Core Viewpoint - Rowley Law PLLC is investigating potential securities law violations related to the proposed acquisition of NCR Atleos Corporation by The Brink's Company, which is valued at approximately $6.6 billion [1]. Group 1: Acquisition Details - The proposed acquisition involves stockholders of NCR Atleos receiving $30.00 in cash and 0.1574 shares of Brink's common stock for each share of NCR Atleos stock held [1]. - The transaction is expected to close in the first quarter of 2027 [1]. Group 2: Legal Investigation - Rowley Law PLLC is looking into the actions of NCR Atleos Corporation and its board of directors concerning the acquisition [1]. - The firm represents stockholders nationwide in class actions and derivative lawsuits in complex corporate litigation [1].

Udemy, Inc. (NASDAQ:UDMY) is among the most promising education stocks according to hedge funds. On February 9, Jason Tilchen from Canaccord Genuity reduced the price target on Udemy, Inc. (NASDAQ:UDMY) to $5 from $7 and reiterated a Hold rating, according to TheFly. With revenue and profitability modestly surpassing estimates, the company delivered a strong Q4, the firm noted. As AI-driven content and new products help develop personalized learning experiences, the company continues to demonstrate progr ...

Core Insights - Chegg, Inc. is making a significant strategic shift towards the $40 billion global workforce skilling market, splitting its operations into Chegg Skilling for growth and Academic Services for cash flow generation [1] Group 1: Financial Performance - Chegg Skilling revenues increased by 11% year over year in Q4 2025, reaching $17.7 million, while overall revenues declined by 39% year over year in 2025 and 49% in Q4 [2][3] - The company expects to generate meaningful free cash flow in 2026 despite incurring near-term severance expenses, ending the quarter with $85 million in cash and investments [2] Group 2: Market Position and Competition - Chegg is transitioning from academic support services to focus on B2B skilling, competing with platforms like Coursera and Udemy, which have established niches in academic credibility and broad course offerings respectively [4][5][6] - Chegg's transformation is marked by a deeper integration of AI to provide personalized, skills-based learning rather than just academic support [6] Group 3: Stock Performance and Valuation - Chegg's stock has decreased by 45.4% over the past three months, underperforming compared to the Zacks Internet - Software industry, the Zacks Computer and Technology sector, and the S&P 500 Index [7] - The stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.24, indicating a discount compared to industry peers [9] Group 4: Earnings Estimates - The Zacks Consensus Estimate for Chegg's 2026 bottom line has widened to a loss of 11 cents per share, reflecting a 466.7% year-over-year decline [11]

Core Insights - Stride, Inc. (LRN) is overcoming recent platform disruptions, with management reporting significant resolution of core technical issues and improvements in customer support metrics and user feedback [1][4] - The company has experienced a 10% year-over-year revenue growth to $1.25 billion in the first half of fiscal 2026, with adjusted operating income and adjusted EBITDA increasing by 23.8% and 21.3%, respectively [2] - Total enrollments reached 248,300, marking an 8.6% increase, while withdrawal rates have returned to historical norms [2] - Stride has reaffirmed its fiscal 2026 revenue guidance of $2.48-$2.56 billion and raised adjusted operating income expectations to $485-$505 million, indicating confidence in its operational stability [3] Financial Performance - Stride's revenues for the first six months of fiscal 2026 grew to $1.25 billion, with adjusted operating income and adjusted EBITDA rising by 23.8% and 21.3% respectively [2] - The company expects adjusted operating income for fiscal 2026 to be in the range of $485-$505 million, an increase from previous expectations [3] - Earnings estimates for fiscal 2026 and fiscal 2027 have improved, indicating year-over-year growth of 3.2% and 10.7% respectively [12] Competitive Landscape - Stride competes with major online education players like Coursera and Udemy, with a focus on career-oriented digital learning [5] - Coursera offers a wide range of university-backed degrees and emphasizes AI-driven personalized learning, while Udemy provides a flexible marketplace for professional development [6][7] - Stride's platform is positioned uniquely amid strong market trends towards skills-based education [5] Stock Performance - Stride's stock has increased by 31.4% over the past six months, outperforming the Zacks Schools industry and the broader market [8] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 9.82, indicating a discount compared to industry peers [11]

