Chegg (CHGG) Revenue Slide To US$72.7m Reinforces Bearish Narratives On Growth Prospects

Chegg (CHGG) has just posted its FY 2025 numbers, with fourth quarter revenue of US$72.7 million and a basic EPS loss of US$0.30, while trailing twelve month revenue came in at US$376.9 million with a basic EPS loss of US$0.96. Over recent quarters, revenue has moved from US$143.5 million in Q4 2024 to US$121.4 million in Q1 2025, US$105.1 million in Q2 2025, US$77.7 million in Q3 2025 and US$72.7 million in Q4 2025, alongside quarterly basic EPS losses ranging between US$0.06 and US$0.33. With the stock trading around US$1.16 and margins still firmly negative on both a quarterly and trailing basis, the story now hinges on how investors weigh the current loss profile against any perceived long term earnings potential.

See our full analysis for Chegg.

With the headline figures on the table, the next step is to see how these results line up against the widely held narratives around Chegg, and where the fresh numbers may start to challenge those views.

See what the community is saying about Chegg

Revenue Slides From US$143.5m To US$72.7m

• Quarterly revenue moved from US$143.5 million in Q4 2024 to US$121.4 million in Q1 2025, US$105.1 million in Q2, US$77.7 million in Q3 and US$72.7 million in Q4, while trailing twelve month revenue went from US$662.1 million in Q3 2024 to US$376.9 million by Q4 2025.
• Analysts' consensus view links this revenue pressure to traffic and subscription challenges, yet also points to new AI based products and a business to institution push as potential supports:
  • Consensus narrative highlights a 24% year on year revenue drop tied to traffic headwinds from Google AI Overviews, alongside cash outflows from restructurings and legal issues.
  • At the same time, the same view notes that AI driven content creation cuts of over 70% and pilots with about 35 institutions are aimed at broadening the customer base and improving net margins over time.

Losses Deepen On TTM Basis

• On a trailing basis, revenue moved from US$662.1 million in Q3 2024 to US$376.9 million in Q4 2025, while net income losses sat at US$103.4 million for the latest period and basic EPS for the trailing twelve months was a loss of US$0.96.
• Consensus narrative flags that Chegg is currently loss making and that losses have grown at about 49.7% per year over five years, which lines up with the multi quarter pattern of negative net income:
  • Quarterly net income (excluding extra items) for FY 2025 ranged from losses of US$17.5 million in Q1 to US$35.7 million in Q2, US$17.5 million in Q3 and US$32.8 million in Q4, after a US$212.6 million loss in Q3 2024.
  • Forecasts in the data expect Chegg to remain unprofitable over the next three years, so any thesis that margins recover meaningfully needs to be weighed against this ongoing loss profile.

Low 0.3x P/S Versus 8.44 DCF Value

• Chegg trades on a P/S of 0.3x compared with a peer average of 4x and industry average of 1.2x, and the stock price of US$1.16 sits well below the DCF fair value of US$8.44, which implies the shares trade about 86.3% below that model estimate.
• Analysts' consensus narrative treats this valuation gap as a potential reward, but sets it against expectations for declining revenue and ongoing losses:
  • The forecast in the data suggests revenue could fall at about 36.1% per year over the next three years and Chegg is not expected to become profitable in that window, despite the appeal of a low 0.3x P/S.
  • Consensus also notes elevated share price volatility over the past three months, so any investor leaning on the apparent discount to DCF fair value needs to be comfortable with swings in the share price while waiting for signs of revenue stabilization or clearer earnings progress.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Chegg on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment clearly mixed, and with both risks and potential rewards in play, it makes sense to review the numbers yourself and decide how comfortable you are with the trade off, then weigh that view against the 1 key reward and 2 important warning signs

See What Else Is Out There

Chegg's revenue has declined from US$662.1 million to US$376.9 million on a trailing basis, while losses and negative EPS indicate that the business is under clear pressure.

If that mix of shrinking sales and ongoing losses feels uncomfortable, it may be useful to compare stocks with stronger fundamentals by reviewing the solid balance sheet and fundamentals stocks screener (45 results) today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com