Chegg is like **Khan Academy** meets **Grammarly** for college students.

Chegg is like the **Netflix** of college textbooks, combined with a 24/7 digital tutor.

• Chegg Study: A subscription service that assists students in mastering challenging academic concepts.
• Chegg Writing: Provides tools for plagiarism detection, grammar and writing fluency checking, personalized writing feedback, and citation generation.
• Chegg Math: A step-by-step math problem solver and calculator designed to help students with their math problems.
• Chegg Study Pack: A bundled subscription offering that combines Chegg Study, Chegg Writing, and Chegg Math Solver services.
• Busuu: An online language learning solution providing self-paced lessons, live expert-led classes, and a community for practice.
• Thinkful: A skills-based learning platform that offers professional courses along with networking, interviewing, and career services.
• Textbook Rentals/Sales: Offers print textbooks and eTextbooks for both rental and purchase.
• Chegg Internships: Provides resources and connections for students seeking internship opportunities.

Chegg (CHGG) primarily sells its products and services directly to individuals.

Its major customer categories are:

1. Students: This category includes K-12, college, and university students seeking academic support. They utilize services such as Chegg Study, Chegg Writing, Chegg Math, and rent or purchase print and eTextbooks to better understand their course materials, improve writing skills, and solve academic problems.
2. Language Learners: Individuals interested in acquiring new language skills are served through Busuu, an online language learning solution that offers lessons, live classes, and community practice.
3. Professionals and Career Changers: This group comprises individuals looking to develop new professional skills, advance their careers, or transition into new fields. They are served by Thinkful, which provides skills-based learning platforms, professional courses, and career services.

Nathan Schultz, President and Chief Executive Officer

Nathan Schultz was appointed President and Chief Executive Officer of Chegg, Inc. in June 2024, succeeding Dan Rosensweig. He has a long history with Chegg, spanning 16 years in various leadership roles. Schultz was instrumental in evolving Chegg's services, particularly in transitioning the company to a fully digital learning platform as President of Learning Services and later as Chief Operating Officer. He has overseen the integration of artificial intelligence into product development, contributing to Chegg's personalized learning experiences. Prior to joining Chegg, Schultz served in educational publishing at Bowker, Pearson, and Jones & Bartlett.

David Longo, Chief Financial Officer

David Longo became Chief Financial Officer of Chegg, Inc. on February 21, 2024. He joined Chegg in 2021 and previously held positions as Vice President, Chief Accounting Officer, Corporate Controller, and Assistant Treasurer. Before his tenure at Chegg, Longo served as Chief Accounting Officer for Shutterfly, Inc., a digital retailer and manufacturer. He also held the role of Senior Vice President and Controller at CBS Interactive, an online content network, and was part of the leadership team that launched the first OTT streaming content solution by a broadcast or cable network at CBS. His earlier career includes positions at Netflix and Deloitte.

Dan Rosensweig, Executive Chairman

Dan Rosensweig currently serves as Chegg's Executive Chairman, a role he assumed in June 2024 after 14 years as Chief Executive Officer. During his time as CEO from 2010 to 2024, he spearheaded the transformation of Chegg from a textbook rental service into a leading provider of digital learning services, expanding its offerings to help students with their educational and career goals. Prior to Chegg, Rosensweig held significant leadership positions, including CEO of Guitar Hero, Chief Operating Officer of Yahoo!, and CEO of ZDNet. He notably took ZDNet public and subsequently sold it to CNET.

Rahul Desai, Chief Technology Officer

Rahul Desai is the Chief Technology Officer at Chegg, where he leads the global engineering organization. With over 25 years of experience in technology and operations, Desai has been with Chegg for more than 16 years, guiding its evolution from a textbook-rental startup to a prominent learning platform. In his current role, he focuses on integrating AI and cloud services into Chegg's product ecosystem to enable personalized learning experiences.

