Chegg Inc. (NYSE: CHGG) is a global learning company that recently reported its earnings for the fourth quarter and full year ending December 31, 2025. The company is in the midst of a transformation, focusing on the $40 billion skilling market. This strategic shift is expected to drive significant growth, with strong margins and cash flow in the future.
On February 9, 2026, Chegg reported an earnings per share (EPS) of -$0.01, which was better than the estimated EPS of -$0.11. The company also reported a revenue of $72.66 million, surpassing the estimated revenue of $71 million. Despite these positive surprises, the stock price declined during Monday's extended trading session, as highlighted by Benzinga.
The decline in Chegg's stock price is attributed to a significant year-over-year decline in revenue, raising concerns among investors. The company's reorganization into two main businesses, with Chegg Skilling as the primary growth engine, is part of its strategy to address these challenges and capitalize on the skilling market.
Chegg's financial metrics provide insight into its current valuation. The price-to-sales ratio is approximately 0.18, and the enterprise value to sales ratio is about 0.28. These figures suggest the market values the company's sales at these multiples. The enterprise value to operating cash flow ratio is around 2.97, reflecting the company's valuation in relation to its cash flow from operations.
The company's debt-to-equity ratio is approximately 0.57, indicating a moderate level of debt compared to its equity. Additionally, the current ratio is about 0.95, suggesting Chegg's ability to cover its short-term liabilities with its short-term assets. These metrics provide a snapshot of Chegg's financial health as it navigates its transformation.
