Chegg shares have surged 71.8% in the past three months, driven by rapid expansion in its Skilling business and aggressive cost-cutting. The Skilling segment, which targets a $40 billion workforce training market, grew revenues 9% year over year in the first quarter of 2026, with management forecasting double-digit full-year growth. Adjusted operating expenses fell 55% year over year, helping the company post adjusted EBITDA of $15.5 million and positive net income for the first time in two years. Strategic partnerships with Cornerstone and Woolf are broadening distribution, while Chegg expects to fully repay its remaining convertible debt by September 2026. Despite a discounted forward price-to-sales ratio of 0.62, earnings estimates remain weak, with the Zacks Consensus Estimate pointing to a loss of 16 cents per share for both 2026 and 2027.
Chegg IncSkilling segment revenue grew 9% YoY with double-digit full-year forecast, targeting $40B workforce training market.
