Chegg Q2 revenue falls 51%

Chegg sees Q3 total net revenues between $43 million and $44 million. The company expects Q3 gross margin in the range of 48% to 49%, and Q3 adjusted EBITDA between $1 million and $2 million.

• Expense reduction - The company nearly halved non-GAAP operating expenses year over year, citing disciplined management and AI-driven productivity gains.
• Skilling business - Chegg Skilling revenues rose 2% year over year, with new distribution partnerships expected to contribute more meaningfully later this year.
• Academic services retention - Chegg said Chegg Study monthly retention remained strong, reinforcing its long-term cash-generating potential.

Chegg said Q2 revenue fell 51% year over year, but exceeded company expectations. Adjusted EBITDA was positive, reflecting disciplined expense management and AI-driven efficiencies.

The company repurchased $1.7 million in shares during Q2, with $120.7 million remaining authorized.

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