Chegg reports revenue of $46.47 million despite 40.2% annual decline
Key Facts
Chegg reported revenue of $46.47 million in the third quarter of 2026, exceeding analysts’ estimates of $43.52 million by 6.8%. But revenue fell 40.2% year over year, putting the beat in the context of a contraction in activity compared with the same period. The figures show that beating estimates did not stop the annual decline in revenue. In the same quarter, the company reported a net loss of $4.7 million, or 4 cents per share. The results came amid a weaker financial trajectory than a year earlier, according to the year-over-year revenue comparison.
Third-quarter results show an improvement in revenue from the second quarter, when it totaled $51.8 million, down 51% year over year, with a net loss of $3.0 million. Chegg had set a third-quarter revenue target range of $43 million to $44 million and an adjusted earnings-before-interest, taxes, depreciation and amortization range of $1 million to $2 million. Actual revenue was $46.47 million, above the company’s previous range and analysts’ estimates. Even so, revenue remained far below its level a year earlier, while the company continued to post a net loss. The differing measures reflect the need to read the revenue beat alongside its annual trend and the bottom line.
The company also expanded beyond academic support, offering students services related to finding and preparing for internship opportunities. The experience includes discovering opportunities, preparing and submitting applications, developing skills, professional networking and interview preparation. The plan points to a shift in the scope of Chegg’s services, from supporting studies to connecting students with career opportunities. The company said this activity is expected to make a greater contribution to its business in 2027, while investors remain focused on revenue and losses.
For the fourth quarter ending in December, Chegg forecast revenue of $38 million to $40 million, a range below the revenue recorded in the third quarter. The forecast puts the continuation of the revenue decline among the key factors to watch in the next results. The subsequent report will also show whether the company’s expansion into career-development services has begun to add to its business, while it continues to post net losses. The company’s shares closed at $0.6704 on November 2, 2026. The closing price provides market context ahead of the third-quarter results announcement.