What are the investment strengths of Chegg Inc (CHGG)?

Extreme valuation (0.7x P/B, 0.22x P/S) prices in bankruptcy - any stabilization creates upside. Tangible book 139M vs 98M market cap. Still generating 43M operating cash flow (TTM) and 8M FCF despite losses - not yet cash-burning death spiral

What are the investment risks for Chegg Inc (CHGG)?

AI disruption is existential - ChatGPT directly substitutes core product. 43% revenue decline may accelerate further with no floor visible Balance sheet deteriorating: current debt (63M) exceeds cash (38M), negative working capital (-11M), and 57% debt/equity

Chegg Inc

CHGG

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Chegg Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-08

Snapshot

Revenue collapsed 43% YoY (TTM 448M) vs industry median +7% growth - AI disruption accelerating structural decline[Total Revenue 1Y Growth]
Operating margin -24% (TTM) vs industry median +10% - burning cash on operations despite 63% gross margin[Operating Margin]
Trading at 0.22x P/S vs industry median 1.24x - market pricing in continued deterioration or terminal decline[P/S Ratio]

Watch Triggers

Total Revenue 1Y Growth: Decline moderates to <20% or stabilizes — Any deceleration in decline signals potential floor - key for survival thesis
Free Cash Flow TTM: Turns negative — FCF turning negative triggers liquidity crisis given 38M cash vs 63M current debt
Cash and Equivalents: Falls below 25M — Approaching debt refinancing risk with limited runway

Bull Case

Extreme valuation (0.7x P/B, 0.22x P/S) prices in bankruptcy - any stabilization creates upside. Tangible book 139M vs 98M market cap.

P/B RatioP/S RatioTangible Book Value

Still generating 43M operating cash flow (TTM) and 8M FCF despite losses - not yet cash-burning death spiral

Cash Flow TTMFree Cash Flow TTM

Bear Case

AI disruption is existential - ChatGPT directly substitutes core product. 43% revenue decline may accelerate further with no floor visible

Total Revenue 1Y GrowthTotal Revenue 3Y Growth

Balance sheet deteriorating: current debt (63M) exceeds cash (38M), negative working capital (-11M), and 57% debt/equity

Current DebtCash and EquivalentsDebt to Equity

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

25%

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Forward Thesis

Revenue decline likely to continue as AI tools replace core homework help business model

1-3yhigh

43% revenue decline accelerating from 22% 3Y CAGR decline
R&D spend (117M) exceeds operating cash flow (43M)
Current debt (63M) exceeds cash (38M)

5Y revenue CAGR -13% shows multi-year declineNegative working capital (-11M) signals liquidity stressROIC -15% destroying shareholder value

Valuation Context

Caveats

Public Strategies Rankings

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CHGG Fundamentals

Educational Services → Educational Services

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$85.72M		—
Enterprise Value	$130.57M		—
P/E Ratio	0.00		—
Total Revenue - TTM	$447.73M	-32.4%	—
Earnings Per Share (diluted) - TTM	$-0.84		—
Operating Margin - TTM	-24.1%	-20.6%	—
Net Margin - TTM	-17.1%	+106.9%	—
Free Cash Flow - TTM	$7.68M	-92.1%	—
Return on Common Equity - TTM	-0.46	+88.5%	—
Beta 5Y (Monthly)	unknown		—

CHGG Dividend History

No dividends

CHGG Stock Splits

No stock splits

CHGG SEC Filings

Filing Date	Report Date	Report Type	Filing Link
11/10/25	09/30/25	10-Q	0001364954-25-000117
08/08/25	06/30/25	10-Q	0001364954-25-000096
05/12/25	03/31/25	10-Q	0001364954-25-000052
02/24/25	12/31/24	Unknown	0001364954-25-000013
11/12/24	09/30/24	10-Q	0001364954-24-000085
08/05/24	06/30/24	10-Q	0001364954-24-000072
04/29/24	03/31/24	10-Q	0001364954-24-000042
02/20/24	12/31/23	10-K	0001364954-24-000009
10/30/23	09/30/23	10-Q	0001364954-23-000146
08/07/23	06/30/23	10-Q	0001364954-23-000121
05/01/23	03/31/23	10-Q	0001364954-23-000068
02/21/23	12/31/22	10-K	0001364954-23-000013
11/01/22	09/30/22	10-Q	0001364954-22-000107
08/04/22	06/30/22	10-Q	0001364954-22-000088
05/02/22	03/31/22	10-Q	0001364954-22-000050
02/22/22	12/31/21	10-K	0001364954-22-000011
11/01/21	09/30/21	10-Q	0001364954-21-000113
08/09/21	06/30/21	10-Q	0001364954-21-000071
05/03/21	03/31/21	10-Q	0001364954-21-000048
02/22/21	12/31/20	10-K	0001364954-21-000013
10/26/20	09/30/20	10-Q	0001364954-20-000210
08/03/20	06/30/20	10-Q	0001364954-20-000172
05/04/20	03/31/20	10-Q	0001364954-20-000094
02/20/20	12/31/19	10-K	0001364954-20-000041
11/04/19	09/30/19	10-Q	0001364954-19-000251
07/29/19	06/30/19	10-Q	0001364954-19-000188
04/29/19	03/31/19	10-Q	0001364954-19-000125
02/25/19	12/31/18	10-K	0001364954-19-000027
10/29/18	09/30/18	10-Q	0001364954-18-000200
07/30/18	06/30/18	10-Q	0001364954-18-000170
04/26/18	03/31/18	10-Q	0001364954-18-000113
02/26/18	12/31/17	10-K	0001364954-18-000039
10/30/17	09/30/17	10-Q	0001364954-17-000188
07/31/17	06/30/17	10-Q	0001364954-17-000157
05/01/17	03/31/17	10-Q	0001364954-17-000103
02/23/17	12/31/16	10-K	0001364954-17-000031
11/07/16	09/30/16	10-Q	0001364954-16-000457
08/03/16	06/30/16	10-Q	0001364954-16-000398
05/03/16	03/31/16	10-Q	0001364954-16-000337
03/04/16	12/31/15	10-K	0001364954-16-000291
11/05/15	09/30/15	10-Q	0001364954-15-000150
08/06/15	06/30/15	10-Q	0001364954-15-000088
05/08/15	03/31/15	10-Q	0001364954-15-000032
03/06/15	12/31/14	10-K	0001364954-15-000009
12/21/15	09/30/14	10-Q/A	0001364954-15-000199
11/07/14	09/30/14	10-Q	0001564590-14-005296
08/08/14	06/30/14	10-Q	0001564590-14-003407
12/21/15	06/30/14	10-Q/A	0001364954-15-000198
05/12/14	03/31/14	10-Q	0001564590-14-002022
12/21/15	03/31/14	10-Q/A	0001364954-15-000197
03/06/14	12/31/13	10-K	0001193125-14-086390
11/13/13	09/30/13	424B4	0001193125-13-440327
10/01/13	06/30/13	S-1/A	0001193125-13-385623
05/12/14	03/31/13	10-Q	0001564590-14-002022
11/13/13	12/31/12	424B4	0001193125-13-440327
09/30/12	09/30/12	Unknown	--