Debra Thompson, Chief People Officer

Debra Thompson has served as Chegg's Chief People Officer since March 2020. Before this role, she held positions at Chegg as Vice President of Total Rewards (April 2019 to March 2020) and Director of Total Rewards (April 2013 to April 2019). Prior to joining Chegg, Thompson was the Director of Compensation, Benefits and HR Operations at Amyris Inc. She also held various management positions at RMS, Inc., CNET Networks, and Lucent Technologies (Octel Communications).

Key Risks to Chegg (CHGG)

1. Disruption from Generative Artificial Intelligence (AI) and Search Engine Changes: The most prominent risk to Chegg's business is the widespread adoption of free generative AI tools and the evolution of search engines, particularly Google's AI-powered search summaries (AI Overviews). These technologies directly provide students with answers and explanations, significantly diverting traffic away from Chegg's platform and eroding its core value proposition. This has led to a sharp decline in Chegg's subscriber numbers, revenue, and non-subscriber web traffic. Chegg has even initiated a lawsuit against Google, alleging that AI-powered search summaries have severely impacted its business by retaining user traffic within search results rather than directing it to Chegg's paid services.
2. Declining Revenues, Subscriber Base, and Financial Health: As a direct consequence of AI disruption and increased competition, Chegg has experienced substantial and ongoing declines in total net revenues and subscription service revenue. The company's subscriber base has plunged significantly, leading to substantial profitability issues and workforce reductions. Chegg has reported negative operating margins and is facing challenges in attracting new customers and retaining existing ones. Financial indicators, such as a distressed Altman Z-Score, suggest significant financial challenges and a potential risk of bankruptcy, alongside an accumulated deficit.
3. Execution Risk of Business Transformation: In response to the evolving educational technology landscape, Chegg is undertaking a strategic pivot to transform its learning platform into a more "skilling-focused" business. This involves expanding into AI-driven academic tools, language learning (Busuu), workforce upskilling, and a business-to-business (B2B) strategy. The success of this ambitious transformation is uncertain and carries significant execution risks. These include challenges in developing new, competitive products, attracting and retaining customers in these new segments, effectively integrating AI models, and hiring the necessary talent. Failure to successfully implement this strategic shift or if these new AI investments do not attract new users as expected, could further negatively impact the company's financial results and long-term viability.

The clear emerging threat to Chegg is the rapid advancement and widespread adoption of **generative artificial intelligence (AI)** technologies, such as large language models (LLMs) like ChatGPT, Google Gemini, and Microsoft Copilot.

These AI tools directly compete with Chegg's core offerings by providing alternative means for students to:

• Receive step-by-step solutions and explanations for challenging academic concepts and problems (threatening Chegg Study and Chegg Math).
• Generate and refine written content, check grammar, improve writing fluency, and assist with citations (threatening Chegg Writing).
• Obtain summaries, explanations, and study aids, potentially reducing the perceived value of traditional textbooks and eTextbooks.

As these AI capabilities become more sophisticated, accessible, and often integrated into broader platforms (sometimes at no direct cost to the user), they offer a powerful, direct alternative to the learning support and problem-solving services that form the foundation of Chegg's subscription model, thereby challenging its market position and value proposition.

Addressable Markets for Chegg's Main Products and Services (Global)

