Chegg’s Strategic Pivot in Focus Ahead of Q4 Earnings Release

Chegg US1630921096

Investor attention is turning to education technology provider Chegg, which is scheduled to announce its fourth-quarter and full-year 2025 financial results after the U.S. market closes on Monday, February 9. The upcoming report is anticipated to provide critical insights into the company's ongoing strategic realignment and the performance of its professional skilling division.

Management has previously communicated specific guidance for the final quarter of the year. The company anticipates total revenue to land in the range of $70 million to $72 million. Concurrently, the gross margin is projected to be between 57% and 58%, with adjusted EBITDA expected to reach $10 million to $11 million.

Key projected metrics include:
* Q4 Revenue Forecast: $70 – 72 million
* Gross Margin: 57 – 58 %
* Adjusted EBITDA: $10 – 11 million

The Skilling Segment as a Growth Engine

A central element of Chegg's transformation strategy is its Skilling business, which encompasses platforms like Busuu and Chegg Skills. This division is forecast to conclude 2025 with revenue growth of approximately 14% year-over-year, translating to an annual revenue figure near $70 million. For the fourth quarter alone, this segment is predicted to generate $18 million in sales, also representing a 14% increase.

The critical question for shareholders is whether this area can effectively anchor the company's evolution within a rapidly changing educational landscape. The broader strategic plan aims to leverage efficiency gains and a planned reduction in capital expenditures in 2026 to return to a path of sustainable growth.

Operational Efficiency and AI Adaptation

Operating in a sector increasingly influenced by artificial intelligence, Chegg faces significant pressure to adapt. Company leadership has recently underscored the imperative to reduce costs and streamline operational processes. The forthcoming earnings data will reveal the initial effectiveness of these initiatives and offer management's perspective on AI's impact on its core learning platforms.

A conference call to discuss the results is scheduled for 10:30 p.m. Central European Time on Monday evening. Beyond the headline financial figures, market participants will be keenly listening for detailed updates on the Skilling division's progress and specific commentary regarding the 2026 investment roadmap.