Chegg Reports Narrower-Than-Expected Q4 Loss, Revenue Drops Near 50% YoY
Chegg posted a Q4 adjusted loss of $0.01 per share versus a consensus loss of $0.11, delivering a 90.9% EPS surprise and generating $72.66 million in revenue, 1.9% above estimates. Revenue fell 49.3% year over year from $143.48 million and shares have declined 15% since the start of the year.
1. Q4 Financial Results
Chegg reported an adjusted net loss of $0.01 per share for the quarter ended December 2025, compared with a year-ago profit of $0.17 and an expected loss of $0.11. The results mark the fourth consecutive quarter of EPS surprises, with the company delivering break-even or better results despite a challenging revenue base.
2. EPS Surprise vs. Estimates
The $0.01 loss represented a 90.9% upside to consensus expectations, following a prior quarter’s 100% surprise when Chegg broke even versus a forecasted $0.14 loss. This streak of positive earnings surprises has occurred three times in the past four quarters.
3. Year-over-Year Revenue Decline
Total revenue for Q4 reached $72.66 million, beating the $71.29 million estimate by 1.9% but down 49.3% from $143.48 million in the same period last year. The steep decline reflects reduced subscription volumes and pricing pressures in Chegg’s core online learning services.
4. Stock Performance & Outlook
Chegg shares have fallen approximately 15% year to date, underperforming the 1.3% gain in the S&P 500. Consensus estimates for Q1 call for $0.10 EPS on $87.82 million in revenue, while full-year 2026 forecasts stand at $0.09 on $285.27 million, pending management commentary on future trends.