• Chegg Study, Chegg Writing, Chegg Math, and Chegg Study Pack (Academic Support/Online Tutoring/Online Education):
  • The global online tutoring market was valued at approximately USD 12.14 billion in 2024 and is projected to grow to USD 47.99 billion by 2033.
  • The broader global online education market size was valued at USD 61.0 billion in 2024 and is poised to grow to USD 454.49 billion by 2033.
  • The global e-learning market is projected to grow from USD 275.86 billion in 2026 to USD 461.92 billion by 2031.
• Busuu (Online Language Learning):
  • The global online language learning market is estimated to reach USD 81.55 billion by 2029.
  • The broader global language learning market was valued at $64.3 billion in 2024 and is projected to reach $227.0 billion by 2035.
• Thinkful (Skills-Based Learning/Professional Courses):
  • The global technical and vocational education market size was estimated at USD 812.3 billion in 2024 and is projected to reach USD 1,432.9 billion by 2030.
  • The global soft skills training market size was evaluated at $26 billion in 2023 and is expected to reach $38 billion by 2032.
• Print Textbooks and eTextbooks (Digital Textbooks):
  • The global digital textbooks market size was valued at USD 18.52 billion in 2025 and is projected to grow to USD 27.89 billion by 2035.
  • The educational segment of the global e-book market has a current market size of USD 4.2 billion.

Chegg (CHGG) is undergoing a significant strategic shift, pivoting towards the global workforce skilling market as its primary driver of future revenue growth over the next 2-3 years. The company has reorganized its operations into two core segments: Chegg Skilling, positioned as the growth engine, and Academic Services, managed for cash flow generation.

The expected drivers of future revenue growth for Chegg include:

1. Accelerated Growth of the Chegg Skilling Business: The Chegg Skilling segment, encompassing Busuu (language learning) and Chegg Skills (workforce readiness and upskilling), is anticipated to be the leading growth driver. Chegg expects this business to achieve double-digit year-over-year revenue growth in 2026. Busuu has demonstrated consistent growth, with its B2B segment achieving a 29% year-over-year revenue increase in Q1 2025, driven by a strategic focus on retaining and expanding large enterprise clients. Chegg Skills, which provides training in foundational digital and broad-based AI skills, generated $18 million in revenue in Q4 2025, an 11% year-over-year increase. The combined Chegg Skilling business is projected to maintain strong momentum, expecting 14% year-over-year growth and reaching $70 million in annual revenue for 2025.
2. Expansion of Skilling Offerings and Partnerships: To further accelerate the growth of its skilling business, Chegg is focused on expanding its offerings and network of partners, both domestically and across Europe. The company has already formed new partnerships with organizations such as DHL, Gi Group, and Woolf University. A key priority is to broaden the course catalog to include high-demand technical, AI, language, and professional skills, and to onboard new employer and institutional partners directly or through external marketplaces.
3. Content Licensing: Chegg is diversifying its revenue streams through content licensing deals. In Q1 2025, the company generated $4 million from content licensing agreements with two major technology companies, with an additional $7 million expected in Q2 2025. Chegg is actively in discussions with other companies to further expand these licensing efforts, leveraging its extensive content library.
4. Optimization and Cash Flow Generation from Academic Services: While Chegg's legacy Academic Services business is not expected to be a growth driver in terms of subscriber numbers, the company aims to optimize this segment for cash flow generation. Efforts include enhancing the quality and accuracy of its services, driven by AI, which led to a 23% increase in student satisfaction and a 17% increase in students' intent to use Chegg Study in Q2 2025. Management is focused on optimizing pricing and packaging for these services to ensure high retention rates and provide meaningful cash flow to fund investments in the growing Chegg Skilling business.

Share Repurchases

• Chegg's Board of Directors approved a $300 million increase to its existing securities repurchase program in November 2024, leaving $303.7 million available for future repurchases.
• In February 2022, Chegg executed a $300 million accelerated share repurchase (ASR) as part of a broader $1.0 billion securities repurchase program.
• The company repurchased $164 million in stock during the 12 months leading up to February 2025.

Outbound Investments

• Chegg acquired Busuu, an online language learning solution, for approximately $475 million in late 2021.

Capital Expenditures

• Chegg's capital expenditures were approximately $60-$65 million in 2024.
• Anticipated full-year 2025 capital expenditures were approximately $27 million, a significant reduction from the prior year.
• For 2026, Chegg is targeting a further 60% reduction in capital expenditures, with approximately 90% of this spending focused on its growing Skilling business.