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]