Chegg (NYSE:CHGG) Posts Quarterly Earnings Results, Beats Estimates By $0.26 EPS

Key Points

• Chegg (NYSE:CHGG) reported an earnings per share (EPS) of $0.03, beating analyst estimates by $0.26, though the company continues to experience negative metrics with a return on equity of -6.22% and a net margin of -151.10%.
• The stock price dropped 6.8% to $1.30 following the earnings announcement, with a current market capitalization of $138.01 million.
• Analysts have mixed views on Chegg, with three rating it as a sell, five maintaining a hold rating, and an average target price set at $1.70.

Chegg (NYSE:CHGG - Get Free Report) released its earnings results on Tuesday. The technology company reported $0.03 EPS for the quarter, topping analysts' consensus estimates of ($0.23) by $0.26, Zacks reports. Chegg had a negative net margin of 53.67% and a negative return on equity of 11.82%. The company had revenue of $105.12 million during the quarter, compared to analysts' expectations of $103.13 million. Chegg updated its Q3 2025 guidance to EPS.

Chegg Stock Performance

Shares of CHGG traded up $0.02 during mid-day trading on Friday, reaching $1.14. 2,242,136 shares of the company's stock were exchanged, compared to its average volume of 2,940,137. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.23 and a quick ratio of 1.23. The stock has a market capitalization of $121.48 million, a PE ratio of -0.44 and a beta of 1.77. The business's fifty day simple moving average is $1.38 and its 200-day simple moving average is $1.09. Chegg has a 52-week low of $0.44 and a 52-week high of $2.73.

Hedge Funds Weigh In On Chegg

A number of hedge funds have recently modified their holdings of the business. Strs Ohio acquired a new stake in shares of Chegg during the first quarter worth $56,000. Empowered Funds LLC lifted its holdings in shares of Chegg by 8.5% during the first quarter. Empowered Funds LLC now owns 424,563 shares of the technology company's stock worth $271,000 after purchasing an additional 33,269 shares during the period. Finally, AQR Capital Management LLC lifted its holdings in shares of Chegg by 95.9% during the first quarter. AQR Capital Management LLC now owns 3,011,879 shares of the technology company's stock worth $1,925,000 after purchasing an additional 1,474,640 shares during the period. 95.18% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Wall Street Zen assumed coverage on shares of Chegg in a report on Thursday, April 17th. They set a "hold" rating for the company. Needham & Company LLC reaffirmed a "hold" rating on shares of Chegg in a report on Monday, May 12th. Three research analysts have rated the stock with a sell rating and five have given a hold rating to the company. Based on data from MarketBeat, Chegg currently has an average rating of "Hold" and an average price target of $1.70.

Chegg Company Profile

Chegg, Inc operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside.