Chegg (NYSE: CHGG) faces NYSE notice after 30-day average falls below $1
Rhea-AI Filing Summary
Chegg, Inc. received notice from the New York Stock Exchange that it is not in compliance with Section 802.01C because the average closing share price of its common stock was less than $1.00 over a consecutive 30 trading‑day period ending on July 23, 2026. A prior minimum‑price notice from December 2025 had been cured by the end of May 2026.
The company plans to notify the NYSE of its intent to regain compliance, potentially including a reverse stock split subject to board approval. Chegg has a six‑month cure period during which its stock will continue trading on the NYSE, provided it meets other continued listing standards; failure to regain compliance would subject the shares to NYSE suspension and delisting procedures.
Positive
- None.
Negative
- NYSE issues noncompliance notice after 30‑day average falls below $1.00.
Filing Explained
During the six-month cure period following the
8-K Event Classification
3 items: 3.01, 7.01, 9.01
3 items
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Securities
The company received a delisting notice or transferred its listing to a different exchange.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Minimum share price threshold: $1.00 per share
Measurement period: 30 trading-day period
Cure period length: six-month period
+2 more
5 metrics
Minimum share price threshold
$1.00 per share
NYSE continued listing requirement under Section 802.01C
Measurement period
30 trading-day period
Average closing price below $1.00 over this span ending July 23, 2026
Cure period length
six-month period
Time allowed to regain NYSE minimum share price compliance
Skilling market size
$40 billion
Estimated size of the skilling market targeted by Chegg
End of measurement window
July 23, 2026
Last day of the 30 trading‑day period used by NYSE
Key Terms
Section 802.01C, reverse stock split, continued listing standards, suspension and delisting procedures, +1 more
5 terms
Section 802.01C regulatory
"not in compliance with Section 802.01C of the NYSE Listed"
reverse stock split financial
"may include, if necessary, effecting a reverse stock split, subject"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
continued listing standards regulatory
"subject to the Company’s compliance with the other NYSE continued"
Ongoing rules a stock exchange requires a listed company to meet to keep its shares trading publicly, such as minimum share price, market value, timely financial reports, and governance practices. Think of it as a membership checklist for a club: falling short can lead to warnings or removal from the exchange, which can sharply reduce liquidity, investor confidence, and a stock’s value. Investors watch these standards to gauge regulatory risk and the stability of their holdings.
suspension and delisting procedures regulatory
"Company’s common stock will be subject to NYSE’s suspension and"
Private Securities Litigation Reform Act of 1995 regulatory
"forward-looking statements within the meaning of the Private Securities"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
Why did Chegg (CHGG) receive a NYSE noncompliance notice?
Chegg received the notice because the average closing price of its common stock was below $1.00 over a consecutive 30 trading‑day period ending July 23, 2026, violating the NYSE minimum share price requirement under Section 802.01C of the Listed Company Manual.
How long does Chegg (CHGG) have to regain NYSE listing compliance?
Chegg has a six‑month cure period from receipt of the NYSE notice. It can regain compliance if, on the last trading day of any month, the closing price and 30‑day average closing price are each at least $1.00 per share.
What steps might Chegg (CHGG) take to regain NYSE compliance?
Chegg plans to inform the NYSE of its intent to regain compliance and will monitor its share price. Options it may evaluate include, if necessary, effecting a reverse stock split, which would be subject to approval by the company’s board of directors.
What happens if Chegg (CHGG) cannot meet the NYSE minimum price requirement?
If Chegg does not regain compliance with the $1.00 minimum share price requirement within the six‑month cure period, its common stock would become subject to the NYSE’s suspension and delisting procedures, which could ultimately remove the shares from NYSE trading.
What market does Chegg (CHGG) target with its learning and skilling platform?
Chegg focuses on the skilling market, which it describes as a $40 billion and growing opportunity. The company offers tools for workplace readiness, professional upskilling, language learning, and AI‑driven personalized support for students and lifelong learners.