Financial Data and Key Metrics Changes - In Q4 2025, Chegg delivered $18 million in revenue from its skilling business, indicating a strong start for double-digit growth in 2026 [6][13] - Academic services revenue was reported at $55 million, with a focus on cash generation [13] - Non-GAAP operating expenses were reduced to $44.8 million, a 47% decrease year-over-year, reflecting successful restructuring efforts [13][14] - Adjusted EBITDA for Q4 was $13 million, representing an 18% margin [13] - Free Cash Flow in Q4 was -$15 million, primarily due to $12 million in severance payments related to restructuring [14] Business Line Data and Key Metrics Changes - Chegg Skilling is now the primary growth engine, while the legacy academic learning services are being managed for cash flow generation [5][11] - The company is testing various pricing and packaging strategies to optimize the legacy business and extend its operational runway [7][13] Market Data and Key Metrics Changes - The global demand for workforce skilling has reached $40 billion, presenting a significant opportunity for Chegg [8] - Chegg is expanding its course catalog to include high-demand technical skills, particularly in AI and language learning [9] Company Strategy and Development Direction - Chegg is focused on the $40 billion skilling market, aiming for double-digit revenue growth and strong margins [5][10] - The company plans to strengthen its balance sheet by ending the year with zero debt and a meaningful cash balance [10][16] - New partnerships with companies like DHL and Woolf University are aimed at expanding Chegg's reach into global enterprise and academic markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the new business structure and its potential for success, highlighting positive early signs in the skilling business [5][11] - The company anticipates stronger performance in the second half of 2026, driven by continued investment and new distribution partners [16] Other Important Information - Chegg repurchased $9 million of its 2026 convertible notes at a discount to enhance its capital structure [12] - The company received a delisting notice from the NYSE but has multiple avenues to regain compliance [15] Q&A Session Summary Question: Key drivers of skilling growth and core business performance - Management noted that retention rates in the core business are stronger than expected, providing a runway for product reinvention [20][22] Question: Opportunities from the Coursera/Udemy merger - Management sees potential partnerships with these companies rather than competition, focusing on content creation and distribution [30] Question: Demand for AI learning content - There is a growing demand for AI learning content across all employee levels, not just frontline workers, indicating a significant growth market [32][33]

Core Insights - Chegg, Inc. (CHGG) is expanding its learning platform through a partnership with Woolf, allowing select programs to count toward accredited undergraduate and postgraduate degrees [1][9] - The partnership aims to bridge the gap between job-ready skills and formal academic credentials, enhancing the value of Chegg's offerings [5] Group 1: Partnership and Educational Framework - Chegg's workforce business focuses on short, outcomes-oriented courses that provide practical skills valued by employers [2] - Eligible coursework will be integrated into Woolf's academic framework, undergoing independent review to meet accredited standards [2][9] - This collaboration allows learners to apply completed training toward recognized academic credits, linking skill development directly to formal qualifications [3] Group 2: Accreditation and Global Recognition - Woolf degrees adhere to European Higher Education Area (EHEA) standards and utilize the European Credit Transfer and Accumulation System (ECTS), recognized in over 60 countries [4][9] - The broader acceptance of these degrees may enhance the attractiveness of Chegg's programs for working professionals seeking further education or global career opportunities [4] Group 3: Competitive Landscape - Chegg operates in a competitive EdTech market alongside notable companies like Duolingo, Inc. and Udemy, Inc. [6] - Duolingo excels in language learning with a gamified app, while Udemy focuses on professional skill development and workforce transformation [7] Group 4: Stock Performance and Valuation - Chegg's stock has decreased by 44.2% over the past six months, underperforming compared to Duolingo and Udemy, which saw declines of 64.7% and 36.8%, respectively [8] - Currently, Chegg's stock trades at a forward 12-month price-to-sales (P/S) ratio of 0.28, indicating a discount compared to industry peers [11] Group 5: Earnings Estimates - The earnings estimate for Chegg in 2026 remains unchanged at 9 cents per share, with an expected growth of 221.4% [13] - Current earnings projections indicate a loss of $0.11 for the current quarter, with a forecasted profit of $0.10 for the next quarter [14]

Core Insights - Chegg, Inc. reported negative free cash flow of $900 million in Q3 2025, primarily due to a one-time settlement payment and restructuring costs, indicating a potential transitional rather than structural issue in its financial trajectory [1][9] - The company experienced a significant revenue decline of 35.8% year over year in the first nine months of 2025, driven by reduced contributions from its Subscription Services and Skills segments [2] - Chegg is pivoting towards its Chegg Skilling unit, which is expected to grow by 14% year over year in Q4 2025, as demand for AI and workforce reskilling programs increases [3] Financial Performance - Free cash flow decreased by 93.7% year over year in Q3 2025, dropping to $2.8 million [1] - Chegg's legacy subscription revenues are declining due to competition from AI solutions and changes in search behavior [9] - The Zacks Consensus Estimate for 2026 earnings remains stable at nine cents per share, indicating a projected 221.4% year-over-year growth [12] Competitive Landscape - Chegg faces intense competition from companies like Udemy and Duolingo, which have maintained positive cash flow and strong engagement [5][6][7] - Udemy has consistently delivered positive operating cash flow, supported by strong subscription uptake and B2B relationships [6] - Duolingo's gamified platform has allowed it to maintain positive cash flow amid rapid growth, differentiating it from Chegg [7] Stock Performance - Chegg's stock has declined by 21.7% over the past three months, underperforming compared to industry peers and major indices [8] - The stock is currently trading at a forward P/E ratio of 7.25, indicating a discounted valuation relative to industry peers [11]

