chegg Inc (CHGG) reported a net income of -$103.0M in fiscal year 2025, with a net profit margin of -27.3%.

Chegg Inc (CHGG) reported diluted earnings per share of -$0.96 for fiscal year 2025. This represents a 88.1% 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.

Chegg Inc (CHGG) had a gross margin of 59.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Chegg Inc (CHGG) had an operating margin of -31.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Chegg Inc (CHGG) had a net profit margin of -27.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Chegg Inc (CHGG) has a return on equity of -86.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Chegg Inc (CHGG) recorded an outflow of $12.6M in free cash flow during fiscal year 2025. This represents a -125.1% 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.

Chegg Inc (CHGG) generated $15.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Chegg Inc (CHGG) had $278.0M in total assets as of fiscal year 2025, including both current and long-term assets.

Chegg Inc (CHGG) invested $28.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Chegg Inc (CHGG) invested $93.5M in research and development during fiscal year 2025.

Chegg Inc (CHGG) had 111M shares outstanding as of fiscal year 2025.

Chegg Inc (CHGG) had a current ratio of 0.86 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

Chegg Inc (CHGG) had a debt-to-equity ratio of 1.32 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Chegg Inc (CHGG) had a return on assets of -37.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Chegg Inc (CHGG) has an Altman Z-Score of -4.78, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Chegg Inc (CHGG) has a Piotroski F-Score of 5 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Chegg Inc (CHGG) reported a net loss of $103.0M while generating $15.5M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. 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.

Chegg Inc (CHGG) reported an operating loss of $116.9M against $590K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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.

Chegg Inc (CHGG) scores 22 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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