Chegg, Inc.

Chegg reported second-quarter 2026 revenue of $51.8 million, above expectations. Adjusted EBITDA was $9.1 million, for a 17% margin. Non-GAAP operating expenses were $32.3 million, and second-quarter CapEx was $3.7 million, down 49% year over year. Free cash flow was $6.4 million in Q2, including about $1.5 million of severance payments; first-half free cash flow was $9.5 million despite $14.4 million in severance. The company ended Q2 with $72.3 million in cash and investments and a net cash position of $38.5 million. Q3 guidance is total revenue of $43 million to $44 million, gross margin of 48% to 49%, and adjusted EBITDA of $1 million to $2 million. Management also said it expects to fully repay the convertible debt in Q3 and targets a 60% reduction in full-year 2026 CapEx.

Dan Rosensweig said Chegg is now focused on becoming an AI-first employability platform, not just an academic support company. He framed the opportunity around helping students choose majors and classes, build skills, find internships, and land jobs, and said the company will automate parts of the job search and application process. His tone was confident and expansive, emphasizing that Chegg has the brand, traffic, data, and beta usage to make the shift work.

David Longo highlighted strong execution on profitability and cash generation, citing $51.8 million of revenue, $9.1 million of adjusted EBITDA, and $6.4 million of free cash flow in Q2. He said non-GAAP operating expenses were $32.3 million, CapEx fell 49% year over year to $3.7 million, and full-year CapEx is targeted to decline 60%. He also noted $72.3 million of cash and investments, $38.5 million of net cash, $1.7 million of share repurchases in the quarter, $120.7 million remaining on the buyback authorization, and plans to fully repay the convertible debt in Q3.

Analyst questions focused on why Chegg is moving into employability, how it plans to differentiate versus LinkedIn, Indeed, or Handshake, and how it will drive awareness. Rosensweig said the biggest unmet need is helping students translate education into jobs, and argued Chegg can use its existing student traffic, internships.com, and alumni/network data to reach users at scale. A second question pressed on content creation for Skills; he said Chegg will reuse its existing question-and-answer assets, expand SEO around job and skill data, and eventually create thousands of shorter, more affordable learning artifacts.