Core Insights - Skillsoft (SKIL) and Udemy (UDMY) are direct competitors in the online learning and corporate training sector, focusing on workforce development and lifelong learning [1] Group 1: Skillsoft (SKIL) - Skillsoft experienced a turbulent growth trajectory, with a 6% year-over-year revenue decline in Q3 of fiscal 2026, primarily due to an 18% drop in the Global Knowledge (GK) segment, which constitutes 22% of total revenue [2][3] - The GK segment incurred a $20.8 million non-cash goodwill impairment loss, resulting in a $4.9 million adjusted net loss, prompting management to consider strategic alternatives for this segment [3] - The Talent Development Solutions (TDS) segment saw a 2% year-over-year decline, but management remains optimistic about its AI-native roadmap, having signed its first four large enterprise customers [3] - Cost reductions led to a $28 million adjusted EBITDA, despite a 130 basis points dip in adjusted EBITDA margin year-over-year, indicating resilience amid declining GK revenues [5] - Skillsoft is trading at a forward P/E ratio of 1.92, significantly lower than Udemy's 10.25, making it more attractive to investors [12] Group 2: Udemy (UDMY) - Udemy reported $195.7 million in revenue for Q3 of 2025, reflecting a marginal year-over-year increase, with subscription revenues growing 8% and accounting for 74% of total revenues [6] - The company achieved an 88% year-over-year increase in paid subscribers in the consumer segment, alongside a 2% rise in total enterprise customers, attributed to AI integration and a focus on high-value recurring revenue streams [7] - Udemy's adjusted EBITDA margin expanded by 600 basis points to 12%, driven by operational discipline and a shift towards high-margin subscriptions [7] - Despite these positives, Udemy faces challenges, including a 5% year-over-year increase in Udemy Business revenues and a net dollar retention rate of 93%, impacted by the downsizing of legacy contracts [8] - The consensus estimate for Udemy's 2026 sales is $806 million, reflecting a 2.2% year-over-year increase, while EPS is projected to decline by 5.5% [11] Group 3: Investment Recommendation - Skillsoft is recommended for investment due to its lower valuation and potential for long-term returns as it focuses on becoming a leaner AI-first entity [14][16] - Udemy is advised to be retained for now, pending further justification of revenue growth from customer and subscriber increases [16]

Core Insights - Chegg, Inc. (CHGG) is transitioning its business model to a business-to-business (B2B) approach to mitigate the uncertainty in student-driven online traffic [1][4] - The core academic business is facing challenges due to the rise of generative Artificial Intelligence and changes in online search behavior, leading to a decline in traditional study platform usage [2][3] Financial Performance - In Q3 2025, total revenues fell by 42% year over year, primarily due to decreased traffic in legacy academic services and lower advertising revenues [3] - The core academic segment experienced a revenue drop of over 40% year over year, with legacy traffic declining nearly 50% [3] Strategic Shift - The company is prioritizing its B2B skilling operations, which focus on enterprise partnerships and offer better revenue visibility and lower sensitivity to traffic fluctuations [4][8] - This strategic pivot aims to stabilize performance amid the evolving digital education landscape [4] Competitive Landscape - Chegg operates in a competitive EdTech market alongside companies like Duolingo, Inc. and Udemy, Inc., which have established strong positions in language learning and professional skill development, respectively [5][6] Stock Performance - CHGG shares have decreased by 38.9% over the past six months, underperforming compared to the Zacks Internet-Software industry, the Zacks Computer and Technology sector, and the S&P 500 index [7][8] - The stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.33, indicating a discount compared to industry peers [10] Earnings Estimates - The earnings per share estimate for 2026 remains unchanged at 18 cents, with an expected growth of 228.6% [12] - Current earnings estimates for Q4 2025 and Q1 2026 are projected at -0.19 and 0.09, respectively, with a forecast of -0.14 for the current year and 0.18 for the next year [13]

Group 1 - The consumer discretionary sector has identified oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a momentum indicator used to assess stock performance, with an RSI below 30 indicating that a stock is typically considered oversold [1] Group 2 - Coursera Inc (NYSE:COUR) has an RSI value of 19.8, with shares falling 10.6% to close at $6.55, and a 52-week low of $5.76 [6] - Udemy Inc (NASDAQ:UDMY) has an RSI value of 28.2, with shares dipping 12% to close at $5.12, and a 52-week low of $4.86 [6] - ThredUp Inc (NASDAQ:TDUP) has an RSI value of 29.8, with shares falling 2.9% to close at $5.94, and a 52-week low of $1.66 [6]