Chegg Inc logo

Chegg Inc(CHGG)

upturn advisory logo
ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$0.73
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close

Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for CHGG

09/25/2026: CHGG (1-star) is currently NOT-A-BUY. Pass it for now.

Chegg Inc is a digital learning company that has historically relied on its subscription-based homework help and textbook solution services. While the firm maintains a strong brand presence among US students, it currently faces significant competitive pressure from free generative AI tools that provide similar academic assistance. Its primary growth opportunity lies in successfully integrating proprietary AI technology into its platform to regain user engagement. However, the company faces substantial risks, including subscriber attrition, declining college enrollment, and valuation volatility. Chegg may suit investors who are optimistic about a successful business model pivot, but they should monitor subscriber growth metrics and AI-driven engagement closely.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorWeak fitThe company's core growth has stalled due to structural shifts in the EdTech landscape.
Momentum investorWeak fitThe stock has demonstrated a downward trend and lacks positive momentum indicators.
Value investorMixed fitWhile valuations have compressed, the declining business fundamentals create high uncertainty.
Dividend investorWeak fitChegg does not pay a dividend and focuses on cash preservation.
Low-risk investorWeak fitHigh volatility and operational challenges make this an unsuitable choice for risk-averse investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock's historical price fluctuations present significant risks for short-term holders.
Valuation riskMediumUncertainty regarding future earnings makes it difficult to establish a stable valuation floor.
Competition risk (AI competition)HighThe rise of free, highly capable AI tools directly threatens the value proposition of Chegg's subscription services.
Business qualityMediumThe business faces a pivot challenge as it tries to redefine its moat in an AI-dominated market.
Dividend incomeLow / noneInvestors seeking yield will find no income generation here.
Execution riskHighThe company's ability to successfully integrate AI and reverse subscriber losses remains unproven.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit 18.45%
Avg. Invested days 31
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
CHGG receives a 2-star rating, supported by available scored pillars. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

★★★★★
CHGG has moderate overall fundamentals (3 stars), with soft financial health, soft growth momentum, and moderate ownership. In FY2025 versus FY2024, strong earnings growth (+87.6%) is partially offset by soft cash generation (FCF margin -3.4%), negative revenue growth (-39.0%), soft profitability (net margin -27.4%).

Financial Health Rating

★★★★★
CHGG's financial health is supported by moderate efficiency, including operating-expense and cost-of-revenue discipline (opex 77.0% of revenue). Cash strength is soft (2 stars), which helps explain the 2-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is CHGG's strongest growth driver at +87.6% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (-39.0%, negative) and free-cash-flow growth (-125.1%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 39.7% and approximately 91.3% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 3.75% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

Vanguard Capital Management, LLC 4.08%
Acadian Asset Management LLC 3.95%
Charles Schwab Investment Management Inc 3.74%
Renaissance Technologies Corp 3.01%
Quinn Opportunity Partners LLC 1.98%

Unit Economics (Per $1K Revenue)

★★★★★
CHGG generates approximately $602 of gross profit, $-168 of operating income, and $-34 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: -3.27% (Tax Credit)

Quantitative Style Profile

★★★★★
CHGG has a liquid profile. Weak momentum is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

Value-OrientedHigh VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 81.57M USD
Price to earnings Ratio -
1Y Target Price 2.79
Price to earnings Ratio -
1Y Target Price 2.79
Volume (30-day avg) 1.1M shares
Beta 2.16
52 Weeks Range 0.45 - 1.67
Updated Date 09/27/2026
52 Weeks Range 0.45 - 1.67
Updated Date 09/27/2026
Dividends yield (FY) -
Basic EPS (TTM) -0.48

How Company Makes Money

Business areaWhat it includesRetail investor read
Subscription ServicesChegg Study, Chegg Writing, and Chegg Math subscriptions.This is the primary revenue engine relying on recurring monthly student payments.
Skills and OtherCertifications, career services, and institutional partnerships.A smaller, supplementary revenue stream focused on vocational and long-term career growth.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Advertisement

Valuation

Trailing PE -
Forward PE 1.84
Enterprise Value 59.77M
Price to Sales(TTM) 0.31
Enterprise Value 59.77M
Price to Sales(TTM) 0.31
Enterprise Value to Revenue 0.23
Enterprise Value to EBITDA 10.41
Shares Outstanding 111.03M
Shares Floating 101.38M
Shares Outstanding 111.03M
Shares Floating 101.38M
Percent Insiders 3.75
Percent Institutions 39.75

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Chegg Inc

Exchange NYSE
Headquarters Santa Clara, CA, United States
IPO Launch date 2013-11-13
Executive Chairman, President & CEO Mr. Daniel Lee Rosensweig
Sector Consumer Defensive
Industry Education & Training Services
Full time employees 564
Full time employees 564

Chegg, Inc. provides a learning platform helping businesses bring new skills to their workforce and giving lifelong learners and students the skills and confidence to succeed 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; 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 provides a computational engine to help them understand and solve math problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services. The company also provides a skills-based learning platform to learn technical skills comprising AI, coding, data analytics, and cybersecurity. In addition, it rents and sells print textbooks and eTextbooks; and offers advertising services. The company serves students and companies through direct marketing channels and social media. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.