Quarterly ResultMay 6, 2026, 04:14 PM
Chegg Reports Q1 2026 Net Income $0.2M; Total Revenue $63.3M
AI Summary
Chegg reported strong first-quarter 2026 financial results, exceeding expectations for revenue, adjusted EBITDA, and free cash flow. The company achieved GAAP Net Income of $0.2 million, marking its first positive net income in two years, driven by a rearchitected business model optimized around AI and significant cost reductions. Chegg's skilling business showed a 9% year-over-year revenue increase, and the company expects double-digit revenue growth in skilling for the full year 2026. For the second quarter of 2026, Chegg anticipates total net revenues between $49 million and $50 million.
Key Highlights
- Total Net Revenues for Q1 2026 were $63.3 million, a 48% decrease year-over-year.
- Chegg Skilling Revenues increased 9% year-over-year to $17.6 million in Q1 2026.
- Achieved GAAP Net Income of $0.2 million in Q1 2026, the first positive net income in two years.
- Adjusted EBITDA for Q1 2026 was $15.5 million, with a 24% margin.
- Free cash flow in Q1 2026 was $3.1 million, including $12.9 million in severance payments.
- Forecasts Q2 2026 Total Net Revenues between $49 million and $50 million.
- Projects Q2 2026 Chegg Skilling Revenues in the range of $17.5 million to $18 million.
- The company reduced approximately 40% of its costs over the last six months.