Chegg Q2 Earnings Call Highlights

Chegg NYSE: CHGG said its second-quarter 2026 results exceeded its expectations for revenue, adjusted EBITDA and cash generation as the education technology company prepares to launch a broader employability-focused platform for students. Total revenue in the second quarter was $51.8 million. Adjusted EBITDA was $9.1 million, representing a 17% margin, while free cash flow totaled $6.4 million, including about $1.5 million in severance payments related to prior restructuring actions. President and CEO Dan Rosensweig said the company has been restructuring its operations to become “AI-first,” with the aim of returning to growth while maintaining high margins and generating strong free cash flow. He said Chegg’s next strategic chapter will center on helping students move from learning into internships and employment. Employability Platform Rollout Beginning in the third quarter, Chegg plans to soft launch a new service designed to automate elements of job searching, matching and career coaching. The company expects to roll out the offering across its Chegg platform and Internships.com during the third quarter and throughout 2027. Rosensweig said the platform is intended to help students identify appropriate majors, courses and skills, while also assisting with job applications. Planned capabilities include tailoring resumes, drafting cover letters, filling out and submitting applications, initiating alumni outreach, providing company-specific interview preparation and identifying skill gaps. Chegg said more than 10,000 students have used the beta version and provided feedback. Rosensweig said the company believes it can build awareness through its existing customer base, substantial traffic and the organic traffic to Internships.com, which Chegg acquired more than a decade ago. “Nobody was putting all of this together in one place,” Rosensweig said, describing the company’s view that students need more integrated support in selecting courses, developing skills, building networks and preparing for interviews. He said the company intends to use its academic data, AI capabilities and historical question-and-answer content to expand from academic support into career-related assistance. Chegg also expects to develop shorter and more accessible skills content over time, with courses tailored to the skills employers identify as important. Skills and Language Strategy Chegg said its Chegg Skills business remains a component of its growth strategy and has been developed as a multi-channel platform serving enterprise, institutional, employer and marketplace customers. The company signed six new partners during the year, including OpenSesame.