Filing Flows › Chegg (CHGG) › Q1 2025
Chegg (CHGG) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 12, 2025
Chegg (CHGG) reported revenue of $121M for the first quarter 2025 (Q1 2025), -30% from a year earlier and -15% from the quarter before. Operating margin was -23.9%, net loss $17.5M (14.4% of revenue).
Chegg, Q1 2025: revenue $121M (-30% year over year), operating margin -23.9%, net loss $17.5M, operating cash flow $24.5M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $121M | -15% | -30% |
| Operating profit | −$29.0M | — | — |
| Net earnings | −$17.5M | — | — |
| Operating cash flow | $24.5M | +35% | -54% |
| Free cash flow | $15.9M | — | -37% |
What changed
Revenue was $121.4M in Q1 2025, down 30% year over year and down 15% from the previous quarter. Subscription Services was the largest line at 89% of revenue. Subscription Services lost $46.5M year over year (down 30%), 88% of the total change.
Gross margin was 55.5%, down 17.8 points from a year earlier. Operating costs exceeded revenue by $29.0M, an operating margin of -23.9%. Operating expenses fell 26% while revenue fell 30%. The quarter ended with a net loss of $17.5M, wider than the previous quarter's $6.1M loss. Non-operating items added $12.5M, -76% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $24.5M (down 54% year over year). Non-cash charges added back $11.3M of share-based compensation. Working capital and other items added $30.8M. After purchases of property and equipment ($8.7M), free cash flow as the company reports it was $15.9M.
Questions
What was Chegg's revenue in the first quarter 2025?
Chegg (CHGG) reported revenue of $121M for the first quarter 2025 (Q1 2025), -30% from a year earlier and -15% from the quarter before.
Was Chegg profitable in the first quarter 2025?
Operating loss was $29.0M (-23.9% of revenue) and net loss $17.5M.
Source: Chegg 10-Q on SEC EDGAR.