Core Insights - Chegg Inc. is undergoing a transformation focusing on the $40 billion skilling market, which is expected to drive significant growth and improve margins and cash flow in the future [1] Financial Performance - For Q4 2025, Chegg reported an EPS of -$0.01, outperforming the estimated EPS of -$0.11, and revenue of $72.66 million, exceeding the estimated revenue of $71 million [2] - Despite the positive earnings surprises, Chegg's stock price declined due to a significant year-over-year revenue drop, raising investor concerns [3] Business Strategy - The company is reorganizing into two main businesses, with Chegg Skilling identified as the primary growth engine to address challenges and leverage opportunities in the skilling market [3] Valuation Metrics - Chegg's price-to-sales ratio is approximately 0.18, and the enterprise value to sales ratio is about 0.28, indicating how the market values the company's sales [4] - The enterprise value to operating cash flow ratio stands at around 2.97, reflecting the company's valuation in relation to its operational cash flow [4] Financial Health - The debt-to-equity ratio is approximately 0.57, indicating a moderate level of debt relative to equity [5] - The current ratio is about 0.95, suggesting that Chegg can cover its short-term liabilities with its short-term assets [5]

Core Insights - Chegg Inc. reported a quarterly loss of one cent per share, outperforming the consensus estimate of a loss of ten cents [2] - Quarterly revenue was $72.66 million, exceeding the Street estimate of $71 million, but down from $143.48 million in the same period last year [2] Financial Highlights - Chegg Skilling revenues reached $17.7 million, marking an 11% year-over-year increase [4] - Non-GAAP gross margin stood at 60% [4] - Non-GAAP net loss was $700,000 [4] - Adjusted EBITDA was reported at $12.9 million [4] Strategic Direction - The company is focusing on the $40 billion skilling market, which is expected to drive double-digit growth with strong margins and cash flow in the future, according to CEO Dan Rosensweig [3] - Chegg has reorganized into two main business segments: Chegg Skilling as the growth engine and legacy Academic Services, which generates free cash flow to strengthen the balance sheet [4]