Chegg, Inc. reported its first-quarter 2025 financial results on May 12, 2025, with total revenue of $121.4 million, a 30% decrease year-over-year. Subscription Services revenue also decreased by 30% to $107.6 million, and the company's subscriber base declined by 31% to 3.2 million.
Despite exceeding revenue and adjusted EBITDA guidance, Chegg announced an additional restructuring plan, including a reduction of approximately 22% of its global workforce, or 248 employees, and the closure of physical offices in the US and Canada. This restructuring is expected to generate $45-$55 million in non-GAAP expense savings in 2025 and $100-$110 million in 2026.
The company also reported new revenue streams from content licensing, having executed two deals with major technology companies that generated $4 million in Q1 2025, with an additional $7 million expected in Q2 2025. These non-exclusive deals represent less than 5% of Chegg's content library, indicating potential for further expansion.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.