Chegg: Mixed Q1 Earnings and Other Important Updates

Court: N.D. California

Case: 5:21-cv-09953

Chegg CHGG, once known for textbook rentals and now a digital academic platform, reported Q1 2025 revenue of $121.4 million—down 30.4% year-over-year but still exceeding analyst expectations by 5.8%. Despite outperforming on revenue and adjusted EBITDA, Chegg continues to face headwinds with a 31.5% drop in user count to 3.19 million. CEO Nathan Schultz emphasized progress in the company’s strategic alternatives process and free cash flow of $16 million. Shares have surged 32.8% since earnings and currently trade at $0.90.

More news for CHGG investors—check what you might be missing right now.

Chegg has agreed to a $55 million settlement with investors to resolve claims that it misled them about the sustainability of its pandemic-driven growth. You can check more information about it and file for a payout here.